The European pensions portability directive could threaten the provision of attractive occupational pension schemes.The directive, published last October and likely to be implemented in the next two years, is designed to reduce the obstacles to pension mobility caused by occupational scheme rules. Schemes will be obliged to accept pension transfers from individuals, even if they work for different companies. As well as the cash value, benefits attaching to the ceding scheme will also be transferred, meaning that a defined-benefit scheme will have to take on the liability of providing the transferred-in benefits. Standard Life marketing technical manager Andrew Tully says the directive is likely to see employers make their schemes less attractive in the run-up to the NPSS, which flies in the face of the Government’s objective to promote saving prior to any pension reform. Tully says: “With a lot of other factors, the directive could be damaging to pension reform as it could cause dumbing down. It is likely to add costs to pension schemes and could discourage employers from offering pensions.” Association of British Insurers head of EU and international affairs Hugh Savill says: “The cumulative affect of various technical disincentives and unintended consequences might make some trustees think that it is no longer possible to provide an occupational pension.”
The latest salvo of damning mystery-shopping revelations to hit the financial advice sector has prompted a fierce backlash from Aifa director general Chris Cummings.
Leeds Building Society has reduced the rate on its 3 year fixed ratemortgage and fee free version by up to 0.50 per cent. Previously at 5.39 per cent, the 3-year fixed rate mortgage has been reduced to 4.99 per cent and the the fee free version, which was previously 5.89 per cent is now 5.39 […]
With people having to face financial realities at an increasingly younger age, it is vital for the industry to help them graduate with honours from the school of life, says ifs head of faculty financial regulation
Research by the FSA in the field of lifetime mortgages has found significant weaknesses on fact-finding carried out by advisers before coming up with a recommendation.Firms must have close regard for knowing and understanding all elements of their clients’ financial circumstances.
Matt Shafer, head of international distribution at Natixis Global Asset Management, tells Ignites Europe how he sees distribution changing in different European markets. Read the full article here:
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