A move by the Treasury to link pensions term assurance to pensions would create considerable costs for providers and advisers, says Andy Milburn, IFA market manager at Royal Liver.
Milburn suggests the Treasury may reach a compromise on PTA by only allowing the product to be sold to people who already have a pension – a move which he warns would involve considerable expense. He states: “Because it is not best advice to recommend the same provider for a pension and for PTA, all providers will have to create a database so they can check if someone has a pension in place. This would cost a fortune.” To cut down costs, Milburn says advisers or providers could ask consumers if they have a pension scheme and then check every one in a 100 cases to ensure they are telling...
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