View more on these topics

James Hay offering free SSAS transfers

James Hay Consultancy will carry out SSAS transfers free in the run-up to A-Day.

The group is anticipating a sharp increase in SSAS business before April 5, 2006 as small business owners convert executive pension plans into SSASs to take advantage of loanback terms.

Small businesses converting executive pension plans which are more than two years old can access 50 per cent of the net assets of the scheme in the form of a loan.

Managing director David Seaton says the group is encouraging financial advisers to discuss this conversion option with clients as he believes the loanback terms are much more favourable now than they will be after A-Day.

He points out that before A-Day, loans are unsecured whereas under the new regime they will be secured with a first charge.

The rollover facility is also less favourable, with just one missed payment allowed to be rolled over twice as opposed to the current flexibility to roll over the whole loan.

Seaton says: “We expect to see an increase in business between now and A-Day as advisers and their clients consider how a SSAS can work for a business while at the same time building a substantial pension fund. Business owners can invest through an SSAS as they see fit and take income from the fund for life.”

Recommended

Tracey Ashworth-Davies

The deputy chief executive and co-founder of Bright Grey has shown that a commitment to customer focus can bring big rewards in the protection market.

Duffy on Mortgages

HBOS enjoys over 20 per cent of the UK mortgage market so you would expect its annual intermediary dinner to be a consummate affair and once again did not disappoint last week.

Abraham to probe DWP on DB role

Parliamentary Ombudsman Ann Abraham says there will be an investigation into whether Government maladministration led to finalsalary scheme members losing pension benefits.

Japan Economic Insight

James Dowey, Chief Economist, and Paul Caruana-Galizia, Economist

The conventional wisdom is that following a roughly 50 per cent rise in the stock market in 2013 in Yen terms, the Japan trade is over and done*. So the story goes, those big gains were due to a one-off boost from quantitative easing (QE) and a depreciation of the Yen — policies that one should think of as a palliative to Japan’s economic weakness, but not a cure. Rather the cure, and by implication the necessary condition for a longer-term investment case, is deep structural reforms — a painstaking re-weaving of Japan’s economic and social fabric, no less. The story continues: this is a much tougher test than launching a blast of QE, and one that prime minister Shinzo Abe, although well intentioned and well supported by the public thus far, is likely to fail. Stick a fork in Japan, it’s done…continue reading

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment