Commenting on the warning Barnett Waddingham senior consultant Malcolm McLean says:
“The ABI is right to draw attention to the lack of detail still awaited in certain key areas, notably in relation to Pension Wise and exactly how it will operate and interact with product providers and others willing and able to advise and support consumers in the new very different pension’s world we are fast approaching. The setting up and development of this arguably critically important service has been painfully slow with emerging doubts about its take-up capacity and the level of expertise needed for it to deliver the guidance to all who may wish to avail themselves of it. At a very late stage the Government, seemingly almost as an afterthought, has seen fit to impose on providers a “second line of defence” – itself as yet still not fully defined and on which ABI is not unreasonably asking for further clarification. The request for absolute clarity on the tax implications in all respects is also essential if the reforms are to succeed and consumer detriment is to be avoided – or at the very least minimised.
“I am not sure Huw Evans is speaking for the whole of the insurance industry when he says there is “unequivocal support for the pension reforms launching in April”, There are many within the pensions industry as a whole who have deep reservations about the impact and wider repercussions of the radical changes that are coming in and are very suspicious about the political motivation for them.
“With that in mind the ABI’s appeal to their members to avoid the blame game is both timely and necessary. Whereas it is true to say that 6 April is only the start date of the changes it is important that the new arrangements get off to a good start. I hope that the government will move to fill in the missing pieces of the jigsaw as a matter of urgency and the providers and others will rally to the cause and take whatever steps are necessary to update their systems and implement the new flexible arrangements to the best of their ability as soon as possible.”
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