General Insurance Article - IFoA comments on the Queen’s Speech

 “Whether the UK decides to remain part of, or leave, the EU could have a significant impact on pensions, insurance and investment. It is important that the impacts on businesses and members of the public, in terms of regulation and financial products are properly understood and debated so that informed decisions can be taken by the electorate, something that is all too often missing.”

  

 Responding to the announcement on the Scotland Bill, Nick Salter, comments:
 “Further devolution raises a number complex issues that will need to be carefully thought through by policy makers working in collaboration with industry. One such complexity is the potential for devolution to lead to differing tax rates in Scotland versus the remainder of the UK. This would increase complexity, especially in terms of tax relief on pension savings.

  

 “With the changes to pensions which have come into effect in April this year, any proposed legislative changes will need to avoid the possibility of unintended consequences, such as individuals ‘gaming the system’ by declaring residency in the country with the more beneficial tax rates.”

  

 On Climate Change, Nick Salter comments:
 “The Institute and Faculty of Actuaries welcomes the Government’s plans to collaborate globally on combatting climate change.

  

 However, recent work by the IFoA revealed that there is a wider sustainability issue that needs to be addressed. Research suggests that the current growth-orientated economic model and financial system does not provide any incentive to fully recognise natural environment and resource constraints.

  

 It is important that we all take into consideration issues, such as climate change, that will have a impact on the long term sustainability of our financial system.”