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Stakeholder sales to be used for FSA persistency probe

The FSA plans to use stakeholder persistency figures as a foundation for

deciding whether the new pensions have increased savings or whether they

cause “significant consumer detriment”.

The proposals have come under fire from industry exp-erts for potentially

upping costs and ignoring the significance of employer contributions.

Consultation paper 103, published earlier this month, states: “Perhaps

most importantly, the information once interpreted, and coupled with some

contextual research, will help build an understanding of whether

stakeholder pensions are encouraging saving or are at risk of creating

significant consumer detriment through expectations created turning to


The proposals will require life offices to separate sales figures for

stakeholder sold through advised sales and through what the FSA describes

as the “new distribution channel” of decision trees.

Clerical Medical pensions strategy manager Nigel Stammers says: “I am a

little concerned that the paper does not recognise employer contributions.

This is one of the key tests as to whether stakeholder has been a success

or not.”

Scottish Life head of communications Alasdair Buch-anan says: “It seems to

me that these sorts of additional reporting costs keep on mounting and

looking at persistency has often raised more questions than it has



Public face postcode lottery on protection

Group critical-illness and inc-ome protection policyholders face apostcode lottery on the cost of premiums, according to research from theOffice for National Statistics charting disease patterns in various regionsof the UK. The ONS figures reveal higher levels of heart disease in South Wales,Scotland, Tyneside and Northern Ireland which could lead to higher premiumsfor group schemes based […]

Inside EDGE

Not many people have yet signed up to stakeholder pensions and many ofthose who have will be too young to write. It is proving to be a tax-efficient savings vehicle for the wealthy. Notquite what the Government had in mind. But it still has the potential to bethe product around which our salvation from poverty […]

Threat to R&SA life arm sale as GAR liabilities top £1bn

Royal & Sun Alliance&#39s guaranteed annuity liabilities have rocketed tomore than £1.5bn, putting it in the same league as Equitable Life andjeopardising a potential sale of its life business. Money Marketing can rev-eal that its 2000 Treasury returns show reservesfor guaranteed annuity options rose on the back of R&SA&#39s Sun Alliance &London £10bn fund. Its […]


One of the more enlightened moves ever made by the financial servicesindustry was to set up the Unclaimed Assets Register some 18 months ago. All credit to Aon for taking this imaginative and common-sense initiative. The service the UAR offers is invaluable in tracing unclaimed assetsbelonging to those who have moved house, forgotten their investments […]

Introducing Trevor Greetham

Ryan Medlock, Investment Proposition Manager, Royal London Royal London Asset Management’s (RLAM) new head of multi-asset is officially up and running. I want to look at what expertise Trevor brings to the table and how this affects the Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs). Trevor Greetham joined RLAM in April 2015 from […]


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