View more on these topics

MPs call for personal account advice costs

The Government must clarify the costs of any national system of generic advice that would underpin personal accounts, according to the work and pensions committee.

In its report on personal accounts, published last week, the committee said the Government needed to set out estimates for the costs of the service both in absolute terms and as a percentage of funds held in personal accounts.

The committee said it looks forward to the results of the Thoresen review – due by the end of the year – but, given the central importance of the issue, such a scheme should have been tested or established before personal account proposals were launched.

It said if either the costs or quality targets cannot be achieved, it “will seriously undermine financial performance and public trust in the per-sonal accounts agenda”.

The report calls on the Government to clarify whether it is considering some form of statutory waiver from misselling claims for personal accounts and, if so, how it would operate.

MPs are concerned about a lack of clarity around charges for advice, collection and the third tier in the current proposals and want the Government to be more open about modelling and cost estimates.

With regards to means-testing, the committee said it would await the work of the Pensions Policy Institute into the effects of increasing the trivial commutation and pension credit capital limits and called on the Government to publish a detailed response once the work is finished.

Recommended

Indecent proposal

Prime Professions managing director Duncan Philpott says IFAs do not show their firm in the best light when a crumpled and dog-eared professional indemnity proposal form lands on the insurer’s desk the day before the renewal date.

Ex-NU chief to lead In Retirement Services

In Retirement Services has appointed former Norwich Union personal finance sales and marketing director Daren Carter as chief executive. Carter replaces Peter Nelson, who is retiring after 12 years with the company. IRS chairman Alastair Lyons says: “Daren’s appointment marks the next stage in the company’s development. Our direct sales channel is growing strongly and […]

Means to an end?

Sam Shaw finds opinion divided on The Money Portal’s move to help advisers transfer from up-front to fund-based commission.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com