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FSA will take new look at WP reforms

The FSA is to produce a comprehensive consultation aimed at bringing its with-profits reforms into line with Sandler&#39s recommendations for ringfencing life funds and distributing orphan assets.

Speaking at its AGM in London last week, chairman Howard Davies described Sandler&#39s proposals as radical and said the FSA would have to manage a transition carefully, including the ongoing issue of reattribution of orphan assets.

Many industry commentators believe that other companies will follow Norwich Union&#39s move to restructure its funds, which could lead to windfalls.

Standard Life managing director marketing Simon Douglas says: “People selecting funds on the basis of possible windfalls rather than quality could cause short-term bias in the market.”

Davies said: “Sandler has supported the broad lines of our proposed approach. However, he has argued that we should go further and that funds should be reconstruc-ted on a &#39charges less expenses&#39 basis.

“That would be a radical change which requires careful thought and analysis, in particular, to look at the implications of a transition from where we are now to where Sandler would like us to be.

“That will require a satisfactory method of handling issues about the ownership of estates within life funds. We aim to pull these ideas together with our recent proposals on governance of funds in a comprehensive paper around the end of the year.”


Threat posed by closing savings gap

I could not agree more with Lorna Bourke&#39s article last week in Money Marketing which gave the real reasons for people not saving.However, there is one major point I do disagree with. Compulsory pensions, which I believe will come in at least from an employee point of view, will not be inflationary but extremely deflationary.One […]

Inside Edge: Steve Bee

Simplifying pensions is turning into something of a nightmare. I suppose it was bound to, really, what with a proliferation of reviews all taking place at the same time and all aimed at “fixing” different bits of the problem – a bit like three or four different people working on the same Rubik&#39s cube at […]

NDF Administration – Extra Income & Growth Plan 11

Friday, July 26, 2002 Type: Guaranteed equity bond Aim: Growth and income linked to the performance of the Eurostoxx 50 index Minimum-maximum investment: £10,000-£1m, Isa minimum £7,000 Term: Three years and two months Guarantee: Capital returned in full at end of term provided index does not fall by more than 20% Return: 10% a year […]

40% of IFAs would still recommend US funds

Despite the collapse of Enron and Worldcom, over 40 per cent of IFAs say they would still recommend US investment funds, according to George Street Research.Its latest research, conducted for Money Marketing in July among more than 200 IFAs across the UK, found that only 17 per cent would be a lot less likely to […]


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