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Which? claims end of RU64 will see life offices derail Turner

The abolition of RU64 will derail a centrally administered state pension system which may be proposed by the Turner report, warns consumer watchdog Which?

Principal policy adviser Mick McAteer says FSA proposals to scrap RU64 will allow life offices to charge higher commission on personal pensions, bringing a boom in profits.

He says insurers will use this to generate a war chest in advance of the implementation of Turner’s plans to tempt people on low incomes to opt out of the centralised system.

McAteer says the abolition of RU64, which forces advisers and providers to explain how their product is at least as suitable as a stakeholder policy, will leave the FSA powerless to stop campaigns from life companies promoting wider fund choice and increased flexibility.

He says: “Insurers are terrified of a centrally administered system so they will try to collapse it. They will fill their boots from increased charges and spend bucketloads of money to get the public to opt out of the centrally administered scheme.”

Standard Life head of pen- sion policy John Lawson says: “This is yet another consp- iracy theory. The market is too competitive.”


New Star to launch pan-European equity fund

New Star International is launching its New Star pan-European equity fund in response to investor’s high demand for high alpha funds.The fund is subject to regulatory approval, but is set to launch between November 28 and December 9, 2005.It will be a sub-fund of Dublin-based New Star Global Investments Funds.The aim will be to generate […]

Krona jewels

Swedish independent consultant and former director of fund analysis for Morningstar Europe, Niklas Tell on how Sweden’s reformed pension system is keeping costs down.

Rates of change

Interest rates Hamptons International Mortgages technical director Jonathan Cornell explains why advisers are often against the clock when it comes to securing interest rates for their mortgage clients.

State’s share of retirement income falling below 50%

From next year, the state will no longer provide the majority of retirement income in the UK, according to research by Datamonitor and Prudential. The report shows that in 2006 state benefits will account for less than half of the average pensioner’s income. The figure is currently 51 per cent but is forecast to drop […]


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