Life offices will be top on the list to endure a thorough investigation into longer term savings pro...
Life offices will be top on the list to endure a thorough investigation into longer term savings products, including endowments, via a full Government enquiry into the retail savings industry.
The independent investigation, which will also examine the role of IFAs in the selling process, is to be led by former chief executive of Lloyd's of London and chief operating officer of NatWest, Ron Sandler.
According to the Chancellor, Gordon Brown, Sandler's independent review will work alongside the Financial Services Authority (FSA) to investigate issues such as competition and incentives ' inevitably including advisers' commission.
'Working with the FSA, the review's purpose will be to identify the competitive forces and incentives that drive the industries concerned, in particular in relation to their approaches to investment, and, where necessary, to suggest policy responses to ensure that consumers and the investment needs of the economy are well served,' said Brown.
The Association of British Insurers (ABI) has welcomed both the appointment of Sandler to lead the review and the investigation's focus on competition issues. Mary Francis, director general of the ABI, said it would work closely with Sandler and help ensure there is effective input from the insurance market.
'This review is a real opportunity for both the industry and its customers. It is a chance to make sure that the UK has a competitive and innovative market which works in the interests of consumers. The industry is, and must remain, a source of real competitive strength for the UK. We will work closely with the review team to ensure that all aspects of the market are working as well as possible.' she said.
Scottish Equitable also welcomed the review. Lesley McPherson, public affairs officer at parent company Aegon, said the investigation should lead to a better understanding from consumers and show how important it is to seek qualified advice.
She said: 'We welcome this review. We are fully supportive of the concept of quality, independent advice and any move to clarify the benefits of this to consumers can only be a good thing for the industry.'
