View more on these topics

First Actuarial calls for Govt to review transfer value regs

First Actuarial has called for the Government to look again at its draft regulations on the calculation of transfer values from final salary pension schemes.

First Actuarial said the consultation exercise proposal to exclude employers from the process of calculating transfer values is inconsistent with the overall policy of getting trustees and employers to work more closely together.
 
First Actuarial director Alan Smith says: “We are disappointed that the draft regulations do not give the employer any say in the minimum level of transfer values. As they stand, the regulations are completely at odds with the new Scheme Funding Regime which requires trustees and sponsoring employers to work together.”
 
Another inconsistency is that the draft regulations would require the sponsoring employer to be involved if transfer values above the minimum level are to be paid, even though the employer will not have been involved in the setting of the minimum values themselves.
 
First Actuarial is also concerned that the draft regulations do not require a consistent approach to be followed between transfers in to and out of a scheme. Without a consistent approach there is a risk that members who bring a transfer value into a scheme but wish to transfer out later may not receive a fair deal.
 
Having a Government “expectation” that schemes should bring any such differences to the attention of anyone wanting to transfer into the scheme is a very weak form of consumer protection.
 
First Actuarial believes the current requirement for consistency should be maintained.
 
Smith says: “We support the scheme specific approach to calculating transfer values but feel it is important to iron out these inconsistencies. This could be done quite easily by requiring trustees to consult with the employer before setting the assumptions to be used to calculate minimum transfer values.

“If the Government will not go this far then it should at least encapsulate in legislation (or a Code of Practice) the requirement to bring differences to the attention of the person wanting to transfer into the scheme. It is highly unsatisfactory for Government expectations on such an important matter to be left to comments in a consultation paper.”

Recommended

CPI inflation drops to 1.9 per cent in July

CPI inflation has dropped to 1.9 per cent in July, down from 2.4 per cent in June, according to the Office of National Statistics.ONS says tbat the largest downward contribution came from food prices, as supermarkets led price cuts across a range of products including bread and cereals, meat, fish, fruit and vegetables. In addition, […]

Rent a wrap talks for Prudential

Prudential is in discussions with technology and administration providers about renting a third-party wrap.The firm says it does not want to invest in building its own wrap but hopes to come to the market next year.It does not believe it has missed the boat on wrap, saying delaying a launch has enabled it to learn […]

Pioneer announces autumn seminars

Pioneer Friendly Society has announced a series of training and development seminars for brokers across the UK this autumn. The seminars will tackle industry issues, including the forthcoming new deal for welfare, and other important topics such as the importance of income protection within an adviser’s overall TCF strategy. Pioneer says over 1200 delegates have […]

Premier fails to get MBO backing

Premier Asset Management has failed to secure sufficient shareholder backing for its planned MBO.Chief executive Mike O’Shea said earlier this month that the deal was imperative to prevent Premier becoming a target for a potentially hostile takeover, particularly if markets fell.Premier said this week it was extending the deadline for the offer to August 24 […]

Value remains within European equities

By Rob Burnett, Neptune European Opportunities Fund

In recent months, investors have become more pessimistic about both the European and the US economic outlook and yet stockmarkets have pushed on to new highs. Some would argue that this is a worrying divergence. We would take the opposite view. This appears to be classic bull market behaviour. A wall of worry has been rebuilt, and stockmarket resilience should be taken as a sign of strength. The market is discounting an improving economic outlook ahead, particularly in the south of Europe.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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 advice.

    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

    Email: customerservices@moneymarketing.com