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Stakeholder set to be Euro pension model

The EU could be set to introduce a portable pan-European stakeholder-style pension based on a report from a group of leading European financial services companies.

According to experts at the ABI, the report by the European Financial Services Roundtable may form the basis of a new pensions directive with a green paper to appear by spring 2003.

It could mean an IFA&#39s fact-find would have to consider whether a client is likely to move within Europe when recommending a pension.

The report, which lists Scottish Equitable pensions development director Stewart Ritchie as a contributor, says Europe&#39s pensions are “effectively quarantined” and sets out a framework for pension savings to remain tax-exempt. It proposes a portable pension with standardised terms and charging structures. It also calls for EU-wide solvency standards and governments to provide forecasts of state benefits.

The report says the effect of combining European pension funds could see returns increase by 10 per cent. An agreement on pan-European occupational pensions has already been reached by European leaders.

ABI head of European affairs Simon Gentry says: “We believe the proposed core standards set out in the report are sensible. Consumers should be able to choose a product that is purely national or a portable product that meets EU-wide standards.”

An EU spokesman says: “The report is a useful contribution to the debate and makes some useful points. It confirms the Commission&#39s idea that member states should remove obstacles to cross-border pensions.”

EFSR chairman Pehr Gyl-lenhammar, who is chairman of Aviva (formerly CGNU) says: “Europe&#39s politicians must create a single market in pensions that will increase consumer choice, reduce costs, encourage take-up and go some way to averting the pension disaster that Europe is facing.”


Britannia International – 5 Year Guaranteed Capital Equity Bond (Issue 9)

Monday, July 1, 2002 Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum investment: Lump sum £1,000 Place of registration: Isle of Man Investment split: 100% linked to the performance of the FTSE 100 index Guarantee: Capital returned in full regardless of the performance of the index Yield: […]

Equitable slashes maturity and surrender values again

Equitable Life has again been forced to slash maturity and surrender values to maintain solvency after recent market falls.The maturity value will now be reduced by 10 per cent from 4 per cent before. Early surrenders will incur a penalty of 20 per cent up from 14 per cent.The society describes the move as “most […]

Crawford to join IBM

Former Cap Gemini Ernst & Young head of insurance Shaun Crawford has now joined IBM to head its insurance division. He will be director of insurance services and will be focusing on the development of IBM&#39s life and pensions packages. Crawford has been an influential commentator on the IFA market while at Cap Gemini and […]

Interest rates on hold again

The Bank of England&#39s Monetary Policy Committee has decided to keep interest rates at 4 per cent for the eighth month in succession. The news comes despite widespread predictions that the housing market is close to overheating. Only today the Halifax reported there has been a 20 per cent rise in house prices in the […]


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