View more on these topics

FSA favours filters for stake suite

The FSA favours a regulated sales process led by filter questions for the

new Sandler suite of stakeholder products.

In its discussion paper Options for Regulating the Sale of Simplified

Investment Products, published last week, the regulator outlined three

possible options for the new regime but indicated that it favoured the

second option, led by filtered questions.

The first option would involve a “self-help” approach involving warnings

about the products but leaving the burden of responsibility on consumers in

deciding whether it is suitable for them.

The second is a “guided self-help”, including a series of filtered

questions decided by the FSA aimed at screening out consumers for whom the

products are not appropriate. Firms employing this sales process could not

be held liable for poor advice as long as they stuck to the set questions.

Finally, the “focused advice” option would see advisers making a limited

assessment of suitability according to guidelines laid down by the FSA.

Advisers could give advice on the products without having to attain FPC3,

the level required to be a fully regulated IFA. The FSA says it is eager to

consult with the industry on the options.

The regulator stresses that any final sales regime will largely depend on

the actual structure of the new products and the Treasury has yet to

consult on this issue.

FSA director of conduct of business standards Michael Folger says: “Of the

three options that we have set out, regulation of the sales process based

on filter questions to screen out consumers at clear risk of buying

unsuitable products looks quite promising.”


Irish Life International – Secured Growth Bond 10

Tuesday, 7 January 2003 Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE Eurotop 100 index Minimum investment: Lump sum Euro 10,000, £10,000 Place of registration: Dublin Investment split: 100% linked to the performance of the FTSE Eurotop 100 index Guarantee: Option A &#45 100% capital returned in full regardless of […]

Smith made deputy sales director at Scottish Life

Scottish Life is promoting Jim Smith to the newly created position of deputy sale director from his former role as head of promotion and e-business.Smith, who was formerly head of remote distribution at NPI and assistant executive director, sales at Abbey Life, will report to sales director Jim Gilchrist.Scottish Life chief executive Brian Duffin says: […]

The £100,000 question

A married couple aged 61 and 65, who are basic-rate taxpayers with acautious to moderate approach to risk, are looking to generate a reasonablelevel of income from their life&#39s savings of £100,000. How should theygo about this? Against a backdrop of tumbling stockmarkets, most income investors preferto sit on their hands and do nothing. But […]

Changes to L&G executive pension

The article (Money Marketing, December 19) is worth expanding given ourfuture position in the executive pension plan market postJanuary 27, 2003.Legal & General is to revamp its executive pension plan to providebetter value for customers and bring it up to date. The changes, effectivefrom January 27, will result in:Improved terms for new regular premium customers […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm