Advisers could be forced to grapple with another RU64-style rule in the run-up to the implementation of pension personal accounts, warns Axa head of pensions and savings policy Steve Folkard.He fears that pension advisers may have to explain to clients why a pension is at least as suitable or more so than a stakeholder product or personal account when the plans for the NPSS are finalised. Folkard highlights a paragraph in the FSA’s recent response to the Pensions White Paper which states: “Personal accounts are likely to be suitable for many of the same consumers for whom a personal or stakeholder pension would be suitable. “We will have to consider how best to regulate sales of products in the run up to the introduction of personal accounts and the sale of alternative products, instead of personal accounts, after they are introduced.” Folkard points out that the FSA has already spurned the chance to remove unnecessary restrictions on pension advice by scrapping RU64. He says: “Advisers may have to explain why what they are recommending is as or more suitable than a stakeholder and personal account, despite the fact that personal accounts have not and may not be implemented. “It would be a brave person to bet against a change in Government at the next election. How do we know personal accounts will even survive the next Government? We all know Gordon Brown is against scrapping means-testing.” Informed Choice managing director Nick Bamford says: “This will inevitably get in the way of the distribution and production of pension products. “We had exactly the same ridiculous situation with RU64 when stakeholder products were on the horizon. Is the Government expecting us to advise everyone to put their money in a cash savings account in the run-up to the NPSS?”
Role of the intermediary: Bradford & Bingley director of distribution Adrian Scott assess the starting turn-round in mortgage distribution over the past decade as brokers have taken the lead
Swiss Re is to cut 2,000 jobs by the end of 2007 as part of its continuing integration of GE Insurance Solutions to the business.The reinsurer announced the staffing reductions today and said a large number of losses would be through “natural attrition”.Swiss Re completed the acquisition of General Electric’s insurance arm for £3.5bn in […]
When I wrote about mortgages a few weeks ago and asked for your views, I did not expect the email response that followed. More than 20 emails have pinged their way into my inbox about a subject that, while personally irritating, I would never have guessed could be as important to many IFAs. It is […]
The true size of the UK’s public sector liability has risen to 1,025bn, according to a report by the Institute of Economic Affairs.
Following a cabinet reshuffle in light of last week’s general election, David Cameron has announced that Ros Altmann will be replacing Steve Webb as pensions minister. As the industry works with one of the largest reforms to the sector in almost a century, the former adviser to Tony Blair has been tasked with ensuring that the pensions revolution does not stray off track.
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
I always try to check my Twitter feed over breakfast. Recently, a tweet from IFA Philippa Gee caught my eye. She had taken her time to attend an investment conference and found she was the only woman there. Comments followed that this occurrence is far too common. According to Unbiased, just 13 per cent of […]
Consumer champion Martin Lewis has today issued High Court proceedings against Facebook over scam adverts published on the site that use his name, picture or reputation. Lewis, who is the face of website Money Saving Expert, is bringing a lawsuit against the social media juggernaut for defamation seeking exemplary damages. Lewis says any money paid […]
Michael Klimes examines if advisers can resolve all drawdown issues themselves or if a wider effort is needed