View more on these topics

Issues over default options

I refer to Nick Edmans&#39 letter (Money Marketing, July 26).I agree completely with Opra that the form SHP100 (which is not prescribed in legislation) is entirely clear and that schemes can have more than one default option.

My concern arises over two issues. First, my information was that some schemes have listed more than one default option but without specifying the categories of member to which each applied. If Opra can confirm that, where there is more than one default option, it is clearly specified which default applies to which category, we will be satisfied.

Second, under regulation 10 of the stakeholder regulations, scheme managers must record in writing the reasons why any investment option (which would include the default option or options) is satis-factory having regard to the scheme&#39s statement of investment principles. If schemes are merely listing a series of funds, or combination of funds, one or more of which might be used as a default option for a particular employer in the future, we are concerned that schemes will not be complying with this regulation.

Again, if Opra can confirm that schemes are not just listing funds that might be used as a default but are only accepting lists which specify which default applies in which sit-uation, there is not an issue.

Chris Bellers

Friends Provident

Dorking, Surrey

Recommended

IFAs way ahead of the pack on LTC business

IFAs are leading the way in the sale of long-term care policies, accounting for more than 90 per cent of the 30,000 plans sold, according to a report from market analysts Laing and Buisson. The annual report, Care of Elderly People Market Survey 2001, says growth in the industry has been held back by continuing […]

Skipton cleared by FOS

Skipton Building Society has been cleared of treating its Tessa and Isa customers unfairly by The Financial Ombudsman Service. Following months of speculation suggesting Skipton has not treated these customers well the ombudsman ruled the society’s products, taking into account interest rates and terms and conditions, were fair. Skipton’s loyalty Tessa allows access with no […]

L&G axes withdrawal charges

Legal & General has redrawn the terms and conditions on its unit trust range, axing many of its withdrawal charges and introducing monthly savings plans.All L&G index unit trusts, as well as the fixed interest trust, high income trust and ethical trust will have their 1 per cent withdrawal fee removed from July 31.While all […]

Two new B&W products from Exclusive Connections

Mortgage packaging network Exclusive Connections is rolling out two new loans funded by Bristol & West. EC is offering a buy-to-let mortgage at 6.99 per cent until 2004, after which it reverts to 1.75 per cent over Bank of England base rate. The stepped fixed rate loan has a rate of 5.25 per cent until […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com