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Provider role in Budget pensions guidance would trigger TSC inquiry

The influential Treasury select committee will challenge Chancellor George Osborne if insurers are handed a role in delivering the Government’s retirement guidance guarantee.

Last week, Money Marketing revealed that the Treasury is looking to give providers a role in delivering the guidance guarantee set out by Chancellor George Osborne in March’s Budget.

In its report on the Budget, published earlier this month, the committee said the guidance must be “demonstrably impartial as to providers and type of product”.

Speaking to Money Marketing, TSC member and Labour MP Andy Love says: “We had a long discussion about this when we were concluding the report and I would be very concerned about insurance providers having a role in the provision of this guidance.

“The committee says it must be ‘demonstrably impartial’ and if the Chancellor does choose to involve providers it would go against the grain of that and the Treasury committee would definitely want to look at it.”

Love is not the only committee member to raise concern about provider involvement. In this week’s Money Marketing, fellow Labour MP Teresa Pearce, who sits on the Treasury and Work and Pensions select committees, said she would press for the Treasury committee to investigate if insurers were involved directly in giving the guidance.

In a statement to Money Marketing, TSC chairman Andrew Tyrie says: “Any information given under the guidance guarantee should be demonstrably impartial between providers. Impartiality will contribute greatly to ensuring that consumers benefit fully from the guidance and that they are made aware of the choices available to them.”

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Comments

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

  1. Now, how could the conversation go? “We need to keep the process simple and enforceable. What is the fundamental principle? That people shouldn’t deplete pension funds and leave themselves short in retirement. Yes, how about we ask them to declare that their cost of living in retirement is secured before removing any limit on drawing down funds? Yes, shall we say, £12,000pa? Hang on……………”

  2. Julian Stevens 29th May 2014 at 7:11 pm

    “influential Treasury Select Committee”? What influence would that be then?

    I know ~ it must be a committee that we’ve yet to hear about.

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