View more on these topics

Contract-out cash could help marketing

The Conservatives are calling for some of the 4bn saved through abolishing contracting out of defined-contribution pension schemes should be offered to the industry to help market pension provision outside of personal accounts.

Speaking at the ABI Savers Summit last week, Shadow Work and Pensions Secretary Philip Hammond said the move could help counter the threat to existing provision posed by personal accounts.

Hammond said there is the potential for the new scheme to damage existing pension savings seriously and the cash call could help emphasise the benefits of increased saving outside of the scheme.

LibDem Shadow Work and Pensions Secretary David Laws suggested that part of the savings could be used to fund financial education in schools and for others who may need it.

Contracting out of DC schemes will be abolished as part of the current pension reforms, with potential Government savings estimated at around 4bn a year.

The Treasury has already earmarked the money to help pay for relinking the basic state pension with earnings and some of the money is also expected to help small employers cope with the burden imposed by personal accounts.

Hammond said: “Why not offer some of the 4bn to the industry marketing people to see how we could make their schemes attractive to people who need it.”

Recommended

First awards to show wrap achievements

Adnitor is to host the first UK platform awards to recognise the achievements of platforms, advisers, asset managers and technology providers in the growth of the sector.The dinner and awards ceremony, held in association with Money Marketing and CWC Research, takes place at the Cafe Royal in London on February 28, 2007, with over 300 […]

Repolarisation returns

The IFA market is repolarising back into two camps and the FSA should recognise this in its regulation, according to Informed Choice managing director Nick Bamford.He says that since depolarisation the IFA market is dividing into independent financial sellers who work with products and commission on the one hand and independent financial advisers who offer […]

FSA hits out at sub-prime advertising

The Financial Services Authority has ordered more than 200 sub-prime mortgage brokers to withdraw or amend misleading advertising. The regulator says that brokers who issue poor advertising and promotional materials were also found to have inadequate systems and controls to manage their businesses.The FSA visited the worst offenders in October and November 2006 and found […]

Questions posed over DWP delays

The Tories have tabled Parliamentary questions and a Freedom of Information request to investigate allegations the Department for Work and Pensions delays or ignores politically embarrassing Parliamentary questions.Tory Shadow Work and Pensions Secretary Philip Hammond told Parliament last week that an anonymous caller from the DWP had phoned his office, saying the department had a […]

Japan: mid-year review and outlook

By Chris Taylor, Manager of the Neptune Japan Opportunities Fund H1 2014 Economy: after a harsh winter that slowed activity in the economy, the main event of the first half of the year has been the debate over what impact the 1 April VAT hike from five to eight per cent would have; we are […]

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