At the round table debate, Mann suggested the industry had to carry some of the blame due to poor advice and inappropriate products sold in the past. He said: “We created a culture of reward for unnecessary disturbance. Many people had products that would have been useful if they had kept them for a greater period of time rather than churning.”
Aegon UK chief executive Otto Thoresen said: “There was a vicious circle of behaviour that was not as good as it should have been, leading to increased regulatory red tape, leading to increased costs, leading to a migration towards people with discretionary assets rather than the basics of what we used to do.”
Heron House Financial Management managing director Saran Allott-Davey considered that changes in legislation have been detrimental by creating uncertainty.
She said: “People have been guided in a certain direction but, with hindsight, they might have been better off taking a different course of action. Without the luxury of knowing that a framework will exist for the long term, it puts people off planning ahead.”