For
immediate release: Thursday 10th October 2002
SANDLER’S
STAKEHOLDER SUITE OF PRODUCTS REQUIRES TWO KEY ISSUES MUST
BE SETTLED
Speaking
yesterday to the Treasury seminar on Sandler stakeholder
products, Richard Saunders, Chief Executive of the
Investment Management Association (IMA), responded on behalf
of the IMA to the initial proposals.
Welcoming
the flexibility on price capping signalled by the Financial
Secretary to the Treasury, Ruth Kelly, he warned of the
risks of imposing artificial price caps on stakeholder
products:
“I have simply not heard a coherent case for imposing price controls
in this area… Price controls invariably end up defeating
their own objectives… Just as in the past, price controls
will be self-defeating here.”
He
pointed out that mutual funds already fulfil the key
criteria suggested for stakeholder products:
regulated products which are simple, flexible and
transparent. But
the key issue is defining the products had to be risk:
“No investment is risk-free… The key question we therefore need the
Government to answer is this.
How much risk are you prepared to tolerate in these
products?”
-
ends -
Attachment
- Extract of Speech
For further information please
contact:
Richard
Saunders, Chief Executive, IMA, 020 7831 0898
Clare
Arber, Head of Communications, IMA, 020 7831 0898
Notes
to Editors:
Attached
is an extract from remarks by Dick Saunders, Chief Executive,
IMA, to Treasury Seminar on Sandler Stakeholder products.
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.
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