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Why the charge cap does not fit

Is the end of the 1 per cent world nigh? There are signs of a Government rethink, so maybe. There are strong arguments that personal pension charges were too high in the past.

Stakeholder has helped cure that com-plaint but the medicine risks finishing off the patient. The charge cap may be too low for the private sector to make a proper fist of selling stakeholder. It piles an unacceptable risk on providers&#39 members, policyholders and shareholders, marrying high start-up costs to highly susceptible future profits.

A price cap for the less well off may have been justifiable but stakeholder changed course, effectively price-capping the whole pension market. This newspaper believes a wide-spread adoption of the 1 per cent world without a lengthy transition period to trail or fee-based sales could prove disastrous for providers, intermediaries and savers.

Price competition in the pension market is in everyone&#39s interest. This should be maintained but any review should factor in reasonable room for advice.


Revenger&#39s £175m tragedy for industry

George Chapman was born in 1559 and died in 1634. He was a playwright whose Jacobean tragedies graced the stage of his day.So what does Chapman have to do with the pension review? Well, the answer is a simple one, for Chapman first uttered the words which the 21st Century financial world has echoed in […]

450 IFA firms registered for Transact tools

Portfolio consolidator Transact has passed the £100m sales mark just 11 months after its launch into the UK market.The trading platform, which earlier this year formed a strategic alliance with the AITC, now boasts more than 300 firms of advisers on board, with a further 150 registered to begin using the service in the near […]

IFA Pam Warren

IFA Pam Warren was named Woman of the Year this week in recognition of her work in pushing for improvements in rail safety. Warren, who formerly ran her own pension advice company, received the award after suffering severe burns in the Paddington rail crash two years ago and undergoing 22 operations to her face. She […]

FSA would not look favourably on Lorna&#39s advice

I am compelled to write to you after reading the latest piece of wisdom in the guise of the Lorna Bourke article (Money Marketing, October 11). The contents of the piece show an alarming lack of basic financial planning knowledge, risk management and basic arithmetic and will cause concern to all who read her comments.Ms […]


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