ACL can assist you with your plans to develop new products and services. For example, setting up a stakeholder pension scheme (taking account of the interlocking regulations of the FSA, Opra, the DWP and the Inland Revenue). There are various ways to enter the stakeholder market. For example, asset managers may prefer not to be stakeholder managers (product providers) themselves, but opt to market their 'stakeholder funds' on a wholesale basis to other stakeholder managers (similar to a 'fund supermarket' arrangement). A life assurance company may prefer to offer its own stakeholder product on an 'open architecture' basis, providing investors with access to a wide range of funds available from many different asset managers.

The stakeholder regulations restrict the annual management charge (currently 1% per annum). Included within the 1% are the costs of managing the assets and administering the scheme. Stakeholder business is therefore at the margins of profitability. If you are investigating ways in which your business might effectively enter the stakeholder market, contact us.

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