The UK pensions, protection and investments industry is to introduce demanding new market standards, which will underpin the industry’s commitment to give its customers a fair deal. The high standards will be based on three principles: clarity of information, appropriateness of the product purchased and quality of the service provided. The standards will help customers and their advisors to choose the right products. They will also help to ensure that customers receive good levels of service thereafter in areas such as claims handling, enquiries and complaint procedures.

Independent accreditation body

An independent accreditation body, the Pensions, Protection and Investments Accreditation Board (PPIAB), will police the new regime, with standards set by the Industry in consultation with consumers, consumer groups, the Regulator, Government and the Industry. Brands that meet these standards will be able to use a new quality mark, awarded by PPIAB.

PPIAB will be responsible for accrediting providers who meet the standards. It will award initial accreditation, and then monitor subsequent compliance with these standards as a condition of continued accreditation. The Board will be able to revoke accreditation if a company does not subsequently meet standards. This approach will be underpinned by an independent professional audit of the process. PPIAB will have nine board members, none of whom will work in the Industry. Once it becomes operational, it will become self-funding through revenues generated by the accreditation process. More…

9 December 1999

UK PENSIONS, PROTECTION AND INVESTMENTS INDUSTRY ANNOUNCES MAJOR NEW MARKET STANDARDS REGIME/2

Standards group

The detailed standards are being developed by a new Industry group, formed under the auspices of the ABI, working in consultation with consumers, consumer groups, the Regulator and Government.

The standards will cover initially pensions, protection and investment products sold in the United Kingdom. Each of the new standards will be backed by a series of specific measures which will have to be met before a company can become accredited and use the quality mark.

Support

Providers accounting for a significant majority of the Industry’s annual sales have expressed their commitment to meet the new standards and seek accreditation. In many cases, this will require a further improvement in their current service standards.

Timing

It is expected that the standards will be published formally in the first half of next year.

Financial services providers will be invited to apply for, and work towards, accreditation for their brands from the middle of next year.

The first accreditations are expected to be effective from the first half of 2001. More…

9 December 1999

UK PENSIONS, PROTECTION AND INVESTMENTS INDUSTRY ANNOUNCES MAJOR NEW MARKET STANDARDS REGIME/3

Sandy Leitch, who has led the initiative and who is Chairman of the ABI, said:

“The UK’s pensions, protection and investments industry is the largest in Europe and is today a world leader. At the same time, consumers are still under-insured and under-pensioned. While industry standards have improved in recent years, we now want to stretch our performance further. We are working hard on the details, and are consulting carefully with all of our stakeholders, including IFA companies, to ensure that the new arrangements will be effective in further driving up standards.

“Our aim is to benefit consumers in two ways. Firstly, the measures we are developing will put clearer, more comparable information into their hands before they decide whether or not to buy. And secondly, they will assure consumers of accredited product brands that they will receive a high standard of after sales service.

“In this way, the initiative will complement existing advice mechanisms, whether direct or through financial advisors, in helping consumers to acquire the knowledge and confidence that they need to make proper financial provision for themselves and their families.”

Howard Davies, Chairman of the Financial Services Authority, said:

“Any industry initiative that helps to raise standards in the interests of consumers is to be welcomed. We await further details with interest.”

9 December 1999

UK PENSIONS, PROTECTION AND INVESTMENTS INDUSTRY ANNOUNCES MAJOR NEW MARKET STANDARDS REGIME/4

Jeremy Budden, Chief Executive of Willis National, said:

“I’m glad to see the industry taking such steps. I think it’s good news for consumers. In future, when the measures are implemented, I believe that financial advisors will be able to assure consumers about very high standards that accredited product brands will match or exceed. This will reduce complexity and enhance investor confidence. Advice will still be crucially important. These measures, however, will enhance the professionalism of the industry. I expect the long term result to be more people making financial provision for their future.”

Notes

1. Enquiries to:
   Sandy Leitch, Chairman, ABI Telephone: 020 7495 5571
   Mike Ross, Deputy Chairman, ABI Telephone: 0131 655 6818
   Jeremy Budden, Chief Executive, Willis National Telephone: 020 7488 8390
   Mary Francis, Director General, ABI Telephone: 020 7216 7300
   Neil Hedges, Fishburn Hedges Telephone 0ffice: 020 7839 4321 Home: 020 8455 3823



2. The Pensions, Protection and Investments Accreditation Board (PPIAB) stems from work done by the Savings and Long Term Risk Project (Project SALTR), conducted under the auspices of the ABI. Project SALTR was formally announced in January 1999. Its purpose was to look at ways of making the market place work more effectively to give consumers a better deal, restore confidence in the savings and long term risk industry and thereby encourage consumers to make greater provision for their future welfare.



3. 9 December 1999
   
   UK PENSIONS, PROTECTION AND INVESTMENTS INDUSTRY ANNOUNCES MAJOR NEW MARKET STANDARDS REGIME/5
   
   Project SALTR has a number of different work-streams. It was recognised early on in the project’s development that raising standards in the industry was the key objective to be tackled first. This announcement is the first step towards realising this.
   
   This initiative has initially been sponsored by a group of companies which represent a significant majority of the industry by market share and which have already expressed a willingness to meet the standards and have their brand(s) accredited with the PPIAB quality mark. All major companies, as members of the ABI, have endorsed the project as a means of raising standards in the industry.