Financial planning firm LEBC has hit out at the hidden pension guidance tax being levied on the IFA sector.
LEBC says that under the government’s proposed consumer guidance on pensions, the cost benefit analysis provided only includes the cost to government, not the cost of the financial services sector which is being levied to pay for it.
Kay Ingram, director of individual savings and investments at LEBC, says: “The IFA sector of which we are part is expected to pay 30 per cent of the cost of this guidance and have zero per cent control or participation in delivery. We are calling this the ‘guidance tax’ and believe that if IFAs and their clients are to be taxed to provide for guidance to be given to retirees, then we should have some representation in how the guidance is delivered.
“We find it odd that IFAs will be expected to pay a levy for the cost of this service but are not considered suitable to offer guidance to the public. We would prefer to pay our share of the costs of this ambitious plan in kind by delivering talks and answering generic questions in question and answer forums, for example, rather than being asked to pay money for a service over which we will have no say in delivery and no control of costs.”