Advisers are being warned to be patient amid the confusion over the Budget changes to inheritance tax and trusts.The Chancellor’s unexpected attack on trusts has led some providers to withdraw their plans and launch new ones, despite the new rules not yet being confirmed, while other providers have been accused of burying their heads in the sand. Thorn Financial Management director Martin Morris-Cole says the proposed changes are a grey area and advisers should wait until the Finance Act is published in July before making recommendations to clients as providers may come up with better solutions. He says: “Our clients are very understanding. They appreciate that this is a widely criticised Treasury move and not a financial services one. “I expect that there might be some increased activity in the Aim and venture capital trust markets that are being marketed as alternative solutions.” Worldwide Financial Planning says insurance companies should market their products sensibly rather than withdraw them altogether. However, it says some key features documents will be impossible to write until the new rules are confirmed. Managing director Peter McGahan says: “IFAs need to satisfy themselves that they are confident in advising on these products. Insurance companies are not going to pay my professional indemnity cover if it all goes wrong. It is their job to market the products responsibly.” Unizone principal Richard Prudence says IFAs should be patient. He says some providers have been forthcoming with the information they are putting out on IHT and trusts but others have been burying their heads in the sand. Prudence says: “Many that are normally quite vocal have been noticeably quiet, so the good providers are standing out. Advisers must hold back until everything is made clear. My biggest fear is that all these changes will lead to the creation of inflexible trusts.”
Nationwide is warning hat it might take another three years before the major lenders launch full-scale equity- release products. Chief executive Philip Williamson says he is concerned that Nationwide could become embroiled in a missell-ing scandal if it enters the market too soon. He fears that consumers could complain to the Financial Ombudsman Service that […]
Sarasin EquiSar IIID
The FSA has warned mortgage networks over the lack of app-ropriate controls in place to ensure that appointed representatives are conducting business properly. Speaking at Mortgage Expo, FSA head of mortgages and credit unions Michael Lord said the regulator had uncovered evidence of inappropriate behaviour concerning controls and will be making it a priority area […]
What variations on a conventional annuity can a pension client choose between?
Jelf Employee Benefits assesses the areas that employers should be aware of when considering operating in Sierra Leone, including healthcare access, delivery and insurance provisions. This report draws on various sources to highlight specific considerations for this emerging jewel in West Africa.
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Aviva has triggered a five day platform blackout as it moves to new technology. The platform will be unavailable from 6pm on Wednesday 17 January through to Monday 22 January while the provider manages its transition onto an updated system run by technology provider FNZ. The downtime will affect Aviva’s investment platform only, but other adviser […]
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