I read with interest the article in the July 12 edition of Money Marketing
headlined, Life offices slam Opra on multi default funds.
The article states that: “
the regulator has allowed some providers
to offer more than one default fund on stakeholder schemes although many
providers had believed they were only allowed to register onedefault fund.”
Friends Provident manager Chris Bellers is quoted as saying: “This looks
as if some providers are achieving an unfair advantage.”
Not at all. Note five on the stakeholder registration form which every
provider completes to register a stakeholder scheme states quite clearly
that more than one default fund option can be provided.
It says: “If a scheme provides more than one automatic investment option
for different categories of member, please list them all and the category
of member to which they apply and continue on a separate sheet if
Page two of the scheme registration form carries a very large box for
specifying default funds headed: “Please list all default options if there
are more than one.”
The forms and their accompanying notes can be accessed through the Inland
Revenue website at: www.inlandrevenue.gov.UK/stakepension/shp100.pdf.
I really cannot see how things could have been made a lot clearer.
Communications manager, Opra,
Brighton, East Sussex