Overseas pensioners may lose their UK bank accounts
Recent press reports have highlighted that some UK banks have started to contact customers living overseas to inform them that they will not be able to retain a UK account with them after 31st December 2020.
This move by the banks is out of concern that the as a result of Brexit and the fact that the transition period ends this year. Without a trade deal with the EU, current ‘passporting’ arrangements will expire and the banks will have to work within the confines of each individual country’s laws. This may mean that certain services currently provided for a UK account won’t be able to continue.
Clearly this is a matter for the banks to monitor and then resolve with their customers. However, if a deal with the EU is not in place very soon, we’re likely to see a surge in notifications to change bank account details at short notice.
This could create short-term resourcing problems for administrators, especially in the run-up to the festive period.
Online “Using a Lasting Power of Attorney” service launched
The Office of the Public Guardian, the Government organisation responsible for granting powers of attorney, has launched an online service to make checking the validity of a Lasting Power of Attorney (LPA) easier. The service can be accessed here and is available for use immediately: http://www.gov.uk/view-lpa.
The service will allow third party organisations to check an LPA online after being given a secure access code by the LPA holder.
The service will allow third-party organisations to check an LPA online after being given a secure access code by the LPA holder.
The service is currently only available where the LPA has been registered on or after 17th July 2020. The Office of the Public Guardian is working on extending the system to LPAs registered earlier in 2020, however no date has been set for this facility.
To view an LPA online, the third party doesn’t need to register for the service but will need the donor’s name and the access code. Using these details, it can view a summary of the LPA and check whether it’s valid.
The digital service removes the need for paper copies of an LPA to be sent to third parties, making the process easier for all involved.
Cross-sector working group on small pots
Automatic enrolment has introduced millions of new savers into the pensions market. However, as people move jobs, they do not necessarily consolidate their savings, leading to the existence of large numbers of small pension pots.
There are currently around 8 million deferred pension pots, but this could rise to around 27 million by 2035 if no action is taken.
Small pots can be a risk to members as they can be eroded by charges over time and potentially reduced to £0. Over time members can lose track of their small pots, an issue looking to be addressed by pension dashboards.
Small pots also pose an issue for pension providers where the charges associated with smaller pots may not cover their administration costs.
To address these problems, the Government has launched a cross-sector working group to provide recommendations on developing policy for minimising proliferation and consolidating small pots.
The working group will report later in autumn after completing its initial assessment.