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ABI plea for Govt to rethink pension reporting rules

The ABI has slammed the Government over what it sees as inconsistencies

in reporting requirements for employer payments to personal pensions.

The Department of Social Security wants life offices to whistleblow on

employers which fail to pay employee contributions already deducted from


But providers claim that such a move would be imp- ossible to monitor as

there is no current requirement for employees to make consist- ent

contributions to their pension funds.

The ABI says its members are particularly concerned about how they would

cope with monitoring these contributions as, under stakeholder rules, life

offices must acc- ept ad hoc payments for as little as 20.

It means that, before a provider could report fail- ure to pay a premium,

it would need to determine whether the employee was committed to paying

regular premiums or just one-off ad hoc payments.

The ABI is calling on the DSS for a clear distinction to be made between

regular and variable premiums, claiming that, without this distinction,

most providers would have to carry out a costly manual process to meet

reporting requirements.

An ABI spokesman says: “This would be prohibitively expensive in the

low-cost environment the Government is seeking to promote for stakeholder

pensions. Also, the requirement to have a record in advance of payments

showing the due date would impinge on the flexibility of pre- mium



Penalty-free transfer dilemma

Skandia Life pensions development senior manager Brian Newbould respondsto Standard Life&#39s views on transfersStandard Life&#39s article headlined, Think about customers&#39 needs (MoneyMarketing, April 27), casts serious doubts over how many top pensionproviders can claim to offer their customers penalty-free transfers betweenplans.The article contains a paragraph which throws into doubt how manycompanies have been able to […]

Future goes online with sub-prime deals for IFAs

Future Mortgages is poised to become the first sub-prime lender toprovide brokers with mortgage offers online.Future&#39s website www. goes interactive on June 1and will allow brokers to submit applications online and get mortgageoffers for clients within hours.Future says the service will allow brokers to write more business inless time by streamlining the paper-int- ensive […]

LIA wants grants to grow under IFAs&#39 feats

The LIA is bidding to secure Government grants for IFAs studying for theAdvanced Financial Planning Certificate but not everyone in the industryis backing the move.LIA president Peter Sprung is making a 1m application to the Europeansocial fund to help IFAs working towards professional qualifications.Public affairs director John Ellis says the LIA hopes that grants can […]

Warning as IFAs push for more commission

IFAs could be shooting themselves in the foot with demands for ever highercommission, claims Andersen Consulting.The claims come as IFA network Countrywide and national IFA Towry Law aredemanding that life offices pay them more commission.Countrywide&#39s owner Misys is also believed to be flexing its collectivemuscle after bringing together four networks to hammer out a futurebusiness […]


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