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FSA calling on employers to push pension

Employers will have to take an active part in promoting stakeholder

pensions if they are to be successful, claims the FSA.

But the pension industry is warning that some employers will be wary of

involvement, fearing they may be left to shoulder the blame of any

misselling or misbuying scandal.

As a result, providers expect many employers to seek advice from IFAs.

FSA director of investment business Michael Folger says employers&#39

involvement is crucial if the low- cost product is to work, given the

general apathy about pensions.

The FSA&#39s latest research into stakeholder decision trees found many

consumers failed to complete the trees due to boredom.

Folger says the FSA&#39s consumer division is developing a consumer

information and education pack to push the product as well as raise

awareness of pensions in general.

The DSS is also promoting stakeholder with a £5m ad campaign.

Folger says: “We need to find effective ways of helping people to make a

responsible choice with their pension. It is important to get it right this

time.”

Scottish Equitable manager pensions development Steve Cameron says: “I

agree employers are the key to making stakeholder work but some will be

wary of personal endorsement in case they are held responsible. It depends

on what they say. They may have to seek financial advice.”

l Profile, p35

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