Morrison says the framework is in place but the fine details on, for example, the inheritance tax implications on alternative secured pensions remain unknown and advisers cannot yet give clients informed advice.
He says the Inland Rev-enue has confirmed to Wint-erthur that there will be IHT implications when any surplus is passed on at death within a pension wrapper to another scheme member but it could not give a definitive answer on how these will work.
Morrison says although it is known that surpluses can be reallocated to other members of the same scheme, it remains unclear whether these members have to join before the death of the individual passing on his surplus or whether this can be done after the individual’s death and what the IHT implications are.
He says the missing details will determine whether pension simplification creates a great planning opportunity for advisers or whether it gets bogged down by complex Inland Revenue rules.
Morrison says: “This is not the only area where we are still waiting for the detail. We must have a prescribed date by which the new regime is complete and all regulations or even guidance notes are issued to give advisers sufficient time to advise clients.
“Here we are, just over 15 months until A-Day, and where are we with pension simplification? Well, we have the broad framework but IFAs are still not in a position to give definitive advice to clients.”
A new JO Hambro Capital Management fund will mark the managerial ret-urn of Clive Beagles.
Beagles, who quit as manager of the Newton higher-income fund in March, has been working on JOHCM’s new UK equity income fund since then.
A question remains over whether Beagles will be able to reproduce the same results with his new fund at a boutique without the resources and analysts that he had at his disposal at Newton.
The fund will hold about 50 to 70 stocks and will be benchmarked against the FTSE All-Share index and will have a relatively high tracking error of 5 to 8 per cent. It will aim to achieve 4 per cent-plus yield.
JOHCM chief executive Nichola Pease says: “In over 15 years of investing in equities, Clive has demonstrated his ability to outperform in both bull and bear markets, consistently achieving top-quartile fund performance.
“At JOHCM, Clive’s efforts will be focused 100 per cent on the management of the new fund in an entrepreneurial environment where his fund management flair and experience can flourish.”
Beagles says: “I will be seeking stocks for the fund that generate a pros-pective yield above that of the FTSE All-Share index average, with a strict selling discipline once a stock’s yield falls below the average level.”