View more on these topics

Clear conscience

I read with interest and frustration James Daley’s article, ‘Stamp out this racket’ in the April edition.

He asserts that IFAs and pension providers are in collusion over the distribution of group pension products featuring Active Member Discounts and that advisers who advocate AMDs should ‘examine their conscience’.

As a corporate IFA, striving to do the right thing for my clients, I take great exception to this. Firstly, he suggests that affording members of our clients’ schemes a lower annual management charge while they are employed is a bad thing. Secondly he insinuates that in launching the schemes to members, there is not complete clarity about the structure of the scheme and the options for the member on leaving. Thirdly, he assumes that no formal ‘leavers process’ exists to advise GPP ex-members on how to transfer to alternative pensions or joining their new employer’s scheme.

Finally, he makes no mention of the fact that under the rules of some AMD schemes, leavers can continue to enjoy the lower charges by continuing to make nominal personal contributions (from as little as £20 per month), thereby encouraging them to maintain their pension savings habits.

If by ‘racket’ he means offering my corporate clients and pension members lower charges than can often be achieved through a flat annual management charge, then my conscience is clear.

Opinions such as this do little to reassure corporate clients of the benefits of taking advice.

Nick McMenemy, corporate consultant Morgans Corporate Benefits

Recommended

Whitechurch signs Eden

The Whitechurch Network is taking on 65 advisers from directly authorised IFA firm Eden Personal Financial Planning.

Japan revises growth forecast

The Bank of Japan has issued a downbeat report on the country’s economy and reduced forecasts for growth. In January, policy board members forecast a contraction of 2% in the economy but this has since been revised to 3.2%. The report says: “Economic conditions in Japan have deteriorated significantly… In the corporate sector, exports have […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com