The FSA has announced that it will implement the basic advice regime in support of the Government's proposed stakeholder products initiative from April 2005.
However, it will not be including the smoothed investment fund in the basic advice regime at this stage after consultation and consumer testing highlighted concerns about the product.
Director of retail policy Dan Waters says: “We remain concerned about the additional layer of complexity that smoothing represents in the context of basic advice, and the extent to which the benefits and risks involved can be explained to consumers in a balanced way in that process. We intend therefore to conduct further research based on examples of the smoothed investment fund that providers would propose to offer to prospective customers. Once that research is complete, the FSA Board will consider the question of the inclusion of this type of product in the basic advice regime.”