View more on these topics

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

disappointment.”

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

answered.”

Recommended

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 […]

A CONSUMER&#39s VIEW

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 […]

 Article 50 Q&A: The negotiations to watch for 

Holly Cassell, Assistant Manager of the top-performing Neptune UK Mid Cap Fund, discusses the potential near-term impact of Article 50 and the Brexit negotiations that she believes investors should pay most attention to. Read article here Important information  Investment risks  Neptune funds may have a high historic volatility rating and past performance is not a […]

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