View more on these topics

‘RDR could wipe out workplace pensions’

The current retail distribution review proposals would leave no advisers left to service workplace pensions, warn leading pension commentators.

Syndaxi Financial Planning managing director Robert Reid and Pointon York Sipp Solutions chairman Geoffrey Pointon believe that the RDR proposals will squeeze out general financial advisers and leave middle-market occupational pension schemes in the cold.

Reid considers the market will be left with professional financial planners at one end of the advice spectrum and primary advisers at the other.

He says: “The biggest threat to workplace schemes and the national pension savings scheme is that nobody is going to be there to deliver the advice.”

Pointon says: “Do we think workplace pensions are going to survive the RDR? The regulator has got to consider how it is going to protect them, otherwise large numbers of people are going to lose out.”

Reynolds Porter Chamberlain pensions solicitor Jonathan Davies says: “There is a concept that the saviour to all problems is generic advice. What caused the endowment problems was not specific IFA-led advice, it was the banks. One can sort of see generic advice as a disaster waiting to happen.”

Richards Jacobs Pension & Trustee Services director Richard Jacobs says: “Most professional financial planners set themselves up to be something above advising on small workplace schemes and will turn away this kind of business.”

Reid says: “The Government has got to accept that there is a cost to giving advice. We are going to end up with a stand-off and no one will want to pick up the tab.

“Employers are the obvious ones to pick up the tab but they are not going to see the benefits of paying for this.”

Recommended

Sidestepping the point

Robert Reid has simply tried to sidestep the point that Malcolm Murray was making. There really are a lot more advisers than Robert and David Elms suggested who already derive their income directly from their clients. For many, it is still early days but they are steadily increasing the percentage of their income paid directly […]

Market weakness hits securitisation deals

Lehman Brothers has had to massively reprice its latest securitisation deal after failing to find buyers for the offering at its original price, Money Marketing understands.This has been taken as a further sign of weakness in the securitisation market following the US sub-prime problems.It is understood that Lehmans originally offered the AAA-rated part of its […]

Webline pledges to spend £250,000 to boost service

Webline has vowed to invest £250,000 to upgrade its service after holding a user forum to get feedback on how it can improve its offering.The initial focus will be on introducing greater flexibility of commission sacrifice options, better monitoring of cross-selling activity and conversion ratios of quotes to applications. Webline says it will allocate £250,000 […]

Protection plateau

The Association of British Insurers’ first-half sales figures show protection sales at a standstill.The protection industry saw growth of 0.2 per cent on the same period last year. Protection premiums reached £260m in the second quarter, making a half-year total of £518m compared with £509m in 2006.Sales of mortgage-related term insurance were down by £14m […]

What's going on in the 'offshore' world?

Graeme Robb, Senior Technical Manager at Prudential, explores the current state of the nation for offshore issues and highlights areas which may be particularly relevant to advisers. In the context of insurance companies, ‘offshore’ can be a relatively straightforward matter. Like their onshore equivalent, offshore bonds are ‘non-qualifying’ for tax purposes, meaning that all gains […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment