2012 Predictions from Rowanmoor Pensions
21 November 2011
Ian Hammond, Managing Director, Rowanmoor Pensions comments on the prospects for the pensions market in 2012:
“2011 has been a busy year for the pensions industry. Whilst hoping for a period of calm, there will no doubt be yet more change in 2012.
“We are likely to see a flurry of transfers from insured personal pension arrangements into small self-administered schemes due to the abolition of protected rights in April 2012.
“Small occupational pension schemes will get a full exemption from the new requirements of the Pensions Act and hence be able to continue offering scheme pension.
“Pressure will grow on the Chancellor to bring back a maximum drawdown pension of 120% of the Government Actuary’s Department’s (GAD) rate whilst quantitative easing keeps gilt yields low.
“The FSA’s focus on SIPPs will continue into 2012. While we hope that the FSA will finally acknowledge the difference between simple SIPPs and bespoke SIPPs and seek to differentiate the regulatory requirements, we also believe concerns over FSA intervention will force a number of small SIPP operators to seek mergers or to be subject to takeover by larger organisations.
“The FSA will also seek to raise the capital adequacy for SIPP operators but will face problems of risk rating the different business models. Although a consultative process will commence, no decisions are likely to be finalised.
“HMRC is likely to withdraw the approval from a number of QROPS as they are being used for tax avoidance arrangements in the UK rather than for their original purpose; providing pensions for UK residents who move permanently overseas.
“Liberal Democrat calls for reduced tax relief on member contributions will be rejected by the Chancellor as will think tank calls to remove or cap the Pension Commencement Lump Sum.
“As the dates for pension scheme auto-enrolment get closer, small companies will wake up and realise that doing nothing is not an option. This will create real opportunities for corporate pension advisers.
“All in all, an exciting year ahead.”
For further information on Rowanmoor Pensions please visit the website at http://www.rowanmoor.co.uk
- Ends –
Rowanmoor Pensions
Ian Hammond
Managing Director
Rowanmoor Pensions
08445 440 774
ian.hammond@rowanmoor.co.uk
Anna Hopkinson
Marketing Manager
Rowanmoor Pensions
08445 440 667
anna.hopkinson@rowanmoor.co.uk
Redleaf Polhill
Sally Walton/Stacey Puddepha
020 7566 6750
sw@redleafpolhill.co.uk
sp@redleafpolhill.co.uk
Notes to Editors
About Rowanmoor Pensions
- Rowanmoor Pensions provides and administers member-directed pension schemes:
- Small Self-Administered Schemes (SSAS)
- Self-Invested Personal Pensions (SIPP)
- Family Pension Trusts (also known as Family SIPPs)
- Rowanmoor Pensions is the UKs largest independent SSAS and Family Pension Trust practitioner and administers around 4,000 schemes.
- Rowanmoor Pensions’ SIPP features:
- personal, portfolio based, administration service;
- expert support from technical and sales consultancy teams;
- extensive flexibility and choice at retirement, including scheme pension;
- widest investment opportunities available in the SIPP market;
- integrated links to investment partners’ systems;
- streamlined process for settling adviser fees.
- Rowanmoor Pensions was awarded best SSAS provider in the 2008, 2009, 2010 and 2011 Investment, Life and Pensions Moneyfacts Awards.
- Rowanmoor Pensions was awarded best SSAS provider in the 2006, 2007 and 2008 Pensions Management Technology Administration and Service Awards.
- The Rowanmoor Pensions website is www.rowanmoor.co.uk
- Rowanmoor Pensions currently employs over 200 people.
- Rowanmoor Pensions is a trading name of Rowanmoor Group plc (No. 5792242).
- Rowanmoor Personal Pensions Limited, a subsidiary of Rowanmoor Group plc is the scheme Administrator and scheme operator for schemes established under a Rowanmoor Pensions Family Pension Trust and the Rowanmoor Pensions SIPP and is authorised and regulated by the Financial Services Authority (Register number 458260).
