UFO Info Week-End

There are four ranges: basic which are practical everyday rucksacks travel -

There are four ranges: “basic” which are practical everyday rucksacks; “travel” – big rucksacks, hold-alls and overnight bags for globetrotters; “safety” which feature flashing lights, and reflective panels, perfect for cyclists, rollerbladers, skateboarders etc, and “oxygen” which is chic, smart, structured, and very London. Instead Kipling bags are refreshingly well priced, brightly coloured, and somewhat silly accessories that fashion bible American Vogue recently declared to be among the essential status symbols of the Nineties. They are the bag of choice for American city bankers who rollerblade to and from work, they have appeared in Speed II and Jerry Maguire, (Tom Cruise wears his throughout the film), Friends, ER and Suddenly Susan, and are fast becoming a major rival to American giants Eastpak.Each bag is made from super strong 420 denier nylon, and fastened with industrial zips, which, many say are the secret of their success. They do not cost as much as a holiday in Spain, nor do they convey the “I’ve got one, you haven’t, ner ner ne ner ner,” vibe normally associated with desirable luggage. Antwerp may not be seen as a style capital in the eyes of the world, but it should be. Not only has it spawned the most stylish and innovative fashion designers of the moment – Martin Margiela, Ann Demeuelemeester, and newcomer Veronique Branquinho – it is also the original home to Kipling bags.

But this should not be used to sell more products.There should be a rating system for products, linked to a benchmark against which any assessment can be made. Ultimately, the CA believes, there should be a “kite marking” system, in which minimum standards are set for products in terms of charges, flexibility and transfer penalties.. Confidence in the industry was low and few people felt inclined to “shop around”.Clients responded best to verbal communication – suggesting that if they are with an adviser they trust, they are more receptive to information imparted orally.The CA recommends an education campaign to increase people’s confidence in their dealings with the industry and also their knowledge. The way it is presented puts people off reading it.Disclosure has had little if any effect in reducing excessive charges on products, contrary to assumptions about their likely effect.

Only eight out of 100 pensions analysed by the CA were “good value”.The CA survey found that the majority of policyholders did not even read the product particulars, including details of charges, that they received. It may be that this is an idea whose time has come.RECIPES FOR HAPPY CONSUMING(The report at a glance)The existing system of product disclosure has not worked It is too cumbersome, jargonistic and confusing. A product might look bad in charges but it might be meeting a specific need.”The PIA also appears lukewarm. Sarah Modlock, the watchdog’s head of press, says: “Disclosure is evolving all the time.

The Consumers’ Association has its ideas about this and we note them with interest.”This implies that calls for radical change from Virgin and the CA or even the more conservative appeals from independent financial advisers are unlikely to be heeded soon.But interestingly, in the Government’s Budget press release on the Individual Savings Account it says it is looking at a voluntary system to ensure these products are simple enough to attract small savers. Its projected maturity value, the amount paid out when a pounds 60-a-month policy matures, is pounds 46,300 after costs are taken out, assuming 9 per cent fund growth a year. This compares with an average for other shareholder-owned companies of pounds 48,629. Abbey’s policies are also less competitive than many of its rivals in the first few years, when heavy up-front charges suck away large chunks of policyholders’ funds.Perhaps not surprisingly, Tim Potten, the company’s product marketing manager, says: “Anything which helps consumers is good but I’m not sure whether this idea would be better than disclosure.”Products are often complex for good reasons and it would be dangerous to have something too simplistic, you may be comparing apples with pears. Consumers have to be informed but there has to be a better way of doing it.”John Cole, managing director of Berry Birch and Noble, agrees that the disclosure regime is too complex but sounds a note of caution. He says: “A ratings regime could potentially be a dangerous over-simplification of consumer requirements on financial products.”Some financial services companies, including some of the more expensive ones, are more wary Abbey Life’s pension plan is dearer than average. Nick Conyers, a director of Pearson Jones, says: “I’m encouraged that the Consumers’ Association recognises that the disclosure regime is not helpful for consumers.”Our clients often complain when we send them key features documents because of the amount of paper We have to tell them this is a regulatory requirement.