THE GOVERNMENT'S pending Pensions Bill faces additional last-minute amendments after a trade body said some of the clauses could be "disastrous" for the UK economy.
According to The Times, the British Venture Capital Association (BVCA) will today meet the Treasury in an attempt to amend sections 35, 39 and 40 of the Bill, which it believes could force directors, shareholders and private equity firms to plug pension fund holes in the companies they own or manage.
The BVCA is also concerned the Department for Work and Pensions, which is in charge of pending pensions legislation, does not understand the implications of the new law.
Rejecting the criticism, the DWP argued executives involved in legitimate company restructurings have "nothing to worry about".
MEANWHILE, THE split-cap scandal debacle goes on after a group of MPs yesterday attacked an offer of £120m to compensate investors, saying it was "an insult to those who lost money".
The Daily Telegraph says the criticism came as FSA chairman Callum McCarthy told the Treasury Select Committee only three of the 21 firms under investigation for their role in the split trust scandal had agreed to mediation over a settlement plan.
McCarthy said the £120m package, which has so far been offered, would not be acceptable.
The committee's chairman John McFall called the offer an insult and described the affair as "a tumour on the body of financial services" that was "damaging the entire market.
"The only way that this cancer can be removed is by the companies themselves," he said.
SPECULATIONS INTEREST rates go up again next month cooled down yesterday after Bank of England minutes left the City predicting the next move will be delayed until August, reports the Times.
Experts have been worried rising house prices might trigger the BoE to raise rates again in July.
However, City analysts are now less concerned after minutes from the MPC's meeting earlier this month suggested borrowers will be given a one-month reprieve before the next rate rise.IFAonline
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