View more on these topics

MP warns that annuity compulsion poses misselling threat

IFAs who advise clients to invest in a pension product could be accused of misselling under the current regulatory regime, says Labour MP John Butterfill.

The prominent MP is known in Parliamentary circles as a pension specialist. He believes pensions get much less favourable treatment than tax-efficient investment such as Isas, venture capital trusts and enterprise investment schemes, making it bad advice for IFAs to recommend a pension.

Butterfill says one of the key areas which puts pensions at a disadvantage is comp ulsory annuity purchase. He has tabled a Private Members Bill for the relaxation of this requirement.

The bill passed a first reading last week.

Butterfill claims he has cross-party support for his bill.

He says: “There is a recognition that pensions are being treated less fairly than other forms of investment. You could almost accuse IFAs of misselling if they were to advise a client to invest in a pension.”

l Comment, p41

Recommended

Hargreaves Lansdown in £150k portfolio service

Hargreaves Lansdown is entering the increasingly competitive wealth management market. The Hallmark Wealth Management service will be launched in March and will target individuals with over £150,000 to invest. Hallmark will compete with a growing number of banks which are vying for a share of this lucrative market, which has traditionally been the preserve of […]

LibDem leader accuses FSA over debacles

Liberal Democrat leader Charles Kennedy has acc used the FSA of failing to act appropriately over the Axa orphan assets case and the Equitable Life debacle. In a speech to the Financial Markets Associationon Tuesday, Kennedy slammed the FSA&#39s performance in both instances and called upon the Government to force the regulator to take more […]

Clerical combines group pensions in single contract

Clerical Medical is set to offer a flexible defined-contribution group pension plan with stakeholder-style charges. FutureProof will be available from February 19 and can inc orporate group personal pensions, group money-purchase pensions and group additional voluntary contributions within one contract. From April 6, a stakehol der option will be available. FutureProof has a single fund […]

Gartmore offers charge discount for Second Scottish National Trust

Gartmore is cutting the initial charge for lump sum investors buying Second Scottish National Trust ordinary income shares to 1.5 per cent from 3 per cent. The discount is available through the Gartmore ISAit scheme, which allows income to be paid out quarterly. The minimum investment for the SSNT ISAit discount is £3,000, and the […]

The future of active management is now

Fees under pressure. Regulatory moves against closet indexers. Rapid advances in financial technology. Shifting sentiment among investors. Such mounting challenges have led to widespread speculation about active management’s shrinking future. But a closer look inside intelligent portfolio construction today tells a story of expanding roles, added value, and innovative risk-adjusted, lower-cost solutions. Four investment experts […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment