The danger of defaults

Government proposals for revised regulations on stakeholder default funds will lead to added costs and complexity for policyholders

Back in July, the Government issued its response to consultation on the Sandler stakeholder products specification. The response contained the Government's latest thinking on the Sandler simplified product suite, including two proposals affecting the operation of default funds under stakeholder pension schemes. First, consultation showed there was strong support for a single stakeholder pension regime. The Government proposed, therefore, that existing stakeholder pension schemes should become an integral part of the Sandler stakeholder suite with effect from April 2005. Second, it was...