Consultant Watson Wyatt says life companies will 'have to move fast' on PTA to avoid any potential mis-selling claims in future.
Because of the lack of clarity in the government’s announcement in the PBR on PTA this week, those who do not, for example, modify all sales literature or warn all prospective policyolders involved in pipeline cases about the situation regarding tax relief, could face trouble ahead. Customers not warned about the changes may be proceeding on the basis of anticipating tax relief when in fact the situation as it has developed means that is unlikely to be the case. Regarding the costs to life companies of the latest rule changes, Watson Wyatt says: “Its withdrawal, just eight months after i...
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