View more on these topics

FSA publishes Sandler sales options

The FSA has published three possible options for the new sales regimes to accompany the Sandler suite of stakeholder products, none of which include full-blown advice.

Of the three options, the FSA favours the second, an approach led by filtered questions, but says it is eager to consult with the industry to gauge its opinion.

There is a “self-help” approach involving warnings about the products but leaving the burden of responsibility on consumers&#39 shoulders for deciding whether it is suitable for them.

The second choice, labelled “guided self-help,” includes a series of filter questions decided by the FSA to screen 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.

The final option, “focussed advice,” would see advisers making a limited assessment of suitability according to guidelines set by the FSA. Advisers could give advice on the products without having to train to FPC3, the level required to be a fully regulated IFA.

The regime is outlined in Discussion Paper 19, Options for Regulating the Sale of Simplified Investment Products, published today.

The FSA stresses any final sales regime will largely depend on the actual structure of the new products, which the Treasury has yet to consult on.

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.”

Recommended

Millfield creates new appointment

Millfield Partnership has created the new position of marketing communications executive as part of its drive to promote expansion.Joanna Butler been appointed to the role from IFA and employee benefits consultancy Partridge, Muir & Warren where she was marketing manager.Butler&#39s role will be to increase and manage Millfield&#39s public relations initiatives and develop media spokespeople, […]

ABI says regulation is not the answer to Sandler

Regulation of the sales process of Ron Sandler&#39s stakeholder style products is only one part of a “three pieced jigsaw puzzle” according to the ABI and on its own will not help to close the savings gap.Responding to the FSA&#39s Discussion Paper 19 published yesterday which outlined three possible sales regimes for the new stakeholder […]

Bristol & West – 1 Plus Bond

Friday, 3 January 2003 Type: High interest account Minimum-maximum investment: £5,000-£1m Interest rate: 4.1% gross a year, 4.01% gross a month Term: 15 months Offer period: Until further notice Withdrawal penalties: No withdrawals permitted during term Tel: 0808 181 1111

Britannia BS launches guaranteed bond

Britannia Building Society is launching an equity bond which guarantees the full return of the original investment regardless of stockmarket performance.The five-year capital equity bond guarantees 100 per cent return of investors&#39 original capital irrespective of the performance of the FTSE 100, to which it is linked.If, after the five-year period, the FTSE has risen […]

Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment