They are trying to offer people a comforting message that CAT standard products will always be ‘alright’ while also saying that non-CAT products might be better in individual cases. The ABI also comments on the Government’s proposal for a CAT standard for ‘generic’ financial advice, especially in pensions. Conveyancing Lawyers There needs to be more work on the scope and objectives of generic financial advice, including the role of the State, before a regulatory solution is decided upon.
The Association of British Insurers today welcomed the Government’s new proposals to encourage saving and asset accumulation in Britain. Today’s announcement builds in part on research ABI co-sponsored to consider some practical issues on how the Child Trust Fund and the Savings Gateway might operate. The Government is right to consult widely on these proposals, and we will be studying them in detail. We share the Government’s objective of self-provision and asset accumulation throughout society. We hope to work in partnership with the Government to turn these latest proposals into reality.
1The non-gilt sterling bond market has grown rapidly and is this year poised to overtake the gilts market in terms of size, but it still lacks trading depth and liquidity. Enhanced information flows for investors are needed to help it function better, according to research launched today by the Association of British Insurers.
The research was commissioned in the wake of the recent debate over the future of the Minimum Funding Requirement, which highlighted the growing importance of the sterling bond market to insurance companies and other institutional investors. A key conclusion is that bondholders should form a committee to promote their interests with issuers and regulators.