Norwich Union has responded enthusiastically to the Government's decision to reconsider the price cap on the stakeholder suite of products.
It believes if the price cap is lifted the products will have stronger backing from providers and a greater chance of success with the public.
NU has also welcomed the endorsement of the with-profits concept with the inclusion of a smoothed equity product within the suite and believes that adopting existing stakeholder pensions into it to be a good idea.
NU sales and marketing director Peter Hales says: “The approach the Government is taking suggests they are keen that Sandler stakeholder products prove commercially viable for all. We think that's the right approach. We remain convinced that without a move away from the 1 per cent price cap these products will not be successful.
“We are pleased the Government takes the view that a transparent with-profits style product which offers smoothed exposure to equity markets is likely to be valuable to many in the target market for these new products. In addition, the proposal to bring the current stakeholder pension within the new suite of products is something we strongly support.”