Stakeholder products will get to keep their generic name to the detriment of suggested names such as...
Stakeholder products will get to keep their generic name to the detriment of suggested names such as Treasury Defined Plans and STEP (simple, transparent, easy to understand products), says the latest update on the Sandler suite from the Treasury.
This decision was made based upon the fact that the stakeholder pension is going to form part of the product suite, as well as the fact that it would add to market confusion both by changing the name of these pensions and to have more than one brand name for government-designed products.
Sticking to the "stakeholder" brand will also have implications for CAT standards as the government believes it only "makes sense" to have one standard.
By reassessing the need for the CAT concept, the Treasury has therefore decided that the CAT standard cash ISA will become a stakeholder cash ISA and that the CAT standard equity-ISA will be replaced by the stakeholder medium term product.
Meanwhile, the CAT standard insurance ISA will be withdrawn.
The consultation about the 'branding and promotion' of stakeholder products also raised the question regarding the need for a wider communication campaign.
In response to this, the government will consider to provide additional branding and promotion support for this new product range, but expects that firms will engage in their own promotional activities.
A broader marketing campaign - which the Treasury suggests could be similar to the government's campaigns on seat-belts, drink-driving and AIDS - that have been suggested by some respondents but are, however, less likely.
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