Around 30% of financial services firms believe there will never be significant demand for Sandler's ...
Around 30% of financial services firms believe there will never be significant demand for Sandler's stakeholder suite of products, the draft rules for which will be issued in January.
The regulator will next month release the draft rules on the dismantling of polarisation following CP121 but a Bank of New York survey of product providers indicates there is far from universal support for the planned range of stakeholder products.
The suite, which includes a pension, a managed fund and a more transparent with-profits fund, was proposed by Sandler as a way of increasing saving among the lower income segments of the population, but it is life companies and banks that expect to profit from it.
Fund managers in the main, the research found, do not expect to participate in the market but predicts it will drive merger and acquisition in the life and bank industries as providers seek to make the business profitable.
Among respondent firms, 30% thought there would never be demand for the products, while a further 45% did not expect significant demand until at least two years after they are introduced. Some 70% believed that internet distribution would be important in making the business profitable.
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