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Pension misselling will never happen again vows Brown

Chancellor Gordon Brown has vowed to never let pensions misselling happen again in his keynote speech at the Labour Party Conference.


Brown lambasted the Tories for letting people be &#34ripped off&#34 in the first place and issued a stark warning to the pensions industry that the Government would clamp down hard on any future misdeeds.


Brown&#39s comments follow pensions minister Jeff Rooker&#39s insistence that the Government expects 95 per cent of stakeholders to be sold direct with the aid of its &#34decision trees&#34.


Rooker says they will be drawn up by the Government and will not involve the FSA.


Brown said: &#34Never again will we allow the retirement plans of tens of thousands of Britain&#39s hardest working people to be ruined by the misselling of pensions.


&#34Our promise to the people of Britain: in place of the rip-off Britain we inherited, a fair deal for Britain in the future.&#34


Brown&#39s words were echoed by senior MPs at the conference.


But they did have some words of comfort for IFAs, saying they believe the industry is ready to put the issue behind it.


Treasury select committee chairman Giles Raice said: &#34Clearly the industry has been trying to clean up its act but it is obviously right that we should have vigilance by the FSA, the select committee and by the Government.&#34


All party Building Societies Group chairman Andrew Love said: &#34I would like to think we are getting towards the end. There has been a change in attitude by the financial institutions.


&#34They are now accepting responsibility for phase two of the review. We are now on a smooth path to end this.&#34


*FSA chairman Howard Davis has dashed industry hopes by saying financial services sold by internet must be regulated in the same way as all others.


The industry has criticised the FSA for &#34bolting on&#34 e-commerce regulation to existing rules. Experts say it requires a fresh approach.


But Davis said: &#34Those who argue for lighter regulation do not understand the nature of the regime. If you want to offer advice online you have to demonstrate you have the appropriate procedures.&#34


Davis said FSA mystery shopping teams would looking at researching financial services websites.



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