David Blunkett’s plans for automatic enrolment in company pensions will increase employers’ costs, says Clerical Medical manager of industry affairs Stuart Mason.Mason says the Work and Pension Secretary is right to suggest that plans for auto enrolment, or soft compulsion, will not be prevented by the European distance marketing directive after the Treasury issued a financial promotions order on July 11. The order means that employers can take on the role of IFAs in this instance and promote their pension schemes in the workplace. But Mason says employers will still face huge costs as they will have to gain the approval of existing employees, either by issuing new contracts or having current contracts amended to include new pension arrangements. The Department for Work and Pensions says it will issue guidelines to encourage employers to get employees to opt out rather than opt in to pension schemes and Blunkett has hinted that auto enrolment will be high on the agenda after the publication of the Turner report this autumn. Mason says: “The situation is not as clear as we would have hoped. Employers will still have to get the approval of existing employees by issu- ing new contracts or amending current ones, which could add up to a significant cost to them.”
The rating downgrades of General Motors and Ford in early May have created value opportunities in bond markets, says New Star. Head of fixed-income strategy Theo Zemek says the market was moving as a whole before the downgrades, with all bonds following the key stocks. Since then, anomalies have emerged, providing opportunities for stockpickers. Zemek […]
Abbey says its wrap has taken over 600m in new money this year and the service remains core to the business despite persistent rumours that it is set to close. The firm says the rumours are “unhelpful” and new parent Banco Santander sees the wrap as a central pillar of its distribution strategy. James Hay […]
Skandia Investment Management
Protected Portfolio Investment
FundsNetwork has dramatic-ally ditched Norwich Union as its investment bond partner in favour of rival Standard Life amid concerns over NU’s admin. The fund supermarket says Standard will now provide both the platform’s investment bond and Sipp wrappers, taking it some way to offering a full wrap service. FundsNetwork, which was denying the move as […]
In this brief video, Trevor Greetham, Head of Multi Asset at Royal London Asset Management (RLAM), introduces the Global Multi Asset Portfolios (GMAPs), touching on the distinctive investment approach used to manage asset allocation across the funds.
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AJ Bell has won a case against a client who wanted his platform fees for the past 14 years reduced. A client, referred to as Mr N, complained to the Pensions Ombudsman that, because he did not have enough information about what fees would be payable, he sold a property holding in his Sipp far […]