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Fidelity says Sandler has failed to appreciate IFAs&#39 value

Fidelity says Sandler has failed to appreciate the true value of IFAs in his report and done little to encourage consumers to save for the future.

The fund manager says Sandler has simply taken an economist&#39s view of the financial services market by looking at the supply chain in an effort to boost demand and by suggesting that IFAs are driven solely by commission.

It says IFAs actually create the motivation for people to save.

Fidelity also says he has done little to support trends – such as tax incentives, product innovation and non-provider advice – which support all financial services industries and has failed to give consumers enough credit for their knowledge.

As a result of some of his suggestions, many providers will just design and manufacture mediocre and homogeneous products, it believes.

It also questions Sandler&#39s view that trackers are superior to active funds, saying that over the past five years active funds have broadly performed better than index hugging funds.


Product providers to offer vanilla pensions

Pickering wants product providers to stick to the three new types of pension that he proposes to introduce and not market their products outside set definitions. Warning that he wants to see the number of pensions on the market cut from around 20 to three, Pickering has indicated that providers must not attempt to say […]

Grasp nettle of reform – Consumers Association

The Government should &#39grasp the nettle&#39 and prevent pensions policy becoming a short-term political football, according to the Consumers&#39 Association response to the Pickering report.The CA believe consumers are not saving because they are faced with a complex and inflexible system of products that are far too confusing. Consumers&#39 Association director, Sheila McKechnie said: “These […]

Hargreaves says Sandler is wrong over trackers

Hargreaves Lansdown disagrees with Sandler&#39s view that investors should look to cheaper tracker funds for better returns, saying it is a “classic” case of using past performance.Hargreaves says the active versus tracker fund debate has become muddied in past years as 75 per cent of actively managed funds have performed poorly but points out that […]

CA welcomes Sandler&#39s call for reform

CA welcomes Sandler&#39s call for reform of finance industry but calls on FSA and Government to act Consumers&#39 Association (CA) has today welcomed the Sandler review, which nails the industry line that it serves the consumer interest. The report offers a blueprint for the industry, focusing on consumer needs.Sandler has confirmed CA&#39s assessment of poor […]


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