Contract-based boom to run out of steam, says Ellison

Ellison told Corporate Adviser Summit delegates that the current benign market for IFAs and insurance companies will not last when people come to realise the benefits of trust-based schemes.

He accepted that contract-based schemes were in the ascendancy and put it down to the lack of a level regulatory playing field, pointing out that there are now 46,000 pages of rules that trustees have to abide by.

Ellison said: “Most human beings do not have the energy or interest to work out how they are going to manage their retirement income. They want to rely on other people. With the best will in the world, it is hard for them to rely on insurance companies.

“People want the employer to run it for them. It is an efficient and beneficial system. We are now reinventing trusteeship to manage contract-based arrangements.”

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