View more on these topics

Guidelines fail to end conflict of interest

Draft guidance from The Pensions Regulator will not protect advisers from conflicts of interest when advising on transfer sweeteners, warns IFA Robert Reid.

The leaked guidance addresses the growing practice of employers offering cash inducements to employees to persuade them to leave defined-benefit pension schemes.

Syndaxi Financial Planning managing director Reid says it stresses the need for independent advice but does not address the problem of the potential conflict of interests of employers being allowed to hire IFAs to act on behalf of the scheme while also advising pension scheme members.

The guidance outlines issues for employers, trustees and scheme members to consider. It says the member’s attitude to risk is crucial when transferring to a higher-risk defined-contribution scheme. Possible tax implications for members who accept inducement payments should be considered.

Reid says: “I am very disappointed the paper does not address the clear conflict of interest of an IFA hired by an employer advising the scheme members.”

But he says that if the suggested guidance is followed, employers would be less likely to offer inducements and employees would be less likely to take them.

President of the Faculty of Actuaries Stewart Ritchie says: “IFAs need to be seen to be acting in the best interests of the members.”

The final guidance is provisionally scheduled to be published next week.

The Pensions Regulator declined to comment.


BM revamps BTL and self-cert ranges

BM Solutions has today launched a number of new products across its buy-to-let, self-cert and mainstream ranges.Its BTL range includes a two-year product, which tracks the base rate at -0.01 per cent for two years, with a £599 arrangement fee. Other BTL products include a two-year tracker at base rate +0.09 per cent which comes […]

Online interviews show fund facts

Bates Investment Services has linked up with for a series of online interviews with fund managers of key funds that it recommends to clients.Bates senior investment adviser Paul Ilott believes this is the first time a UK intermediary firm has offered this service direct to the public.He has conducted five-minute interviews with M&G recovery […]

NU’s SRI team measures impact of obesity on industries

Norwich Union’s socially-responsible investment team is assessing the risks and opportunities posed by the world’s obesity problem on the food production, retailing, healthcare and leisure sectors.The World Health Organisation says over one billion people are overweight while the UK’s health select committee estimates that problems caused by obesity cost the UK between 3.3bn and 3.7bn […]

Child trust funds near 2.5 million

Almost two-and-a-half million child trust funds have been opened since launch in April 2005, with three-quarters being set up by parents.The figures were revealed by Treasury Economic Secretary Ed Balls in the run-up to Child Trust Fund Week which aims to raise awareness of the scheme among hard-to-reach groups and encourage family members to top […]


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