PIMA HOPES SANDLER PRODUCTS WILL ENCOURAGE SAVING FROM LOW AND MIDDLE INCOME FAMILIES
The Treasury’s proposed product specifications for the Sandler suite of products should encourage providers to offer simple and affordable savings products for lower income earners, according to the PEP and ISA Managers’ Association.
PIMA is particularly pleased the consultation is set to consider the question of investment choice and flexibility as well the 1% overall charge cap on products.
Tony Vine-Lott, director-general of PIMA, said:
‘We are delighted the Treasury has taken on board many of our thoughts on encouraging lower and middle income saving. We were particularly concerned that an overall 1% cap might reduce choice and continue to be concerned about access to advice. This consultation indicates providers might have flexibility on charging structures allowing greater subsidisation of products targeted at lower income groups.’
‘This consultation is a major opportunity to ensure both providers and consumers offer and receive the products they want. While consumers remain locked-in to inflexible savings and pensions products they will continue to consider themselves better off with an ISA.’