Norwich Union is pleased to see the Financial Services Authority (FSA) today begin consultation on new, lighter touch regulation of the sales process for the new suite of Sandler-advocated simple products.
Norwich Union is pleased to see the Financial Services Authority (FSA) today begin consultation on new, lighter touch regulation of the sales process for the new suite of Sandler-advocated simple products.
We are also pleased that HM Treasury will be consulting in early 2003 on the minimum specifications for these new, simplified investment products.
Of the three broad options set out today in FSA Discussion Paper 19, Norwich Union’s initial view is that the most promising proposal at this stage would seem to be ‘Guided self- help’.
Any changes should be about allowing providers to reach new potential customers for long-term savings products, whilst offering a reasonable level of consumer protection.
Norwich Union looks forward to providing a fuller response to the FSA on how today’s proposals might work in practice, including how simplified products will interact with products in the full advice market.
Commenting, Peter Hales, sales & marketing director for Norwich Union, said:
“We welcome today’s FSA consultation document, which provides an opportunity to widen access to a range of simplified long-term savings products amongst consumers that are currently not being reached. But at the same time, it is important that the opportunity for full advice through IFAs remains widely available.
“However, the economics of distributing these products remains difficult. A more flexible pricing framework would be welcomed, and would result in the market operating efficiently and effectively to stimulate demand amongst lower income customers. Without increased flexibility around the 1% price cap, expansion of the UK long-term savings market is unlikely to be achieved.
“We do not believe that removing the Conduct of Business rules altogether would help either providers to distribute products to the marketplace, or consumers to buy them. We would prefer to expand the market within some form of regulatory framework.”
Notes to editors
- Norwich Union is the UK’s largest insurer. It is the UK’s largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company’s long-term savings business.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- A selection of images are available from the Norwich Union Newscast site at www.Newscast.co.uk
For further information:
James Evans, Norwich Union Life 08703 66 68 78/07790 487105
Ian Beggs, Norwich Union Life, 08703 66 68 71/07790 487533
Louise Goffee, Norwich Union Life, 08703 66 68 70/07810 057362