View more on these topics

Revenue relents on policing term cover premiums

The Inland Revenue has thrown the pension term insurance market a lifeline by climbing down on providers&#39 resp-onsibilities to police new contribution rules.

The Revenue has agreed to take responsibility for checking policyholders make sufficient pension contributions to cover their life insurance premiums. The only responsibility for life offices will be to get a letter from the policyholder committing them to make sufficient contributions.

The industry had predicted the death of the pension term insurance market under the proposed rules. The old rules for pension term insurance permitted regular premiums of up to 5 per cent of relevant earnings. The new rules link term premiums to pension contributions but these can be irregularly paid under stakeholder, leading to an admin nightmare.

The Revenue stipulates premiums should be no more than 10 per cent of the pension contributions, leaving providers with the headache of unscrambling the 10 per cent chunk at the end of the tax year.

The Revenue concession follows lobbying by the ABI and providers.

Swiss Re Life & Health technical manager Ron Whe at croft says: “It looks like pension term insurance is back on the menu.”

Permanent Insurance sales and marketing manager Rod Macdonald says: “This looks like a backdown. We had tho ught that the pension term insurance line of business was closed from next year but the move by the Revenue simplifies the process at the end of the year and makes it easier up front. It would be good to have an industry standard letter to go to the Revenue, which would need to be fully explained by IFAs.”


iShares bring in new US-style fund

iShares – IFTSE Tmt Type: Exchange traded fund. Aim: Growth by investing in technology, media and telecoms companies. Minimum investment: Negotiable with stockbrokers. Maximum investment: None. Investment split: Media 35 per cent, telecoms 25 per cent, IT 26 per cent, software and computer services 14 per cent. Place of registration: Dublin. Isa link: Yes. Pep […]

Merrill Lynch appoints new fund manager

Merrill Lynch has appointed former Schroder Investment Management fund manager, Hugo Tudor to its Select team. Tudor will join the team, which manages large UK balanced portfolios, in February 2001. At SIM he was a member of the UK Specialist team as well as responsible for several larger balanced portfolios for UK institutional clients. Merrill […]

Cherry blossom

There are growing fears that the introduction of stakeholder in April next year will not become the universal savings plan for all working members of society the Government promised.IFAs and providers fear new measures to be introduced by the Department of Social Security will give the green light to cherry-picking of stakeholder business and lead […]

PIA adds inflation to final decision trees

The PIA and Imro this week published the final stakeholder decision trees, leaving consu mers to wade through up to 11 pages of text before making a decision.It is believed the pastel-coloured trees have been rev ised to include the impact of inflation on contributions after the PIA failed to include this in the original […]


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