Government review threatens IPA future

Individual pension accounts (IPA) and unit trust personal pensions (UTPP) may be abolished next year, as the Government conducts a review into the structure of the product. Virgin, along with Gartmore and Nationwide, operates personal pensions via a unit trust constructed using feeder funds. Although Gartmore has a closed book of business, Virgin's remains active and has some £200m in assets. The Government has indicated to Autif it will abolish feeder funds, making IPAs and UTPPs impossible to operate. Autif is using this review to push for a simple Isa-style personal pension. Ric...