The Treasury's creation of a range of simple products is unnecessary because products satisfying the needs identified by Ron Sandler are already offered by National Savings & Investments, according to Aifa director general Paul Smee.
Smee said the Government's exercise was futile because products already exist that are suitable for low to middle-earners who are not saving.
Speaking at a Sandler seminar at the ABI's annual conference in London last week, Smee told the panel, which included representatives from the FSA, the Treasury, product providers and the ABI, that the guarantees offered by NS&I products would be attractive to those who are not currently saving.
He said: “For a lot of people in that target market, the sort of product offered by NS&I is the sort of thing they should be buying. They are guaranteed products which allow people to participate in equity-backed savings without exposing them to the full vagaries of the market.”
NS&I accounts manager Sally Mantell says: “As Paul Smee says, the Sand-ler report is about low charges and products that are easy to understand and purchase. None of NS&I's products have any charges and they are all explained in plain English. They are some of the most straightforward propositions in the marketplace today.”