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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A long‑term strategy for the asset management industry will be published by the Government, it was announced in today’s Budget. The Investment Management Strategy 2 will ensure the industry “continues to thrive and deliver the best possible outcomes for investors and the UK economy,” the Autumn Budget policy paper says. The Government will work closely […]
The state of the UK economy with Brexit looming In 2017, growth is expected to come in at 1.5 per cent, falling to 1.4 per cent in 2018 Through 2019 and 2020, growth is set to fall again to 1.3 per cent, before picking up to 1.5 per cent in 2021 and then to 1.6 […]
Chancellor Philip Hammond has scrapped stamp duty for first-time buyers on properties worth up to £300,000. Speculation was rife in the media in the run up to the announcement that the tax would be scrapped altogether for FTBs to make home ownership more affordable for young people in the UK. The Chancellor has said that […]