Some details from the Pensions Commission’s final report have been leaked.
Here are some of the likely options for tackling the issue of providing adequately for our retirement.
How the state pension works
The idea of a citizens’ pension has also been floated, primarily by the National Association of Pension Funds and the Liberal Democrats.
This would try to ease the problem of women failing to make sufficient NICs to earn entitlement to a full basic state pension.
A citizens’ pension would be a payment available to anyone resident in the UK who reaches a set pensionable age, regardless of national insurance contributions. It would replace the current basic state pension, entitlement to which is based on NICs.
The new system could be funded by pooling all the money that is currently put into the basic state pension, the state second pension, contracted out schemes and pension credits.
But to ensure that the value of the new pension rose in line with earnings - rather than just with inflation as at present - the state pension age would also have to rise, the NAPF says.
However, a citizens’ pension could be an administrative nightmare because of the inevitable wrangling over residency qualifications.
Groups such as Age Concern have suggested that female pensioner poverty would be better helped by reducing the amount of time women are required to contribute for in order to qualify for a full state pension; from 39 years to 25.
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Posted by on 09-30-2007 at 05:09 am
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A committee of MPs has criticised the Financial Services Authority’s (FSA) regulation of financial advertising.
The Treasury committee said the FSA should copy the policy of the Advertising Standards Authority (ASA) and make its findings public.
Committee chairman John McFall MP has written to FSA chairman Sir Callum McCarthy complaining about its methods.
But the FSA responded by saying it pursued hundreds of complaints every year about misleading adverts.
A spokeswoman explained: “As a regulator we have a formal procedure we have to go through - we can’t just issue a formal censure of a firm.”
ASA procedures
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 The FSA needs to take a far more robust approach by highlighting poor practice  John McFall MP, Treasury committee chairman
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The ASA publishes its rulings on its web site and the more interesting ones are regularly reported by newspapers and broadcasters.
In his letter to the FSA, Mr McFall said the financial regulator should adopt this approach.
“The FSA has, at the moment, a seemingly far less transparent system in regard to financial advertisements, with no publication of complaints, and little public record of which companies have broken the rules,” he said.
“This means consumers seem to get a worse deal, with the FSA offering no public scrutiny and little incentive for advertisers to keep to the rules.
“The FSA needs to take a far more robust approach by highlighting poor practice,” he added.
FSA action
But the FSA denied it was asleep on the job.
A spokeswoman pointed out that it had pursued 820 cases since April 2004.
And a small number of the FSA’s enforcement proceedings have been made public - 12 in the last two years.
The FSA fined the Foresters Friendly Society for misleading adverts
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In August it fined the Foresters Friendly Society 55,000 for publishing misleading TV adverts and marketing literature.
This year the FSA has been looking at direct mail adverts for products such as pensions and investment trusts and is scrutinising adverts for sub-prime mortgages and spread betting.
In the past year it has warned about the generally misleading nature of adverts for venture capital trusts, told people to be careful about adverts on the internet, and warned about promotions for pension unlocking, general insurance and critical illness insurance.
The FSA’s Financial Promotions department has a consumer hotline - 08457 300168 - for complaints.
Adverts for credit cards and unsecured loans are dealt with by the Office of Fair Trading.
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Posted by on 09-29-2007 at 04:09 am
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Banks must do more to promote security among their online customers, the UK’s finance watchdog has said.
The Financial Services Authority (FSA) made the call as it revealed half of internet users are either extremely or very concerned about the risk of fraud.
To ease safety fears banks should make more effort to educate web users about online security, the FSA said.
But it warned if customers were forced to foot the bill for online fraud 77% would stop banking via the web.
More than 1,500 people were quizzed about online banking for the FSA’s Financial Risk 2006 report.
The study, which will be published on Wednesday, also showed that while many web users were protecting themselves, almost a quarter did not know when they last updated their security software.
Security breaches
“Most consumers recognise they have some responsibility for security but they are not necessarily following this obligation through,” FSA financial crime sector leader Philip Robinson said.
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 Banks need to look carefully at consumer attitudes  Philip Robinson, FSA
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“To tackle the losses associated with fraud, banks should continue to drive security and this must include educating consumers on the importance of protecting themselves.”
It added that figures from industry body Apacs showed internet fraud losses rose to 14.5m in the first six months of 2005.
While admitting that the figure was “relatively low” the FSA did point out that the figure had more than trebled from the 4m lost in the same period a year earlier.
In an effort to curb the growing problem of online fraud banks are testing new security tools.
Lloyds TSB began trials of a new two-part security system last year to tackle scams where fraudsters hack people’s PCs or use “phishing” emails to steal login details.
Online safety
Around 30,000 customers were sent a keyring-sized security device which generates a six-digit code - which changes every 30 seconds - to be used alongside usernames and passwords.
“We recognise that many banks are already taking steps to engage consumers,” Mr Robinson added.
“Initiatives like the ‘Get Safe Online’ campaign between the government and the private sector show consumer education is beginning to happen.
“But banks need to look carefully at consumer attitudes and whether their initiatives are effective in maintaining confidence.”
Online fraud has also hit the headlines recently after reports that criminal gangs had stolen millions from the government through tax credit scams involving the Department for Work and Pensions and Network Rail.
Such frauds are carried out by criminals who steal an individual’s name, date of birth and National Insurance number and use these personal details to steal money from the government by making fraudulent tax credit claims.
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Posted by on 09-28-2007 at 04:09 am
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One of South Korea’s richest businessmen, Kim Seung-youn, has been jailed for 18 months for abducting and assaulting workers in a karaoke bar.
Kim, 55, chairman of the Hanwha Group, was convicted of attacking the men with the aid of his bodyguards, to punish them for scuffling with his son.
He admitted responsibility for much of the violence, but said his bodyguards took over when he “got tired”.
The case has generated intense public interest in South Korea.
Heads of family-controlled business conglomerates like Hanwha - which has interests in petrochemicals, finance, insurance, construction and retail - wield huge power.
Courts have often been lenient with these business leaders, but correspondents say the ruling in Kim’s case shows that the judiciary is becoming more even-handed when sentencing the rich and powerful.
Serious injury
Passing sentence at Seoul District Court, the judge, Kim Chul-hwan, said Kim Seung-youn had used his position to take revenge on the workers, carrying out the attacks in a “systematic manner”.
“The violation of the law is big and is serious,” said the judge.
During the trial, prosecutors told the court that this was a revenge attack after an incident involving the defendant’s son, Kim Dong-won, a Yale University student.
Kim Dong-won, 22, was reported to have needed stitches for an eye injury sustained in a brawl with bar workers at the Seoul club.
Kim Seung-youn was said to have mobilised his bodyguards and local gangsters to take the off-duty bar workers to a mountainside construction site, where the revenge beating occurred.
The judge found the tycoon guilty of “beating the defenceless victims with a metal pipe, and threatening them with a stun gun,” although none of the workers sustained serious injuries.
The court ruled that a jail sentence was inevitable.
Before being taken into custody, Kim Seung-Youn apologised, saying that he had lost his temper and hoped that foolish fathers like himself would think twice before following his actions.
Heavier penalties
Traditionally, senior Korean business leaders have enjoyed favourable treatment by the courts in consideration of their contributions to building the country’s economy.
More recently, however, the courts have started to hand down heavier sentences on the business elite.
In February Chung Mong-koo, the chairman of Hyundai motors, was sentenced to three years in jail for breach of trust and embezzling company funds.
Mr Chung appealed earlier this year and prosecutors reacted by asking for his sentence to be increased to six years.
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Posted by on 09-27-2007 at 04:09 am
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Belgian legislators are hoping to bring that to a close with a parliamentary bill that would draw prostitutes into the legal fold and bring the industry under state control, providing sex workers with labour rights and greater health protection.
But for a fee.
The sex workers themselves would be expected to pay up when the tax man calls - boosting state coffers to the tune of an estimated 50 million euros a year.
But for a fee.
The sex workers themselves would be expected to pay up when the tax man calls - boosting state coffers to the tune of an estimated 50 million euros a year.
Posted by on 09-26-2007 at 04:09 am
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An insurance firm is creating almost 200 jobs in Newport, south Wales.
The customer service positions at Lloyds TSB Insurance will bring the total number of staff at the firm’s Tredegar Park base to nearly 900.
Recruitment is set to take place over the next four months, for roles including claims administrators and team leaders.
Newport Councillor Ken Critchley described it as “excellent news”.
David Stoddard, head of customer service at the firm, said the firm, based in Tredegar Park, was seeking to become one of the leading insurers in Europe.
Steve Pantak, from the finance sector trade union UNIFI, added: “It’s good to see the company reaffirm its commitment to the local south Wales economy,” he said.
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Posted by on 09-25-2007 at 04:09 am
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An American insurance company is set to create 120 jobs in Northern Ireland.
American Life is part of the American International Group - one of the 10 largest companies by turnover in the world.
It currently employs 25 people at its headquarters in Belfast.
The company’s offices were opened on Monday by Cathy Hurst public affairs attache from the American Consulate General.
The firm said it wanted to recruit a sales force of consultants.
Belfast Branch Manager Patrick O’Donnell said: “We’re looking to build a total sales force of 500 across Ireland, with around 150 consultants in Northern Ireland.
“A number of other insurance and financial services providers have shut down their sales force and stopped face-to-face meetings with customers over recent years.
“But American Life has built its reputation and business on the local community approach - selling financial solutions to real people - and that is what we are intending to do here in Northern Ireland.”
Enterprise Minister Ian Pearson said he was delighted by the American Life move.
“They are one of the most significant insurance companies worldwide,” he said.
“Their arrival in Northern Ireland is a positive endorsement of the strength of the local economy.”
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Posted by on 09-24-2007 at 04:09 am
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The Co-op’s insurance service is to cut 2,000 jobs over the next two years.
The Co-operative Insurance Society, headquartered in Manchester, said 2,500 jobs would be lost in a restructuring designed to modernise the business.
They will go over the next 18 months to two years, but at the same time 500 new customer service positions are to be created, it said.
The CIS said it was responding to substantial changes in the market to ensure its future profitability.
It has not finalised what positions will be axed but it is expected that staff at its Manchester headquarters and salesforces across the country will both be affected.
The CIS has already cut 130 jobs so far this year. The Society declined to say what savings it expected to make from the move.
Established in 1867, it currently sells life assurance, home insurance, pensions, unit trusts and other financial products to more than 5m customers.
Consumer trends
In recent years, it has been affected by increased competion in the financial services sector.
It has also been slow to respond to a growing trend for consumers to buy financial products via the internet or telephone rather than directly from a financial advisor.
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 We need to take action now to ensure a vibrant, successful and sustainable future for our business
Mervyn Pedelty, Co-operative Financial Services
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Following a comprehensive review of its business, CIS is to focus on enhancing customer service and improving the efficiency of its salesforce. It will also explore selling products from other providers.
Mervyn Pedelty, chief executive of the CIS, said its overall financial position was strong but changes were needed to better serve its customers.
Growing competition
He said: “CIS is not immune from the intensifying economic and competitive pressures occurring within its core markets and we need to take action now to ensure a vibrant, successful and sustainable future for our business.”
Unions representing CIS staff said they were “deeply disappointed” by the scale of job losses proposed.
In a joint statement, the ACTS, Amicus, Naco, Unifi and Usdaw unions said they would seek to ensure that redundancies were kept to a minimum.
“We register our opposition to compulsory redundancies and aim to minimise job losses and maximise the use of measures such as redeployment, retraining opportunities and, where appropriate, voluntary redundancies,” they said.
CIS is one of the Co-op’s largest operations, employing 9,000 staff. It recorded a long term surplus of 900m in 2003 and 1.97bn in premium income.
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Posted by on 09-23-2007 at 04:09 am
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Belgian legislators are hoping to bring that to a close with a parliamentary bill that would draw prostitutes into the legal fold and bring the industry under state control, providing sex workers with labour rights and greater health protection.
But for a fee.
The sex workers themselves would be expected to pay up when the tax man calls - boosting state coffers to the tune of an estimated 50 million euros a year.
But for a fee.
The sex workers themselves would be expected to pay up when the tax man calls - boosting state coffers to the tune of an estimated 50 million euros a year.
Posted by on 09-22-2007 at 04:09 am
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He told a meeting in London of foreign investors and executives from financial institutions that India’s new governing coalition would sort out problems with its communist supporters through a process of dialogue.
Communist parties are the biggest ally of India’s new Congress-led coalition government.
“Left parties are extending valuable support to us, so it is not correct to say that confidence of the foreign investors will be damaged because of them,” Mr Chidambaram said.
He said a recent controversy over the left parties’ objection to having experts from multi-lateral institutions in advisory groups of the country’s planning commission has been sorted out through dialogue.
Apprehensive
Last month the planning commission, which formulates five-year economic plans, was forced to drop outside experts after left-wing parties objected to foreign consultants being a part of the groups when “there were enough qualified Indian economists to do the job”.
The controversy grabbed the attention of the foreign investors who were apprehensive about the possible influence of the left parties in the new government’s economic policies.
The left parties also object to privatising profit-making public sector units and increasing foreign investment in aviation, telecom and insurance sectors.
But Mr Chidambaram said India would be removing limits on foreign investment in those three sectors over a period of time and this will be done through a process of dialogue with the left partners.
He said his government would review the limits on investment in aviation later this month.
Highlighting India’s dire need for investment, Mr Chidambaram warned that India needed over $40bn over the 10 years in the telecom sector alone as well as $10bn investment in the power industry.
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Posted by on 09-21-2007 at 04:09 am
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