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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.”

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