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PRA confirms 100% annuity compensation

People in receipt of annuities will receive 100 per cent compensation if their provider goes bust, the Prudential Regulation Authority has confirmed.

Following a consultation the PRA says it plans to increase the long-term insurance – including annuities, pensions and life assurance – FSCS compensation limits to 100 per cent, up from 90 per cent.

The regulator says increasing the protection will raise “the compensation costs associated with funding life insurer failures, increase compliance cost for protected firms and potentially will have implications for competition in the market”.

However, it says the benefits of greater consumer protection outweigh the extra costs.

The PRA estimates the change would have cost an average of £7m in compensation costs if it had been in place between 2008 and 2013.



Govt fails to change Pension Wise website’s ‘misleading’ errors

The Government’s retirement guidance website continues to contain “misleading” errors and remains in development mode several days into the reforms it is designed to support. The Pension Wise website went live on 11 February but is currently still in ‘beta’ mode, meaning it is under development. In February experts warned technical details on the site […]


Sesame members warned over authorisation delays

Sesame members are being urged to take immediate action rather than wait for further details of the firm’s new network partner, as experts warn they could face delays in becoming directly authorised. Last week, Sesame Bankhall Group announced it would no longer operate as a network for investment advisers as part of a major overhaul of […]


Shell agrees £47bn deal to buy BG Group

Royal Dutch Shell has agreed a takeover of oil and gas exploration company BG Group in a deal which values the business at £47bn. Under the terms of the deal, investors would receive a premium of about 50 per cent on BG’s closing share price of 910.4 pence as at 7 April. BG shareholders will […]

Claire Trott Peach 250x255

Claire Trott: Extra layers of protection

The lifetime allowance is a contentious subject; many like me feel it is unfair to test benefits as they are paid in and when they are paid out. You cannot and really should not try and limit the growth of your pension fund, so the lifetime allowance charge is unfair and is just an easy […]


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. It’s nice and easy to say that the benefits of greater consumer protection outweigh the extra costs when somebody else will have to meet them. On that basis, you could justify pretty well anything, no matter how vast the cost. Typical civil servant mentality.

  2. How the hec will the industry cover a multi billion pound annuity fund!!!

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