For immediate release: Tuesday 9 July 2002

 

IMA RESPONDS TO SANDLER REPORT

The IMA today welcomed the Sandler Report’s emphasis on simplicity and transparency in the retail financial services market.

Richard Saunders, Chief Executive, said:

“Sandler is absolutely right to focus on simplicity and transparency.  It is good for consumers and good for the industry.  The mutual fund industry strives to be transparent and many of the proposals in the Report will help us to further that aim.

“Among the proposals which we believe will benefit consumers are:

• Steps toward levelling the playing field between life and mutual fund products, particularly in the area of pensions and the individual pension account (IPA).

• Greater separation of the cost of advice from the cost of the product, something which we have long advocated.

• Improved adviser qualifications, with a greater emphasis on investment matters.

• A renewed focus on consumer education.

• Simplified key features documents, incorporating an appropriately modified version of the ‘Myners’ principles.

“The proposed stakeholder products will be an important addition to the array of choices open to consumers.  We welcome the proposal to include a managed fund within them, and look forward to working with the Government on developing the proposals further.  It will be important however not to lose sight of the importance of financial advice, which large numbers of consumers want and need.  The immediate impact of these changes on the IFA market will need careful consideration.

“Many of these recommendations are consistent with the views we put to the Review, and, while we do not necessarily agree with all the Report’s detailed analysis, we welcome it as giving the industry real opportunities to improve its service to consumers.”

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For further information please contact:

Richard Saunders, Chief Executive, IMA, 020 7831 0898

Clare Arber, Head of Communications, IMA, 020 7831 0898

65 Kingsway London WC2B 6TD

Tel: +44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975

www.investmentuk.org

Investment Management Association is a company limited by guarantee registered in England and Wales Registered number 4343737.  Registered office as above.