View more on these topics

L&G unveils proposals to protect existing schemes from NPSS

Legal & General is calling for employers opting out of Personal Accounts to be given a choice over auto-enrolment in a bid to prevent levelling down of existing occupational schemes.

In its response to the Government’s White Paper the firm proposes that either employers must introduce automatic enrolment to their scheme, or they must confirm their scheme meets or exceeds the level of membership take-up that personal accounts achieves.
As the Personal Accounts Delivery Authority will only be able to announce take up after the first year of operation, L&G says employers should be given a further year to improve communication with employees and boost take-up levels.
The firm reiterates industry concerns that the long term target to run the scheme on 0.3 per cent AMC is unattainable and means the tax payer will be forced to subsidise the scheme.
It points out that the Government’s own figures real the expected £8bn per year of contributions into Personal Accounts will include £3bn of existing savings. It says this will have been unfair competition if Personal Accounts are benefiting from a state subsidy.
L&G says Personal Accounts are not suitable for everyone, including those with debts and young employees with family responsibilities who may have a more pressing need for life cover and income protection.
It says the Delivery Authority must deliver a clear message on suitability or “loud voices in the media may sway many perfectly suitable people to keep clear of Personal Accounts, to the detriment of their pensions provision.”
The response criticises generic advice as being inadequate to educate people and calls instead for a prolonged and ongoing communication campaign on all available fronts.
L&G wealth policy director Adrian Boulding says: “Failure to accept this responsibility would bequeath a massive liability to the next generation of taxpayers, who would face a clamour for compensation from potentially millions of claimants who would feel that Government had misled them and robbed them of their savings.”


EIS raises glass to the cellaret

Fine wine merchant The Cellaret is looking to raise up to £1.5m through this EIS to expand its trading activities following last year’s acquisition of The Wine Portfolio and Wine Direct.

Towry Law buys Baker Tilly FS

Towry Law has announced today the acquisition of Baker Tilly Financial Services, the financial advisory division of accountancy firm, Baker Tilly.Baker Tilly FS has a national presence with over 20,000 high net worth clients. It will bring 41 wealth advisers into the JS&P Towry Law advisory firm, creating a total of around 200 advisers. All […]

Out of Context

“I told him he looked like Bonnie Prince Charlie.”Positive Solutions’s David Harrison about Justin Urquhart Stewart’s rather flamboyant outfit at the Adnitor awards “Tell that Hogarth to dye his hair black.”Prestbury CEO Lee Birkett “I would be quite happily stranded in the Chesterfield for three days.”Aegon PR Lesley McPherson “I suspected for many years that […]

Whistleblow system is better late than never

Few could reasonably argue with the FSA setting up a whistleblowing system for the insurance industry to report suspected malprac-tice or criminal behaviour. Never mind that this is just a wee bit late after nearly 20 years of regulation and a few high-profile collapses such as Equitable Life and Network 300 but maybe better late […]


News and expert analysis straight to your inbox

Sign up


    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