Fidelity has put forward an alternative to the NPSS which would enable savers to opt out of the basic scheme to access wider investment choices.Under its open personal account scheme, savers would be auto-enrolled into a personal account based on the low-cost default fund set out by the Government. An open-market option would also be available for those wanting a wider range of funds. These would include stakeholder-style products from a range of providers with the additional costs falling exclusively on those taking out this option. Director of defined-contribution development Richard Parkin says a centralised agency built on the system used by the Government to calculate and collect National Insurance contributions could act as a clearing house as a new system would create huge disruption for employers. He insists Fidelity is keen to be involved in the default fund but says the proposed 0.3 per cent charge cap needs to be raised significantly. Parkin envisages advice playing a significant role in the open-market option although he says it would be difficult to see how this could be funded. Aegon head of pensions development Rachel Vahey says: “Fidelity talks about an open-market option with providers offering products resembling stakeholder products but haven’t we got that already?” Parkin says: “That is a very cavalier attitude as it involves denying these people the advantage of employer contributions they would not get outside the NPSS.”
Arc Fund Management is offering its fifth enterprise investment scheme fund for private investors. IFAs will get up to 3 per cent initial commission and 0.33 per cent trail for three years. Minimum investment is 2,000 and the offer closes on October 5.
The FSA is proposing measures to simplify the approved person regime, which it hopes will save firms around £1m a year.It is consulting on merging the customer functions in the regime which it says will lessen the burden of paperwork on firms in the wholesale and retail markets.Managing director of regulatory services David Kenmir says […]
Investing and repaying debt take priority for people who come across extra income, says Watson Wyatt. The consultants conducted research asking 2,500 people what they would do with an extra £200 a month. Participants were allowed two responses.Findings showed that 46 per cent would invest at least some of it, 43 per cent would use […]
Lifesearch has warned protection providers to monitor closely the information they send out to advisers and networks after it found inaccuracies in promotional material from three life companies.The errors were found in product feature comparison tables, with the life offices in each case wrongly claiming that a competitor product did not contain certain features that […]
Loomis Sayles Senior Equity Strategist, Richard Skaggs, discusses what the key takeaways were for global markets during Q2 2016 and also talks about what may lie ahead for the second half of 2016. Click here for full article: Loomis Whitepaper
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The majority of providers are failing to ask customers how likely they are to access their pensions, according to FCA data. The FCA yesterday published data on its website about pension decumulation coming out of its 2017 Financial Lives Survey. The data, which looks at all adults planning to access their defined contribution pensions in […]
Clients cannot always rely on pension providers to follow their wishes when it comes to beneficiaries on death Headlines earlier this year drew attention to a startling statistic that 750,000 people coming up to retirement are at risk of their pension being passed on to an ex-partner when they die because they have not updated […]