UK - The Investment Management Association (IMA) said it was disappointed the final eligibility rules were unlikely to coincide with A-Day.
The IMA made the statement in response to the Treasury consultation on proposed changes to the eligibility rules for establishing a pension scheme.
Of the various options outlined by the Treasury, the IMA said the most suitable would be to Option 4, which would allow those already permitted to carry out certain regulated investment activities to establish a registered pension scheme until the new eligibility rules commence on 6 April 2007.
In its official response, the IMA said it “welcomed the proposals to allow a wider range of firms to establish pension schemes, but is disappointed that it now looks unlikely that the final eligibility rules will coincide with A-Day.”
Sheila Nicoll, deputy Chief Executive of the IMA said A-Day would bring a fresh start to pensions management in the UK. “But in order to fully benefit from the changes that this will bring, a temporary extension of the permitted persons list is required,” said Nicoll.
“Allowing existing regulated firms to establish pension schemes from 6 April 2006 will ensure that the new pensions regime will start on a level playing field for providers and will increase consumer choice.”
Angus Milne, senior advisor at the IMA added that firms currently unable to establish a pension scheme would be required to arrange with another entity the provision of the pensions policy for one year, unless Option 4 was adopted.
“This may make it uncompetitive to enter the market until 2007, by which point some competitive opportunity may well have been lost.
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