UK - A new generation of stakeholder pension products that could be sold without financial advice is one of the key proposals in the Sandler Review.
But they will not be suitable for low earners or anyone in an occupational scheme.
The review of retail savings – which was carried out by former Lloyd’s chief executive Ron Sandler – proposes that these products should have no initial charge, strictly regulated exit charges and limits on investment risk.
It also proposes strengthening the role of the FSA in providing effective consumer education and allowing consumers to make better choices about products.
But Hargreaves Lansdown pensions research manager Tom McPhail said both of these proposals “undermined” the traditional role of the IFA.
And he felt comments in the review that suggest low earners should not be investing in pension products will “cause confusion and increase consumer apathy”.
McPhail said this could only be resolved by looking at “the balance of power between Sandler and Pickering”.
The NAPF, though, welcomed the review as an important “first step” towards pensions reform.
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