The Government's decision to reconsider the 1% price cap on simplified products shows that the gover...
The Government's decision to reconsider the 1% price cap on simplified products shows that the government is willing to listen, says the ABI in response to the release today of the Treasury consultation document on Sandler's products.
The ABI says that the Treasury's discussion paper, Proposed product specifications for Sandler "stakeholder" products has opened the doors to a new and realistic partnership between the government and savings industry.
The ABI has welcomed the Government's proposal to open up the question of price capping for debate and the initiative to commission independent research.
The Government's u-turn on the charge cap issue shows that the it is considering the commercial viability of this 1% commission for product providers.
The Government is accepting views on the structure and level of a charge cap, and demonstrations on what benefits a change would bring for the consumer and market penetration.
"We now need a proper public debate in order to bring together consumers, providers, the regulator and Government into a powerful and practical consensus for change," said the ABI's Head of Life and Pensions, Alan Woods.
The ABI is also pleased that the Government has agreed to treat the existing stakeholder pension as part of the Sandler package. Woods said, "It would have been confusing and costly to create two types of simplified pension products."
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