Cabinet reshuffles. Turmoil in the financial markets. The pound tumbling against the dollar. Not to mention, real concerns about Britain’s Eurovision future! We have witnessed a lot since the EU referendum.
Trustees have already felt the impact of Brexit, with their defined benefit pension scheme deficits climbing as gilt yields have fallen to record lows. In truth, it isn’t surprising that the financial markets experienced significant turmoil in the face of such economic uncertainty. As a result, the value of Sterling in relation to other currencies has plummeted to its lowest point in over two decades, having fallen 12% against the dollar. Read more »
Last week, the Financial Conduct Authority (FCA) splashed onto the business pages extolling the virtues of choice for consumers in the pension annuity market. Their review has found that 80% of consumers purchasing annuity from their existing providers could have got a better deal by shopping around in the open market. I welcome the FCA’s continued efforts in this area and trust that, in time, it will lead to a better deal for consumers.
This drive to encourage consumers to shop around with their defined contribution pot should be mirrored in defined benefit (DB) arrangements. Read more »
Now that the Financial Services Authority (FSA) is no more, it is likely that it will mainly be remembered for one thing: presiding over the near-meltdown of the UK’s banking system. It didn’t rein in the banks, and arguably even encouraged the explosion in the City in the mid 2000s, with its feather-light touch approach to regulation. To be fair, though, none of the so-called regulators around the world came out of the crisis (if, indeed, we are out of it) smelling of roses. Read more »