Business and Other Briefings
DWP: Proposals for easing the burden of regulations on employers providing pension schemes have been unveiled by Minister for Pensions Reform Mike O'Brien in the DWP’s response to the findings of an independent review of pensions regulation.
A number of organisations asked the Government to remove the statutory requirement to index pensions in payment but the Government has rejected this move. There will be a further period of consultation on the proposals ending on November 15 2007.
HM Treasury: Otto Thoresen has published the interim report of the Thoresen Review of Generic Financial Advice (GFA), which shows that, on the evidence the Review has studied, GFA is an essential element in improving financial capability across the UK, that it is feasible to build a national service, and that benefits would outweigh costs by 3.5 to 1.
Depending on the final design, annual running costs could range from £40m to £80m. The report suggests that the costs should be borne equally by Government and the financial services industry, broadly defined, and welcomes further debate on how this might work in practice.
It says that GFA should offer a range of information and guidance, from 'jargon busting' to managing debt and budgeting, and understanding tax and benefits, delivered through a mix of channels. Otto Thoresen will make final recommendations to Government in the New Year, which take into account the findings from the pilots currently taking place in North West England, London and South Staffordshire.
