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23/09/2014

In its response to the FCA Consultation Paper (CP14/11) ‘Retirement Reforms and the Guidance Guarantee’, Old Mutual Wealth is calling for part of the cost of the service to be borne by an addition to the pensions levy, paid by workplace trust schemes. This should reduce the amount contributed by financial advisers.

The current proposal for the Guidance Guarantee levy is to raise it from the firms that will potentially benefit from the retirement guidance service. Old Mutual Wealth agrees with this principle but says due to auto-enrolment, the vast majority of defined contribution provision will be through workplace trust schemes. Old Mutual Wealth therefore feels part of the cost of the service should be paid by workplace trust schemes some of who will also provide retirement income facilities.

Where a provider regulated by the FCA also administers occupational schemes, they should be able to opt out of the additional pensions levy amount so that they don’t contribute twice for the service.

Tom Hawkins, Head of UK Proposition Marketing at Old Mutual Wealth, comments:

Tom Hawkins, Head of UK Proposition Marketing“We agree that the funding of the service should be borne by those who stand to benefit from the service. However, we do not feel the proposals cast the net widely enough. trust based schemes, regulated by the Pensions Regulator, will also benefit and should pay towards the service via the pensions levy.

“Including trust based schemes will mean a more proportionate method of funding the Guidance Guarantee and potentially reduce the amount borne by financial advisers, which is currently disproportionate.”

 

Notes to Editors:

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Old Mutual Wealth oversees £131.3 billion in customer investments (as at 30 September 2017).

It has an adviser and customer offering spanning: Financial advice; investment platforms; multi-asset and single strategy investment solutions; and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

Old Mutual Global Investors (‘OMGI’) is the asset management business of Old Mutual Wealth with £39.8bn funds under management (as at 30 September 2017). On the 19th December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Following managed separation from Old Mutual plc, Old Mutual Wealth will rebrand to Quilter plc. Each of the businesses within the Quilter Plc group will be rebranded over a two-year period, with the exception of Quilter Cheviot, which will retain its existing name.

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million (as at 31 December 2016) customers across the world and has a total of £212.3 billion of assets under management (as at 30 June 2017).

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