PIMA asks Government to ensure consumers fully benefit from A-Day
In its submission to the Treasury’s consultation,[i] Proposed changes to the eligibility rules for establishing a pension scheme[/i], PIMA has asked the Government to allow providers dealing in existing regulated products to provide registered pensions schemes.
Both tax simplification and the regulation of pensions have been a policy priority for PIMA. PIMA welcomes the Government’s action on pension tax simplification because of the overall benefit to consumers and providers. In particular, consumers will benefit from greater flexibility and choice in how they save for retirement. Providers, including PIMA members, will appreciate the removal of complex administration and multi-tiered reporting regimes. PIMA also applauds the move to bring these schemes under the regulatory umbrella of the Financial Services Authority.
PIMA also recognises the need to establish transitional arrangements between A-Day and the time at which pensions schemes may become regulated by the Financial Services Authority (expected in April 2007). PIMA believes that those companies already offering products regulated by the FSA should be allowed to establish pension schemes from 6 April 2006. This would allow the market to provide consumers with the widest range of retirement savings options so that they may begin to immediately take advantage of new flexibility that comes with A-Day.
PIMA Director-General Tony Vine-Lott said,
[i]‘A-Day and the regulation of personal pension schemes by the FSA offer tremendous potential to revitalise retirement savings in the UK. PIMA has been supportive of both and will be working closely with the Government and the FSA to ensure that the best solution is achieved for the consumer and PIMA’s members.’[/i]
For more information:
Tony Vine-Lott, Director-General, PIMA
07790 006108
Iain Anderson or Jacob Coy, Cicero Consulting
020 7665 9535
078 8619 7086