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Industry counts the cost of new tax and pension regime

The new post-April 6 pension and tax regime designed to simplify the

framework has resulted in increased admin costs of up to 35 per cent.

The regime was conceived with the promise of streamlining the pre-April 6

framework but providers claim the new system has delivered an increased

admin and cost burden as life offices and IFAs try to get to grips with the


The increase in costs follows widespread industry discontent on a number

of pensions admin issues, including the inclusion of stakeholder in

money-laundering rules, introduced last week, as well as the end of waiver

of premium as an integral part of a pension policy.

Scottish Life head of communications Alasdair Buch-anan says: “In terms of

how much it takes to deal with the processing of applications for personal

pensions, including attaining evidence of income, 35 per cent seems a

likely figure while the overall costs of writing new business is likely to

be 8 to 9 per cent higher than last year.”

Merchant Investors sales and marketing manager Mal-colm Small says: “We

estimate that in the short term, the processing costs of introducing the

new rules have increased by 10 per cent but we should get them down to

previous levels.

“In our experience, IFAs do net yet understand what is required by the

moneylaundering rules.”


Lincoln picks Deloitte to probe appointed rep

Lincoln Assurance is hiring big five accountancy firm Deloitte & Touche toinvestigate the endowment sales of its former appointed representative CityFinancial Partners. Since September 2000, the life office has reviewed a representative sampleof the 31,000 endowment policies that CFP sold over the last 10 years. Ofthe 5,000 reviewed, Lincoln says there is significant evidence ofquestionable […]

Axa Sun Life – With-profit Income Bond

Thursday, 9 August 2001. Type: With-profit bond. Aim: Income by investing in Axa Sun Life with-profit fund. Minimum investment: £5,000. Bonus rates: 6.25 per cent. Allocation rates: Investments over five years – £5,000-£14,999 – 100 per cent, £15,000-£24,999 – 101 per cent, £25,000-£49,999 – 102 per cent, £50,000 and above 102.5 per cent. Limited access […]

RJ Temple MD to lead Aim flotation

Michael Hawkins, 55, has stepped down as mana-ging director of nationalIFA RJ Temple and will now be responsible for taking the firm to flotationon Aim next year. RJ Temple says Hawkins, who had been joint MD from 1992to 1995 and sole MD since then, will not be replaced and chairman GeoffreyMorphitis will step in when […]

HSBC Bank International – Nasdaq Plus Growth Fund

Type: Ucits. Aim: Growth linked to the Nasdaq 100 index. Minimum investment: £5,000 or $5,000. Place of registration: Dublin. Investment split: 100 per cent linked to the Nasdaq 100 index. Isa link: No. Charges: None. Commission: Initial 2.5 – 4.5 per cent. Tel: 01534 606348. Broker Panel:-Chamberlein Eke, Senior partner, Anthony ChambersMichael Posner, Principal, Charter […]


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