FINANCIAL TRADE BODIES have backed Tony Blair's claim the Financial Services Authority was "hugely inhibiting of efficient business", says the Daily Telegraph.
The Association of IFAs pointed out in the Telegraph’s latest campaign FSA rules force its members to supply clients with four different documents before even opening a conversation, followed by more than 12 pages if they want to make a sale which complies with the regulator's rules.
Aifa deputy director general Fay Goddard told the Telegraph: "We feel the comments Tony Blair made reflect the situation that reasonable firms are struggling with a huge weight of bureaucracy. We all support effective regulation but, when it gets to the point that it is getting between a business and its customers, it is going too far."
The ABI is now also preparing a report on the experience of its members of regulation as head of communications at the ABI Alan Leaman adds: "If you look at general insurance regulation, there is a concern that it is putting off customers from getting the sort of cover that they need and putting too many barriers between customers and insurers."
THE ABI is set to unveil a report which will tell David Blunkett, the new secretary of state for work and pensions, Britain’s lowest-paid workers would save an extra £3.7bn a year if the Government stopped means-testing retirement benefits, says the Times.
Ahead of the pensions summit on June 21st, the ABI will publish research which suggests as many as 20 million workers are deterred from putting money aside for their old age for fear of being penalised.
It found the poorest 20 million of Britain’s 28 million workers — those earning £9,000 to £25,000 — would save enough to cut the gap to £23bn if means-testing were ended as almost half of Britain’s pensioners are eligible for the £105-a-week pension credit but even those with modest savings face an effective tax rate of 40% on savings.
The ABI will also tell Blunkett he should not get rid of contracting out as this would rob the pensions system of £11bn a year.
PRUDENTIAL'S NEW chief executive, Mark Tucker, will be paid a special guaranteed “one-off” bonus of £475,000this year, says the Scotsman.
The insurance giant said it was making the payment to Tucker to compensate him for share options he was awarded while at HBOS but his basic salary at the Pru is also £780,000.IFAonline
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