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FSA confirms scrapping of polarisation

The FSA has announced that it will proceed with the scrapping of polarisation as outlined in CP121.

It is also abolishing the “better than best” rules which prevents an IFA firm from recommending a product from a provider which owns more than 10 per cent or more of the firm.

The regulator says abolition of the rule will mean that IFA firms will be able to attract investment and increase their financial strength.

It also announced that it will be consulting on draft rules to give effect to its decisions in January and will mount a public awareness campaign to highlight the changes.

Announcing the decision at the Aifa annual dinner last night FSA chairman Howard Davies said: “The polarisation rule has not delivered the consumer benefits hoped for when it was introduced. We are convinced that freer market will help consumers more.

“In future consumers will find it easier to shop around for the best product and providers will be free of the anti-competitive constraints that have made it difficult for them to offer consumers that choice.”


Tiner warns of buy-to-let dangers

The FSA has warned that the buy-to-let market could fall as quickly as it rose and is one of two areas of most concern despite falling outside its remit when it regulates mortgages from 2004.At the Building Societies Association annual lunch last week, FSA managing director consumer, investment and insurance John Tiner warned that “two […]

Labour MP calls for automatic pensions

Labour MP James Purnell is setting out a plan for a “third way” on pension contributions which would see all adults automatically enrolled in a private scheme unless they opt out.Purnell, a member of the work and pensions select committee which is conducting an inquiry into the future of pension policy, calls his alternative a […]

No relief for self-employed

Pensions are deferred pay. The proposition for removing tax relief on pension contributions would split the working population into two halves.First are those in final-salary schemes, whether defined-benefit or defined-contribution, where there would be no increased taxation. Second are the self-employed, who make their own provision, who would suffer an increase in taxation from this […]

Baille Gifford launches child savings plan

Baillie Gifford has announced the launch of a Children&#39s Savings Plan which provides a flexible way to buy and hold shares in its range of six investment trusts.Savings start at a minimum of £30 a month or a lump sum of £250. There are no management charges or commission beyond stamp duty on share transactions […]


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