The Sandler Review wants a level playing field on the tax treatment of mutual funds and pension funds and has called for barriers between different types of investments to be removed.
The review has asked the Government to change the Individual Pension Account rules if necessary to allow fund managers to compete with life offices in the pensions market.
It suggests that the VAT exemption for pension fund management should cover charges those levied by non-life companies.
It wants the 5 per cent withdrawal rule for life policies to be abolished for new business.
It also wants to see the introduction of an Stamp Duty Redemption Tax-exemption for investment trusts within the IPA structure.
The review also wants investment trusts to be exempt from VAT on investment management bringing them into line with unit trusts and oeics.