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Tiner tips trees as best way to sell suite

The most realistic way of distributing the new Sandler stakeholder suite of products is through a decision tree approach, according to FSA managing director John Tiner.

Tiner outlined three possible distribution options at the seminar. He said the FSA favours a filtered approach aimed at screening out consumers for whom the products are inappropriate. The other two possibilities are enhanced product disclosure with warnings in “plain English” or the proposal in the Sandler report of unbundling advice from the product.

Tiner said enhanced disclosure was a non-starter as it is known consumers do not read the literature accompanying products while he said unbundling leaves the issues of suitability unanswered.

The FSA is known to be concerned about the risks of misselling if the suitability requirement is removed.

Tiner said: “A third option could be a decision tree app-roach. It would not include advice but would be designed to screen out customers for whom the products could be a mistake. Maybe a non-advice regime is more realistic.”

Clerical Medical pensions strategy manager Nigel Stammers says: “I always saw the purpose of decision trees is to filter out consumers who need advice. It will be interesting to see how this use of trees fits in with the FSA&#39s statement that they are a tool for advisers.”

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