An investment industry spokesman has hit out at the lack of cooperation between the FSA and Treasury over the Sandler suite of products.
Speaking at the Pep and Isa Managers' Association's London conference on The Future of Tax-incentivised Saving last week, Pima deputy chairman Clive Shelton asked a Treasury representative whether reports that the FSA was unhappy with the Sandler suite were true.
He also asked what impact this could have on implementing the Sandler suite.
Treasury head of savings and pensions Peter Betts, who was attending the conference in the absence of Treasury Financial Secretary Ruth Kelly, said he was unaware of such reports. But he said it was clear that there needed to be a close link between the sales process and the level of the charge cap.
Betts said the industry needed to show patience over the price cap, indicating that there might be a further delay to publishing the final details of the suite, due to appear in January.
He said a progress report would be available next month but gave spring 2004 as the likely timescale for more details.
Betts said: “We require cooperation from industry on Sandler and on the charge cap decision. It is important that it delivers a balance between value for the customer and industry. I would ask for you patience a little longer.”
Shelton said: “There are reports that the FSA are coming out against the Sandler suite. The costs of this for the industry are certainly significant. I have already heard of a number of major players who have decided not to offer the products if a charge cap is imposed. Surely this will leave the whole proposal and the industry in disarray?”