Allowances and the Law
In the area of financial advice, specifically for Pensions, there are some very important rules to read up on first to make for certain that you are aware of the guidelines.
The governing body is responsible for establishing annuity legislation, although the monitoring and implementation of a lot of the legislation is the responsibility of two regulators The FSA and the Annuities Regulator.
The Pensions Act 1995 introduced changes to a few aspects of pension provision and supervision, not least of which related to concern about the long term security of occupational annuities. The government tried to restore confidence with measures engineered to stop financial fraud and to improve the administration of occupational schemes.
The Annuities Act 2004 was, in part, a reaction to the worsening pensions crisis in the United Kingdom. 2 particularly crucial parts of the 2004 Act were the establishment of the Annuity Protection Fund and the transfer of regulatory accountability for occupational allowance schemes from the Occupational Allowances Regulatory Authority (OPRA) to a newly formed Allowances Regulator. The Allowances Regulator has wider powers than OPRA, its predecessor, and takes a very pro-active and risk-focused approach to regulation. Its mission statement is that it will work ‘to improve confidence in work-based annuities by shielding the advantages of scheme members and practising lofty standards and sound practise in running pension schemes’.
Under the Monetary Services and Markets Act 2000, the FSA has the responsibility for the supervision and regulation of the monetary services industry. With regards to allowances, its responsibility leans to the promoting and operation of private annuities and certain tiny company schemes. The FSA sets out pension release rules . Additionally guidance for the sale and operation of allowances to retail consumers, which are covered by the Conduct of Business Rules.
The FSA main function is guard and protected the public and to install confindenece in the financial world, regarding advice and levels of service.
If you should have any questions regarding Pensions or other financial advice, is always best to seek the expert advise of a financial advisor.
Author: Aharon DeansThis author has published 15 articles so far.