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.
In January the draft rules following CP121 on the dismantling of polarisation are to be released by the regulator for consultation, 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 Ron 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 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 internet distribution would be important in making the business profitable.
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body
Also plan to scrap NI on contributions
Eight-week high against US dollar