View more on these topics

PTA firms quit after stand-alone shock

by Nicola York

Stand-alone pension term assurance has been stopped dead in its tracks by Chancellor Gordon Brown, with product providers and leading brokers pulling out of the PTA market.

In a shock U-turn on Wednesday in the pre-Budget report, the Chancellor said he was looking at removing the tax relief on PTA, resulting in Hargreaves Lansdown, Lifesearch and Direct Life & Pensions all stopping selling the product immediately. A total of around 100,000 policies are estimated to have been sold.

Standard Life was the first provider to withdraw, followed by Friends Provident, Legal & General and Norwich Union. Zurich, which was set to launch a PTA offering in January, is expected to drop its plans. Aegon has shelved its PTA product until it gets clarification.

The PBR text says any changes the Government decides to make will not affect either personal arrangements entered into before December 6, 2006 or existing types of employer arrangements.

Standard Life head of pensions policy John Lawson says: “It seems clear that life insurance with tax relief cannot be written after December 6, so the only sensible thing to do is not to encourage any further applications until the picture becomes clearer.”

A Treasury spokesman says: “When you introduce a system of rules, you make assumptions about how that system will work in practice. If it works differently in practice, then you revise those rules. I think we have not ruled out keeping the tax relief on stand-alone PTA policies but we are consulting on it.”


Bradshaw to chair board at Sumus

Paul Bradshaw is to chair the board at Sumus, trading name of the Falcon Group and FSAS.Bradshaw is chairman of Nucleus Financial and non-exec director of Merchant Investors Assurance.He has run a number of financial services businesses including Skandia Life, Scottish Amicable International and latterly Abbey’s insurance and asset management operations. Head of investment solutions […]


Employer iPMI responsibilities could continue to escalate, says Jelf

New laws in Dubai will put the burden of providing international private medical insurance (iPMI) firmly on the shoulders of the employer in order to maintain the country’s leading healthcare facilities. With 10,000 UK nationals having moved to the country since 2007 and only 16.5 per cent of the total 8.2 million people living there being Emiratis, Jelf Employee Benefits believes this move was inevitable and employer responsibilities could continue to escalate in future.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm