BrexitSep 26 2018

Advisers reveal life after Brexit wishlist

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Advisers reveal life after Brexit wishlist

The implementation of a cold calling ban was the main priority of 62 per cent of advisers for a life after Brexit, according to research carried out by Aegon.  

Aegon's poll revealed the initiatives financial advisers believe the government should prioritise for the benefit of UK savers and investors after Brexit.  

Out of the 100 advisers surveyed by the provider, the majority said they wanted more government focus on pushing through legal protection against fraudulent activity which can lead to individuals losing their lifetime savings. 

The research also found that 59 per cent of financial advisers are calling for greater government priority on a new deal on funding social care after Brexit, with a particular focus on the social care government paper.  

Steven Cameron, pensions director at Aegon, said: "While Brexit will continue to dominate the government's time in the months ahead, we can't allow other policy initiatives which would benefit savers to be pushed back indefinitely.  

"Financial advisers are ideally placed to highlight priorities in areas which will affect their clients’ future financial well being.

"Advisers are clearly very concerned about the risks of individuals being scammed out of their pension savings by 'cold callers', and every month of delay risks more people losing their life savings to fraudsters.

"With people on average living longer, more of us will need some form of care in later life and how to share the costs fairly between the government and the individual, is one of our greatest societal challenges.

"The sooner the government sets out its proposals, the sooner advisers can help their clients plan ahead."

Aegon's findings showed that 35 per cent of advisers would like policy makers to carry forward pension saving initiatives for self-employed workers, who are currently excluded from auto-enrolment.  

Only 17 per cent of advisers surveyed saw a reform of pensions tax relief as a priority after Brexit.  

Mr Cameron said: "Only one in six support the government prioritising reforming the tax relief individuals get on their pension contributions.  

"At the moment, people who pay higher rates of income tax get more of a government top-up than basic rate taxpayers and some have called for everyone to get the same government bonus.

"While this might be worth considering longer term, it would be very complex and Aegon agrees that other initiatives should be given higher priority."

Recently, the Financial Conduct Authority (FCA) was called on to be stricter on authorised firms that use leads generated by cold calling.

The government announced this month (8 September) that it would be introducing new powers to allow consumers to opt-in to receiving cold calls about making payment protection insurance (PPI) claims.

But the government's new rules were called into question with David Hickson, campaigner at Fair Telecoms, saying that an outright ban would be more effective.

The Department for Digital, Culture, Media and Sport has not said whether it will look to extend the measures to the pensions sector.

Scott Gallacher, financial planner at Rowley Turton, said the ban should be imposed sooner rather than later: "I'm a firm advocate for a cold calling ban and I was one of the original co-sponsors of Darren Cooke's petition for the cold calling ban.

"I also don't see why the ban has been delayed, or why the FCA can't in effect introduce their own ban now."

rosie.quigley@ft.com