Hornbuckle Mitchell has stopped marketing its flexible income pension plan to advisers after Government reforms to income drawdown hit demand for the product.
The Coalition Government has made a series of changes to income drawdown rules in recent years.
In April 2011 the Treasury introduced flexible drawdown in a bid to give wealthy savers more control over their pension pot.
In March last year the Government increased the maximum income a person in capped drawdown can take from their pension from 100 per cent of the equivalent GAD annuity rate to 120 per cent.
Hornbuckle Mitchell head of key clients and technical David White says the reforms have reduced demand for the Fipp and its scheme pension offering.
He says: “In the fourth quarter, following an assessment of the market demand and our prospective client needs, we made changes to our flexible income pension plan.
“The introduction of flexible drawdown and the increase of the capped drawdown maximum to 120 per cent of GAD have led to a very limited market niche for our Fipp product and scheme pension offering.
“We therefore took the decision to stop actively marketing our Fipp to our connected financial advisers.
“We retain the product and capability for use with new clients on a selective inquiry basis, and where we see the solution as being wholly appropriate for the member, and we will continue to provide ongoing administration services to support the operation of all Fipp schemes in place.”
Informed Choice managing director Martin Bamford says: “We have used Hornbuckle Mitchell’s Fipp in the past and it was a good product with a good team behind it.
“If demand has been low over a long period of time then you can understand why they would stop marketing the product.”