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Fidelity welcomes White Paper but warns crucial work is still to come

Fidelity has welcomed the Personal Accounts White Paper for recognising the potential impact on employer sponsored schemes and leaving open the availability of choice, but says much work remains.
It says it is pleased the Government has heeded calls for the test of what constitutes a good employer scheme to be simple and certain to limit potential compliance burden.
The provider says it is right the Government has left the door open for the branded provider option as although most people will be happy with a default arrangement there is a strong case for choice within the model.
But it says critical work must now be done on the breadth of fund choice and charges and expresses worry the debate may be too focused on cost and thus limit choice.
Fidelity also says more needs to be done looking at the impact on employer sponsored schemes with clarification needed over deferral of auto-enrolment for existing employees. It says deferral of existing employees until 2015 or later is crucial to avoid levelling down of existing schemes.
Fidelity International president, UK and Europe institutional business Simon Fraser says: “The Pensions Commission’s motivation in proposing such a system was to allow all individuals to enjoy the benefits of funded collective retirement provision that today are only available to members of good employer-sponsored pension schemes.
It is therefore important that, in implementing Personal Accounts, existing employer-sponsored provision is protected and enhanced – and we are delighted that the Government has recognised this but there is a note of caution. Fidelity believes the cost of auto-enrolment of existing employees into generous schemes may be prohibitive. We would like to see Government allowing for this by delaying the introduction of auto-enrolment for this group of individuals.”


Basic injustices

Many women are finding they have paid unnecessary voluntary NI contributions

Product matters: Pot luck

The Barclays guaranteed FTSE account issue N6 is the Steve Davis of the investment world – dull and unsexy but dependable and potentially quite successful.OK, I am showing my age with the analogy but Barclays does deserve credit for maintaining a consistent presence in the maturing Tessa-only Isa market via incarnations of this plan. It […]

LibDems claim Personal Accounts are ‘fatally flawed’

The LibDems say Personal Accounts are “fatally flawed” as long as mass means-testing remains part of the benefits system.LibDem Shadow Work and Pensions Secretary David Laws says that for many people the scheme will be inappropriate and unfair because of the continuation of means testing in its cut down form.He says some people on low […]

Barings introduces Ucits Russia Fund

Baring Asset Management has converted its $30m new Russia fund into a Ucits III compliant vehicle which will be available to investors from December 27.The fund will become the Baring Russia fund and currently has $30m under management.The new Russia fund has returned over 22 per cent on an annualised basis since launch compared to […]

DB transfers – one more factor to consider

Jim Grant – Senior Product Insight & Technical Support Analyst We look at how higher DB transfer values could cause a lifetime allowance issue and how that affects the advice process. Advisers are receiving an increasing number of requests from clients looking to transfer their pension from final salary schemes to personal pensions. This is a […]


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