IFAs are being left to shoulder the burden of the Chancellor's u-turn on pension term assurance because of the extra time and cost involved, says IFA firm Positive Solutions.
Mark Henderson, director of wealth management at Positive Solutions, says IFAs have suffered in terms of time and cost from the unexpected withdrawal of tax relief on standalone PTA and the subsequent confusion caused by the Pre-Budget report.
The firm had nearly 1,000 PTA policies in its sales pipeline when the Pre-Budget notes revealed the tax relief change, and Henderson says it is IFAs who bear the brunt of this.
He states: “They are the ones who actually found the client, identified the need for protection and recommended the most tax-efficient way of getting it. They then had to go back to the client to explain the changes after the Pre-Budget announcement and again when the government relented on pipeline cases."
Henderson believes the u-turn is “a total botch” because by doing their job properly and keeping the client fully informed, IFAs have had to give clients up to three different stories, which he says is affecting the industry’s reputation.
He adds: “From our point of view it’s the IFA who has been left to carry the can and the IFA who, to a certain extent, has been left to carry the cost. If you’re visiting clients more often than should have been necessary, there’s a cost to that and it’s the IFA who is bearing that.”
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
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October