Friday Papers: Tax relief on pensions is reduced - money news

Financial Times

* From next April, people will be able to save only £50,000 a year into a pension with tax relief, down from a current annual limit of £255,000; many pension consultants had predicted the government would set a cap of £40,000 a year.

* Banks will no longer be able to sell payment protection insurance at the same time as credit cards, loans and mortgages, the Competition Commission said on Thursday.

* James Caird Asset Management, the $2.5 billion credit hedge fund, is to launch a new fund - with $100 million under management - to invest in distressed US mortgage bonds.

* New York city’s mayor Michael Bloomberg will retain Steven Rattner as the manager of his $5bn fortune even if the financier is penalised for his role in “pay to play” practices in New York state’s pension system.

* In a “transparency report” on upheavals during the global credit crisis, UBS has acknowledged serious errors but declined again to take legal action against former top managers.

* A stand-off between France and the UK has dashed hopes that an agreement on European rules for hedge funds and private equity funds could be reached this week.

* AIA will address questions about its growth by increasing profitability and expanding organically rather than by pursuing acquisitions, according to Mark Tucker, chief executive.

The Times

* Alain Grisay, F&C Asset Management chief, has warned the activist shareholder Edward Bramson that he would jeopardise £14 billion worth of business if he increases his holding beyond 10% by triggering a change-of-control clause.

* Engine, a London-based advertising and media company that was founded only five years ago,  has secured £62.5 million from HIG Capital to fund expansion into the US, Brazil and China.

* The Government has been urged to rethink its proposed Equitable Life compensation scheme as it was accused of falsely raising policyholder hopes about potential payouts.