Basic advice regime for stakeholder products goes ahead

From April 2005 firms will be able to sell stakeholder products, other than, “for now”, the smoothed investment fund (which is to be the subject to further research on consumer understanding) if they are judged to be suitable on the basis of responses to prescripted filter questions, the FSA confirmed last month. Dan Waters, Director of Retail Policy, FSA, described the approach as more “off the peg” for consumers who want an alternative to full advice.They will still be able to refer complaints to the Financial Ombudsman Service (FOS).