View more on these topics

ABI warns EU directive could scupper auto-enrolment

The Association of British Insurers has warned Europe that the proposed Consumer Rights Directive must not inhibit auto-enrolment into workplace pension schemes.

ABI director of consumer affairs Maggie Craig is set to give evidence to the House of Lords European committee today, on the directive, which aims to improve consumer protection across Europe.

Speaking ahead of her appearance, she says: “Financial services are mainly exempt from the directive’s provisions and we hope that this will continue.

“However, we have particular concerns that the directive could be amended during negotiations to prohibit the use of automatic enrolment into workplace pensions schemes, a key feature of the Government’s pension reform programme due to come into force in 2012.

“The ABI successfully persuaded the European Commission to agree that ‘inertia selling’ bans in previous Directives would not apply to pensions automatic enrolment. Amendments to the Consumer Rights Directive must not be allowed to call this into question.

Craig says the same concern applies to the automatic renewal of insurance policies, a process she says works well for consumers.

She adds: “We are seeking guarantees that the directive will not affect this long-established and understood practice.”

Recommended

Barings winds up multi-manager range

Baring Asset Management has wound up its multi-manager range to focus on the development of its multi-asset strategy. The group confirmed it made James Calder, the head of the multi-manager team, redundant at the end of last year, while the analysts on his team moved into the broader multi-asset department. The multi-manager funds, Extended Risk, […]

People on the move: Mortgages

Virgin Money UK managing director Rob Clifford has left the business due to the burden on his family life of travelling between the firm’s nationwide offices.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment