View more on these topics

Pension offices cause waiver waves for IFAs

Some of the UK&#39s biggest stakeholder providers are being criticised by

IFAs who claim that their stance on waiver of premium is blocking business.

Some life offices, including Norwich Union and Standard Life, are refusing

to allow employers to contribute to waiver in the new tax regime, saying an

entirely new policy should be set up outside of the pension contract.

One IFA says: “The way that Scottish Equitable works, waiver of premium

means neither the client nor the IFA notices anything particularly

different between the preand postApril 6 tax regimes but with Norwich Union

and other life offices, the IFA has to establish a new stand-alone policy

which is hardly worth it and which is a barrier to recommending waiver.”

Norwich Union head of individual pensions Iain Buckle says: “For reasons

of simplicity, we took a view not to allow employers&#39 contribution into

waiver of premium. We also cannot see why having waiver of premium as a

separate contract causes IFAs any extra burden.”

Aegon group PR manager Scott White says: “We allow employer contribution

as it can be viewed as a valuable benefit. With-out employer contribution,

take-up of waiver can be quite low.”

Recommended

Henderson Electric and General Investment Trust down

Henderson Electric and General Investment Trust saw its net asset value per share fall by 20.3 per cent in the year ended May 2001. The fall compares to a 6.8 per cent fall on the FTSE All-Share Index over the same period. Blaming the results on the slowdown in the US economy, trust chairman Lindsay […]

Merrill Lynch HSBC pips into the FTSE 100

Merrill Lynch HSBC is introducing the FTSE 100 growth protected investment product (PIP).PIP is a capital protected bond designed for cautious investors who also want a degree of exposure to the stockmarket.It will invest in the FTSE 100 index over a three-year term, with a maximum potential return of up to 35 per cent of […]

IFAs boost business at Britannic by 23%

Britannic Group&#39s new business through IFAs has jumped by 23 per cent to£106m from £86m in the six months of this year compared with thesame period last year. It says the growth in IFA business is due to the strong performance ofsubsidiaries Britannic Retirement Solutions and Britannic Money. Annuity specialist Brit-annic Retirement Solutions sold £55m-worth […]

Sway is set to expand despite defections

Sway is looking to move into the generalist IFA conference arena with anannual summit to rival Pims. It also plans to expand its Senate programme to two investment conferencesa year in Monte Carlo in the summer and Malta in the winter. The news follows last week&#39s decision by Aberdeen, M&G, Invesco Perpetual,Schroders and SG Asset […]

Guarantees in the retirement income market

Lorna Blyth, Royal London  Do guarantees benefit customers and, if so, when? To answer this conundrum we commissioned Millimans, a global actuarial consulting firm, to conduct an independent review of the UK retirement income market and whether guarantees really do offer customers better value for money. The brief The study was one of the most comprehensive undertaken […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment