Tweet
All of Britain's remaining final salary pension schemes will be forced to close if the EU brings in new rules designed to make their funding more secure, unions, employers and pension schemes have warned.
Many businesses could also be pushed into insolvency by European pension proposals, risking significant job losses, three industry bodies have warned. In a letter to José Manuel Barroso, president of the European Commission, ahead of EU directives due this week, the National Association of Pension Funds (NAPF), the Confederation of British Industry (CBI) and the Trades Union Congress (TUC) warned that the new rules would have a disastrous impact.
"By demanding dramatic increases in funding from employers, the commission's plans would – at best – force all remaining defined benefit schemes to close and – at worst – push many businesses into insolvency, leading to significant job losses," they wrote. On Wednesday, the European Insurance and Occupational Pensions Authority (EIOPA), a pan-European watchdog, is due to send final recommendations on its EU pensions directive to the European Commission, aimed at addressing shortfalls in pensions schemes and improving risk management....Read more here--: 'All final salary pension schemes will close under new EU rules' - Telegraph
- Hi & Welcome to the AAD Consumer Forum
We're a FREE consumer debt and legal forum offering help, support and debate in many areas of day-to-day life. You will need to Register a Free Account before you can join in with the discussion and contribute with your own posts. Remember to also check out the FAQ's so you can get to grips with how the forum works ready to start posting your new topics. Read about the new GDPR 2018 Rules and how it affects you as a member of AAD.
It has been reported that Towergate is already in talks with the FCA about possible shortcomings in the advice it gave to consumers about “enhanced transfer values”, if they moved from a final salary pension scheme to another type of pension savings vehicle. The same reports also suggest that up to 2,000 individuals may be entitled to compensation as a result of any failings that actually occurred. It’s also been reported that Towergate and the FCA have been investigating the possible “misallocation” of £15m of client and insurer monies, potentially in breach of the FCA’s “client money” rules. If these things are true, and Towergate is eventually obliged to pay compensation to anyone who suffered loss as a result any rule breaches that occurred, the Financial Services Compensation Scheme might have to step in, if Towergate cannot meet the compensation claims against it.
Online fora include consumer questions about the impact Towergate’s restructuring might have on the motor and other insurance policies it sold. In all probability, Towergate’s fate will not affect these policies. If Towergate was acting as an insurance broker, the insurance contracts it arranged will be between the insurer and the person who bought the contracts of insurance Towegate sold. Whatever happens to Towergate, it’s unlikely to change that fact, or undermine these policies. With any luck, the FCA will have something to say about these things in the coming days, and that will put consumers’ minds at rest.