Industry confusion over the Government’s proposals to allow protected rights in Sipps is due to insurers’ lack of understanding of the issue, says Merchant Investors.The DWP delivered its long-awaited announcementin early January and Merchant Investors says the news should be seen as is a fillip for the industry, particularly after Chancellor Gordon Brown excluded resid- ential property from Sipp investment. Many in the industry criticised the Government’s response to the consultation, Pensions: Contracted-out Benefits and Miscellaneous Amendment, labelling it confusing and unclear. Hargreaves Lansdown head of pensions research Tom McPhail believes the main confusion is over the date of implementation which appears to be April 2007. Several commentators say it is still not clear what assets Sippholders will be able to invest their protec- ted rights in, with some life offices saying investment restrictions are still likely. Merchant Investors marketing manager George Ladds says: “We strongly believe that there is no con- fusion concerning Sipp protected rights. In fact, the Government response to the consultation clearly indicates that self-investment via an insured product offered by an insurance company is an effective vehicle. “In summary, it is not necessarily the Government’s response which is muddled but other companies being unable to fully comprehend the regulations.” Norwich Union head of pensions Iain Oliver says: “Sipp specialists will natu- rally have a different pers- pective on this to us. This is because they will currently have a Sipp scheme but not an appropriate scheme. Therefore, if they want to hold protected rights, they have to obtain a scheme certificate from the DWP and produce a new product to hold the protected rights under their scheme, which must not allow self-investment. This would explain people’s uncertainty.”
Rentokil has extermin- ated its final-salary scheme and other schemes are lining up on the taxiway to avoid interference from our newest regulator.
Labour backbenchers have accused Norwich Union and other equity-release providers of misleading advertising and targeting an inappropriate market. In a Westminster debate this week, Labour MP and Treasury select committee member George Mudie used the example of an NU ad as evidence that products are being targeted at too young an audience. He said marketing […]
Tilney Investment Management is taking on the management of Clydesdale Banks discretionary investment management business. The sale, for an undisclosed sum, is due to complete this spring and will see Tilney becoming the preferred provider of discretionary services to Clydesdales customers. The deal will attract 1500 new clients with investment worth 300m, taking Tilneys assets […]
Nice to see Standard Life’s corporate responsibility manager Andrew Marshall-Roberts getting down and dirty for a good cause. The provider has set up a Treemail scheme which aims to replant a forest in the Scottish Highlands with a 100,000 donation to the Trees for Life charity. Standard has pledged to buy a seedling for each […]
Following the surprise return of a majority Conservative government, George Osborne announced that he will deliver a second budget statement on 8 July this year.
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
When Selectapension stopped executing defined benefit pension transfer advice last year, eyes quickly turned to its key partner firm: CFPML. A previously unknown entity, the FCA reviewed CFPML as part of its work, and a little big of digging from Money Marketing uncovered it was actually a two-man band advice firm just down the road from […]
The end of the “boom” in pension transfers could be in sight, consultancy the Lang Cat predicts. The Lang Cat has published its latest platform market scorecard, which found pension gross inflows to platforms dropped 16 per cent in the first quarter of 2018 when compared to the fourth quarter of 2017. This was compared to […]