The cost of covering occupational pension payouts to employees left high and dry when their employers went bankrupt should not cost more than £76m a year for the next 30 years, a new study funded by two of the country's biggest unions suggests.
The Daily Telegraph says the research also suggests the payouts could total less than £50m annually, which Labour MP Kevin Brennan believes “is peanuts” if it helped restore consumer confidence in long-term savings.
Amicus and the Iron and Steel Trades Confederation take a similar view: theirs are mostly the members affected by employers going bankrupts and leaving an estimated 60,000 people without pensions despite in many cases paying contributions all their working lives.
INTEREST RATE INCREASES are a done deal says The Times because the Bank of England faces a “tripple whammy” of rising mortgage borrowing, recovery in the manufacturing sector and rising high street sales in April.
Publication of new lending figures by the Bank itself yesterday lent weight to the City’s expectations of a 0.25% base rate hike to be announced by Thursday, with economists at Citigroup forecasting a base rate of 5% within the next 12 months.
GOVERNMENT STATISTICS could soon be under lock-and-key with regard to their use if a new recommendation passes muster, the Telegraph writes.
The Statistics Commission has urged a statutory code of practices governing the use of statistics to prevent ministers and departments from “massaging” figures to suit political purposes.
The rules would govern all statistics bearing the National Statistics kitemark. The current non-statutory guidelines are “all too often ignored” when departments compile their numbers in order to justify policy, the Commission adds.
CLASS ACTION LAWSUITS won US investors $3.1bn in payouts last year alone, according to figures published for the first time by Institutional Shareholder Service, the FT writes.
The sum lags 2002’s $3.2bn and the best ever year – at least for litigation lawyers – of 2000, when firms paid out $4.7bn in damages to wronged investors.
This is the first time ISS has published the figures it has been compiling for the past 15 years, the FT adds, and indicates just how much financial fraud is being perpetrated by listed companies in the US.
”For a settlement to get to these levels, it's nearly always financial fraud, that accounts for about 90 per cent of them at least,” the paper quotes ISS executive director Bruce Carton.
ABERDEEN ASSET MANAGEMENT is on the comeback trail, according to a piece in today’s The Scotsman.
Following a poor 2003, the firm has repaired its balance sheet and is “charting a clear path away from split caps”, the paper quotes chief executive Martin Gilbert.
Strongly performing Asian investments together with the acquisition of the Edinburgh Fund Managers brand have set the company up for a recover, the paper says, although the outcome of the splits fiasco remains to be seen.IFAonline
Speaking at Professional Adviser's conference
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TISA's Peter Smith
Shone a light on 'closet trackers'