View more on these topics

LIA backs Warland in product design row

The LIA is backing Autif director-general Philip Warland in the heated debate with the ABI over the role of Gov ernment in financial product design and marketing.

The LIA claim it supports Warland&#39s recent comments that the Government has an important role to play in the design of financial products.

Spokesman John Ellis believes it is unclear if the private sector can step into the void left behind if the state pulled out of the provision of financial benefits such as pensions and healthcare.

He also claims it is only the Government that can ensure the protection of the public when they are investing.

Despite Ellis believing the Government has a role in product design, he is critical of the Treasury&#39s unwillingness to budge over the 1 per cent charging cap on stakeholder, describing it as a situation where it clearly was not listening to the industry.

He suggests that the Government and the industry should work together on future developments

ABI director-general Mary Francis pointedly told the Government to stay out of the design of financial products in September. Warland criticised her remarks, saying the Gov ern ment has to play a role, given the insurance industry&#39s track record.

Ellis says: “What the Gov ernment has done is perfectly reasonable in their intervention in the marketplace. The role of the state is to design the broad parameters of the market and let the industry fill in the gaps.”

Recommended

L&G charges on

Legal & General is entering the market for stakeholder-friendly pensions with its single charge pre-stakeholder group personal pension. Flexibility is the most important feature of stakeholder friendly pensions and this product is competitive compared to some products which claim to meet the stakeholder criteria. There is a minimum contribution of £20 a month, which can […]

Ecclesiastical offers alternative route to life fund

Ecclesiatical Insurance Group is targeting its with-profits bond at older investors with a lump sum of £5,000 to invest. The bond has been established as an alternative route into the Ecclesiatical Life Fund, which consists of UK shares, fixed interest securities and other investments. Before the introduction of the with-profits bond, investors could only access […]

Standard outlines group pensions options

Standard Life has revealed the new fund management options for its group pensions for larger employers. This is the first time Standard has linked up with external managers in this market. The list includes Philips & Drew Life managed fund and Fleming Life Global Equity Pension Fund.

Revenue relents on policing term cover premiums

The Inland Revenue has thrown the pension term insurance market a lifeline by climbing down on providers&#39 resp-onsibilities to police new contribution rules.The Revenue has agreed to take responsibility for checking policyholders make sufficient pension contributions to cover their life insurance premiums. The only responsibility for life offices will be to get a letter from […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment