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Aegon says consumers must be told personal accounts charges could rise

Aegon says the Personal Accounts Delivery Authority must tell savers who are going into personal accounts that charges could rise in the future because not doing so goes against the principles of treating customers fairly.

Aegon says personal account running costs will be affected by differences between actual and assumed employer and employee behaviour.

The life office says unknown factors, such as whether opt out rates will match expectations, could mean initial charging assumptions are over optimistic.

If this leads to costs exceeding charges, Aegon believes the scheme rules should allow charges to rise to avoid the risk of calling on tax payer subsidies.

Aegon head of business regulation Steven Cameron says: “Giving Pada the power to increase charges if necessary will be a vital component. The risk of having to do this can be reduced by building margins into the initial charges.

“But it would go against the spirit of treating customers fairly, if people aren’t told of this possibility before they are auto-enrolled into Personal Accounts. As we move towards implementation stage, the industry needs to work with PADA to get the best outcomes for all consumers.”


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Share prices of companies in the commodities industry and emerging markets have set a blistering pace in recent weeks. The likes of BHP have seen their share prices rise by over 50 per cent from their low point in mid-August while the shares of some companies that are both commodity producers and domiciled in emerging markets, such as CVRD of Brazil, have almost doubled in the same period. This has taken place against a background of deteriorating economic news in Western economies and plunging share prices in the property and financials sectors.

Consumer backing for whole of market

Three-quarters of consumers believe searching the whole market for products is a key role of IFAs and less than a third believe payment options have a bearing on independence, according to Aifa research.A YouGov survey found that only 17 per cent of consumers believe advisers should have an indefinite liability for advice, with 70 per […]

Spring has sprung

Well, it’s been lovely to see a little bit of sunshine, even if it was only a brief appearance. I live in Scotland so, believe me, it was very brief.  Of course, with even the tiniest hint of spring, thoughts turn to the inevitable clearout that must take place.  And that got me to thinking […]


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