View more on these topics

Aon accuses PPF of overcharging companies by millions of pounds

Aon Consulting is accusing the Pension Protection Fund of overcharging companies by millions of pounds on their levy payments.

Aon says the PPF has taken the “unprecedented” step of overruling appeals that have already been deemed successful and is now “systematically” overcharging companies through their levy payments.

The actuarial and consultancy firm says it has learned that a number of companies with large deficits have been sent letters by the PPF in the past few days informing them that it is overruling dozens of appeals which had previously been approved by the PPF’s appointed advisers Dun & Bradstreet.

Aon says this means companies now face additional levies of millions of pounds.

The appeals were on the basis that the system of failure scores was devised when pension scheme deficits were not shown on company balance sheets, and so should continue to be applied in the way it was designed.

D&B approved those appeals and agreed to advise the PPF of the new scores.

Aon Consulting principal & actuary Paul McGlone says: “The PPF is effectively ignoring the advice of its own appointed experts in insolvency risk. The fact that the appeals were successful in the first place clearly suggests that D&B believe the appeals to be reasonable. The PPF has effectively misled these companies about their levy and therefore denied them the opportunity to consider other actions to reduce it.

“This decision will undermine confidence in the PPF. In particular, there are two questions the PPF needs to answer: Why did it take them so many months to discover the restrictions in their own legislation? Do they agree with D&B that the methodology they are using overstates the risks for these companies, and what are they doing to try to correct that?”


Blight becomes IMLA chairman

GMAC-RFC managing director for sales and marketing Godfrey Blight has taken over as the new chairman for the Intermediary Mortgage lenders’ Association.Current chairman Guy Batchelor, who is sales and marketing director at Lehman Brothers, becomes deputy chairman.Nationwide specialist lending director Paul Howard and GE Money Home Lending chief executive officer Colin Shave have both been […]

Broker Talkback

Should Chancellor Alistair Darling resign over the Northern Rock and Revenue and Customs data debacles?Yes 50%No 50%No “Darling walked into this. He is not free of blame but most has to be attached to his predecessor. Darling inherited the problems.”Graeme Mitchell, Lowland Financial No “He’s between a rock and a hard place. We would all […]

Bank of Ireland withdraws sub-prime range

Bank of Ireland has sent an email to brokers alerting them that it is withdrawing its entire non-conforming range from 5pm today.The only other details included in the email was that all of its other products remain unchanged.

Greenshields tipped to take on leading role at BestInvest

Financial services industry veteran Ray Greenshields has been hotly tipped to take over as chairman of BestInvest.Greenshields is a former chief executive of Zurich and has also held senior positions with AMP and Barclays Wealth.BestInvest has recently been hit with a second wave of departures, Money Marketing understands.Employee benefits director Ken Murphy has left along […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm