View more on these topics

FSA reviews GPPs on charge fears

The FSA is understood to be reviewing GPP sales amid concerns that IFAs are overcharging employers by selling plans with charges over 1 per cent when they could recommend stakeholder.

Senior industry sources told Money Marketing the FSA is examining why GPP sales are flourishing despite the availability of stakeholder.

IFAs have questioned the move, claiming that it is often best advice to recommend a GPP ahead of stakeholder.

The news comes as the House of Commons debates stakeholder following a motion filed by Shadow Secretary of State for Work and Pen-sions David Willetts stating that stakeholder has failed to reach its target audience.

Pensions minister Ian McCartney&#39s predecessor Lord Rooker had previously said the exemption from stakeholder of companies offering GPPs with 3 per cent employer contributions would be reviewed but this is the first indication that the FSA is taking a closer look at GPPs.

The FSA says that monitoring the sales of stakeholder compared with GPPs is a watching brief which forms part of its ongoing regulatory procedures. It claims this kind of monitoring is standard practice for new products.

Legal & General pensions marketing manager Andy Agar says: “If the FSA is reviewing GPPs this is not surprising. There was always going to be a review of GPP exemptions. This adds to the desire for stakeholder to succeed.”

Norwich Union head of corporate pensions Iain Oliver says: “If there is an issue, it will depend on whether IFAs are using companies which offer GPP terms outside of 1 per cent. There is a potential question mark.”

Wentworth Rose managing director Philip Rose says: “There are some clear advantages in recommending certain GPPs over stakeholder but if the FSA is not happy with this then they should give some kind of wind-up date for GPP products over 1 per cent and not leave IFAs at risk who believe these products are best for their clients.”

Recommended

Special effects

Introduced business from neighbouring professions has long been part of IFA practice but increasingly it is IFAs referring business to each other, seeking out fellow IFAs with expertise in a particular area.In discussions about the future direction of IFA businesses, two comparisons are often made. In terms of professionalisation, the analogy is made with accountants […]

New Star appoints Whitefield as retail marketing head

New Star Asset Management has appointed Garry Whitefield as its new head of retail marketing.Whitefield joins from Keydata where he was head of marketing. Prior to Keydata he was marketing manager at Hill Samuel Asset Management.In his new position, Whitefield’s responsibilities will include IFA marketing and product literature support. He will report to marketing director […]

Income threat as the FSA seeks references

IFAs claim the FSA is threatening their income streams by requiring references from their networks or firms at the start of the procedure to bec-ome directly authorised.It says IFAs are often stopped from trading when their network or firm receives the request so the change could hit their income badly as they may not able […]

Medal plan to grade IFAs by profit potential

IFAs are set to be ranked according to their profitability in terms of gold, silver or bronze by providers, claims Cap Gemini Ernst & Young.The move is likely to result in tiered levels of service, with life offices looking at customer relationship management software that will see more profitable IFAs receive a higher grade of […]

Survey cover

EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com