Pensions reform features heavily in this morning's papers with the government's tax plans coming under fire and pensions fund trustees being warned they could face legal action fior failing to take their share from US securities class actions.
THE TREASURY was under pressure last night from critics of its pension reforms after figures showed they are likely to prove a huge tax giveaway for the rich, reports the Guardian.
Insurer Standard Life revealed wealthy savers had invested more than £1bn of tax-free cash in its new-style personal pension plans over the last nine months as they prepared for reforms designed to simplify pension saving.
Many industry experts believe as much as £12bn could be used by high earners from next April to boost their personal pensions, at a cost to the taxpayer of £4bn in lost income tax revenues.
MEANWHILE PENSION fund trustees could be sued by their scheme’s members if they fail to start taking their share of the billions of dollars from US securities class actions, a conference of senior investment professionals will be told today, says the the Times.
Trustees must also start demanding compensation from UK companies that mislead the market, if they are to escape their members’ ire, Alan Owens, a partner of Irwin Mitchell, the law firm, will tell the 60 experts attending the conference.
“British pension trustees are lagging behind their colleagues in the US in clawing back money owed to clients,” Mr Owens said yesterday.
THE FINANCIAL Services Authority has named the head of a new unit specifically to supervise 25 hedge funds which have a high impact on financial markets, says the Financial Times.
But at the same time, Hector Sants, managing director for wholesale and institutional markets at the FSA, signalled he was not considering radical change in the supervision of the lightly-regulated investment vehicles.
The FSA said yesterday that Andrew Shrimpton, its head of asset management, would lead the six-strong hedge fund unit.
STANDARD LIFE Investments is to offer investors the chance to tap into the worldwide property market, by launching a new fund offering annual returns of 5 per cent above inflation over a three-year period, according to the Scotsman.
From 13 October, SLI's "Select Property Fund" will offer both institutional and retail investors the chance to invest in a combination of direct and indirect property vehicles, both listed and unlisted in the UK, Europe, Asia and North America.
The fund - the first of its kind in the UK - will be seeded with £20m by SLI, and is expected to grow to about £320m by the end of the first 12 months.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
Follows string of appointments
Follows acquisition of BlackRock's DC platform
‘In the know’
£116.8m of benefits received by customers