The ScotEq survey found that 88 per cent of IFAs favour moving to section 32 contracts to preserve clients’ tax-free cash in the run up to A-Day.The findings back claims by ScotEq pensions development director Stewart Ritchie that s32s are the best way for many clients to preserve tax-free cash in excess of 25 per cent. But ScotEq’s research also found that only 6 per cent of advisers will use block transfers into s32a contracts. This concerns Standard Life marketing technical manager John Lawson, who is a strong proponent of this type of transfer. Block transfers allow two or more individuals who switch contracts at the same time to retain tax-free cash over 25 per cent, even if they later transfer into another pension arrangement after A-Day. Ritchie says block transfers, particularly where the insurer matches oneman schemes with a similar individual or “buddy”, are perceived as risky because one of the partners can renege and leave the other in limbo. Lawson insists that block transfers are preferable to s32s although harder to sell. He says Standard Life has 200,000 clients in its pool of buddies. Ritchie says: “Where you are relying on a partner for block transfers, history tells us that partners can split up and you need to check whether the buddy can really be relied on.” Lawson says: “It is easy to persuade IFAs to use s32s and block transfers are far preferable but more difficult to sell. We hear sales consultants from a couple of life offices are saying the Revenue will kill off block transfers but it is absolute nonsense.”
Friends Provident has joined the Adviser E-Enquiry project, led by technology suppliers 1st and supported by Prudential, Scottish Widows, Standard Life, Webline and IBM.The project aims to promote the take up of ecommerce across the adviser community.Following the groups research study in May it now moves to the second phase of the project, aimed at […]
There are few occasions when an organisation consults its members with a completely open mind.
UK workers will miss out on 285m of tax breaks this year by failing to take advantage of employee share schemes, according to research by IFA Promotion.The organisation says the figure represents the amount of tax which could be saved if the estimated 865,000 staff currently in a savings related share option scheme invested half […]
The Isle of Man sees increases in funds under management and banking deposits in the last year.The IoM Financial Supervision Commission reveals the island has seen 41.5 per cent increase in the net asset value of funds under management of collective investment schemes in the year to March 31, 2005.There is a 17 per cent […]
With auto-enrolment (AE) well under way for the UK’s largest businesses, over the next three years an additional 800,000 smaller employers (with less than 60 employees) will start their journey to comply with the legislation. AE mandates all eligible employees and their respective employers to make regular pension contributions into a qualifying pension scheme. To learn more about the legislation read our brief Jelf AEase — simple steps to AE compliance guide.
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The work and pensions secretary Esther McVey has been urged to intervene to protect the pensions of over 200,000 current and former Barclays staff as the UK bank reorganises its pension scheme. Concerns have been growing from the bank’s members over the decision of Barclays to transfer responsibility for pensions to the international and investment banking arm […]
The Financial Services Compensation Scheme is predicting that life and pensions advice compensation payouts will fall over the next year. In its budget for 2018/19 released today, the FSCS notes that while the three-year average for compensation claims over life and pensions intermediation is £83.8m, a falling trend from a peak two years ago should […]
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