View more on these topics

JLT suspends ETV exercises to take account of rule changes

JLT Wealth Management has temporarily suspended current DB pension transfer exercises following the FSA’s confirmation of changes to the way transfers are calculated.

The regulator’s plans, published in April, came in a bid to make it more difficult for advisers to recommend an investor quits their defined-benefit scheme.

JLT temporarily suspended its current advice exercises on May 1. The firm is advising on the Axa group pension scheme with a deadline of May 15 originally set for the 10,000 members involved in the exercise to decide whether to transfer out of the scheme.

Axa scheme members have been told it is likely the deadline will be extended.

JLT has also suspended advice around the Phoenix Group group pension scheme. In November, Phoenix announced it was carrying out a cash-incentivised enhanced transfer value exercise with 3,200 deferred members offered up to £2,000 in cash as part of a deal to give up their guaranteed DB pension. Around 200 members have yet to make a decision.

A Phoenix spokeswoman says: “Pension transfers are currently on hold until systems have been updated. We have an exercise running with fewer than 200 people affected by the rule changes presented in the FSA policy statement 12/8. The changes came into force at the start of May and we will be communicating with this group once reporting systems have been updated to accommodate the amendments.”

In February, the regulator outlined plans to change the way pensions transfers from defined-benefit to defined-contribution schemes are calculated in a move expected to prevent benefits being undervalued by up to £20bn.

Both JLT Wealth Management and Axa declined to comment.


Standard Life trust makes manager change

The Standard Life equity income investment trust has promoted Thomas Moore to lead manager on the closed-end fund. Moore was appointed joint investment manager in November 2011, alongside Karen Robertson. The new lead manager had taken on “increasing responsibility for investment decisions” over the past six months. Robertson will continue to assist in the portfolio […]

Lloyds and Co-op propose hybrid deal over branch sale

Lloyds Banking Group and The Co-operative Bank have presented a hybrid proposal to the FSA which would allow the Co-op to acquire the 632 branches being sold off by Lloyds. Lloyds’ branch disposal, named by the bank as ‘Project Verde’, is a requirement by the European Commission as part of Lloyds receiving state aid in […]

What's going on in the 'offshore' world?

Graeme Robb, Senior Technical Manager at Prudential, explores the current state of the nation for offshore issues and highlights areas which may be particularly relevant to advisers. In the context of insurance companies, ‘offshore’ can be a relatively straightforward matter. Like their onshore equivalent, offshore bonds are ‘non-qualifying’ for tax purposes, meaning that all gains […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. David Trenner - Intelligent Pensions 15th May 2012 at 11:46 am

    The early ETV exercises seemed to take advantage of members’ need for cash and the relative attraction of ££ now against more ££ later if you lived that long.

    But most recent exercises have been more sophisticated, although regulators and government seem to have missed this.

    If the CETV is £100k, but the FRS17/IAS19 value is £160k and the full buy-out cost is £220k, then for a relatively aggressive investor an ETV of about £130-£145k looks like win win for member and employer alike. It is also good news for the trustees because on the one hand the scheme sponsor is strengthened and on the other the member benefits from the enhanced tv.

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