PTA: There may be life in PTA yet as industry holds private talks with The Treasury
By Lucy Quinton
Pension term assurance (PTA) may still survive its beating at the end of last year following recent top-level discussions between the industry and The Treasury.
It has been revealed that The Treasury was to make a decision about the future of PTA by the end of January.
The industry has remained tight-lipped over its discussions, but it has hinted that the product may survive although in a slightly different format.
The Treasury has met on a number of occasions with several big providers and IFA firms to discuss the future of the product following the debacle at the end of 2006.
Fay Goddard, deputy director general at the Association of IFAs, said the organisation had been engaged in these consultations. She said: "A high percentage of the business written before the Pre-Budget Report was through IFAs and we want to ensure that any decisions made meet both the needs of IFA clients and government objectives."
There were rumours that there was a compromise position on the table.
Kevin Carr, head of protection strategy at LifeSearch, said he believed PTA would survive, but suspected that it would look very different to how it is now. He declined to comment any further.
However, Roger Edwards, products director at Bright Grey, did not know any further details. He said: "The discussions with The Treasury are spot on but the industry has had its fingers very badly burnt with the way the Government handled the whole episode."
Mark Locke, spokesperson for Aegon Scottish Equitable, added: "We are not giving up the ghost with this", however, he was unable to shed any further light on what the situation was.
Standard Life confirmed there had been talks, but its marketing manager, Mick James, said the company was unable to send anyone along to the discussion as it coincided with other arrangements but that it would be represented by the Investment and Life Assurance Group. However, it said it hopes to work with The Treasury in the future over this issue.
Jason King, managing director at Torquil Clark Life Insurance, added that he remained hopeful but that it really was too early to tell.
As yet there have been no further developments.
