Industry blog
Latest postsNEST charges - a winning combination
17 March 2010
It feels good for once to be able to come out in full support of a government decision. AEGON has been lobbying for years for a combination charging structure for NEST. The DWP decision to use a combination of (provisionally) 2% of contributions plus 0.3% of fund delivers the right balance between good value for members, financial security for the scheme and lower risk of taxpayer ‘bail-out’. PADA has a useful Briefing Note supporting the decision on its website.
Some early respondents have criticised the 2% as a huge (really?) initial charge which will put people off joining. Research AEGON undertook with 700 individuals showed this is just not the case.
Spring in Europe – and more regulation ahead
10 March 2010
In the forest of European regulation, things are stirring. There are unfamiliar creatures, and others we haven’t seen for a while are being prodded back into activity.
This stirring has been prompted by several factors. One is the Lisbon Treaty – since it was implemented last year existing Directives have to be reopened to accommodate it. Secondly, we have a new Commission, and in particular a new Commissioner for Internal Markets, Michel Barnier. Compared to his predecessor, he appears to be much keener on active regulation – in a recent speech to the British Bankers’ Association, he stated ‘To restore confidence, we need regulation’ (although to be fair, he did go on to qualify this as ‘smart, effective and proportionate regulation’).
Pensions reform: And the winner is . . .
5 March 2010
The recent news that PADA has chosen Tata Consultancy Services (TCS) as the successful bidder for the NEST scheme (previously personal accounts) administration contract probably didn’t come as much of a surprise to anybody.
What was surprising, however, was the timing of PADA’s announcement. Rather than wait until June – which was always the plan – it now intends to sign a contract with TCS later this month. The contract will run for 10 years, with the possible extension of another five years. It will be split into two stages: the first running up to October, and the second from October onwards.
Pensions reform: Building the NEST
18 February 2010In the four and a half years since Adair Turner delivered his recommendations for Pensions Reform, the world has moved on. Plans for automatic enrolment and the new NEST scheme will now be delivered against a background of the UK economy emerging from recession.
Getting hung-up about the election
11 February 2010
Six months ago, with the Conservatives consistently leading Labour by 15 points or more in the opinion polls, it was commonplace at industry gatherings and around Westminster to hear remarks preceded by the phrase, ‘When the Tories get in …’.
Now, with a crop of recent polls showing that lead is down to single figures, and with the quirks of the electoral system currently doing the Conservatives no favours, there’s renewed speculation that instead of a decisive result, the upcoming general election could yield a hung parliament. And that could leave a lot of things up in the air as far as future policy towards the financial services sector is concerned.
Important note
This blog provides the views of our industry lobbying team. The views are the opinion of the person writing the entry of the blog and don't necessarily represent the views of AEGON in the UK. They are based on their interpretation of industry developments and their current understanding of UK proposed and actual legislation, and should not be interpreted as recommendations or advice.