The Inland Revenue has renewed its commitment to launching individual pension accounts on April 6 despite industry concerns that it will not have sufficient time to develop appropriate products.
Pension experts say that because of the delayed publication of the final regulations for the new pension vehicle, they will str- uggle to develop a product in time.
In the Budget statement, the Revenue has published draft legislation to implement the stamp duty reserve tax exemption for IPAs and says it will introduce the necessary legislation to Parliament soon.
As widely tipped, fund managers will have a choice of three methods to operate the new exemption.
They can offer unit trusts and Oeics which are restricted to holdings within IPAs, provide separate share classes within Oeics which are restricted to IPAs or operate unit trusts with a mixture of IPA and non-IPA unitholders.
Zurich Scudder Investments, formerly Threadneedle, communications director Richard Eats says: “We are quick but we are not that quick. Normally about six months would be the normal time span to get a product like this to market and get our records prepared.”
Hargreaves Lansdown investment manager Ben Yearsley says: “Within two to three months there will be plenty of choice out there. Product providers can move with quite astonishing speed when they want to.”