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Change of heart on price cap

Sandler has recommended keeping the 1 per cent price cap on his new range of regulated savings products against his own wishes that market forces determine charges.
His report acknowledged the price cap was &#39controversial&#39 but is impossible to renege now that Catmarked Isas and stakeholder pensions are on the market.
It says &#39a 1 per cent ceiling would be a suitable starting point&#39 for the new range of regulated products. But Sandler does want this to be reviewed at regular intervals.
Speaking at the launch of his report, Sandler said he did not want to have to impose the cap, believing it better for the market to drive down charges.
He believes the 1 per cent cap will be easier for the industry to bear if the overbearing regulated sales process is removed in favour of regulated products.
Sandler says: “In an ideal world I would not impose a price cap. An ordinary market would drive down costs of its own accord. A price cap is a necessary part of a regulated product and makes it able to be sold. The level of capping is open to debate.”


Royal & SunAlliance Eurolife – RSAE Glanmore Property Fund

Tuesday, July 9, 2002Type: Dublin listed companyAim: Income and growth by investing in commercial propertyMinimum investment: Lump sum Euros 15,000Place of registration: GuernseyInvestment split: 100% in commercial propertyIsa link: NoCharges: Initial 7.75%, annual 1.5%Commission: Initial 5%Tel: 00353 15009100

IFA investment knowledge to be increased

Financial advisers will have to beef up their investment knowledge following Sandler&#39s recommendations, with the review team concluding IFAs are lacking in this area.The report does not go into specifics in this matter, with Sandler saying details will be up to the FSA to sort out. He says the FSA&#39s current examination of the review […]

Friends welcomes Sandler, but warns on price caps

Friends Provident has welcomed the Sandler review&#39s proposals for simplification but has is warning that the imposition of the one per cent price cap of the new-style stakeholder products will not help close the savings gap.Friends Provident managing director Ben Gunn says: “We welcome the Sandler Review and applaud the proposals for simplification and improved […]

Reforms threaten single-tied adviser

The FSA&#39s proposed changes to polarisation will increase the competitiveness of high-street banks and force single-tied advisers out of the market, claims Datamonitor.In a report entitled UK Bancassurance and Tied Advice, Datamonitor says adopting multi-tied status will strengthen high-street banks&#39 distribution capabilities through partnerships with life offices.The bancassurance and tied advice channel, including direct salesforces, […]


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