The Treasury select comm-ittee's 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's 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.”