It says it will conduct a full review of basic advice to assess its impact on competition and examine its overall performance against the standards set for it. The FSA says it will consider extending the regime to non-stakeholder products.
Most respondents to the consultation are in favour of extending the regime as long as it has been shown to work in practice and to be of benefit to consumers. Some respondents say a widening of the regime would increase competition and choice for consumers and call for
consistency of approach across sectors.
The final rules reveal that the FSA has tripled its estimate of the one-off compliance costs of implementing the regime from 16m to 48m.
FSA director of retail policy Dan Waters says: “We fully support the aim of making it easier for all consumers to have access to the stakeholder products. After considerable
research, we have developed a lower-cost form of advice that will enable authorised firms to sell the Government’s stakeholder products simply and quickly to consumers while making sure they are properly protected.”