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Axa&#39s UK chief doubts Govt will force stakeholder compulsion

Axa&#39s new UK group chief executive is bucking the trend among providers by

predicting stakeholder will not be made compulsory as this would be seen as

an admission of failure by the Government.

Dennis Holt admits the new pension has not taken off as well as the

Government may have hoped.

But he says forcing employers and individuals to make contributions would

reflect badly on the Government&#39s ability to make it a success.

This contradicts the view among many pension industry experts that

compulsion will be introduced because forcing employers to contribute is

the only way for stakeholder to succeed.

Axa does not believe any form of pension provision should be compulsory as

it claims this creates the impression the industry cannot market products

well enough to encourage people to take them up.

Holt says compulsion would also position stakeholder as another form of

taxation and would not encourage people to provide for their future.

He says: “Stakeholder has not yet taken off as well as the Government may

have hoped but I hope it does not move to compulsion as that would be an

admission of failure.”

Aifa public affairs director Tracey Mullins says: “It is a politically

sensitive issue but it is likely that compulsion on employers to make

contributions is the only way stakeholder will work.”

Profile, p31

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