The Government has failed to justify limiting the use of alternatively secured pensions and explain why offering them more widely could constitute abuse, says Skandia Life head of marketing Billy MackayThe Government says Asps are only designed for groups such as the Plymouth Brethren with religious objections to annuities but Mackay rejects its argument that the industry has wilfully abused Asps as an inheritance tax planning tool.He says the restrictions are not enshrined in law so offering Asps more widely does not constitute abuse. He says: “The fact that the rules said you could do this and many people did does not constitute abuse. I have yet to see any justification supporting limiting the use of Asps.” Richard Jacobs Pension & Trustees director Richard Jacobs complained last week that Skandia is only offering Asps to self-invested personal pension customers. Skandia responded that its plans to roll out an Asp option across its range have been frustrated by uncertainty over Government restrictions and concerns about the possibility of another pension U-turn. It is inviting advisers and pension experts to send their views on Asps to ASP@skandia. co.uk and it will pass on these comments to the Government. Mackay says: “How can you make a call on Asps when you are not sure about the size of the market? If its original purpose is to provide an option for clients with a religious objection to an annuity, the size of the potential market is hugely reduced.”
It is important for advisers to put clients in the full picture regarding
Eurolife Assurance Group is being forced to sell off Nvesta to cover liabilities and pay compensation to policyholders. EAG went into administration in August when it could not pay a £700,000 instalment of a five-year compensation deal for policyholders who invested £17m in its secured bonds in 1999. Industry sources estimate Nvesta has around £120m […]
Existing customers account for just one-third of IFA’s new business, according to Tillinghast. The consultancy says this implies the majority of new clients are recycled from other advisers and IFAs are failing to provide an ongoing service to customers. Tillinghast associate Joanna Hall says: “A cultural change is needed whereby the current sell and move […]
This week sees me making my annual pilgrimage to the West Country. I always find these trips useful in helping to put some perspective on the investment world.
Jacob de Tusch-Lec, manager of the Global Income Fund, analyses a sell-off so “vicious” that the ‘hot’ stocks are underperforming emerging markets. What does it mean for the portfolio – now and in the months to come?
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The Financial Services Compensation Scheme has declared self-invested personal pension operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default. The lifeboat fund has received around 150 claims for compensation relating to the three businesses. Those claims relate to how the businesses set up, operated and administered Sipps through which people invested in […]
The Department for Work and Pensions has confirmed it will not change the pensions triple lock and will explore bolstering the powers of The Pensions Regulator in the forthcoming legislative period. The DWP published its “single departmental plan” yesterday, which sets out five objectives it is working towards over the next four years. It has […]
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