For Immediate Release: Friday 20 October 2000

GOVERNMENT'S STAKEHOLDER APPLAUDED

The Director General of AUTIF, Philip Warland yesterday predicted success for the Stakeholder Pension. The reasons he gave were:

• employer involvement
• the pensions statement
• the similarity to ISAs which are bought not sold
• the simple tax treatment its appeal to individualistic young people
• the right product for a consumerist society
• its suitability for a world of growing job mobility

He said:

"The Stakeholder pension will achieve its objectives and radically change the financial services industry for the good of the population."

In the speech he also anticipated substantial changes in the life assurance sector, predicting the end of with-profits products. He also rebutted the view of the ABI that Governments should not intervene in product design. The full text of the speech is attached.

For further information please contact:

Philip Warland, Director General, AUTIF - +44 (0)20 7831 0898
Anne McMeehan, Director of Communications, AUTIF - +44 (0)20 7831 0898
Alison Michell, Senior Policy Adviser, AUTIF - +44 (0)20 7831 0898

Notes to Editors:
The speech was given on 19 October at an FT Conference, Stakeholders 2001 and Beyond.

Attachment