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Life offices have power to end cap

Why is Nick Bamford wasting his time calling on Howard Davies to use his final months as chief executive of the FSA to push the Treasury to drop the price capping and filtered questions from the Sandler proposals? We already know that:

1: Howard Davies does not think either is a good idea(he has already said so more than once).

2: The Treasury takes little, if any, notice of anything that anyone says regarding its plans to reshape the financial services industry in whatever way it thinks fit.

3: The real power lies in the hands of the life companies because, if they do not market price-capped products, then their whole concept is stillborn.

The trouble here is that the bosses of most of the life companies are such a bunch of eunuchs that they will not stand up and simply say no.

I cannot understand why the industry is even entertaining any sort of dialogue on such a complete non-starter.

Have no lessons been learned from the stakeholder fiasco, other than how to lose a lot of money very quickly by agreeing to market a seriously underpriced fifth-rate product?

So what if people misbuy Sandler-style products? It won&#39t be anything to do with me or the rest of the IFA community – more likely the banks.

More fool those who confuse cheap with good and think that by cutting out the middleman they will be getting some kind of special value deal. In this life, nothing is for nothing and if something looks too good to be true, then it virtually always is. Some things are a lot more expensive than they ought to be as well, but that&#39s another story.

Julian Stevens WDS Independent Financial Advisers, Kingswood, Bristol


Liverpool Vic cuts With-profits payouts

Liverpool Victoria is reducing its conventional with profits maturity payments by between 3 and 5 per cent. Regular bonuses on conventional policies are unaffected and the friendly society says that its unconditional mortgage endowment guarantee remains unchanged.

Circus Capital – Smoothed Diversified Growth Fund

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Inside edge

Anyone with a mortgage would vote for the Bank of England&#39s base rate reductions to be fully passed on by lenders to borrowers but this could be a shortsighted demand with negative consequences in terms of the long-term viability of a lender&#39s products. As such, it could threaten product innovation and consumer choice in the […]

Albert Goodwin takes art

Albert Goodwin is an enterprise investment scheme (EIS) aiming to raise up to £4.95m to finance a London-based art dealing business. The business will be run on the back of an existing business, the Chris Beetles gallery. Chris Beetles has been trading for 22 years and deals in art from affordable illustrations and cartoons to […]

When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]


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