Deloitte Financial Services Fundamental News (Part Two)

Pensions – new opportunity or threat?
By Jonathan Bundy and Kate Spencer

Is Lord Turner about to introduce fund managers to 12 million new customers?

The long anticipated Turner Report was published in November 2005. If the government acts on its recommendations, the UK pensions landscape will undergo and remarkable change. The most obvious benefit to the fund management industry would be the chance to add up to 12 million new customers to their books. But as Jonathan Bundy and Kate Spencer point out, there are also potential downsides to this apparent bonanza – a Turner approach to pensions could result in an industry-wide downturn for contributions and fees. Fund managers need to realise all the implications – in order to draw up strategies and plan contingencies.