It has come to my attention that a new plot has arisen to defraud the great British public.
Not content with the pension, endowment and FSAVC scandals, we now have the great annuity farce.
What happens is that the annuity company, having received a properly completed cheque and application for an Omo, does not process the paperwork due to a backlog Apparently, it is possible for the client to predecease the payment of the pension due to a backlog which never clears. The stress caused by non-payment can help to bring on the client's early demise.
The profit margin is enormous. You can run the business using a call centre manned by low-cost untrained staff who do not need to know anything.
All they need to do is suggest that someone will you back. This is not a callback centre and I think they have saved money by having phones that only work on incoming calls.
The worst aspect of this scandal, however, is that I believe that practice is spreading to all areas of the insurance and investment business.
On another unrelated topic, many years ago, I discovered two unrelated facts. Did you know that the crime rate in the UK rose in direct proportion to the increase in the number of bananas imported into the UK?
What this taught me was that there are lies, dammed lies and statistics.
In the same vein, I present two further unrelated facts
The end of the UK tax year is April 5. There is a massive increase in the number of Isas sold (sorry, advised on) in February and March.
How do I know that these two facts are unrelated? Well, because Ron Sandler says so.
Ron's report, which I have read from one cover to the other (but never looked inside), definitely states that tax incentives have no impact on the sale of financial products. Well he would know, wouldn't he.
The sale of Lloyd's of London underwriting franchises were not enhanced by knowing that the capital gains advantage of a loss could be offset against profits held elsewhere, such as gains on your residential property.
Ron, I think you're right.
Having looked at the sale of stakeholder pensions, which are cheap and tax-efficient consumer friendly pensions advertised by dogs, they still haven't sold!
Ron rests his case.
Two further unrelated facts:
Stakeholder pensions have totally missed their target audience Stakeholder pensions for small contributions cannot be advised on profitably Phillip Cox