View more on these topics

Trustees key to NPSS success

Work and Pensions Secretary John Hutton says appointing a board of trustees to run pension personal accounts will be critical if the scheme is to be a success.

Speaking at a National Association of Pension Funds conference in Manchester last week, Hutton set out his proposals for a trust-based occupational pensions scheme run by trustees, who will set the strategic direction for the scheme including collection of contributions, investment of assets and payment of benefits.

Hutton emphasised that personal accounts will be run independently of government and the trustees will also have responsibility for deciding on the choice of funds and the appointment and management of external fund managers.

Hutton said: “Personal accounts will be the biggest step forward for workers seeking to build up a pension since National Insurance was introduced in the 1940s.

“But if we are to make them a success for the millions of people who currently are not saving for a pension, we must put in place measures to ensure they have the interests of future members at their heart.”

The Government has also announced it will be establishing a members’ panel to ensure their views were taken into account by the trustees running the scheme.

Hutton said: “The panel could nominate a proportion of the trustees and would be consulted by trustees on key decisions, providing them with access to the views of members, and a stronger sense of collective ownership.

“Given the scale of personal accounts, I believe such an approach could be absolutely critical to the success of the scheme and increasing confidence across the whole pension industry.”

Syndaxi Financial Planning managing director Robert Reid says: “The reason that they want the trustees to run the scheme is so they cannot be blamed if it all goes belly up. Also, if you are an ethical investor, you are going to have no choice on where your money is invested, which will be an issue.”


ABI figures show steady growth but advisers want breakdown of data

The ABI’s latest new business figures show a marked year on year growth in life and pension sales for the first quarter of 2007.Total annual premium equivalent new business was £4,115bn, an increase of 21.9 per cent from £3,377bn in the first quarter of 2006.Individual pensions business showed a 35.8 per cent increase from £994m […]

Adviser fees to rise in line with FSA predictions

Fee increases for advisers will remain around the same as the FSA forecast in February with the block comprising of most advisers seeing a 10 per cent rise.The FSA announced today that fee rates for most firms would be lower than those proposed in February.But the block comprising of the majority of advisers will see […]

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm