THE FSA has cut back pay awards for almost 900 staff in an attempt to avoid taking more money from f...
THE FSA has cut back pay awards for almost 900 staff in an attempt to avoid taking more money from firms it regulates to plug its £31m shortage in its pension scheme, says this morning's Times.
Staff at FSA are given access to a final salary pension scheme pay rises of an average 4.2%, compared with 6.7% paid out to employees in the defined contribution scheme. However, as the final salary pension scheme yield a pension based on number of years working and final salary, this means that the FSA has immediately decreased its £31m gap in its pension scheme by reducing pay awards, writes the Times.
At the moment, employees do not have to make any payments into the scheme, but experts fear that the regulator's decision could be followed by other companies as a way to increase funding.
UK stockbrokers will face a reconstruction of how they buy and sell shares for big institutional investors revealed the FSA yesterday, according to the Daily Telegraph.
The regulator intends to make it easier to separate different services from each other. At the moment a range of in-house services are bundled together in a single fee, ultimately paid for out of the pension fund or the unit trust.
These commissions are highly nontransparent, and there is no way for pension fund trustees to identify how the money has been spent, writes the Daily Telegraph.
SWITZERLAND'S LARGEST insurer, Swiss Life, has pointed out that the company does not need any further cash input and that its plane to slice costs is running ahead of schedule, in a wish to finally eliminate the negative outlook on its potential, writes the FT.
Even though, the insurer has forewarned that it would report a record net loss for 2002 of SFr 1.7bn, Swiss Life's management team is positive that its new strategy will see a return to profits this year provided the market will not get any worse.
Management mistakes, investor concerns, and fears that the company would be forced to return to the market for funds despite last November's SFr1.1bn emergency rights issue has left Swiss Life one of the worst performing European insurance stocks over the last two years.
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