For immediate release: Friday 30 September 2005

PENSIONS CONSULTATION WELCOME BUT IMMEDIATE ACTION NEEDED

IMA welcomes the release today of the long awaited Treasury consultation �Proposed changes to the eligibility rules for establishing a pension scheme�, which outlines four potential options for extending the current regime.

Commenting on the consultation, Richard Saunders, Chief Executive of the IMA said:

�We are delighted by the proposals to extend the rules governing who can operate a pension scheme, which at long last will level the playing field between different types of firm.

�It would be a pity however if, as it appears, it will not be possible to implement the changes in full until April 2007.  This would postpone the entry of new providers into the market, as well as delaying the introduction of regulation for schemes investing in unregulated assets like property. 

A-day wipes the slate clean for pensions management and therefore it would make sense to extend temporarily the �permitted persons� list as of April 2006, until the new regime can be introduced. This should allow the development of new products within the existing regulatory regime as of A Day.�

-Ends-

For further information please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089332