Over £18.5 million has been approved and funded by the PASS Loan Scheme since it was launched a year ago.

The £100 million fund set up to help independent financial advisers (IFAs) meet pensions review compensation payments is guaranteed by the IFA Life Office Group and administered by The Royal Bank of Scotland in partnership with PASS Loans Ltd.

To date over 700 IFAs have requested details of the scheme, and almost 300 of these have so far applied for a loan. All Personal Investment Authority (PIA) regulated IFAs can apply for a loan, with the funds available on a first-come-first-served basis.

Mark Penton, Chief Executive of PASS Loans Ltd, said:

“Early signs are that the Loan Scheme is satisfying demand and is as we expected at this time. As we mark its first anniversary, over £18.5 million of the fund has so far been approved, with over a quarter of the total fund being applied for.”
Mr Penton said that feedback he has received from IFAs who have successfully secured a loan is that they feel more certain about their prospects.

“Every day, PASS deals with IFAs who are having to make very difficult decisions about their futures.

“There is still a large number of IFAs working on Phase 2 of the review. Arranging a loan to meet compensation payments is a way of sensibly gaining some peace of mind. However, the reserves are limited, and I would strongly advise IFAs to apply now and then call on the funds when they are needed.”
IFAs who arrange a loan for future use will initially only be liable for a nominal arrangement fee. Drawdowns against the approved fund can then be made on an individual case basis over the first three years of the loan. Unsecured loans are available from as little as £1,000 up to £250,000, with payment over an eight year period.

Until now, the Loan Scheme has covered Phases 1 and 2 of the pensions review, but PASS is looking to extend it to cover compensation payments for freestanding additional voluntary contributions (FSAVCs).

Notes

1. Enquiries to:
   

   Mark Penton 0114 208 2311
   George Lokuciejewski 0114 208 2312
   Suzanne Moore 020 7216 7411 (Mobile: 07712 841183)
   Malcolm Tarling 020 7216 7410 (Home: 020 8297 9510)



2. An ISDN line is available for broadcasts.



3. Application packs can be obtained by calling The Royal Bank of Scotland on 0345 573 196, Monday to Friday, 9am-5pm.



4. PASS Loans Ltd is part of Pension Advisers Support System Limited (PASS).



5. PASS was set up in 1998 by the IFA Life Offices Group and the Association of British Insurers, with the backing of the regulators, to assist smaller PIA-regulated IFAs carry out their pensions review to a satisfactory standard. It is funded by 30 product providers who support the IFA distribution channel.



6. PASS Loan Scheme is available to all PIA-regulated IFAs.



7. PASS offers the following services to registered members of PASS Review Ltd:
   • Helpdesk
   • IFA Guide to the Pensions Review
   • Healthcheck Service
   • Loss Assessment Service
   • PI Panel
   • Regular Newsletter
   Full details of all these services are available from the PASS Helpdesk, which can be contacted on 0870 900 7277, Monday-Friday, 9am-5pm, or by emailing PASS at helpdesk@pass-review.ltd.uk. IFAs not already registered may do so free of charge through the Hepdesk.