View more on these topics

Kelly says Treasury backs stake suite

The Treasury has given a ringing public endorsement of Ron Sandler&#39s flagship recommendation of a stakeholder suite of products.

Treasury Financial Secretary Ruth Kelly called the products a fundamental part of the Treasury&#39s thinking and commended Sandler for recognising the advantages of product rather than sales-based regulation.

The comments come a week before the Government responds to Sandler&#39s proposals.

Speaking at a fringe meeting at Labour&#39s conference in Blackpool on Tuesday, Kelly said the current distribution of products is skewed towards higher-net-worth investors, leaving lower-earners in the cold.

The meeting was attended by FSA chairman Howard Davies, who said the FSA is working with the Government to design the products and the new regulatory framework.

Despite recent speculation that the FSA had concerns over stripping out conduct of business regulation on such products, Davies gave no sign this was the case. Kelly said regulation had become burdensome and disenfranchised many people from the industry.

She said she could envisage a world where the stakeholder suite will be sold alongside Catmarked products, offering consumers the same protection but under different brand names.

Kelly said: “The way that regulation has developed has become quite burdensome and focused on the way products have been sold but it has disenfranchised many people.Ron Sandler has recognised the advantages of product regulation. It is similar to the fundamental idea behind Catmarked products.”

Davies said: “If it is possible to devise a genuinely safe suite of products, that would certainly justify a different approach to conduct of business regulation.”

Aifa director of policy Fay Goddard says: “One of the FSA&#39s statutory objectives of consumer protection is pushed to one side. These products are going to be sold by unqualified advisers in an unregulated process. It is going to be very difficult to police and monitor.”


Equitable in new compensation offer

Equitable Life is to put forward a new compromise scheme for the 70,000 former policyholders who have potential claims for misselling.Policyholders say they should have been told before taking out a policy of the impending guaranteed annuity case.Equitable predicts it will have to pay out will be between £40m and £75m following the delayed publication […]

Any Perception Required

Acronyms in the small print of mortgage advertisements are being interpreted in increasingly interesting ways, particularly among the under-25s.APR was thought to mean Another Pint Required, while some thought LTV means Loves Television.Mortgages were far from the minds of the individual who thought MRP means Meal Required Pronto and SVR means Still Very Raunchy.The Diary […]

Death is still the final taboo

Death is the biggest conversational taboo in the UK even though two out of every three people has lost a close family member or friend in the last three years, according to research by Norwich Union.People in the North-west found death easiest to talk about, with only 12 per cent saying it is a taboo, […]

Face up to fees

For too long, IFAs have been waiting to be convinced that the FSA was right when it said that consumers are prepared to pay a fee for financial advice. If the latest research is to be believed, they will now be even more sceptical.A recent survey by market research firm Nunwood has revealed that 80 […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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