Plans to raise the contribution cap on personal accounts to £5,000 will mean the decision to remove regulated advice could not be "sustainable", warns the Investment Management Association (IMA).
Speaking at a Work & Pensions Select Committee hearing on personal accounts, Richard Saunders, chief executive of the IMA, says concerns about the proposals for the higher contribution cap are more for the government than the industry. Along with the Association of British Insurers (ABI) and the National Association of Pension Funds (NAPF), who were also giving evidence at the hearing, Saunders agreed the correct level for a contribution cap would be £3,000 as suggested by Lord Turner in the second Pensions Commission report. He points out the rationale behind the £3,000 limit was that me...
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