View more on these topics

Dismay over U-turn on RU64

The Association of British Insurers has accused the FSA of performing a U-turn on RU64 after it postponed a decision on whether to scrap the rule.

The FSA’s move, prompted by uncertainty in the run-up to the implementation of the national personal accounts scheme, has come as a blow to the industry after the FSA strongly indicated that it would abolish RU64.

Leaked documents have indicated growing pressure from ministers for the FSA to retain a version of the rule.

ABI director of life and pensions Chris Kenny says: “RU64 is bad for consumers because it has strangled the pension market and added to the savings gap.

“The FSA recognised this problem last year but now refuses to act. This latest delay is very disappointing and runs contrary to the FSA’s own much-stated commitment to better regulation.”

Consumer body Which? is hailing the decision as a victory for consumer protection. Principal policy adviser Mick McAteer is concerned that removing the rule would leave consumers open to misselling, particularly before the NPAS comes into play.

Standard Life head of pensions policy John Lawson argues that as long as RU64 exists, thousands of people will be discouraged from saving before the NPAS starts in six years time.


Jelf acquires Cherwell Insurance Management

Jelf Group has acquired Oxfordshire-based insurance broker Cherwell Insurance Management for an undisclosed sum.The Bristol-based corporate consultancy says it will retain the Hanborough office and all staff, giving Jelf a total of 20 offices nationwide.Jelf group chief executive Alex Alway says: “The Jelf Group has a clearly stated growth policy and the acquisition of businesses […]

Over 75 per cent of first CTFs invested

Over 75 per cent of the first people to receive Child Trust Funds have invested them, according to figures for HM Revenue & Customs.The figures also show two thirds of all parents who have received the vouchers have invested them.Pima director general Tony Vine-Lott says: “These figures from HMRC are very positive. By carefully designating […]

Dawnay Day Quantum

Last week, Money Marketing reported that investors in Dawnay Day Quantum’s protected Japan multiplier would get back 140 per cent of their investment after six years. The report should have read “Investors will get back 140 per cent of the rise in the Japanese market after six years.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment