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Will Mig omission prove the root of misselling evil?

Can a decision tree missell a pension? The answer is probably. The soon-to-be-notorious flowcharts, which now come in glorious technicolour, will not take the Mig into account.

The vital details on this issue and the still to be decided pension credit are included in the footnotes. In failing to include the Mig in the flowchart itself, Money Marketing would argue the Government and regulator are not risking misbuying but misselling.

The Government, as its sacrifice of polar isation because of stakeholder demon strates, is embarking on the hard sell.

Someone has actively decided to leave out the key information an investor needs to know before taking out a stakeholder.

Were an adviser to be caught doing this in such a systematic way, there would be hell to pay when the regulator found out.

Contributing to the confusion, the FSA admits it may have to warn poorer savers that a pension is not necessarily the best option. The warning is better than nothing but surely it could set the FSA against what the Government is trying to accomplish.

Some tension is not necessarily a bad thing but this issue cuts to the heart of pension reform. Rather than have the regulator attach a warning to stakeholder, the Government should grasp the nettle, come clean and include the Mig. It also needs to finalise the details of the pension credit as a matter of urgency.

Of course, the most workable solution would be to accept that, while the entire tax, benefits and savings regime remains so complicated, the only answer is financial advice.

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Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.

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