Scottish Equitable is working with the FSA to design a contracting-out decision tree.The complexity of the issue means few intermediaries are keen to advise on the issue. The move coincides with the Government Actuary’s Department making its recommendations for the level of contracted-out rebates for the next five years. The GAD has ignored FSA research calling for a 40 per cent rise in rebates and prop- oses that rebates should fall for younger people. People closest to retirement could see up to a 30 per cent rise in rebates but insurers say this is not enough to give them confidence when deciding whether to stay contracted out. Scottish Equitable pensions development director Stewart Ritchie says: “We are working with the FSA to agree a user-friendly decision-tree-style process that people can use themselves or with a little help from their advisers.” But ScotEq says the decision still comes down to softer issues such as whether people trust the Government to deliver on its pension promises because the rebates for any age group are not attractive enough to base the decision on numbers alone. Norwich Union head of pensions Iain Oliver says the companies will continue to recommend that clients contract back in. Hargreaves Lansdown head of research Tom McPhail expects to see wholesale contracting back in.
Multi-managers Miton Investments and the Iimia are investing in technology funds amid growing optimism of a recovery in the sector.
The advent of Basel Two may mean significant changes to mortgage products and client credit checks, says John Charcol senior technical manager Ray Boulger. With implementation only 18 months away, lenders are preparing systems to incorporate the stringent risk management measures required by the international regime. Boulger believes lenders will have to adopt credit-scoring across […]
Chancellor Gordon Brown’s aggressive taxation of North Sea oil exploration amounts to “manipulative hypocrisy”, says one of the UK’s highest-profile fund managers. Framlington income manager George Luckraft says Brown’s criticism of Opec’s high oil prices is at odds with his socialist policies. Brown says Opec is restricting oil supplies and is not investing sufficiently in […]
The Council of Mortgage Lenders reports remortgaging boosted lending figures in August 2005, with gross mortgage lending rising by 9 per cent from July. Lending of 27.5bn in August resulted in the highest reported figure since July 2004. Remortgaging rose 15 per cent to 11.7bn from 10.2bn in July, the highest figure since October 2003.
George Osborne will make his last Budget speech of the current parliamentary term this week, and the early media briefings suggest that pensions will again feature heavily in that statement. So what are we able to learn from the weekend’s coverage?
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Another investment manager offering enterprise investment schemes has alerted clients of a 10 per cent drop in value for one of its portfolios following new Mifid rules. Mifid II, which came into force on 3 January, requires firms to notify clients when the overall value of their portfolio, relative to its value at the beginning of each reporting […]
The recent enquiry by the work and pensions select committee has reignited the debate about the future of collective defined contribution schemes. Whether these sort of schemes can be incorporated into the current UK pensions landscape is a moot point. Let’s consider some of the arguments for and against CDC. First of all, it is […]
Retirement interest-only mortgages are set to become more popular following the FCA removing hurdles to selling them. The regulator sees RIO mortgages as a possible aid to the waves of maturing interest-only loans with no repayment strategy. However, the FCA also wants RIO mortgages to be sold more widely, for example as an additional option […]