View more on these topics

Axa calls for year’s delay to Sipp extension

Axa is calling on the Treasury to delay A-Day plans to widen the range of investments available to Sipps until the products become regulated in 2007.

The provider is concerned that estate agents are promoting residential property in Sipps without mentioning the potential risks and downsides.

Although Sipp investors can hold residential property in their Sipps from next April, under Treasury proposals the pension wrapper will not be regulated until 2007- raising fears of a 12-month window for cowboys to play in the market.

Axa has written to the Treasury outlining its fears and believes investors will be better protected if the wider investment freedoms and product regulation are introduced simultaneously.

Head of pensions Steve Folkard says: “The regulator should delay new investment types for a year until the market is regulated. Some of the adverts we have seen from estate agents about property are a real cause for concern. All of the potential gains are shown but none of the risks.”

Informed Choice director Martin Bamford says: “There is a big potential danger, particularly from some of the property investment clubs, which will probably draw a lot of people in. Niche investments, such as stamps and wine, are less of a risk because they will not attract the same level of interest.”

Recommended

Pressure mounting on FSA to name and shame 11 providers

The FSA faces renewed pressure to name the 11 providers it found guilty of misusing Lautro projections after the revelation that it avoided a pension-style review of endowments to maintain financial stability. Ex-FSA chairman Sir Howard Davies’s recent admission that the FSA took a less aggressive approach over endowments to avoid the possible collapse of […]

Level paying field

What are the arguments in favour of a flat rate of income tax and how likely is it to be adopted in the UK?

‘Only way to ensure money was passed to their partners’

Ivan Massow says he advised free-standing AVCs to gay clients in the late 1980s and early 1990s because it was the only way to ensure money was passed to their partners. He says FSAVCs had to be used as there was a risk that pension trustees would not pay out AVCs to gay partners and […]

Relying on family advice can be costly

Research from stockbroker Brewin Dolphin shows 53 per cent of people who invested in a unit trust over the past five years consulted an IFA and 77 per cent were satisfied or very satisfied with its performance. Out of the 31 per cent of investors who turned to friends, family and colleagues, or the 37 […]

Looking back at 2015

By Fiona Tait, Pensions Specialist 2015 was quite a year for pensions. Change, more change, and proposed changes to the changes. The Spring Budget – pre-election plans With everything that has happened since, it is hard to remember what happened in March. Following on from the bombshell of the 2014 Budget, the Chancellor confined himself […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment