Switching Pension Funds

dunstonh

The IQ thing (although its not worded as IQ) has become a bit of a joke. I was at a meeting last week and when it came on to how you should record the ability to understand on the factfind, the jokes came rolling in. Should we now ask how many GCSEs the person has. Or should we have an ITV style phone in quiz with 3 answers where the answer is obvious. Or should we make them take an IQ test. You can imagine what it was like.

Basically you have to record why you believe that the individual was capable of understanding. i.e. Recommended stakeholder in a balanced managed fund with automatic lifestyling fund switches because the client has no investment experience, limited interest in the subject and no intention to keep his investments under review. (or as one IFA called that example, the client is thick and despite asking for best advice, the FSA have said it has to be dumbed down to being thicko advice).

You couple that change with the RDR proposals to abolish IFAs in their current form and allow the return of big salesforces where there would be no FOS protection (to keep the banks happy) and rename IFA to mean fee based rather than whole of market (yes, the FSA has proposed that tied agents who accept fees can be called independent) and you have a lot of advisers looking to take early retirement or call it a day in the next few years.

EdInvestor

dunstonh wrote: »

..... and you have a lot of advisers looking to take early retirement or call it a day in the next few years.

So just to really get up their noses, the Chancellor changes the capital gains tax rules so they have to fork out almost double when they sell their businesses, and also at the same time puts the kibosh on the investment bond trade, thus puttting an end to a last pre-retirement commission generation splurge. :eek:

Never has one seen such fury ( much of which has had to be suppressed publicly due to its somewhat ,err, ignoble basis.)

It is nice to see the Govt finally getting a grip on the problem after all this time

dunstonh

EdInvestor wrote: »

So just to really get up their noses, the Chancellor changes the capital gains tax rules so they have to fork out almost double when they sell their businesses, and also at the same time puts the kibosh on the investment bond trade, thus puttting an end to a last pre-retirement commission generation splurge. :eek:

Never has one seen such fury ( much of which has had to be suppressed publicly due to its somewhat ,err, ignoble basis.)

It is nice to see the Govt finally getting a grip on the problem after all this time

Its a good job that the Govt has changed its mind on retirement relief on businesses and there is confidence that the Govt will also change its mind on CGT in life funds.