Tinkering with pension reforms hampering advice to clients

Advisers are deeply concerned at how Government tinkering with pension reform legislation is affecting their ability to help clients, a Sipps firm has reported. Changes due to take effect from next April and the temporary relaxation of some current rules are causing advisers to second guess further alterations, Talbot and Muir has found. The SSAS and Sipps company said advisers have been put in an "unfair" position because they can not provide the clarity their clients require.Advisers have had to consider the need for additional disclaimers when advising clients, it said. {desktop}{/desktop}{mobile}{/mobile} Claire Trott, head of technical support at Talbot and Muir, said: "A number of the advisers I have been speaking to, that have clients at or nearing retirement in the next few months, are struggling to put together full recommendations for their clients."This is because of pending legislation and announcements from the Government."Although the Taxation of Pensions Bill has been issued for consultation, it still needs to go before Parliament where it is possible for changes to be made that will effect recommendations made now."In addition to this, there is still uncertainty regarding the level of lump sum death benefit charges which isn't due to be clarified until 3 December as part of the Autumn statement."She added: "It is unfair on advisers to be put in this position, where they are unable to give their clients clarity at a crucial point in their lives."They need guidance and reassurance they are doing the right thing and advisers cannot be sure this is the case."Leigh Clayden, director of Clayden Financial Planning agreed, saying: "We have a number of clients where small changes in the draft legislation would have a significant impact on the advice we are giving."We have the option to wait for the legislation to go through with the risk of running out of time to implement our recommendation or give advice now with additional disclaimers regarding the possibility of changes before the end of the tax year."

Tinkering with pension reforms hampering advice to clients

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