THE GOVERNMENT is under increasing pressure to drop controversial changes to trust legislation which lawyers and accountants say will force more than one million wills to be rewritten, the Daily Telegraph has confirmed.
Following intervention from Conservative MPs - which IFAonline highlighted yesterday (Tuesday) - ministers will now face a Commons debate on the introduction of retrospective taxation of trusts on Tuesday.
The Liberal Democrats say they also oppose the change and the Law Society is writing to all of its members urging them to write to their MP to complain about the changes, as the shake-up will cause chaos as millions of people will be forced to rewrite their wills.
RESOLUTION, the closed book life fund consolidator, is said to be in talks to acquire £29bn of closed life fund assets owned by Abbey, in a deal worth around £4bn, according to the Times.
Negotiations are said to be at an early stage but if agreed, the move would catapult fast-growing Resolution into the FTSE 100 and boost the company’s assets under management from £38bn to more than £67bn.
The acquisition would include the closed life funds of Scottish Provident, Scottish Mutual and Abbey National Life, which were last disclosed to have an “embedded value” of £3.68bn.
Resolution might have to consider a “significant rights issue” in order to finance the deal, and unwind hedges which were set up against policies with guaranteed payouts should interest rates or the equity markets move in a particular direction.
AND COMPLAINTS ABOUT high street banks soared by 50% last year, as high interest rates and penalty charges were found to be top of the list of grievances, says the Guardian.
Banking watchdog the Banking Code Standards Board yesterday said it received 3,500 complaints and inquiries last year - providing fresh evidence of growing public anger and dissatisfaction.
Between them, the big banks reported record profits of £33bn for last year, but they are facing a crackdown on charges and a growing outcry over the explosion in the number of cash machines charging fees for withdrawals, and the FSA has said it may step in to take action where it feels necessary.IFAonline
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