View more on these topics

Top-level backlash building against Sandler&#39s proposals

A high-level backlash against Ron Sandler&#39s recommendations is under way, with a senior economic adviser to the Government and the FSA chairman criticising the proposals for a family of simple “stakeholder” products.

Speaking to Money Marketing last week, Downing Street economic adviser Dr Ros Altmann said that two weeks after the publication of the Sandler and Pickering reviews, the Government was no further towards motivating more people to save.

In a speech to the FSA&#39s annual meeting in London last week, chairman Howard Davies said it will be difficult to free up conduct of business regulations to design “stakeholder” products without risking widespread misselling.

Altmann, who was speaking in a personal capacity, but has close links with the Downing Street policy unit and Tony Blair&#39s personal economic adviser Derek Scott, said simple products without advice or some other form of persuasion would not work.

She rejected the conclusion by Sandler that Government incentives have not been successful in increasing savings and said it is up to the Government to get more people saving. Providing incentives through tax relief is one of the most effective ways of accomplishing this, she claimed.

Altmann said: “I am not convinced simple products are enough on their own. There needs to be a combination of simple products and further Government incentives. Two weeks on from the Sandler and Pickering reviews, we are no closer to convincing more people to save.”

Davies said: “There is some difficult work still to be done on product features to ensure that it is possible to free up the conduct of business regulations without the risk of widespread misselling.”

Aifa director general Paul Smee says: “These comments seem to show how much more argument there is to be gone through before Sandler&#39s prescription could be adopted or even modified.”


Treasury rethinks regulation timetable

The Treasury has published a revised timetable for the regulation of mortgages and general insurance as it is still waiting for the EU to adopt the insurance intermediary directive.The new timetable says mortgage legislation should be published in its final form by the end of this month, rather than last, and the FSA consultation will […]

Black & White is aiming for 300 advisers with takeovers

National broker the Black & White Mortgage Company says it is on track to boost its number of advisers to 300 from 200 by the end of the year through the acquisition of two smaller rivals.The firm, which was launched two years ago in Staffordshire, says it is set to top the £2bn business mark […]

Aegon issues profit warning

The downturn in world stockmarkets has prompted Dutch insurance giant Aegon to issue a warning that its profits will be 30-35 per cent lower than last year.Aegon, parent of Scottish Equitable, said it would have been on course to at least equal last year&#39s £1,53bn profits but for current stockmarket volatility.Aegon&#39s results will be published […]

Yet another review as MPs probe the pension crisis

The pension industry is to face yet another review as the Parliamentary work and pensions select committee has announced a wide-ranging inquiry into the “pensions crisis”.In the autumn, the all-party committee will examine what role the Government and the private sector has in increasing savings through pensions.The industry has questioned the need for another pension […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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