View more on these topics

IFAs fail to send out A-Day letters

Advisers who believe pre-A-Day planning starts and ends with the 1.5m pension fund issue are ignoring client needs and face the wrath of the FSA, according to O&M Systems.

The specialist software firm says most IFAs have only a small number of clients affected by the 1.5m limit but other iss- ues that have had less publicity need to be addressed.

For example, the tax-free cash implications for clients with existing section 32, executive pension and deferred occupational plans, where clients may be in the right contract but with the wrong provider, says director Gra- ham Miller.

He says the FSA warned advisers in June that A-Day letters are required to be sent to clients or they could fall foul of TCF rules but few have contacted their clients.

Miller says the main problem is the lack of advisers active in the pension transfer market. The FSA told Miller it does not know how many advisers are authorised to advise on pension transfers but estimates that the majority with the necessary G60 qualification do not apply to be pension transfer specialists as they do not offer this type of advice.

O&M Systems has created four A-Day letters which advisers can use to contact clients, available on its website.

Miller says: “Most IFA firms have a small number of clients that might be affected by the fund limit but dozens could be affected in other ways.”

Scottish Widows head of pensions market development Ian Naismith says: “With the current uncertainty around the position on transfers after A-Day, there is a danger that IFAs will do nothing until the situation is resolved. That could be a big mistake and not leave enough time to take any action needed before A-Day.”


Sipp euphoria could see rise in misselling

Product providers and advisers should be aware of the heightened risk of misadvising and misselling amid Sipp fervour, warns City law firm Reynolds Porter Chamberlain. Churning, investing too much into a Sipp, unsuitable alternative investments, residential property and tax avoidance are cited as the five main danger zones by the firm. RPC partner Charles Suchett-Kaye […]

New operations manager at Pink

Pink Home Loans appoints Janet Johnson as operations manager in its packaging department. She joins the operations team having worked at Pink for over 5 years. The role will involve overseeing the management of the operations function at Pink.Johnson started her career at Pink as a mortgage adviser in the mortgage desk team. More recently […]

A push up the ladder

First-time buyers Charcol senior technical manager, mortgages, Ray Boulger says a parent’s Sipp investment could help their children move into their first home

Woolwich Plan Managers releases next tranche on two products

Woolwich Plan Managers is releasing the next tranche of its accelerated growth and capital plus plan tranches. Accelerated growth 8 comes with a three-year option repayiing twice the market rise, capped at 24 per cent. The five-year option has a three times multiplier, meaning a 16 per cent rise in the market delivered maximum 48 […]

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