People on low to medium incomes are STILL the target group for "Sandler" suite of stakeholder produc...
People on low to medium incomes are STILL the target group for "Sandler" suite of stakeholder products, the government says.
This comes as the government - in its 42-page long response to the consultation on Sandler stakeholder products published today - outlines that it will set the product specifications in order to appeal to those on lower incomes.
But the government is not closing the door for other income groups.
While stating that this products are for those "who are currently priced out of the market for retail savings advice", the government recognises that these may not be the only future buyers.
Stakeholder products may also be of value to cautious investors on higher incomes and for those who want to change to a low cost investment product to get better value for money, suggests the Treasury.
Further trying to establish the width and nature of the target group, the government has also decided to publish a detailed independent study of the nature and extent of the likely buyers of these products, in a bid to meet a number of respondents' call for greater clarity.
According to various bodies, this would not only help to produce a more effective product design, an appropriate charge cap and enable the measurement of success, but it would also help reducing the possibility of mis-selling.
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