Information: For Immediate Release Tuesday 3 August 1999

AUTIF WELCOMES OFT REPORT ON POLARISATION

The Association of Unit Trusts and Investment Funds (AUTIF) greeted warmly the principles contained in the Office of Fair Trading’s Report on Polarisation issued today.

AUTIF Director General, Philip Warland commented:

"The OFT Report is radical and well-argued and potentially has profound implications for both consumers and the industry. In particular we welcome the key distinction drawn between transparent, low-charging, liquid products, priced according to precise rules and more complex, illiquid products. This distinction is vital if the public is to be assisted in its understanding of the Government’s planned stakeholder pensions. The principle is one we have long argued for and is likely to have significant ramifications in terms of both regulation and product design.We welcome too the OFT’s recognition that although fee-based independent advice is theoretically attractive, any regulatory bias against commission would effectively deter people from seeking advice.AUTIF will now consider in more detail the overall effects of the proposals and looks forward to discussing them with the industry, the OFT and the FSA."

For further information, please contact:

Philip Warland, Director General - 0171 831 0898
Anne McMeehan, Director of Communications - 0171 831 0898