Fidelity Investments is urging the Government to avoid following 'blindly' Ron Sandler's recommendat...
Fidelity Investments is urging the Government to avoid following 'blindly' Ron Sandler's recommendations for a stakeholder suite of products and to keep the interests of consumers and advisers at the forefront.
Fidelity is critical of an agenda that focuses on a 'one-size-fits-all' approach to stakeholder products and cautions underestimating the benefits of advice which is especially crucial in the current environment of dented consumer confidence.
Fidelity writes off the supposed ease of use of the Stakeholder products as 'nonsense'. Taking as an example the Government's poor attempts to transform the savings market with the CAT standards (minimum standards for Charges, Access and Terms) Fidelity believes Sandler's ideas will end up with the same fate if the Government is not prudent.
Fidelity is particularly concerned with the Government's adherence to the idea of a 1% price cap on Stakeholder products believing it will prove counter-productive for consumers and deal another blow to the IFA community.
But the fund manager does agree with Ruth Kelly's statement that a simpler tax system will benefit consumers and the industry. Cautioning against undoing the success of Peps/Isas, Richard Waistcost, managing director at Fidelity Investments remains convinced that tax incentives are a key factor in motivating investors and growing the long-term savings habit.
"The Government has failed yet again to understand the needs of the investor. In our experience strong growth in consumer buying is driven by tax incentives for savers, product innovation and choice as well as an effective advice industry. We believe that Sandler misses all of these points."
Succeeding co-founder Simon Rogerson
Janus Henderson Global Dividend Index
More than 10 million shares allocated
Long-term strategic holding
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