View more on these topics

Fatchett warns test case could hit networks in FSAVC review

The pension review test case being brought against DBS could limit the amount networks can charge members in the FSAVC review, according to the solicitor representing the case.

Armstrong Neal partner Gareth Fatchett claims he has received 100 calls in a week from current and former DBS members who intend to make similar claims against the network if the test case is successful.

Birmingham-based Fatchett believes the case could mean networks will have to seek members&#39 consent before recouping the cost of the FSAVC review which has just got under way.

In the test case, Maywill Financial Services principal Terry Willison will claim the fees levied by DBS to cover some of the costs of each pension review case were unlawful. The fees ranged from £90 to £900.

Willison will argue the network should have asked members&#39 permission to make the charge under the terms of their contracts. If he wins, Willison will recoup between £5,000 and £6,000.

If DBS loses the case, it could cost the network millions of pounds as it will have to reimburse members these fees. It says, of the total £12.7m costs it faced under the pension review, members were asked to pay £3.4m and shareholders £9.3m.

Fatchett says: “The outcome of this case could fundamentally affect other networks. It will clarify the legal position for the FSAVC review.

“Networks may have to seek members&#39 consent to be able to recoup the cost of the new review.”


Pension fears over transfer transparency

The FSA should force life offices to disclose expenses deducted from with-profits funds&#39 terminal bonuses under RU64, according to some pension experts.The call comes amid fears that charges on with-profits pensions will not be transparent in comparison with charges on unit-linked invested schemes transferring to stakeholder contracts.It is claimed this makesit impossible to work out […]

LIA relaunches with the aim of uniting advisers

The LIA has restated its aim to unite financial advisers under a single professional body as it announces a new name and strategies.In future, the LIA will be known by the initials LIA rather than by the full title Life Insurance Association, as revealed in Money Marketing last month.Speaking at the launch of the new […]

PMS reaches 1,000 members after eight months

Support services company Portfolio Member Services has recruited its thousandth member firm only eight months after it was set up. PMS is a joint venture established by Bankhall Investment Associates and IFA Portfolio. It provides benefits to members such as compliance and T&C support, a PI facility, a product research database, and &#39Reasons Why&#39 software. […]

Skipton brings in semi-flexible mortgage

Skipton Building Society has brought in the flexible two-year fixed rate mortgage.Although the mortgage has interest calculated daily and gives the ability to overpay and take payment holidays, it does not include underpayments and lump sum withdrawals, unlike other flexible mortgages.The mortgage offers a number of different fixed interest rates, depending on which option the […]

Pensions - thumbnail

Preparing for the changes to the pensions market

As more and more providers start to reveal their stance on the charge cap and removal of commission and active member discount pricing, we thought it would be worthwhile to look at what these are, and the steps businesses should be taking to prepare for this.


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 thought leadership.

    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