View more on these topics

Personal danger warning

Axa has warned of the dangers of people being allowed to save up to £5,000 per year in pension personal accounts without getting advice.

Head of pensions and savings policy Steve Folkard says the Government’s proposals to raise the annual contribution cap from £3,000 recommended by the Pensions Commission to £5,000 means people are auto-enrolled into a non-advised scheme at greater risk.

He says the Government has yet to explain how customers will be protected and considers that detailed information and guidance must be provided to people who save more into personal accounts.

Folkard has joined industry calls for the Government to lower the contribution cap to £3,000. He says: “Auto-enrolment carries some degree of risk but if we go to a larger cap, the risk of not having advice is greater.”

However, Richard Jacobs Pension & Trustee Services director Richard Jacobs says: “The general level of advice at the lower end of the market is still woefully poor so you cannot really argue with personal accounts as being an attractive to alternative products sold on a commission basis. The final version of personal accounts will be even worse for advisers and we cannot really do anything about it.”

Recommended

NU rejects wrap claims and slams supermarkets

Norwich Union director of business development Simon Massey has rubbished rumours that its Lifetime wrap has stopped accepting new business and has hit out at fund supermarket platforms, saying they lack transparency.NU has brought its wrap business in-house, closing its Cambridge office with 200 staff and moving to York.Massey says the restructure has had no […]

Standard Life chief apologises for racist blunder

Standard Life life and pensions chief executive Trevor Matthews has apologised after a member of staff complained about his public use of a racist phrase.Matthews used the phrase while addressing over 550 Standard Life staff at a meeting organised by Amicus yesterday in Edinburgh to discuss changes over the company pension scheme. In response to […]

FSA Chief Executive: Depolarisation was black spot

When John Tiner steps down in July, he will have been at the regulator for six years and chief executive for three but the industry is split on the legacy he will leave behind.Compliance consultant and former PIA Ombudsman Bureau second ombudsman Adam Samuel says that, after the reign of Howard Davies, Tiner’s priority was […]

Disillusioned Reid quits Aifa

Personal Finance Society vice-president Robert Reid has left Aifa, saying he is disillusioned with its views on the future of the industry.Reid says he will not be renewing his membership as he believes the trade body is entrenched in its views about the current retail distribution review, appearing to be committed to maintaining the status […]

Europe: Domestic backdrop & China impact

By Rob Burnett, Head of European Equities In recent weeks equities have been buffeted by two shocks occurring at the same time: China’s devaluation of the renminbi and the prospect of the US Federal Reserve (Fed) raising interest rates. The market is not comfortable with the Fed raising rates at the same time that China […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment