View more on these topics

CU is the first to return to EPP loanback sector

Commercial Union is to become the first life office to return to the executive personal pension loanback market after the Pensions Act 1995 forced many life offices to quit.

The loanback facility allows clients to take out a loan from their pension policy provided it is repaid before retirement.

Many life offices, including National Mutual, Commercial Union and Sun Life, pulled out of the loanback market when the Pensions Act 1995 came into force in April.

Under the Act, life offices cannot use a personal pension as security for a loan. Providers quit the market rather than issue unsecured loans.

The ruling came despite Department of Social Security assurances that providers would be able to take security under the Act. Fierce industry lobbying has forced the DSS to revamp the rules but it is yet to release new guidance.

CU believes the new rules will be published shortly and has decided to go back into the market immediately.

Commercial Union pensions development manager Iain Oliver says: "The difficulty will arise if we need to recover the assets on which the loan is secured between now and the time the DSS comes in with the new rules. But we feel there is only a tiny possibility of this."

National Mutual pensions technical manager Dave Lowe says: "We have never issued unsecured loans and therefore we pulled out of the market. But it is a short term withdrawal because the DSS have said they intend to correct the rules."


Revenue quashes hopes of revised £50,000 ISA limit

Confusion is reigning over the exact shape of the Individual Savings Account, with wildly conflicting signals over what is up for consultation. Product providers and trade associations were last week given hope that the controversial £50,000 lifetime savings cap would be reviewed. In meetings with Government officials, representatives of the trade bodies were led to […]

Marks & Spencer to accept transfer business

Marks & Spencer Financial Services is set to accept pension transfer business following interest from investors. Eligible products for transfer are personal pension plans, free-standing AVCs and retirement entry savings plans. There are no initial charges but investors will not be able to contract out of Serps. M&SFS is considering launching an advertising campaign in […]

One Stop Mortgage sets up UK arm

US sub-prime lender One Stop Mortgage is launching a subsidiary in the UK, also called One Stop Mortgage. It opened for business to intermediaries last week. The US wholesale lender did $1.2bn in completions last year. One Stop Mortgage is a wholly-owned subsidiary of Aames Financial Corporation.

Berry Birch profits slump as Moores Marr takeover fails

A failed attempt to buy rival IFA firm Moores Marr Bradley contributed to sharply reduced six-month profits at Berry Birch & Noble. Profits plunged to £177,000 for the half-year to July 31 compared with £355,000 for the same period last year, a drop of more than 50 per cent. Berry Birch & Noble paid £141,000 […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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