THE GOVERNMENT could boost pension saving by £2.1bn a year if they offered small employers a tax credit to pay for financial advice for workers, insurers will tell work and pensions secretary David Blunkett on Thursday, says the Times .
New ABI director-general Stephen Haddrill suggests a workplace advice credit should be introduced and targeted at small businesses.
The credit would cost the Government around £100m a year, suggests the ABI in its “blueprint for change”, but would allow companies to claim back half the cost of providing a set amount of financial advice to each employee.
MEMBERS OF THE AITC are threatening to withdraw from the trade body for apparently failing to prevent the prospect of FSA regulation on the sector, says this morning’s Scotsman.
A commentary article revealing behind-the-scenes discussions suggests Caledonia Investments – which is one of the biggest and most successful investment trusts with assets of more than £1bn – is threatening to pull its membership out of the AITC for “a lack of vigour by the AITC in resisting FSA regulation”.
Not only do many AITC members fear that accountability to the FSA would add substantially to costs in a highly competitive industry, but there is also concern that FSA intervention would circumscribe trusts both in investment management and communication with shareholders.
Any such move by Caledonia could cost the AITC between £50,000 and £70,000 a year in fees, but could also encourage others to follow suit, suggests the Scotsman’s scrutineer.
INSURERS WILL apparently see their profits fall again this year if predictions in the Daily Telegraph about hurricane forecasts are anything to go by.
Professor Mark Saunders, who is said to have last year correctly predicted there would be more tropical storms and hurricanes than usual, has now said "activity will be about 60% above average".
Warnings about the hurricane season follow the arrival of Arlene, the first tropical storm of the year, which cut power to several thousand people and doused Florida with heavy rain and caused 20-foot waves over the weekend.
AT THE SAME TIME Royal & SunAlliance could be the subject of a takeover by entrepreneur Andrew Regan, continues the Telegraph.
According to Telegraph sources, Regan does not think the company's £2.4bn market capitalisation does not reflect the group's cash flows and valuatio, but the approach may be made through Corvus Capital, the Aim-listed investment vehicle.
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