Six key issues for platforms from Cofunds
By International Adviser, 19 Aug 15
David Hobbs, chief executive of Cofunds, discusses key issues for the platform industry for the remainder of 2015
We saw in the Summer Budget how the austerity measures, UK-style, are going to be funded through some clever juggling of existing instruments. It is still clearly a Government commitment for people to save, where they can, so the personal allowance going up and the higher rate tax band too, with a promise of further change on pensions tax relief, all adds up to a desire to enable consumers to have the chance to do so.
The difference in this administration from the last, is that economic change may now be bolder, less challenged by both Opposition and Government benches, but likely to be challenging to the industry. The discussion document on pensions tax relief is one such issue; we should embrace these opportunities to continue to change the landscape for the benefit of our customers.
These domestic challenges are joined by two others: the EU referendum debate; and the likelihood of further UK devolution.
EU referendum is the next big talking point – from what the impact will be in the investment management sector and regulation, through to how firms should handle clients who have retired abroad.
Linked to this is the scale of the SNP victory and the potential for another Scottish referendum to coincide with any referendum on EU membership. This could lead to uncertainty in the markets, which is rarely welcome. There’s also the potential for the government to hand fiscal responsibility over to the Scottish parliament, which could mean changes to the taxation systems across the UK. This could result in different products being required north and south of the border.
