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Tenet backs simplification of RDR

The FSA has done the right thing by oversimplifying the RDR interim report, rather than working backwards from a complicated structure, according to Tenet Group.

Distribution and development director Keith Richards says the FSA went back to basics after respondents to the original RDR proposals called for a simpler landscape, prompting comment that the regulator went too far the other way.

He says: “Whether the FSA misunderstands what respondents meant by ‘simpler’, or if they have taken this idea to its most extreme conclusions for the purposes of demonstration and discussion is unclear, however at Tenet we believe that it is better to start from a perhaps over-simplified foundation, than work backwards from a complicated structure.”

But Richards says the FSA has acknowledged that a simplified approach has inherent drawbacks and that it recognises there are practical implications and legal constraints.

He says Tenet supports the principle of raising qualifications and believes that the cost of advice should be agreed between the adviser and the client.

He says: “From an IFA perspective the interim report is very welcome and we would see it as laying a good foundation on which to build. Similarly we believe that the regulator has provided a clear signal and opportunity for the tied sector to create a more straight-forward, cost efficient service, offering a wide range of protection, savings and investment products through a dedicated salesforce of well-trained and motivated company representatives/sales consultants.”


House price crash threat to Rock repayment

Northern Rock executive chairman Ron Sandler has admitted that a serious fall in house prices could significantly dent its plan to repay its £27bn Bank of England loan by 2010.

ABI rejigs protection committees

The Association of British Insurers has restructured its protection committees to separate day-to-day work from long-term strategic thinking.

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Survey looks at the challenges facing businesses post auto-enrolment

A survey conducted by Johnson Fleming at the Pension & Benefits Show 2014 highlighted the key challenges faced within organisations post auto-enrolment. The results showed that communicating the changes and the value of them to staff, and receiving timely data from the payroll provider proved to still be the most challenging aspects of managing an auto-enrolment scheme.


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