View more on these topics

Sandler slams &#39poor-value&#39 with-profits

Ron Sandler has launched a blistering attack on with-profits policies, slamming them for lacking transparency and offering poor surrender values.

He has also savaged fund managers, questioning their investment objectives and accusing them of viewing good marketing as more imp-ortant to sales than investment performance.

The role of the Government as a regulator of product design has also been included in the consultation, questioning what effect these regulations have on the market. Sandler asks how Catmarked products have affected the industry and what impact they have had on competition.

But it is with-profits which will be the focus of his attention on providers. He plans to investigate why sales of with-profits bonds continue to be successful despite the amount of criticism of them in recent months.

In the report, Sandler says: “Nor is it entirely clear whether consumers&#39 wish for reduced volatility through investment in with-profits policies is economically sound.”

He also called into question the organisational structure of product providers, which the report suggests acts to complicate how investment objectives are set and measured.

Questions which Sandler believes demand answers include how providers set investment objectives for individual markets or fund managers.

CIS spokeswoman Alison Richardson says: “We believe with-profits remains the right choice for many people. There is still very much a place for them. The criticisms are fair in some circumstances but the industry has gone a long way to address them.”

Threadneedle communications director Richard Eats says: “We would disagree with the idea that you can market a fund successfully without reasonable investment performance. We would not offer a fund if we did not think it would make sense and we could market it.”

Recommended

Brokers foresee soaring specialist lending

Brokers expect specialist mortgage lending to rocket in popularity, according to the latest survey by the Intermediary Mortgage Lenders Association. Over 70 per cent of the 400 advisers in the poll said niche lending will become increasingly important to their business after seeing demand for non-mainstream mortgages shoot up over the past year. Flexible mortgages […]

CML warns repossessions may rise

The number of borrowers with mortgage arrears and having property repossessed has fallen this year, according to the Council of Mortgage Lenders. The CML welcomes the news but it fears uncertain economic prospects mean the numbers could rise. Lenders took 10,460 properties into possession during the first half of the year – 1.5 per cent […]

Source of the interneet

It is easy to lose sight of the real internet story through the stream of headlines chronicling the mood swings in the international markets. For IFAs, the fundamental drivers behind the internet are as attractive as ever. At its heart is the promise of new business, reduced costs, increased competitiveness and, above all, improved client […]

NAPF receives assurance from Equitable

The National Association of Pension Funds says it has been assured by Equitable Life the likelihood of further bad news for policyholders has been substantially diminished by recent reductions in policy values.The NAPF also reported reassurances that Equitable remains solvent, and that a further substantial fall in equity markets would be necessary to threaten this […]

Guide

Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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 advice.

    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

    Email: customerservices@moneymarketing.com