View more on these topics

Warning that stakeholder scandal looms

The Government and the ind-ustry have been issued a high-level warning of

the likelihood of a stakeholder misselling scandal in a report by the

International Institute of Banking and Financial Services.

In a section called Decision Trees – Another Pensions Scandal in the

Offing?, the report states: “The risk for IFAs is that many consumers in

the core target market will avoid seeking independent advice altogether,

going instead to a tied agent.

“The risk for the consumer and the industry at large is they may buy

without advice at all, relying exclusively on the decision trees, or they

will decide not to buy at all.”

The research also predicts that appointed representatives and IFAs will

emerge as the main distributors for stakeholder as life offices which fail

to secure partnerships with banks are forced to woo alternative channels.

The report also slates life offices for the shortcomings of their

e-commerce strategies for distributing stakeholder. It says 40 per cent of

providers do not regard the internet as an integral part of their

distribution and that their websites offer little or no interactivity.

Torquil Clark pensions development manager Tom McPhail says: “This

confirms the message that the pension industry has been sending for the

last year which is that the Government has not adequately addressed the

distribution of stakeholder.

“We would like to see all employers appoint a regulated individual to

ensure employees have access to regulated advice.”

Recommended

Hewitt cold on Abbey merger

Trade and industry secretary Patricia Hewitt is expected this week to announce that Lloyds TSB is barred from buying Abbey National.Hewitt is expected to block the deal, which would have created the UK&#39s largest bank, on advice from the Competition Commission.National Australian Bank, which already owns Clydesdale and Yorkshire Banks, is believed to be interested […]

Firms urged to tighten security to halt Tessa money laundering

The maturing Tessa market could open the door for millions of pounds-worthof money laundering, according to the UK fraud advisory service Cifas. In an article for the Pep and Isa Managers&#39 Association this month, Cifasexecutive director Peter Hurst warns that the lack of anti-fraudprecautions on maturing Tessa certificates has made them easy tocounterfeit. Current regulations […]

84% of IFAs put faith in with-profits bonds

An overwhelming 84 per cent of IFAs believe with-profits bonds haveoutperformed inv-estor expectations over the past 10 years, according toresearch from Prudential. IFAs say with-profits bonds are not outdated and irrelevant, as they areoften portrayed by consumer groups, but are becoming an importantinvestment option in times of stockmarket volatility and falling interestrates. The survey of […]

Pru and ScotAm valuations on AssureWeb

AssureWeb is to offer online life and pension policy valuations from Prudential and Scottish Amicable.IFAs are now able to check Pru and ScotAm surrender values and fund values online. AssureWeb says it expects other providers to come on board in the coming months.AssureSoft commercial director David Child says: “The service is another example of AssureWeb&#39s […]

Brexit: what to expect in the aftermath

James Dowey, Chief economist & CIO In these very early stages following the “Leave” win any prognosis is by its nature highly tentative. It will be weeks before we are able to measure the acute impact of the result on the UK economy, and there are clearly no close historical parallels on which to base […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com