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
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