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Ritchie claims IPA is little more than marketing concept

Scottish Equitable is claiming the Government&#39s Individual Pension Account

offers nothing new to consumers and will further complicate stakeholder.

Director of pensions development Stewart Ritchie says: “I have no problem

with this technical change to legislation to create a level playing field

for providers to compete on the same basis as life offices.

“But the Treasury has told me this is just 1 per cent of what IPAs are

about. The other 99 per cent is a marketing concept – a concept to capture

the public&#39s imagination.

“IPAs are an additional confusion for stakeholder target groups. The

Government says they are simplifying things but in fact they are

complicating them.”

Marketing director Ken Hogg fears investors couldbe confused into seeing

the IPA as a new type of pension plan rather than an investment wrapper

placed around existing pension products or stakeholder.

He says the IPA&#39s flexibility and transparency can already be found in

existing group and personal pension plans, especially Sipps.

Hogg says investing in unit and investment trusts through an IPA should

not be undertaken without financial advice. The wrapper arrangement is also

likely to be more expensive than normal pension arrangements, he says.


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