Three things we learned this week

Don't panic: Advisers urged not to ‘overreact' to lifetime allowance cut

Advisers and pension scheme members have been warned not to "overreact" to the pension lifetime allowance cut, which is due to fall from £1.5m to £1.25m on 6 April.

Consultant Broadstone said while people can apply for fixed protection members must leave their pension schemes by April 5 and warned leaving defined benefit pension schemes should be the absolute last resort.

The firm said it feared both advisers and clients were overreacting to the change in particular, it said, members may not be adequately compensated for leaving pension schemes in light of the significant savings gained by the employer.

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MGM Advantage buys equity release provider Stonehaven

Equity release specialist Stonehaven has been bought out by annuity provider MGM Advantage.

It will operate as a wholly owned subsidiary and retain its brand. Stonehaven, set up in 2005, will continue to focus on the lifetime mortgage market sold through advisers.

Stonehaven will also continue to develop its third-party servicing business, through its subsidiary Onyx.

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Advisers have benefited from RDR - Wheatley

Advisers have generally benefited from the Retail Distribution Review (RDR) as their revenues have increased and they are more professional and better qualified, Financial Conduct Authority (FCA) chief executive Martin Wheatley has said.

Wheatley (pictured) said at a round table RDR update that recent FCA research - carried out by NMG Consulting - showed adviser revenues were up by an average of 5% post-RDR.

Although adviser numbers dropped by about 11% over the last year, this affected mostly banks and building societies, not independent financial advisers, whose numbers had stayed fairly flat over the period, he said.

To read more click HERE

 

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