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Divide and rule on &#39consultation&#39

The Orwellian plot line that is the CP121 consultation continues apace as organisations and businesses great and small make their submissions.

Entering the debate with an appropriately political sense of timing, comes the Office of Fair Trading, with director general John Vickers endorsing the FSA plans. The OFT started the ball rolling in the first place but it has intervened again to back CP121 in all its detail, including defined payment.

Money Marketing would argue that defined payment distorts competition and restricts choice, particularly when the EU allows Continental commission-charging independents. Still, the OFT seems content.

The Consumers&#39 Association remains true to the independent cause and is adamant that CP121 is detrimental to consumers, as, remarkably, does Lloyds TSB, proving that calling the document a high-street bank stitch-up is too glib by half.

Standard Life is worried about the consumer detriment of multi-ties and does not like defined payment. But Norwich Union is in support. IFAs opposed to CP121 should not underestimate how much of a blow this is, though since the largest IFA stable, Misys, came out in favour of CP121 perhaps it is less significant.

Companies must choose what is best for them and their customers and, if this were a genuine consultation, we would have the basis for a genuine debate. But we fear that greater weight will be given to those who agree and the FSA will say, in its best New Labourspeak, that opinion is divided, it is sticking by its research, and it will press ahead as planned.


Row over Hamilton&#39s Pru bond deal

Hamilton Life and Prudential have come under fire over an agreement in which IFA clients with maturing investment bonds are being offered Pru bonds instead of being referred back to their adviser.IFAs are angry that, as their clients&#39 bonds mature, Hamilton Life is not referring them back to adviser but is writing to bondholders enclosing […]

Thy will be done

A client is aware that his family will be liable for a fairly substantial inheritance tax liability when he and his wife pass away. The client does not require access to all of the value of their estate. How can he achieve a solution whereby the amount of tax actually paid could be mitigated and […]

Scottish Widows Bank Revision Round-up

The amount of study time that should be allowed for depends on the individual but as a guide the Institute of Financial Services suggests spending 50-60 hours studying. However, each student should decide for themselves how much study time, including revision, they actually require. A study period of about 8-10 weeks is sufficient for most […]

Outside Edge: Mark Chilton

Mortgage churning stands little or no hope of every going away. The angry debate between certain lenders and the broking community will continue. The two factions have no real common ground to reach consensus as their interests are completely polarised.Twenty years ago, a pricing cartel existed among lenders with attractive margins being retained on a […]

Generation Rent

By Denise Wond, marketing manager We’ve heard a great deal about Generation Rent in recent years but what does it actually mean for consumers and advisers and has the face of the typical renter changed? The picture is certainly more diverse than it used to be. Homeownership is at its lowest point in 30 years, […]


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