View more on these topics

Sandler-style pensions to increase pension provision among low and middle earners

The Government is pinning its hopes on Sandler-style pensions distributed through high-street banks and State-sponsored telephone and internet advice services to increase pension provision among low and middle earners.

But IFAs and providers have slammed the proposals saying pensions will not be sold as long as there is a rigid commission cap on Sandler&#39s suite of products, which are likely to subsume stakeholder pensions.

The Government hopes people will be more likely to take out pensions once they receive statutory money purchase illustrations, which come in next April.

The DWP is also proposing establishing public access to advice through a revamped tree-walking website and telephone advice centre.

It also proposes to oblige employers who do not offer pensions to give free financial advice.

Pensions minister Andrew Smith told Parliament this week: “To broaden access to advice we will work with the financial services industry to develop mass-market financial advice in high street banks and will consult on options for a possible requirement on employers who do not provide pensions to provide financial advice free of charge through the workplace.”

Scottish Equitable pensions development director Stewart Ritchie says: “The 1 per cent charge cap is the real issue – there is nothing in the speech about making it easier to distribute pensions. It is obvious that one of the prime reasons for the poor take-up of stakeholder is there is no margin for advice.”

Informed Choice managing director Nick Bamford says: “I am not impressed with the idea of the Government getting involved in giving advice through a website.”

Recommended

A mixed record as &#39industry is left to sort out mess&#39

Howard Davies will leave behind a mixed record when he vacates his seat as FSA chairman and chief executive.Most in the industry are willing to give him credit for bringing together 10 regulatory bodies over the last five years but, equally, many point out that the FSA has often failed to head off or handle […]

Lenders play on a new pitch

For as long as those of us who are in the mortgage business can remember, the “no frills” variable-rate mortgage was funded by no-frills variable-rate savings. Not so today. New funding techniques are emerging in the UK mortgage market with the potential to change the way that homeloans are delivered and processed.Let us start with […]

Royal Bank of Scotland fined £750,000 for anti-money laundering failures

The Royal Bank of Scotland has been fined £750,000 for failings in its money laundering controls in the first FSA penalty levied since it acquired powers over money laundering in December 2001.The FSA found weaknesses in RBS&#39s anti-money laundering controls across its retail network, in particular in failing to obtain sufficient &#39know your customer&#39 documentation […]

Questions for the Chancellor on negative policy

In response to the Government&#39s disposition towards financial products with little or no profitability for the distributors, perhaps the readers of Money Marketing would be interested in the following letter which I have sent to the Chancellor of the Exchequer.I wonder if the Chancellor and the great and good at the Treasury really have any […]

Simon Fletcher

Auto-enrolment: pay attention or pay the price

By Simon Fletcher

As a chief executive officer of a business in the financial services sector, I have been dealing with the introduction of auto-enrolment for our clients for some time, but I can also speak from an employer’s point of view, having to go through the process ourselves.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment