AFM responds to report by Treasury Select Committee on the Retail Distribution Review
The Treasury Select Committee (TSC) has concluded in its report that the implementation of the Retail Distribution Review (RDR) should be delayed by 12 months.
Martin Shaw of the Association of Financial Mutuals reacts to Mark Hoban’s proposed gender consultation with the Insurance Industry
“March’s Gender Ruling was greeted with a resigned sense of disappointment because it is bad news for consumers. They are the ones who will get a worse deal as a result. The insurance industry was exempt from previous gender legislation because there is clear evidence that it is a fair basis on which to reflect different risks. Therefore, to ignore gender in insurance would be to discriminate not only against young female drivers but male annuitants as well.”
Martin Shaw, CEO of the Association of Financial Mutuals whose members provide insurance products, calls for the industry to implement its own code of conduct as an interim measure to a ban on the payment of referral fees
“The Association of Financial Mutuals supports yesterday’s calls on the outright ban of referral fees as opposed to greater transparency but we recommend that in the meantime the insurance industry proactively takes action and sets up its own code of conduct, which we would be very happy to help develop. No motor insurance provider within AFM sells customer data to other organisations and our members give their strong support to the campaign to introduce major reform in this area.
Martin Shaw, Chief Executive at Association of Financial Mutuals comments
"Rumours of the demise of the Child Trust Fund are very much premature. The statement issued yesterday indicates the Government is seeking to reduce payments for higher earners. That suggests quite clearly keeping the product universal albeit it at a lower cost to the Exchequer. This is very consistent with the talks that the Association of Financial Mutuals, whose members manage over half of all CTFs, has been having with political parties for some time, and we are keen to work with them on that basis.
Martin Shaw, CEO of the Association of Financial Mutuals (AFM) responds to Mark Hoban’s comments at the All Party Parliamentary Group for Building Societies and Financial Mutuals
“When giving evidence, the Minister stressed that the government is neutral on ownership and was reluctant to offer a view on the sector’s virtues or on the FSA’s attempts to undermine the business model. As the "Minister for Mutuals", this lack of engagement is disconcerting and is comparable to a Minister for Pensions who is unsure on the case for retirement planning.
Martin Shaw, CEO of the Association of Financial Mutuals, responds to the Treasury's consultation paper: A New Approach to Financial Regulation: Building a Stronger System
There is significantly more detail in the new consultation which provides much more assurance as to the way financial regulation will be conducted in future. We are broadly supportive on the approach proposed.
Commentator: Martin Shaw, CEO for the Association of Financial Mutuals
Availability: Now
Input available: Confirmation that the Junior ISA will be launched in November is a welcome development as the need to build up a nest egg for milestones such as student fees or a house deposit is more vital than ever. We believe the Junior ISA will be the primary savings account for families and AFM and its member are planning for this exciting new product. However, while previously, every child would receive a Child Trust Fund and a voucher at birth, we regret that this will not happen for the Junior ISA. As a result, poorer families in particular will be disadvantaged.
Reacting to the confirmation of the Junior ISA’s launch, Martin Shaw, CEO for the Association of Financial Mutuals said
Today’s announcement that the Junior ISA will be launched in November is welcome as the need to build up a nest egg for milestones such as student fees or a house deposit are more vital than ever. We believe the Junior ISA will be the primary savings account for families and AFM and its member are planning for this exciting new product.
Martin Shaw, CEO of Association of Financial Mutuals reacts to the European Court of Justice ruling on gender
“In the short term, there will be some negative impact on the cost to the consumer but markets such as motor insurance and annuities are competitive and, over the longer term, insurers will look to develop more sophisticated techniques on which to base their assessment processes. In practice, this will mean that aspects such as health and lifestyle will become more important as insurers look to calculate risk by another means.
Reacting to the FSA’s proposals for “with profits”, Martin Shaw CEO of the Association of Financial Mutuals comments
We welcome the Regulator’s willingness to listen to the industry and we are pleased that the FSA has shown some flexibility on issues that are important to the Mutuals’ sector. Flexibility on matters such as new business thresholds will benefit our members – we will, of course, continue to work with the Regulator to ensure the Mutual voice is heard on these important industry matters.
Martin Shaw, Chief Executive of Association of Financial Mutuals (AFM) comments on the impact of the supplementary FSCS levy on mutual insurers
"Whilst IFAs have been very vocal in expressing concern about the impact of the supplementary FSCS levy, they did at least have the advantage of early warning. Meanwhile mutual insurers and friendly societies have been issued demands, receiving neither notice nor explanation and being left with little time to pay."
Leading UK mutuals come together in new partnership
A major partnership was announced in Janaury between two of the UK’s leading mutual organisations, both of which are based in Yorkshire.