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Spectre of RU64 looms again for Sandler suite

The FSA has not ruled out compelling advisers to justify recommending a non-stakeholder suite product once the new range is launched next year.

It has said it will not apply an RU64 style regime to the medium-term investment element in the run-up to their launch but it will consult on whether to apply the rule once the products hit the market.

RU64 forced advisers to justify their decision to choose a product other than stakeholder pensions in the run-up to their launch and was replaced by COB 5.3.16 once the pensions came to market.

COB 5.3.16 looks set to remain in place for stakeholder pensions unless the consultation decides otherwise. This has raised concerns from the industry and the ABI, which is currently preparing a short paper on the case for the abolition of COB 5.3.16, proposing to replace it with a disclosure-based alternative.

Royal London head of corporate communications Alasdair Buchanan says: “It looks really odd the way things are structured at the moment.

“The FSA is saying that for non-pension products there is a clear distinction between stakeholder and non-stakeholder and you do not need to take account of one if you go down the other route. It is not clear why it still applies for pensions or why we have to go through further consultation for pensions.”


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B&B picks mortgage system

Bradford & Bingley has picked Marlborough Stirling and Unisys to provide an end-to-end mortgage system. B&B says Unisys Financial Services System from Unisys and Omiga from Marlbor-ough Stirling will give it the flexibility to design and implement new products quickly and efficiently. The system is also expected to provide consistent and compliant calculations and illustrations […]

TMB plans withdrawn to catch up on business

The Mortgage Business is temporarily withdrawing its products from the market to catch up with business already on its book waiting to be processed. TMB closed to new business from July 2 and expects to be open again in approximately six weeks. As revealed in Money Marketing in April, the HBOSowned lender repriced products to […]

Reid all about it

Is there such a thing as a parallel universe? I would contend that we must be living in one with the development of the marketplace for the Sandler products going ahead with the public unaware that they are just round the corner. There has been much talk about the spectre of Regulatory Update 64. For […]


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