The Treasury is warming to the idea of developing 'simple' products which advisers would then be required to use as benchmarks for their recommendations.
In its consultation paper, it said the RU64 rule introduced as part of its 'stakeholder' initiative for pensions - which required advisers to justify why a non-stakeholder pension was more suitable than a stakeholder pension when recommended to clients - had benefitted the market, mainly by reducing overall charges. Stakeholder products, which were later extended to child trust funds and ISAs, introduced compulsory standards on charges, access and terms for any product wishing to be designated ‘stakeholder'. But while the Treasury will stop short of price capping 'simple' products, it...
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