Private equity bids for companies have frequently been derailed at the last minute after due diligence revealed company directors had deliberately misrepresented the true size of pension fund deficits, reports the Times .
Richard Jones, a principal of actuarial firm Punter Southall, told the paper some directors used out-of-date mortality tables.
Typically, pension fund members were being assumed to die two to three years earlier than the most up-to-date actuarial projections suggested, he said.
The flattering view of mortality could easily reduce total pension liabilities by 5- 10% and have a much bigger effect on deficits.
THE AMOUNT of money UK households are taking home has fallen for the first time in 18 months in the latest sign higher taxes are starting to bite, says the Daily Telegraph.
Real disposable incomes dropped by 0.2% in the second quarter of 2006, according to figures released yesterday by the Office for National Statistics.
It follows a rise of 0.3% in the first three months of the year, and is the lowest figure since the start of 2004.
Experts said the figure, which represents the amount of money earned by households after taxes were paid and inflation was taken account of, was a sign the high burden of taxation was keeping consumers from saving and spending.
THREE OF the world's most powerful financial regulators have issued a joint warning individual nations cannot contain some of the risks posed by the explosive growth of derivatives and must collaborate across borders, reports the Financial Times.
The dramatic pace of integration and innovation in over-the-counter global markets makes it increasingly difficult to solve problems with "a local or national solution", top officials from the UK Financial Services Authority (FSA), the Federal Reserve Bank of New York and the US Securities and Exchange Commission (SEC) said.
"In a more integrated global market, we will increasingly find ourselves compelled to pursue borderless solutions," say Timothy Geithner, president of the New York Fed; Sir Callum McCarthy, chairman of the FSA; and Annette Nazareth, a commissioner at the SEC.
AND BRITONS RECEIVE 3.4bn unwanted ‘junk mail’ items a year, says the Scotsman.
While 750 million of them go straight into the bin, four out of five pieces of junk mail are opened by recipients.
Banks and credit card companies are by far the biggest culprits with one financial firm, MBNA, responsible for 100m mailshots a year to UK households.
Rival Capital One produces 20 different pieces of junk every month.
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
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