View more on these topics

L&G threatens to withdraw FSAVC

Legal & General says it is considering withdrawing its FSAVC if the Government does not reinstate tax-free cash on the pension top-up vehicle.

L&G could be the first of several life offices to shelve its plan as many believe FSAVCs do not have any place in the post-stakeholder market.

It says unless the Government reintroduces the 25 per cent tax-free cash benefit, which was withdrawn in 1987, it is not fully convinced of the long-term prospects of the plan.

It is considering the move following months of speculation that the Government will harmonise the rules on tax breaks with personal pensions and stakeholder. No confirmation has been given.

L&G pensions marketing manager Andy Agar says: “It is just a question of whether the market is there or not and also part of the wider debate on what the future of FSAVCs, AVCs and the rest of the top-up market will be.”

But Clerical Medical spokesman Tony Bloomer says: “We are not considering withdrawing our FSAVC. We still believe they provide a good advice opportunity for those earning £30,000. We believe tax-free cash will be reinstated although we do not know when.”

Wentworth Rose managing director Philip Rose says: “How can you can have one plan which does not offer tax-free cash when there are alternatives that do?”


Sarasin looks beyond the UK

Thematic investment specialist Sarasin Investment Management has introduced the Sarasin EquiSar Ex-UK global thematic fund.An open-ended investment company (Oeic), the fund is one of a range of Sarasin EquiSar funds which include the Sarasin EquiSar GB fund, which invests in the UK, Equisar global thematic fund, which invests globally and the EquiSar Luxemburg fund, which […]

Schroder offers fist full of dollars

Schroder is putting its money on an upturn in the US economywith the introduction of its North American unit trust. Schroder&#39s existing North American fund is not available to retailinvestors and it will be renamed the Schroder institutionalAmerican fund to make way for the new fund. The new fund is an American fund that covers […]

A matter of trust

Last week, I started to look at the fundamental use of trusts in financial planning by considering the traditional phrase “right money, right hands, right time”. I suggested that it could often (or even usually) be held to be professionally negligent for a term insurance policy to be effected except under trust. This latter point […]

Breaking barriers

What will make more IFAs adopt e-commerce services? This is the issue I spend a large amount of my time considering and is addressed by two recent research reports with, I believe, varying degrees of success. The first, to which Swiss Life has given me exclusive access for this column, looks at current IFA preferences […]

When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment