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Virgin hits out at FSA&#39s penalising of Cat standards

Virgin Direct is attacking the FSA&#39s regulations for individual savings accounts for unfairly penalising Cat-marked ISAs with a risk warning that non-Cat products don&#39t carry.

Virgin believes that the FSA is driving customers into the arms of exactly the high charging managers that the Government wanted to exclude with Cat standards.

But the move is a clear victory for those who advocate taking financial advice.

The FSA regulations, produced in close co-operation with the Treasury, say that the key feature documents and direct offer advertisements will carry risk warnings stating that the Cat standard is not a performance guarantee and if consumers are in doubt they should seek advice.

Virgin has been one of the keenest supporters of the Government&#39s Cat initiative to date but it has serious concerns about the latest regulations.

Virgin Direct research & development manager Martin Campbell says: &#34We have always stated that Cat products should carry a risk warning but we will be unfairly penalised because non-Cat products don&#39t have to. The FSA is encouraging consumers to look at exactly the products they are trying to get them to avoid.&#34


National Savings takes £5.1bn in five months to August

National Savings sold investments worth £936m in August 1998 bringing the five month total since the start of the financial year to £5.1bn. Total liabilities to customers at the end of August were £63.8 bn, an increase of £574m since the beginning of the financial year.

Divorcees should sell not surrender with-profits endowments

Divorced couples could receive 30 per cent more money if they sell rather than surrender their with-profits endowment policies, according to a research report by Neville James.Neville James chief executive Morris Bisdee says: &#34Largely through ignorance, two-thirds of all policies taken out in the UK never see the end of their terms. By selling these […]


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