ITC continues to lobby the government on behalf of Advisors

Aidan McLoughlin, through his role as chairman of the Irish Brokers Association Pensions Committee, continues to be involved in lobbying the government on behalf of Advisors. Recent meetings include: 

·         TD Terence Flanagan of Fine Gael

·         TD Peter Matthews of Fine Gael

·         Senator Fidelma Healy Eames of Fine Gael

·         TD Michael McGrath of Fianna Fail

·         Senator Jimmy Harte of the Labour Party

·         Senator Michael D’Arcy of Fine Fail

·         Independent TD Shane Ross

·         The Department of Finance

·         The National Treasury Management Association (NTMA)

The Pensions Committee has developed a five point plan to make pensions more relevant in the current environment and to help protect the remaining tax reliefs. It was good to see last week that some TDs are listening and attempting to tackle the issues highlighted in the five point plan.

In addition to the above activity, ITC is represented on the several other industry groups including:

·         Association of Pensioneer Trustees of Ireland (APTI)

·         Young IBA

·         IAPF Council

·         Pensions Committee in the Law Society

·         Association of Compliance Officers

Through our blog, we will continue to keep you posted of ongoing lobbying activity.

What has the Pensions Board got to say about the Levy?

There was some interesting coverage in The Oireachtas Report which was broadcasted on RTE1 yesterday. The Pensions Board CEO, Brendan Kennedy, was questioned about the Pensions Board's role in advising the Government on the pensions levy.

The Oireachtas Report footage is here. The relevant piece starts at 12min 50. The footage will be available until 8th December 2012.

Pension Investment in Private Companies

Self-administered pensions can invest in a wide variety of investment products. Publically quoted shares and other securities, investment bonds, property and deposits are some of the more common.

However, in the last couple of years we have seen increasing interest in investment in private companies. It has traditionally been, and indeed remains, a high risk area, but, given the lack of alternative sources of finance, private companies that would otherwise find a ready market for their fundraising through the more usual routes are having to cast their nets wider. Many have come to appreciate the benefits of investment by pension funds, from both traditional pension fund investors and small self-administered schemes.

Investments structured to accept funding from self-administered pensions can be collective investment structures, but more typically an individual with a self-administered pension structure will want to make an investment into an ambitious SME. In the last three years alone, over €7.2 million has been invested in this way through ITC into a wide variety of companies, from wind energy companies and a provider of prepaid electricity meters through software development companies, an internet daily deals/social networking group of websites and electronic media companies to property development companies. Any trading company can profit from such investment.

Investments have to be on proper commercial terms. A private arrangement to fund your own business or that of a family member or friend or one that is not commercial would not be acceptable for pension investment, but a properly structured investment on market terms into a trading company would always be appropriate.

If you have any clients interested in making an investment into a private company through their pension schemes, please contact us.

Jeremy Mitchell

Pension Security

We are sometimes asked questions like …How do I know my pension fund is safe with you, and that you will not invest/divest it without my agreement?  What would happen my pension if the pension provider was to go out of business?

These questions are seeking answers about the security of the pension structure and how the assets are held. They are very valid questions and they are questions every aspiring pension holder and any advisor to the pension holder should ask.

The below table sets out the approach that ITC take compared to the standard industry approach. 

Click here to read how ITC's approach differs from others in the industry.