View more on these topics

FSA refuses to reveal Treasury price cap talks

The FSA says it is not in the public interest to disclose discussions or memos exchanged with the Treasury over the 1 per cent stakeholder cap following a Freedom of Information Act challenge by Money Marketing.

The regulator says revealing information and views shared with the Treasury would inhibit the future free and frank exchange of views between the two bodies. It argues that disclosure of research and information given to the Treasury to help set the cap would be “likely to inhibit the FSA in the effective conduct of its regulatory responsibilities and Government departments in the development of policy”.

Money Marketing is appealing against the FSA decision.

Clerical Medical head of industry affairs Nigel Stammers rejects the FSA’s argument, saying the FSA should be prepared to stand by any comments it has made about the industry and considers it must be in the public interest to know what submissions led to the Treasury choosing a figure of 1 per cent.

The low level of the stakeholder charge has seen the sale of pensions slow to a trickle and the Government forced into an embarrassing U-turn when it raised the cap to 1.5 per cent last November.

Many product providers, which spent millions of pounds on marketing stakeholder products, are now shunning stakeholder in favour of pension products above the charge cap.

An FSA spokesman says: “The relationship between the FSA and the Treasury depends on open and candid exchanges being possible, which will be inhibited if the exchanges become publicly available, as any differences in opinion could be exploited for political, commercial or personal purposes.”

Stammers says: “The FSA are contradicting themselves. It is in the consumers’ and the industry’s interest to know how price caps are arrived at.”

Larking Gowen senior financial adviser Colin Trayler says: “The 1 per cent figure was hopelessly inadequate and I would be interested to know how they calculated it. When the Sandler initiative fails and the next savings initiative comes in, I want to know what charging structure we can expect.”


Kfis – the key facts

Research by Mortgage Brain reveals what introducers look for KFI generation and product selection. Mark Lofthouse, CEO of Mortgage Brain, assesses the survey’s findings

Derbyshire IoM holds its bond rates for a second month

The Derbyshire (Isle of Man) is maintaining its Manx bonds rates consistent for a second month, amidst continuing uncertainty over UK base rates.Savers can benefit from a guaranteed rate of up to 5.15 per cent gross until May 30, and fast-moving savers are able to take advantage of the rate on the one-year Manx bond, […]

Scottish Life issues mini-pension guide

Scottish Life has produced a credit card sized leaflet summarising the essential facts on A day for advisers.The guide covers the 10 main areas in pensions legislation facing change at A day, including the statutory lifetime allowance, retirement and death benefits, protection and retirement annuity contracts.The leaflet, which is free, can be ordered through Scottish […]


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