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FSA reviews its projection role

The FSA is undertaking a fundamental review of projection rates and has published a discussion paper looking for views from the industry.

The paper asks whether it is appropriate for the FSA to withdraw completely from the regulation of future returns or whether the regulator should prohibit companies from providing illustrations of potential returns in any circumstances.

It looks at which products or circumstances it is appropriate to provide information about potential returns and the paper considers excluding products with significant volatility on the grounds that such information cannot realistically be provided.

The FSA suggests that providing layered information to consumers could be a good alternative to individualised or extensive projection information. It asks the industry for views on providing an initial one-page overview of the key elements likely to meet the main information need, to be followed up with detailed and more technical information in a separate document The paper says that any such changes could bring about a shake-up in the mix of products that consumers choose to invest in as well as changes to the sorts of products that providers and advisers want to market and sell.

The FSA underlines the fact that changes will bring significant costs to firms.

Head of retail investments policy David Severn says: “The current one-size fits-all regime is based on a broad-brush approach and does not take sufficient account of different product characteristics or the timeframe for which the consumer wants to invest.

“We are putting forward some ideas for changing the system but we welcome other views on how the system can be improved.”


IFA calls for focus on Provident Mutual policies

A Glasgow IFA says clients with endowment-style products sold by Provident Mutual have had no communications about the endowment review. Internet IFA director Alex Docherty says the “flexible mortgage plan”, which was inherited by Norwich Union when it bought Provident Mutual, was sold as a long-term investment product to pay off a mortgage at a […]

Summit gets to the point of sale

Attentiv Systems Group is offering a regulation-ready mortgage point-of-sale system. The summit mortgage sales system can be used across all distribution channels and offers integration with Attentiv&#39s retail banking system. It has been developed with N4 Solutions which specialises in multi-channel financial sales systems. The system&#39s workflow capability will guide the mortgage sales process in […]

Oxford VCT techs up university challenge

Seed Capital is raising up to £14m to invest in Oxford technology 4 VCT, a venture capital trust focusing on early stage and start-up technology companies in and around Oxford. This VCT will operate a similar investment strategy to the previous Oxford VCTs that were established in 1997, 2000 and 2002. These are fully invested […]

Tiner&#39s pay packet soars to £471,000

FSA chief executive John Tiner was paid £471,656 last year, a big rise from £361,904 in the previous year. The total includes a basic salary of £310,971, a performance-related bonus of £52,000 and other benefits of £108,685, including £47,741 towards his pension. The FSA says Tiner&#39s increased salary this year reflects the additional responsibilities he […]


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