RU64 will 'lead to stakeholder mis-selling'

Chris Gilchrist, chief executive of the advice website, says the decision to keep the rule which requires advisers to explain to their customer why the personal pension product they have recommended is at least as suitable as a stakeholder pension, is an “absurdity” in the run-up to personal accounts and could promote mis-selling to a vulnerable group of low-income savers. Although the FSA says the new scheme scheduled for introduction in 2012 will not affect the operation of RU64, Gilchrist warns the rule’s implicit backing for stakeholder could mean people end up saving in an unsuitable...