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FSA says simple sales regime could cover whole range

The simple Sandler sales regime could be introduced across the range of financial services, says the FSA.

Speaking at the select committee last week, FSA chairman Callum McCar-thy told MPs that if the current testing of the simple sales regime on Sandler-style products proves successful, the FSA will look at whether it should be introduced across the range of financial services products.

MP Nigel Beard asked if it would be possible to separate advice from the sales process so that the same person is not doing both jobs but McCarthy said this would result in a substantial cost increase.

The Sandler review sta-ted in 2002 that a need could be filled in the UK market with a series of safer and easier to understand financial products which would be subject to a streamlined or simple style of sales regulation.

Product providers say they are still unsure if the 1.5 per cent price cap will enable them to sell stakeholder products profitably.

McCarthy said: “We are currently testing on Sandler. If this is successful, then we will look at introducing it across the range.”

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