Personal Pension  

Exit fee cap and secondary annuities: The week in news

4. Other grievances aired.

On Tuesday, self-invested pension firm Hornbuckle agreed to hand over around £1,200 to an adviser who threatened to go to court to recover close to £1,900 he claimed was outstanding from a bill to cover hourly fees for time wasted as a result of poor service, closing a case that has taken well over a year to settle.

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Meanwhile, the ombudsman ruled that a complaint against Lighthouse Group can go ahead after the firm argued it should be time-barred, in one of many decisions relating to legacy unregulated investment scheme recommendations.

Another case study in cold calling showed the need for more proactive action from providers and advisers on crooks using legitimate and regulated company names as a front for their luring in of investors.

In this instance an insurance industry veteran raised suspicions after a call from someone claiming to be an appointed representative of Legal and General. FTAdviser investigated, but it would appear they are still at large.

5. Inflation and interest rates still dominate investment outlook.

Finally, this week saw fiscal announcements on both sides of the Atlantic which predictably made markets move.

Firstly, figures from the Office for National Statistics showed the CPI inflation climbed clear of deflation as upward pressure on the oil price fed through to higher fuel costs than in April. Most commentators agreed that this brief dip was nothing to be worried about, whilst pointing to various potential economic headwinds.

Across the pond, a dovish statement from the Federal Open Market Committee seemed to suggest that following a first interest rate hike, any further increases thereafter would be gradual. However, many remain split on whether the first rate rise will come in September or December this year.

Stocks also responded to positive economic data, as figures from the US Labor Department showed jobless claims were down 12,000 to 267,000 for the week ending 13 June.