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Cap is unfeasible, say providers

Providers say Sandler&#39s admission that face-to-face advice will at least initially be necessary on his suite of savings products makes the 1 per cent cap unfeasible.

Following Sandler&#39s statement at the Treasury&#39s seminar last week, Norwich Union attacked Sandler&#39s proposals, claiming he did not do any work to determine if 1 per cent was viable and says there is no doubt that the proposed products will need to be sold rather than bought. Standard Life senior technical manager John Lawson says manufacturing and distributing savings products under a 1 per cent cap will mean an even bigger squeeze on margins.

Scottish Life head of communications Alasdair Buchanan says: “Sandler admitted that initially at least, face-to-face advice will be needed. As soon as off-the-shelf is replaced by the advice model, even in a simplified compliance regime, 1 per cent will be bust.”



“Yes. There are too many sub-prime mortgages being pushed.”Brian Ind, Tetbury Financial Services“No. I can&#39t see any problem. It&#39s no more harmful than double glazing salesmen or Jehovah&#39s witnesses.”Scott Williams, Keith Williams“If cold-calling is done in a professional manner then people can always say no.”Alan Mackay, Alan Mackay & Co“Yes. There is a lot of […]

Skandia closes guaranteed fund as it seeks safe haven £1.2m buys stake in Lighthouse

Skandia has bought a 9.9 per cent stake in national IFA and network group Lighthouse.The life office will pay almost £1.2m for 2,248,049 new shares at a price of 52p per share when the deal is completed early next month.Lighthouse plans to use the capital to support the group&#39s drive for expansion, which focuses on […]

Bigger role for Young

Misys head of mortgage services Andy Young is having his role extended to negotiate deals with lenders for all its five networks.Young, who joined last year from Zurich IFA, previously managed mortgage business for the 4,000 advisers in Misys&#39 IFA Network, Countrywide, Kestrel and Financial Options networks but his negotiating responsibilities will now cover DBS&#39s […]

Inside edge

One of the most incisive parts of Ron Sandler&#39s report was his assertion that the current conduct of business rules excludes large numbers of the public from meaningful financial advice.The current regime has allowed regulators to rule with the benefit of hindsight, forcing advisers to ringfence their advice with an expensive palisade of know your […]


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