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Call for &#39suite of simple products&#39

The Sandler review is recommending the introduction of a price capped &#39suite of simple products&#39 that can be sold without advice.
The move echoes very closely the &#39family of products&#39 former Work and Pensions secretary Alistair Darling, proposed to Money Marketing at the NAPF conference in May.
He wanted a range of products with minimum of safeguards and simple health warnings sold through an unregulated sales process.
The Sandler review agrees, saying regulating products and de-regulating the sales process will make the market more competitive and open up savings products to the masses.
The suite of products dubbed &#39stakeholder&#39, will include a mutual fund or unit linked life fund, a pension and a with-profits product. A protection product could also be in the included.
These products would have capped charges, a restricted investment profile to limit risk and regulated early exit charges.
With-profits products in the suite will have to be smoothing accounts managed on a 100/0 basis with explicit charges.
The salesman would have to provide pre-sale warnings on the risks involved. People on low incomes above a certain age and those with access to occupational schemes will be steered away from the pension product.
But Sandler says there would be no imperative for the salesman to be FPC qualified, &#39know their customer&#39 or provide &#39suitable advice&#39.
Clerical Medical pensions strategy manager Nigel Stammers says: “Sandler has recognised the 1 per cent is too costly for two sets of regulation and is splitting the market. There is now more incentive for the banks and supermarkets to sell in this market, but there isn&#39t for the consumer to buy.”

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