The FSA and Association of British Insurers are at loggerheads over the failure of the basic advice regime after the regulator admitted that stakeholder products had flopped.FSA chief executive John Tiner told the Treasury select committee this week that there had been little take-up of stakeholder because of low engagement from the industry. Tiner said the FSA was exploring what went wrong and the lessons to be learned but refuted MPs’ allegations that the burden of FSA regulation, even in the lighter-touch regime, was responsible for some of the failings. ABI director-general Stephen Haddrill recently told the committee that the primary reason for the failure of the basic advice regime was the regulatory involvement of the FSA, which he described as medium-touch at best. Tiner told MPs it was interesting that straightforward and simple financial products had not taken off and questioned why the industry could not be more productive in this area. Tiner said: “I do not know if it is a lack of firms coming to the marketplace, that they are already making money out of other things and this would slow that down or whether they feel that price caps mean they cannot make a profit. It is probably true to say the industry could be a bit more productive and lower the costs.” Committee chairman John McFall said: “There are lessons that can be learned here, particularly with regard to the NPSS. Is it not the case with stakeholder that it was a combination of the sales process, commission incentives, charge cap and regulatory regime that all made the products uneconomic to the market?”
The recent outperformance by small and medium-cap stocks has not just applied in the UK. In the US, large-cap stocks have risen by 12.2 per cent over 12 months, well below the 27.8 per cent from small caps.
The Mortgage Business Expo takes place in Manchester this week involving 130 lenders, packagers, technology and legal companies, networks and clubs.The free event takes place at the Manchester G-Mex on 17th and 18th May with a seminar programme including CML director general Michael Coogan, Nationwide group economist Fionnuala Earley and Abbey chief economist Barry Naisbitt.Chairmen […]
The National Association of Pension Funds is looking for volunteers to help spread the word about the benefits of pension saving.The NAPF associates and pension guides, as they will be known, are expected to be drawn mainly from recently retired industry professionals or those working part-time.The associates will either work with staff to help during […]
Lehman Brothers has announced the amalgamation of two of its mortgage subsidiaries Preferred and SPML.All loan operations of the pair will be combined but both will retain the underwriting philosophies of the different brands and sales forces to service their particular fields. Lehman has yet to decide whether to combine the two offices.It has also […]
Over the past year, both conventional and inflation-linked gilts have generated returns in excess of 25 per cent. Meanwhile, inflation has only risen by between 1 per cent and 1.5 per cent. Click here: ILG webinar note 1016
- Top trends
- Top trends
- Revealed: Fidelity International director investigated over harassment claims
- Lifetime allowance 2018/19 increase confirmed but pensions absent
- How much are advisers charging for pension transfers?
- Steve Bee: Why still no justice for Waspi women?
- Robert Reid: Don’t let social media comments diminish our profession
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
FCA chief executive Andrew Bailey is calling for regulators to back a proposed implementation period after Brexit to avoid an economic “cliff edge”. Speaking at The International Financial Services Forum today, Bailey continued pushing for cooperation between the British and European regulators, this time pointing to preserving financial stability. He says: “Brexit has global implications, […]
Prudential must compensate a customer whose transfer value was significantly reduced after a meeting with an in-house adviser. According to a Financial Ombudsman Service decision, the customer, called Mr L, was told on 2 March 2017 that the transfer value for his pension policy was £141,981. He met with a Prudential adviser, who recommended he […]
Choosing the right system is one of the most important decisions an advice firm will make. Here is a review of the best out there. Last month I looked at the four foundations of a solid adviser technology strategy. The first of these was the practice management system. Studies have found that between 20 and […]