Tory Shadow Financial Secretary to the Treasury Mark Hoban says the Government will interfere in pensions and “salami-slice” away A-Day reforms.Hoban says in other areas, such as the taxation of small companies, the Government has introduced significant tax concessions, only to remove them piece by piece. Following Treasury Econ-omic Secretary Ed Balls’ recent statement on alternatively secured pensions, Hoban says the industry must guard against the Government undoing other A-Day changes. He says: “We have seen the Government in other areas introduce significant tax concessions which are then salami-sliced away. We need to be careful not to end up with a regime where the freedoms given to encourage pensions are eroded completely.” Hoban says although there are Government exceptions for religious groups in some areas such as education, it is hard to see how a similar move can be enf-orced in financial services. He says during that the committee stage of this year’s Finance Bill, he forced Balls to state that the Government would not interfere with the tax-free lump sum and he pledges to hold the Government to account on the issue. Hoban says the FSA is right to move to a principle-based regime but it must do more to ensure there is better communication with advisers on treating customers fairly. He says: “A lot of advisers have the anxiety that the FSA at a senior level has bought into a principle-based approach but how does this apply further down? We need to see an improvement in the relationship between the FSA and advisers so all the regulator’s staff can clearly explain TCF to small firms.” Hoban says the National Audit Office review of the FSA will be a rigorous examination and help reassure advisers that money is being spent wisely. With the debate over commission bias, Hoban is concerned that any move to crack down in this area and force a move to a fee-based regime would cut the number of people seeking financial advice. He says he is not sure how much appetite the public have for fee-based remuneration and, as long as advisers are applying TCF principles, there is nothing wrong with commission.
Origo has removed the per-sonal liability that each adv-iser bears under its Unipass digital certificate contracts following user concerns. Origo managing director Paul Pettitt says the move was made after feedback from users, notably Sesame, unhappy about a clause in the contract suggesting personal adviser liabilities of up to 15,000. Pettitt says Origo has been […]
Former HBOS head of intermediary business Grenville Turner is to take over as managing director of estate agency Countrywide in January. He replaces Harry Hill who becomes chairman when Christopher Sporborg retires at the end of the year.
Chelverton Asset Management is set to introduce an version of its 57m small companies dividend investment trust this autumn. Fund manager David Taylor and David Horner and will mirror the investment trust portfolio by targeting small and mid-cap stocks that yield at least 4 per cent annually. The fund will predominantly invest in small and […]
Canada Life IHT Survey 2016 Only a quarter of wealthy Brits have sought professional estate planning advice to ensure their families don’t pay more tax than required More than a quarter don’t even have a will and just one in five have gifted money Many say they do not need these tools but families would […]
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It is likely the increased regulatory scrutiny on fund managers’ value could filter down to advice firms in the future In my last article, I considered the influence a non-executive director could have in challenging an advice firm’s business model in light of the pension transfer issues. Now, in its asset management market study final […]
The financial services industry has failed to find ways of nudging consumers to think about their options at retirement, despite three years of pension freedoms. A panel at the Association of British Insurers retirement conference today lamented the way companies talk to people about pensions and the lack of engagement it inspires. ABI director general […]
The new chief executive of the single financial guidance body can expect a salary of £175,000 a year, according to a job advert posted online. The advert, posted on the Cabinet Office website says applications will close in mid-May with final interviews held in early July. The date for announcing the successful candidate has not […]