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FSA says stakeholder could be dropped from suite

The FSA says stakeholder pensions could be dropped from the Sandler suite because its research shows that only 54 per cent of consumers would get the right recommendation.

In its consultation on the Sandler light-touch sales reg-ime, the FSA raises concerns that 46 per cent of sales process outcomes are falling outside the “good” category.

The FSA&#39s cost-benefit ana-lysis shows that 27 per cent of outcomes are inconclusive – meaning it was not possible to tell whether the recommendation was right or wrong – while 2 per cent led to missales and a further 17 per cent came out as “tolerable” which it des-cribed as resulting in a “sub-optimal financial outcome”.

The regulator says the main reason that consumers are not getting good recommendations is because many of them do not know they are members of an occupational scheme.

The FSA&#39s consultation paper also sets out concerns that development of the Markets in Financial Instruments Directive will “place some uncertainty” over the viability of the Sandler collective investment product.

FSA spokeswoman Jackie Blyth says: “The results of the research are not as good as we would like. At this stage, you cannot assume that any of the products will go ahead.”

Clerical Medical pensions strategy manager Nigel Stammers says: “If the stakeholder pension and the collective inv-estment products fall out, you haven&#39t got much of a suite left.”


Reid snub for PMI in NHS five-year plan

Health Secretary John Reid&#39s five-year plan for the NHS encourages consumer choice but there are still few incentives to contribute to PMI, according to industry experts. Reid hopes that over £90bn will go to the NHS by 2008. His plan for the private sector is for the NHS to continue to bulk-buy routine operations. Reid […]

Standard Life interim results – life & pensions business down

Standard Life has released its interim results for the six months up to May 15 with reports of a 13 per cent decrease in life and pensions sales on the same period last year. UK investment is up 193 per cent, general insurance is up by 22 per cent but overall, the group has seen […]

&#39Wraps could change the face of financial services&#39

Wrap accounts could alter the UK&#39s financial services landscape dramatically, according to independent market analyst Datamonitor. Its report says the UK is Europe&#39s fastest-developing market for wrap accounts and speculation that large pools of assets will be suitable for inclusion in wrap accounts has been fuelled by the entry of several new players with wrap-like […]

Charcol offers two-year tracker

Charcol is offering a two-year base rate tracker at 0.51 per cent below the Bank of England base rate. With a current pay rate of 3.99 per cent, the product is available up to 90 per cent loan to value and reverts to the base rate plus 1.25 per cent for the remaining term, with […]

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Guide: how to… audit your auto-enrolment scheme compliance

As the Pensions Regulator starts to bare its teeth and the changes mentioned in the Budget and Queen’s Speech start to come into force, it is essential that you understand your scheme and the processes you need to undertake to ensure it remains compliant. Our second re-enrolment guide looks at how to audit the key areas of your auto-enrolment scheme.


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