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Select committee mulls depolarisation confusion

The Treasury select comm-ittee&#39s report into restoring confidence in long-term savings is looking at how a depolarised marketplace could confuse consumers more than polarisation, say sources close to the committee.

The report is looking at a range of issues, including calling for an Office of Fair Trading inquiry into the cross-subsidy of IFAs by product providers through contributions to the Financial Services Compensation Scheme. The committee is likely to criticise the Treasury for watering down the tax advantages on Isas.

It is also expected to tell the industry that increasing the stakeholder charge cap to 1.5 per cent for the first 10 years that a product is held means that providers should now get on and distribute pensions more vigorously.

The report is being redraf-ted and is expected to be published before Parliament&#39s summer recess on July 22.

TSC member James Plas-kitt, MP, says: “There is a case for further investigation of the cross-subsidy of IFAs through the FSCS.”

TSC member Nigel Beard MP says: “The industry should get on and sell stakeholder. We do not want any more dragging of feet.”

Cicero Consulting director and chief counsel Iain Anderson says: “If the TSC has major concerns over the depolarisation regime, then it is back to the drawing board for the FSA and the industry.”


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FSA launches hotline for reporting misleading financial advertisements

The FSA has set up a hotline for the public and firms to report in strict confidence misleading advertisements for financial products. The initiative, launched today, is part of an FSA drive to regulate financial advertising. The new department which is leading the effort monitors advertising on television, the internet and in newspapers. The rules […]

IFAs say deal measures up as a good fit

IFAs believe the merger between F&C and Isis is a good move for both companies, offering them a strong strategic fit which should allow them to integrate complementary product ranges seamlessly. Isis has 33 open-ended funds aimed at retail investors, including its higher income and with-prospects Oeics, while F&C has only three funds, with the […]

SG gets fixed on interest

SG Asset Management has added four fixed-interest funds to its Oeic range following the conversion of its unit trusts to Oeics. The SG Sterling bond fund aims to provide income by investing mainly in UK government bonds. The SG Long-dated corporate bond fund aims for income by investing in investment-grade sterling denominated bonds with a […]


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