View more on these topics

&#39Myners does not go far enough&#39

Interim proposals from the Myners Review into institutional investment for def ined-benefit pension schemes do not go far enough, according to experts.

Gartmore chairman and chief executive Paul Myn ers is making a number of key recommendations, inc luding the abolition of the minimum funding requirement for DB occupational plans. He says the assump-tions made under the MFR may be inappropriate to the circumstances of individual schemes or employers.

Myners suggests scheme trustees should be encouraged to disclose inv estment strategy and assumptions, making det ails available to scheme members through the internet.

He also proposes that pension plan trustees should publish a plain English statement outlining the value of assets and assumptions used to determine plan liabilities.

Association of Consult ing Actuaries pension scheme committee chairman Helen James believes the proposals do not go far enough.

She says: “The ACA sees attractions in extending governance principles to funding as well as investment. However, we believe there should be disclosure of the wind-up solvency position as well as the long-term funding position.”

Scottish Equitable pensions development director Stewart Ritchie says: “I agree with much of the analysis but I do not agree with the removal of the MFR underpin for funding assumptions.”

Recommended

R&SA launches investment website

Royal & SunAlliance has launched a new website to bolster its direct investment business. The site www.royalsun.co.uk/money aims to provide guidance on investment decisions in a simple user-friendly format which R&SA claims will appeal to all. The site offers the choice of 17 Isas online each with individual risk ratings. The funds are also discounted […]

It&#39s a new friendly world

So the Treasury has at last accepted the Office of Fair Trading&#39s arguments when the polarisation regime was first mooted – it is anti-competitive and distorts the market.That is not the whole story. When regulatory measures to ensure a transparent market were not as far adv anced as they are today, polarisation helped to ensure […]

Charge of the enlightened brigade

Are stakeholder pensions the thin end of the wedge for IFA businesses? Certainly, the indications are that reduced commi ssion levels on pensions will lead to reductions on other financial products. This could certainly lead to the demise of IFAs if they are not willing to change.The majority of IFAs rely on commission from product […]

Don&#39t clock off before planning

There are a number of good reasons to undertake inheritance tax planning during an individual&#39s lifetime.Before looking at these further, it is worth dealing with the argument that an estate can be varied after death, so that estate planning can be left until the 11th hour in all but the bigger cases.This argument rel ies […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment