Firms must review Holloway plans annually to satisfy RDR exemption

After fierce lobbying from mutuals, the FSA agreed to exempt advised sales of Holloway plans from the RDR, but only if the investment element was not significant. The FSA has defined 'not significant' as where the projected maturity value contained in the key features illustration is 20% or less of accumulated premiums. Originally, the investment part of the products meant IFAs would have been forced to charge a fee for advising on them after 2012. But, as Holloway plans are targeted at lower-paid blue collar workers who otherwise struggle to get cover, the mutuals argued this woul...