UK - Gissings is urging the government to keep stakeholder's 1% fee cap despite fierce lobbying from providers, as they provide better value than personal pension products.
The consultant said that providers have a vested interest in seeing stakeholder “wither on the vine”, as this will allow them and independent financial advisers to promote more expensive personal pension products.
The consultant claimed that providers are trying to reinvent personal pensions as a “mechanism” to allow them to increase their charges. However, they can only do this if they can demonstrate that personal pensions offer better value than stakeholder funds.
Gissings managing director Eamonn O’Connor said: “Stakeholder is a straightforward product. Providers and advisers don’t need to offer the kind of advice with stakeholder that would justify the kind of increases proposed.
“Advisers have a vested interest in seeing stakeholder wither on the vine so they can promote more expensive group personal pensions. I’m sure they’d love to strangle stakeholder.”
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