The Government is looking to find ways in which to top up the Financial Assistance Scheme, which is aimed at helping people who have lost their pension due to their employer, becoming insolvent.
In a recent report it was confirmed that the use of unclaimed pension and life assurance assets to top up the fund would not be an option.
Our view
The only way to do this, much in the same way as the rest of the finance industry is for those who are active in a particular segment e.g. the Pension Funds and their trustees, to contribute to an ‘insurance’ fund, much in the same way as Financial Advisers, Insurers and Banks have to contribute to the Financial Services Compensation scheme.
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