View more on these topics

Sandler and Myners have got it wrong

Ron Sandler has been beating up on IFAs and product providers again, abetted by former fund management boss Paul Myners.

In evidence to the Treasury select comm-ittee, Myners suggested commission sales should carry a health warning while Sandler warned of misselling if the current state of affairs continues. Sandler has also attacked providers&#39 obsession with the 1 per cent price cap and FSA attempts to over-regulate his products.

Both are wrong. Myners&#39 suggestion could undermine many advisers who continue to urge clients to save but isn&#39t the menu intended to address this issue?

Sandler has already proved he does not understand the retail market. His report recommended questionable products when there were often better alternatives already. His belief that tax incentives do not help savings is regarded as ludicrous by anyone involved in promoting Isas and pensions.

As for grim warnings about commission bias, exactly what functioning system of distribution could replace it? Does he believe multi-ties will improve the situation.

Finally, Sandler&#39s light-touch regime would probably turn the ombudsman services into a de facto regulator.

This must sound like ivory tower stuff to IFAs in the real world grappling with the impact of stockmarket losses for clients and worried about the future of Standard Life.

Yet both men continue to be influential despite failing to offer a viable alternative. Worse still, Sandler&#39s products have created an impasse on savings, with providers and arguably the FSA in one camp and the Treasury in the other.

Their remarks poison the argument and delay the day when the Government realises it has to compromise with retail businesses so some progress can be made in getting people saving again. It would be better if both men kept quiet about a market they do not understand.


Subprime lender Infinity Mortgages launches

A new subprime lender, Infinity Mortgages, has launched into the market. Infinity will be offering products for consumers with adverse credit histories along with buy-to-let and right-to-buy products. It is financed through a minority shareholding from the Mortgages plc group of companies and by equity provided by financier Ravi Takhar.

Bristol & West go for family affair

BRISTOL & WEST Family Protected Savings Plan Type: Capital-protected unit-linked endowment Aim: Growth linked to the performance of the FTSE 100, S&P 500, Nikkei 225 and Swiss Market Index Minimum sum assured/premium investment: £2,250/£25 a month Term: 10 years Return: Up to 85% growth in the indicesGuarantee: Original capital returned in full at end of […]

Grosvenor Films – Messages

Type: Enterprise investment scheme Aim: Growth by investing in the production of a supernatural thriller Minimum investment: Lump sun £2,000 Opening/closing date: October 21, 2003/February 29, 2004 Charges: Implicit Commission: Initial up to 5% Tel: 0208 567 6655

Bloomsbury puts planning online

Bloomsbury Financial Planning is offering investors an online financial planner on its website. The service allows clients to enter details and then provides a series of what-if scenarios based on calculations that Bloomsbury would use. The system includes asset allocation, stochastic forecasting and lifetime cashflow analysis. It can create budget, investment, retirement, protection and mortgage […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm