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Exam on agenda as FSA probes drawdown sales

Many IFAs may have to sit an examination on income drawdown if the FSA

does not see an improvement in drawdown advice given when it monitors

firms this summer.

Sofa chairman Peter Williams says a drawdown exam could become compulsory

if the FSA is not satisfied withthe results of visits.

The Chartered Insurance Institute, together with its financial services

arm Sofa, already has a module on planning for a flexible retirement in

place as a half-credit for the AFPC. It claims this module, together with

another on pensions and inv-estments in development, would make a suitable

exam as they are based on the FSA&#39s RU 55.

The FSA, which sets standards for the industry, says the development of

any exam is a matter for the CII.

ABI figures show the average income drawdown case was £116,000 in

1999 but IFA the Income Drawdown Advisory Bureau uses £200,000 to

£250,000 as a guideline.

FSA spokeswoman Jackie Blyth says the latest wave of visits are to check

that firms are complying with the PIA rules on pension fund withdrawal

business as detailed in RU 67, including the rules applying to

record-keeping and training and competence. Lack of documentation has

prevented the regulator from assessing the size of the problem in the past.

Sofa chairman Peter Williams says: “We think an exam will become

compulsory unless IFAs can demonstrate an improvement during monit-oring



IFAP gives facts on endowments

IFA Promotion has produced a consumer factsheet designed to dispel themyths about endowment-linked mortgages.Its publication follows the recent BBC Panorama programme about mortgageendowments although IFAP says it was working on the factsheet before thedocumentary was broadcast.The factsheet, Confused about Endowments?, explains how the plans work ina question and answer format.It deals with the endowment review […]

Customised loans could pay for dream homes

Homebuyers will take out two loans in the future – one topay for theproperty and oneto turn it into their dream home, according to new researchfrom the CML.The research looks at challenges facing housebuilders. It concludes the UKhas been slow to adapt to the desire of homebuyers for more customisedhomes.Consumers&#39 needs and desires are changing. […]

Loan brokerage for Hanley

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IFAs see compulsory pensions in 4 years

Pensions will be made compulsory by 2005 because of the failure ofstakeholder, according to IFA delegates at the stakeholder thinktank.Delegates were cynical about whether the low-cost money-purchase schemeswould successfully attract savers at the lower end of the market intotaking out pensions.They believed as a result the Government will introduce compulsion afterthe next two general elections.Many […]

Brexit Commentary from Natixis Global Asset Management

By David F Lafferty, CFA, SVP – Chief Market Strategist Thursday’s historic Leave vote in the UK will have both immediate and long-term consequences for the global economy and financial markets. The initial flight-to-quality reaction across asset classes has been exacerbated by the market’s misplaced confidence in a Remain victory leading up to the vote. Stock markets […]


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