View more on these topics

Stakeholder has excluded poor, claims Standard Life

Stakeholder has excluded the poor from pensions rather than reaching out to them, according to Standard Life.

It also warns that providers will turn away from the new Sandler suite of products if it includes a 1 per cent charge cap.

Marketing director Barry O&#39Dwyer told the Taxbriefs conference that providers are not interested in marketing 1 per cent products as they only make a profit after 12 to 15 years.

He said stakeholder&#39s open architecture creates an ideal environment for providers to hold back for 12 years before entering the market to offer cheaper terms.

Speaking after pensions minister Andrew Smith, who had earlier described stakeholder as a success, O&#39Dwyer said no provider is marketing to the Government&#39s target market for stakeholder.

Smith said: “We want to build on stake-holder&#39s success. Over one million have been sold so far and they have pushed charges down.”

O&#39Dwyer said: “From the providers&#39 point of view, stakeholder has been a step backwards. By trying to help the poorer part of society, the stakeholder experiment has had exactly the opposite effect. The industry will not be interested in playing in the Sandler game unless it makes sense to do so.”

Recommended

Raising the mark on standards

This year will be an important one for the Raising Standards quality mark scheme.Just two years after its creation, we have achieved critical mass, with more than 50 per cent of the market accredited or preparing for accreditation.Standard Life, Halifax Life and Clerical Medical are in the dry-run phase – the first step towards securing […]

Chase de Vere chief Kennedy leaves in shake-up

Chase de Vere chairman Ian Kennedy, who is also chief operating officer of owner Bank of Ireland UK Financial Services, is leaving the group in a management shake-up.As part of the restructuring, Roy Keenan is being brought over from Dublin, giving up his role as group chief development officer, to become BoI UK Financial Services […]

Product matters

For clients wanting to take some risk, the NDF protected income plan 1 offers a very attractive rate of income for the level of risk to capital.As this plan was priced before the recent interest-rate cut, the annual income level of 7 per cent for five years (or 0.54 per cent monthly income) seems even […]

Door is opened to annuities, then slammed shut

The door has been opened by the Treasury to extending the Sandler suite of simple products by up to six products, although it has at the same time ruled out half of them as being unsuitable.It is forming a panel of providers, consumer groups, trade bodies, regulators and Government officials which will meet to sort […]

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