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This week in Regulation

Select committee members can expect less of an
ear-bashing in future when examining financial services issues after this week’s announcement that Mick McAteer is standing down as principal policy adviser at Which?

McAteer says he is returning to his roots working on charity projects to do with financial exclusion – an area which is climbing up the political agenda with work continuing from the likes of the Resolution Foundation and various groups of MPs.

Treasury select committee chairman John McFall says the TSC was going to publish its long running report into financial inclusion before this week’s recess but will now wait until the autumn to allow the committee more time on the report and give the issue more exposure.

Tory shadow financial secretary to the Treasury Mark Hoban also recently chaired a parliamentary financial literacy summit with guests including FSA managing director, retail markets Clive Briault and a number of MPs and industry names.

Parliament may have broken up this week but there will plenty of financial services activity over the summer with a hotbed of lobbying and discussion regarding the NPSS as the Government consultation on the scheme draws to a close on September 11, ahead of the Autumn technical paper.

To help things along pension reform minister James Purnell has set up his own blog on the DWP website – accompanied by a grinning photo of the minister in gangster style attire.

Autumn will also see the publication of proposals by the Conservative’s tax reform group, led by Shadow Chancellor George Osborne and Thatcherite former MP Michael Forsyth.

It is still unclear how radical any proposals will be but they got a helping hand this week with a report from the right-wing Bow Group thinktank calling for a massive simplification of the current system including a flat 1 per cent annual levy on the value of all residential property.

The work and pensions committee report into pension reform will cause worry in the industry with calls for a shake up of pension tax relief including the tax free lump sum.

There is already worry from some in the industry that the Government is eyeing up the tax free lump sum as a potential target for culling due to potential problems of policing turbo-charging- although Economic secretary to the Treasury Ed Balls is on record at recent Finance Bill committee meetings stating the Government would do no such thing.

The work and pension committee also weighed into the financial inclusion debate stressing the need for generic advice, as well as supporting Intelligent Money’s call for the Government to look at a flat administration fee for the NPSS although this could be seen by some as a regressive move and unfair to the lowest earners.


A pension scandal far worse than Maxwell

The 32,000 Maxwell pensioners received their pensions but there are perhaps 100,000 being left without. Many of them have lost their state pension too, ending up worse than if they had never put a penny into their company scheme at all

Weed them and reap

The FSA’s second review of the equity-release market saw the unprecedented move by the regulator of asking advisers who only write a small amount of equity-release business to stop and refer them on to specialist firms.

With the greatest of sleaze

May I congratulate and thank Aifa director general Chris Cummings for his defence of IFAs generally. What many people find amazing is how the FSA manages to generate so much activity designed to make life as difficult as possible for advisers all under the guise of customer care and protection. We have a quango which […]

Tax-free gains? That can’t be right, can it?

When he was Chancellor of the Exchequer, George Osborne made several changes to the way in which income is taxed. Personal allowances were increased significantly above the rate of inflation; a starting rate band was introduced for savings income and, with effect from 6 April 2015, this was assessed at 0 per cent. In addition, […]


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