The use of the term "with profits" is misleading, the Treasury says, which is why it is seeking...
The use of the term "with profits" is misleading, the Treasury says, which is why it is seeking proposals for another term that would better explain to consumers exactly what a with profits product within a simplified suite would actually do. Another issue involving with profits is the use of smoothing guarantees, which imply a lock-in - something that would work against the simplicity principle the government wants to apply to any of the new simplified products. Instead of with profits with smoothing, it might be better simply to offer a "guaranteed" product that would guaran...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes