For Immediate Release:
Tuesday 2nd October 2001
AUTIF CALLS ON SANDLER FOR FREE MARKET
SOLUTIONS
AUTIF today publishes its submission to the Sandler Review
of medium, and long terms savings.
AUTIF calls on the Sandler Review to adopt free market
solutions in the financial services sector by:
- basing the approach on transparency and market forces
rather than on charge caps by Government
- supporting AUTIF's efforts to allow mutual funds
- to offer simple pension products to the public, based on
mutual funds, which the present IPA rules do not achieve;
and
- to keep up with the demands of consumers, including new
products which combine the protection against capital loss
of with-profits with the transparency of mutual funds.
The submission welcomes that role that advisers have played
in developing an open, competitive and efficient market in the
mutual funds sector, but concedes there are still concerns
about the provision of advice in a number of areas,
particularly on broader investment strategy. It recommends
improving:
- training and competence standards of advisers
- commission disclosure arrangements.
It concludes with a warning that the UK has lost out to
Dublin and Luxembourg in the competition to be the mutual
funds centre of choice for Europe, and calls on the Government
to take action before it is too late.
Richard Saunders, Director General, said
"We have always welcomed the Sandler Review and offer
today what we believe are constructive proposals to improve
the working of the retail financial services market.
"While many aspects of the market work well, there are
crucial improvements to be made, notably by allowing mutual
funds to compete in the areas currently dominated by personal
pensions and with-profits products. This would allow
competition to increase and consumers to benefit.
"Such an approach is far better than one based on
Government price controls, which only ever has the effect of
stifling innovation and reducing competition."
Ends
For further information, please contact:
Richard Saunders, Director General, AUTIF 020 7831 0898
Anne McMeehan, Director of Communications, AUTIF 020 7831 0898
Clare Arber, PR Manager, AUTIF 020 7831 0898
Notes to Editors:
Please see the attached
response
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