View more on these topics

Life offices warn over SSAS charges

The Inland Revenue&#39s new legislation on small self-administered schemes could force charges to rise and lead to some schemes changing to alternative arrangements, according to life offices.

The new rules increase the responsibilities of pensioneer trustees and consequently life offices&#39 admin costs.

Experts argue this will cause certain schemes which do not fully utilise SSAS features, such as property purchase, to switch to executive pension plan arrangements.

Scottish Life says it has already increased its charges, pre-empting the more onerous burden that the new rules will lay on life offices.

Following the announcement from the Revenue&#39s Pension Schemes Office, Axa Sun Life said it predicted higher costs and would not rule out the possibility of raising charges.

The industry has known since the 1998 Budget that the regulations were to change. Last week, the Revenue unveiled the plans which effectively expand the role of the pensioneer trustee of an SSAS, making them more accountable. It also requires a separate trustee expert to be appointed to oversee the scheme and ensure its compliance.

Axa Sun Life marketing manager Steve Muir says: “We mailed IFAs and managing trustees last week to let them know about the changes. We plan to put in place a review of the costs.

“I would expect the new responsibilities would make some marginal schemes think about converting to EPPs but this will depend on the charges.”


Tep step-by-step guide

Traded endowment policy market maker Beale Dobie&#39s investment manager Tracey Merrit takes us onpart one of a tripthrough an A-Z of Teps.A is for APMM – the Association of Policy Market Makers. It&#39s appropriate that this organisation is at the top of this list because when choosing a market-maker, one should begin with the list […]

Exeter funds deal for Jupiter shareholders

Shareholders in Jupiter&#39s extra- income investment trust are being offered the unusual option of rolling over their money into funds offered by two different fund managers when the trust winds up on September 29.Typically, when a trust winds up, shareholders are given the option to roll over into funds offered by the investment house which […]

IFAs ignore Pru merger at their cost

IFAs believe Prudential has nailed its stakeholder colours firmly to the mast with the news that its Prudential Retail division, including its tied salesforce, is merging with Prudential Group Pensions.The move has sparked speculation that it could spell the end of the Pru&#39s traditional tied salesforce as it becomes increasingly driven by its direct and […]

Britannia using animal instincts in loans push

Britannia Building Society is starting an ad camp-aign to push its mortgage products.It is based around the slogan: What do a spider&#39s web, bird nest and tortoise&#39s shell have in common with Britannia?”The answer is a home for life, which is what the society says it aims to provide for new and existing members.The TV […]


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