What are the legal steps that are done in the beneficial ways in the property valuation process?

The reason why letter will explain why the recommendation has been made, and the FSA believe the inclusion of a decision tree would be potentially confusing. There is no longer a requirement for a confirmation letter to be sent to a customer who has decided to buy a stakeholder after receiving a direct offer pack. This is because the rules already require direct offer packs to include a warning that consumers should seek advice if they are unsure as to the suitability of the product on offer.

Where a personal pension or FSAVC is sold, the reason why letter should explain why that is "at least" as suitable (it was originally "more" suitable) as a stakeholder. Worksite presentations can only be given by qualified advisers, although ‘worksite’ is now replaced by 'groups of employees' (defined as five or more). Where an adviser recommends a stakeholder, the investor must be given a reason why letter.

This must make it clear why the recommendation has been made having regard to the investor's financial and other circumstances. If a provider does not have access to a stakeholder, the comparison may be with a stakeholder on the minimum product standards, unless the provider is or ought to be aware that the member has access to a stakeholder on more advantageous terms. The criteria that the personal pension is at least as suitable as a stakeholder applies even if the personal pension may exempt the employer from having to designate a stakeholder.

The above rules took effect from 20 November 2000 and replace the guidance in Regulatory Update 64 (RU64) for advice and recommendations after that date. Where an adviser recommends a stakeholder, it is not necessary to give the decision trees. Before issuing direct offer packs promoting personal pensions, advisers (or providers, in the case of non-IFA sales) must establish that the personal pension is at least as suitable as a stakeholder for the majority of potential members, and must ensure that this suitability is adequately evidenced.Read more : West Coast Valuers