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Postal friendly says Sandler is missing target

The Communication Workers Friendly Society has slammed the Government and the FSA for rubber-stamping changes to financial products which the society believes are detrimental to the people the regulator is trying to help.

Chief executive Edward Chapman says the Government and the FSA&#39s support of Sandler&#39s no-advice framework proves that the regulator and the Government have failed to understand the target audience of low to middle-earners.

Chapman says that when people on low incomes do not save it is because they cannot see the point of saving and by stripping out advice, Sandler products will fail to convince people in these groups of the need to save for their future.

He asserts that with CWFS&#39s customers, who are mainly postal workers, earning on average of £15,000, the mutual has seen at first-hand what Sandler&#39s target market needs.

Advice needs to be at the heart of the savings equation when planning to sell products to “poorer people”, says Chapman.

As an alternative to Sandler, CWFS is looking to launch new initiatives to advise and sell savings products that can include advice.

Chapman says: “The FSA&#39s present research on the sales process of stakeholder products has come up with a false positive. It has not looked at the issue of what type of advice that this market sector needs. Mutuals have to be the conscience of the financial services industry and blow the whistle here. I am calling for a new approach to selling and to advising people on low incomes.”

FSA spokeswoman Jackie Blyth says: “We are continuing to do research with Sandler&#39s target market and are going through a full consultation period. No decisions have been made as yet.”


LIA&#39s View – John Ellis

LIA&#39s viewThere have recently been a number of attacks in the press on various aspects of regulation which appear to impinge on the freedom of action of financial services practitioners. The more extreme versions suggest taking cases to the European Court and seeking to have aspects of regulation or consumer protection declared null and void. […]

Scot Eq closes 11 IFA branch offices

Scottish Equitable is closing 11 of its IFA branch offices in a restructuring that will see its branch numbers cut to 17 from 28. ScotEq says it wants to move to more focussed national &#39sales centres&#39 from its current branch structure.

&#39Providers have created atmosphere of mistrust&#39

Labour MP Angela Eagle has blamed product providers for creating “market failure on a massive scale” in the financial services sector and damaging consumer confidence. Speaking at a Treasury select committee hearing on restoring confidence in long-term savings last week, Eagle told witness Ron Sandler she blames providers for perpetuating an atmosphere of mistrust in […]

NU looks to pick up Swiss Life UK group IP business

Norwich Union Healthcare has launched a dedicated group income protection support team, to help advisers looking to find a new home for group clients not automatically being offered renewal terms by Swiss Life, after its recent announcement that it is closing to new business. The NU team will offer advice and support to choose benefit […]


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