View more on these topics

‘IFAs risk misselling claims if they fail to recommend PTA’

Advisers who do not recommend pension term assurance to their clients could risk misselling claims because life policies are liable to inheritance tax, warns Standard Life.

Product marketing manager Mick James says advisers must have a good reason why they do not sell PTA because premiums are cheaper and the sum assured is not subject to IHT.

He says only around 10 to 20 per cent of ordinary term policies are written in trust which exempts them from IHT. If advisers are selling ordinary term products, he says they should write them in trust or consider PTA to avoid future misselling complaints.

James says: “I worry that there will be misselling over advisers not selling PTA. I think advisers are looking at it and thinking it is too new or thinking they can just ignore it but they have got to have a good reason why they would not sell it.”

Chadborn says: “IHT is always an issue whether it is PTA or any other type of life insurance. Advisers should discuss IHT with every client. There are times they should write life policies in trust.”

Recommended

Balance of probability

Bright Grey’s Roger Edwards has discovered that it is indeed a small world. Edwards, who moonlights as a body combat instructor complete with bandana and yellow gloves (yes, it is true), recognised a woman in the front row of his class but could not place her until the end of the session. It turned out […]

HSBC pays 45k for TCF chief

HSBC is recruiting a treating customers fairly manager on a salary of up to 45,000 plus benefits. The job is based in the firm’s Canary Wharf office in London’s Docklands with the aim of embedding the FSA’s TCF initiative across the bank’s business. The manager will be involved in strategy, sales, advice, product design and […]

‘Bancassurers are a growing threat’

Bancassurers remain a growing threat to advisers as the dominant force in distribution, warns Bankhall chief executive Peter Mann. He told delegates that while IFAs still handle most life and pension business in the UK, their share has fallen while bancassurers’ share has risen. Mann cited Datamonitor figures showing IFA market share has fallen from […]

Three’s a crowd

Our occasional series of look-a-likes continues with Winterthur technical wizard Andy Boyt and a menage a trois of mammoth proportions. Andy’s kind colleagues have sent in convincing evidence that he was separated at birth from the overrated Phill Jupitus and still reasonably funny Johnny Vegas. Their similar ages, facial hair and, of course, girth are […]

US election

Capital Market Notes, November 2016 David Lafferty, chief market strategist at Natixis Global Asset Management, looks at the impact on markets and portfolios since the somewhat surprising outcome of the US election. Click here

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment