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&#39Transfer rules another nail in Equitable coffin&#39

The Inland Revenue has released final regulations on personal pension transfers, including changes which allow the transfer of income-drawdown policies for the first time.

The new rules will come into force on February 14, prompting some IFAs to predict the new drawdown transfer option will encourage a flood of drawdown policyholders deserting Equitable Life for other providers.

The Revenue is expected to release further details on the range of transfer regulations over the next few weeks.

Other significant changes include confirmation that authorised corporate directors of open-ended investment companies can be managers of non-trust-based stakeholder schemes.

The regulations confirm that stakeholder managers will be able to cherrypick by restricting membership of schemes on the grounds of employment with a particular employer or membership of a particular organisation.

Plans to force pension providers to accept payment into schemes by other methods except cheques, standing orders and direct debits have been withdrawn.

In addition, the new regulations do away with the proposed requirement for life offices to send out annual statements to all scheme members on the same day.

Torquil Clark pensions development manager Tom McPhail says: “It seems the new regulations will be another nail in the coffin of Equitable Life. With close to 4,000 policyholders already transferring out, the new rules could greatly increase the flow of money out of the life office in spite of the potential of a 10 per cent market value adjuster.”


ProVen Private Equity – ProVen Media VCT

Monday, 29th January 2001.Aim: Growth by investing in unquoted media related companies and intellectual property rights.Minimum investment: £5,000.Opening-closing date: February 6, 2001-April 5, 2001 for this tax year, April 30, 2001 for next tax year.Charges: Initial 5 per cent, annual 1.5 per cent in year 1, 2 per cent in year 2, 2.5 per cent […]

Equitable proposes £1.5bn GAR cap

Equitable Life is putting together a £1.5bn package to cap its liabilities to its 90,000 guaranteed annuity rate policyholders. The money would come from Equitable&#39s £25bn with-profits fund. Equitable argue that a capping of the liabilities would permit more adventurous investment and improve returns for all shareholders. Equitable need 75 per cent of the GAR […]

Recovery position

The most recent update to the Charging for Residential Accommodation Guide in 1998 emphasises the importance for local authorities of good practice measures regarding the collection and verification of information, including cross-referencing with bank statements and building society passbooks as well as cross-checking with other agencies, banks or private pension funds. It is clear, however, […]

&#39Govt is bullying CML over seller&#39s packs opposition&#39

Conservative Shadow housing minister Nigel Waterson has slammed the Government for bullying the Council of Mortgage Lenders over proposals for home seller&#39s packs. At a Parliamentary legislative committee meeting last week, Waterson accused ministers at the Department of the Environment, Transport and the Regions of trying to force the CML into withdrawing its public criticism […]


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