Regular and single premium stakeholder pensions are to be subject to anti-money laundering rules....
Regular and single premium stakeholder pensions are to be subject to anti-money laundering rules.
Any stakeholder in which a member pays more than £50 per month or a single premium above £1,452 will have to produce documentation to prove the money has come from a legitimate source.
The guidance comes from the Joint Money Laundering Steering Group, which has members from several trade associations including Aifa, the ABI and BBA.
Until now there has been confusion about whether stakeholder schemes would be subject to the legislation. Previously they had only applied to single premium investments.
There has been confusion surrounding the requirements of stakeholder as occupational schemes are exempt from having to give proof of identity to product providers.
Linda Chandler, technical officer at Aifa and a member of the steering group, said stakeholder pensions are required to meet existing anti-money laundering rules because premiums can be paid as and when the member pleases and policyholders do not have to be working to contribute to a scheme.
A version of this article first appeared on Investment Week's online sister publication IFAonline.co.uk
Will assess regulation
Client was warned of risk
Megan Butler keynote speech at Women in Finance summit
Market anticipates a May hike
Newly-formed Mobius Capital Partners