View more on these topics

Government Actuary&#39s scathing attack on Tories&#39 &#39legislation for pension misselling&#39

Government Actuary Chris Daykin has made a blistering attack on regulation and says the previous Conservative Government deliberately passed pension legislation knowing it would lead to misselling.

In an article for the journal of the Institute of Economic Affairs, Daykin accuses regulators of being “rigid and narrow-minded” in their criticisms of the selling of low-cost endowment policies.

Pointing to what he calls a bloated regulatory framework, Daykin accuses regulators of paying lip service to the need to have a principle-based rather than rule-based structure.

He says the principle of caveat emptor has been discarded in favour of increasingly expensive regulation, with the cost ultimately being borne by the consumer.

Daykin says the endowment misselling review placed too much emphasis on point-of-sale projections and not enough on how much of an improvement on previous products endowments were at the time they were sold.

He says: “The hype of the pension review and the extent of the punishment of insurers and advisers seems to pay scant attention to the fact that it was Government policy to encourage people to have freedom of choice. The decision to pass the legislation was taken quite deliberately.

“Notwithstanding advice, this would undoubtedly open the door to people making irrational and financially detrimental decisions and that misselling would result.”

Scottish Equitable pensions development director Stewart Ritchie says: “The main point that this reveals is that you cannot trust any long-term promise made by a Government when it comes to planning your retirement because they operate on such short timescales.”


Capita says it can slash break-even time for Sandler products

Capita has hit out at claims by product providers that they could take 20 years to break even on the new stakeholder products, saying it could be as little as six years. Managing director Steve Parkinson points to the model that Capita is working on for child trust funds, where six or seven providers use […]

New appointment at Homeloan Management Ltd

Homeloan Management Limited has appointed Andrew Duff to be Director of Irish Operations, based at the company&#39s new offices on the Ulster Science and Technology Park in Derry. Duff was previously with Capita Group Plc where he was responsible for business outsourcing contracts for a range of organisations such as the BBC, Abbey National and […]


Manor Park – Guaranteed UK Selected Growth September 2004

Type:Guaranteed growth bond Aim:Growth linked to the performance of the FTSE 100 index Minimum investment:Lump sum £5,000 Investment split:100% linked to the FTSE 100 index Place of registration:Guernsey Term:Three years Return:Choice of 210%, 160%, 110% or 60% growth in index at end of term Guarantee:Choice of 85%, 90%, 95% or 100% of original capital returned […]

Right on cue

Congratulations to the Lighthouse Group for raising £3,763 for Shelter at its annual conference and gala dinner. The money was raised by raffling and auctioning sporting delights such as tickets to Premiership football matches and golfing days. The lucky IFA who acquired Ronnie O&#39Sullivan&#39s signed snooker cue can indulge in the fantasy of being a […]

Planning now for the residence nil-rate band

Graeme Robb, senior technical manager at Prudential, writes about the residence nil-rate band and the advice opportunities it presents for you when tax year-end planning with your clients. On our Planning Matters hub, we considered a widow, Margaret, and a married couple, John and Anne, for whom the residence nil-rate band (RNRB) is influencing planning […]


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 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