The Chancellor’s U-turn on pension term assurance was a “total botch” which is damaging the advice, life and pensions industries and has forced an extra cost burden onto IFAs says Positive Solutions.
IFA’s are bearing the brunt following the withdrawal of tax relief on stand-alone says Positive Solutions which had nearly 1,000 policies in the pipeline when the pre-Budget Report was released.
Director of wealth management Mark Henderson says IFAs have suffered in terms of time and cost and the subsequent confusion surrounding PTA.
Henderson says: “The people who bear the brunt of this are the IFAs. They are the ones who actually found the client, identified the need for protection and recommended the most tax-efficient way of getting it. They then had to go back to the client to explain the changes after the pre-Budget announcement and again when the Government relented on pipeline business.
“By doing their job properly and keeping the client fully informed and up-to-date with developments, IFAs have had to give clients different stories – potentially three different stories. It cannot do the industry any good.
“From our point of view it is the IFA who has been left to carry the can and the IFA who, to a certain extent, has been left to carry the cost. If you are visiting clients more often than should have been necessary, there’s a cost to that and it is the IFA who is bearing that.”