The ABI has scuppered rumours that it is pulling out of pensions minister Stephen Timms’ challenge to propose an industry alternative to the national pension savings scheme.Timms challenged the industry to put forward a viable alternative to the 0.3 per cent management fee scheme proposed by the Pensions Commission but ABI members agree that any arrangement will be hard pressed to please smaller insurance companies which may feel that they are being squeezed out of the picture. Head of media and political affairs Alan Leaman assures the industry that the ABI will come up with an alternative by the February deadline. He denies that the ABI leapt blindly at the challenge without discussing whether it is the right solution. Leaman says: “I can confirm that we are on course to ful- filling the challenge by February. We are working intently with all member companies.” Standard Life head of pensions policy John Lawson says there are concerns among smaller ABI members that Adair Turner’s proposals may result in bigger firms domina- ting the group pension market. Lawson reiterates that an ABI alternative may offer a role for advisers but that advice would have to be from fees rather than commission-based. He says: “There is some unease that there will be five big survivors at the top dominating the group pension market. Not all companies will do well out of the NPSS and some may be trying to undermine the proposal altogether. But we are getting closer to an agreement.” Although the ABI is not expected to match the 0.3 per cent annual management charge, members agree that Turner has failed to publish any factual basis for these charges without heavy subsidy from taxpayers.
Company has until end of February to close capital gap
IFA Promotion has been awarded a Plain English Campaign Award for its consumer guide Financial advice: The buzzword is independent. The guide, aimed to clear up any confusion surrounding financial advice after depolarisation, topped the 2005 Plain English category as one of the years clearest documents.
Home-owners are over 10bn a year worse off than in 1994 because of the Governments tax policies, says the CML. Twelve years ago, tax relief on mortgage interest and income support paid to home-owners outweighed stamp duty payments and inheritance tax, meaning they were net gainers to the tune of 2.6bn. But they are now […]
Carl Stick’s Rathbone income fund has topped Principal Investment Management’s ‘white list’ of income funds.The list rates income funds based on performance, volatility, and income distributed, and says Stick’s fund could have struggled last year because his favourite stocks looked to be flagging, but that he was vindicated by the year end.Stick says: “We don’t […]
Most investors are better off than they were 12 months ago despite the summer’s volatility. Will next year bring the (delayed) global slowdown? Artemis’ senior partner weighs up the factors.
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Fund managers who have helped pay compensation over the collapse of life settlement bond provider Keydata will receive a £12m refund, the Financial Services Compensation Scheme has announced. Keydata’s management has been embroiled in a multi-million-pound legal battle with the FCA since it collapsed in 2009. The total bill for compensation stands at more than […]
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The FCA has finished implementing the recommendations of the Financial Advice Market Review with the publication today of a policy statement relating to personal recommendations today. The FCA aligned itself with Mifid II last year by mandating that regulated advice must contain a personalised recommendation. In August last year, the FCA published a consultation paper […]