Opportunity knocks

The Government-set charges cap for stakeholder products is doing little to encourage IFAs to sell them but there are other ways to add value

As you must surely be aware by now, HM Treasury has announced it is to set the charge cap for the new stakeholder products at 1.5% for the first 10 years the product is held and 1% thereafter. In reaching its decision, the Government has taken into account that stakeholder needs to be sold with advice, albeit with what the Treasury and the FSA are now calling 'basic advice'. The industry's response has been less than ecstatic, with many believing the cap is still not high enough. Some are saying there may be more money available for marketing these products but there will be nothing lef...