Further delays in restoring mis-sold pension plans
Pensions Review project managers are growing ‘increasingly pessimistic’ about delays to their expected completion dates, research by Deloitte & Touche reveals.
Some do not expect to finish the review of opt-outs and transfers process for scheme members wrongly advised to leave company schemes until 2000 unless additional action is taken to reduce complexity. Most UK life offices and independent financial advisers have encountered serious difficulties which will force them to miss regulatory target deadlines set by the Securities and Investments Board.
Deloittes’ third survey of 27 life companies and 16 IFA firms showed just 32% hoping to finish by the end of this year, with 46% anticipating completion during 1997. A further 11% forecast 1997, with 11% not prepared to predict a date.
Rising administrative costs are compounding time problems, with 59% of managers anticipating staffing increases. Additional problems have been created by IT hitches and difficulty with the public sector.
Deloittes partner Richard Sowerbutts said: ‘Most IT providers have had difficulty in supplying software solutions to their user community and providers have missed their set deadlines.’
He continued: ‘Some main public sector schemes have asked life offices not to request further information until they have been able to process the enquiries received to-date.