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Chairman says stakeholder won&#39t work unless it&#39s made compulsory

Stakeholder pensions will not work unless the Government introduces

compulsion, says M&E Network chairman Barry Kayes.

He told the network&#39s national conference in Birmingham last week that the

target audience of low to middle earners will not be persuaded to take out

a stakeholder scheme unless they are forced to do so by the Government.

Kayes said he believed advice would play an important role in the

stakeholder market despite the Government&#39s attempts to remove the need for

advice with decision trees.

Kayes said: “Compulsion may be necessary. It will have to happen in order

for stakeholders to be any kind of success.”

His comments were supported by a number of other speakers, including

Scottish Life head of pensions strategy Steve Bee and IFA Ward Mitchell

Partnership chairman Steven Mitchell.

Stakeholder came under close scrutiny, with many IFAs and pension

providers criticising the initiative, clai-ming it is too complicated and

difficult to explain to employers.

Bee said if employers do not set up a stake-holder scheme they face a

£50,000 fine from Opra.

He said he could not see how decision trees can possibly work.

Bee said: “It seems inconceivable that anyone could sell a pension to

anyone without providing advice.”


The business is out there

Don&#39t despair, the work is out there,you just have to look carefully. SomesmallerIFAs seem dismayed at the potentially adverse impactof stakeholderpensions on their business.They point to the much reduced capacity of commission under stakeholderwhen compared to personal pensions and correctly infer that it will be verydifficult to justify selling a new £100 per month personal […]

Polar expedition nears the equator

The dice are heavily loaded against polarisation.Even if it could be guaranteed that every single IFA in the country wouldget their recommendations to clients 100 per cent right 100 per cent of thetime, the Government would still probably change the regime.And there may be little that IFAs or their representatives can do to stop it.Attention […]

M&E setting up loans network to train IFAs

M&E Network is setting up a mortgage network to help advisers meet lenderstandards under the new regulatory regime.Independent Mortgage Advice hopes to sign up 1,000 intermediaries by theend of the first year in addition to the 1,000 IFAs which are already M&Eand Interdependence members.The network will provide the compliance training lenders are likely todemand from […]

LIA anger at being left out of decision trees guide

The LIA is up in arms over being left out of the “Where to get furtherhelp” box on stakeholder decision trees.The box gives consumers details of where they can get further help oradvice if they get stuck in the decision tree maze. The box includesnumbers for the Opra-run Pensions Advisory Service hotline.It also provides details […]

Keep calm and carry on?

We British are known for our stiff upper lip and just getting on with things. It’s part of our quirky cultural behaviour – like forming orderly queues, or saying sorry when it’s not our fault. Many of us just aren’t that great at talking about what’s bothering us. But if someone feels that the stresses […]


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