There are three possible ways forward for the regulation of the new suite of stakeholder products according to FSA managing director John Tiner.
Speaking at the Treasury hosted seminar on the implementation of the Sandler review's recommendations today, Tiner said the FSA supports the basic principle behind Sandler but now has to sort out the detail of regulation.
He said the options are plain English disclosure and warnings, unbundling advice from sales or adopting a prescriptive decision tree approach to the sales of the new products.
Tiner appeared to favour the third because consumers tend not to read warnings and the unbundling option would have the problem of suitability of the products.
He said: “Maybe a non-advice regime is more realistic.”