Cash Isas will be sold as one of the Sandler suite's short-term investment products from 2005, while...
Cash Isas will be sold as one of the Sandler suite's short-term investment products from 2005, while stakeholder pensions will have to be "lifestyled" as long-term products from equities to fixed income, says the latest update on the Sandler suite from the Treasury.
More detail of the Sandler products' structure is provided in the 42-page document entitled "Government's response to the consultation on Sandler stakeholder products".
Key details suggest medium-term investment will carry the 60% exposure to equities, either as a pooled investment products or as a smoothed investment, such as that seen under the changing with-profits formula.
Child trust funds will also fall under this range, however, more detail on CTs will not be available until later this year, says the Treasury document.
The DWP is likely to consult on the default requirements for stakeholder pensions with existing providers and deliver its draft regulation on any proposals or changes in 2004.
Initial timetable for delivery of stakeholder consultations and products is as follows:
|Q3 2003|| FSA consumer testing of sales process|
Publication of detailed proposals for the Child Trust Fund
|Q4 2003|| Announcement of further details of plans to reform the taxation of pension schemes|
Announcement of results of consumer testing of sales process
Announcement of decision on price cap
Charge cap research published
FSA Consultation Paper on sales process
HMT consults on regulations to specify products
|Q1 2004||DWP consults on stakeholder pension regulations (including transition issues)|
|Q2 2004|| Stakeholder pension regulations laid|
FSA rulemaking on sales process
HMT regulations laid
|Q2 2005|| Implementation of product suite|
Possible implementation of reforms to the taxation of pension schemes, including flexible retirement
Implementation of Child Trust Fund
More information about the Sandler suite, as well as responses from the industry will be posted on IFAonline throughout the day.
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