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FSA &#39backing&#39 up the wrong decision tree

The FSA&#39s claim of industrywide backing for stakeholder decision trees has been met with derision by the pension industry.

FSA investment business policy group manager Norman Digance claims “the majority of responses felt the design, content and use of the decision trees were reasonable for a product with built-in consumer safeguards”.

The FSA has announced a new consultation paper for the stakeholder regulatory regime this week, setting out draft rules and guidance for the conduct of stakeholder pension business.

Among the paper&#39s main proposals are a “reasons why not” letter, revealed in Money Marketing, to be used when a traditional personal pension is recommended instead of a stakeholder plan.

Responses have to be in before September 15.

Clerical Medical pensions strategy manager Nigel Stammers says: “Decision trees are too complicated for the average consumer to understand but the regulations are not comprehensive enough on the areas of the minimum income guarantee and contracting out. No one is saying they look wonderful.”


Standard Life is entering the with-profits bond market for the first time

Called With Profit Bond, it is a unitised with-profits product aimed at low to medium risk investors. It can be set up to provide either income or growth and a terminal bonus is paid in the event that the bond is encashed by the investor.Standard Life has chosen now to come in the the with-profits […]

Nuki&#39s Eye

There will be much wailing and gnashing of teeth going on in the boardrooms of insurers this week.At the offices of the ABI, the slap-slapping of self-flagellation can be heard from the street. At Canary Wharf, where the life industry&#39s police force (aka the FSA) has its off-ices, “regulators” are cracking their heads off blooded […]

IFAs build firm foundations for stakeholder era

National IFAs looking for strategies to survive in the post-stakeholder era are targeting the corporate market.With margins cut to the bone under the stakeholder regime, small monthly premiums from individual clients do not represent good business for many IFAs.So, while many bigger firms are seeking to change their business focus, it has come as a […]

American wherewithal in London

Fund supermarkets have been a way of life in the US for over a decade so what are the lessons as the supermarketsfinally come to this country?Charles Schwab pioneered the concept in 1984 with its Mutual Fund Marketplace. This prototype was the first to provide investors with direct access to a selection of funds.After a […]


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