View more on these topics

FSA manager warns of stake squeeze on firms

An FSA official has warned that making all employers offer and contribute to stakeholder would stretch already straining margins for giving advice on the new pension.

During the question time session at last week&#39s LIA Conference in Birmingham, the FSA&#39s investment business policy manager Brenda Gibson said the squeeze on providing advice caused by the 1 per cent maximum management charge would be increased by the introduction of compulsion.

Gibson said: “If 1 per cent on a voluntary basis is too low to provide advice, compulsion would increase the squeeze.”

LIA chief executive Jeff Travis, Aifa, director general Paul Smee, LIA public affairs director John Ellis and Zurich director of government and public affairs Karl Snowden said they believe the Government is likely to make it compulsory for all employers to contribute to stakeholder schemes.

Ellis says: “I guess if full-scale compulsion was brought in, employers would go to stakeholder schemes and the scope for pension choice may be more limited. But I do not think that it would increase the squeeze, as an element of advice would still be required to set up stakeholder schemes.”

FSA spokeswoman Jackie Blyth says the FSA does not have an official view on this subject and claims Gibson was voicing a personal opinion.

LIA Conference, p9


SLI launches IFA web platform

Scottish Life International is launching an internet platform which allows IFAs to conduct secure online business transactions.The site, at, gives IFAs the ability to switch clients&#39 fund allocations, including protection levels and investment splits, as well as online instruction conformation from anywhere around the world.SLI e-commerce consultant David Lawrence says: “The main aim of […]

FI&S in retail fund push

Friends Ivory & Sime is reorganising its fund range and planning new launches in a bid to become a major retail brand in the UK investment market.The range will concentrate on FI&S&#39s expertise in areas such as socially responsible investment and UK smaller companies, with the first launches to go ahead this summer.Following the success […]

SLFoC appoints Hanby as managing director of UK insurance operations

Sun Life Financial of Canada is appointing Peter Hanby as managing director of its UK insurance operation. Steve Melcher, the previous managing director, will become non-executive chairman. Hanby, was formerly finance director. He qualified as an accountant in 1973 and held positions with Unigate, Granada and the Prudential.

FSA to adopt new policy for reports on firms

The FSA has set out a new integrated policy for commissioning skilled persons to provide reports on firms. Whether to use skilled persons for special reports will be decided case by case, considering costs to the firm and particular circumstances. The reports will be commissioned to analyse information, to assess situations, to offer advice and […]

Is volatility dead? No, sell credit

There are several arguments that one could currently make for why credit markets look unattractive. These include signals that the US economy is in late cycle, the fact that corporate leverage has been increasing (with 2016 setting a record for the amount of global bond issuance), and that US high-yield default rates have risen considerably […]


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 thought leadership.

    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