The Financial Services Authority is rumoured to be thinking of extending the RU64 stakeholder pensions rules across the entire simplified product range once launched.
According to industry officials, the FSA is expected to launch a consultation paper next month which reviews the rule announced four years ago in the PIA’s Regulatory Update 64 (now known as the FSA’s COB 5.3.16) – which requires all advisers to explain to a client why other pensions would be more appropriate than take-up of a stakeholder pension – and whether it should be extended across the proposed ‘Sandler suite’ of simplified products. If this change to RU64 is eventually approved, advisers will have to justify why some more expensive investment products might be more suitable than ...
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