Money Marketing
1 August 2001

  • 'Advisers rely too much on fund past performance'

    2 Aug 2001

    IFAs rely too heavily on past performance when recommending investment products to clients, according to Ron Sandler. But his claim has been rejected by the industry and IFAs who say investment performance is too important to ignore when choosing a fund. In his consultation paper published this week, Sandler questions the importance of past performance in determining advisers' recommendations and what impact it has on product providers' investment strategies. But ...

  • A consumer's VIEW

    2 Aug 2001

    The Government investigation into long-term savings, announced last month, could have profound and far-reaching effects on the industry, in particular the remuneration of IFAs, and it will undoubtedly speed the day when IFAs have to act like true professionals and charge fees for their services. The investigation is being led by Ron Sandler, former chief executive at Lloyd's of London and former chief operating officer at NatWest. The process has started with a consultation ...

  • A revolution that's just for the rich

    2 Aug 2001

    Our industry clearly faces numerous changes. Many changes in legislation may have a far wider impact upon the industry than we have appreciated. Polarisation is in the melting pot. Control of design and marketing of pension business has effectively been hijacked by the Government, assisted by its tools, the FSA, Opra, OFT, etc. The Tory Party, having introduced polarisation in Government and indicated its opposition to reversing changes, has now changed its mind and decided that ...

  • Aberdeen rocks split-cap sector

    2 Aug 2001

    The decision to suspend dividends on Aberdeen's European technology & income trust could send the split-capital investment sector into turmoil. The trust stopped dividend payments on its income shares last week after assets fell to £178m from £400m at its launch in March last year. After subtracting the trust's £164m of bank borrowings, the fund now has a value of around £14m. The fund's main investors, which include BFS's ...

  • ABI set to adopt Saltr standards on with-profits

    2 Aug 2001

    All ABI members may be forced to adhere to Saltr standards on with-profits disclosure under the latest proposals on annual with-profits statements. The proposals, unveiled at an ABI with-profits workshop this week, may be introduced as either a code of best practice, a mandate for members or may be adopted by the FSA as part of new regulations following reviews of with-profits and disclosure. The plans for annual statements follow the ABI working group's activities ...

  • Advisers sign up to sell online benefits package

    2 Aug 2001

    Online employee benefits software specialist 4th Contact has signed partnerships with 21 IFAs to promote its service, which allows employees to keep track of their benefit packages online. Working Wealth is designed to cut out many of the administrative costs which it is argued prevent small and medium-sized companies from offering flexible benefits to their employees. It allows employees to keep track of the value and status of benefits such as pensions, life and health ...

  • Age Concern publishes guide to raising cash on home

    7 Aug 2001

    Age Concern is publishing a guide to show how older homeowners can raise cash from the value of their property.

  • Autif draws up new way to compare total costs

    2 Aug 2001

    Autif is working on a new comprehensive method for calculating investment fund charges, to allow consumers to compare similar products easily. The Total Investment Cost will go beyond the Total Expense Ratio, encompassing initial costs and annual charges. Writing in the UK Fund Review 2001, director general Richard Saunders says although Autif has advocated the use of TERs in the past, he believes the existing method of using reduction in yield produces misleading projections. S

  • Autif fighting for hold of the industry's new baby

    2 Aug 2001

    As the consultation for the Treasury's Savings and Assets for All paper drew to a close this week, excitement within the fund management community started to grow. With the introduction of child trust funds now looking increasingly likely, most investment houses are salivating at the prospect of the millions of pounds of new business which the initiative could bring to the industry. Although the initial investments will be small, the sch-eme has the potential to install ...

  • Axa offers final chance for orphan cash windfall

    2 Aug 2001

    Axa is offering policyholders their last chance to receive a cash windfall in exchange for giving up the right to future payouts from its orphan estate. The offer is a repeat of the controversial proposal made last year which won approval from the High Court in December 2000. A group of policyholders , backed by the Consumers' Association, had challenged Axa in court over the fairness of its scheme to distribute its inherited estate. Eligible with-profits ...

  • Axa with-profits bond goes for income

    7 Aug 2001

    Axa Sun Life is aiming its with-profit income bond at the IFA market. The bond is a variation of it's existing with-profits bond, but has a higher annual bonus rate at 6.25 per cent. The existing bond currently offers an annual bonus rate of 5 per cent. However, investors will get a lower terminal bonus than those who invest in the existing bond. The with-profits income bond is designed for investors seeking capital growth and regular income, perhaps during retirement, ...

  • Bank shocks market with rate cut

    2 Aug 2001

    The Bank of England has surprised the markets with a 0.25 per cent cut in its base rate, now 5 per cent.The bank's Monetary Policy Committee had been expected to leave rates on hold because of concerns over inflation, but was clearly persuaded by calls for a cut to fend off recession. 

  • Barclays - High Interest Index Linked Deposit Account

    1 Aug 2001

    Wednesday, 1 August 2001.

  • Barclays gets elemental

    7 Aug 2001

    Barclays Private Clients is offering a high interest offshore savings account that is linked to the stockmarket.

  • Barclays split offshore account

    6 Aug 2001

    Barclays Private Clients is offering a high interest offshore savings account that is linked to the stockmarket.

  • Birmingham Midshires Commercial appoints regional development manager

    7 Aug 2001

    Birmingham Midshires Commercial is appointing Paul Gorman as regional development manager for the North-east, represent the lenders business-to-business arm.

  • Brokers foresee soaring specialist lending

    2 Aug 2001

    Brokers expect specialist mortgage lending to rocket in popularity, according to the latest survey by the Intermediary Mortgage Lenders Association. Over 70 per cent of the 400 advisers in the poll said niche lending will become increasingly important to their business after seeing demand for non-mainstream mortgages shoot up over the past year. Flexible mortgages were cited as the loans which are most in demand, with mortgage brokers and IFAs predicting 10 per cent growth ...

  • Celebrity golf drive raises a record £344k

    2 Aug 2001

    This year's Financial Services Industry Sunshine Classic raised a record-breaking £344,500 for handicapped and underprivileged children at a recent charity golf tournament at Wentworth. Another £21,000 was raised through auctions and raffles at the event's celebrity dinner which meant that 20 Sunshine Coaches could be bought for the children. The auctioning of two tickets for the American Grand Prix donated by Legg Mason Investors and the Jordan racing ...

  • CGNU consolidates position in Spanish bancassurer market

    1 Aug 2001

    CGNU is forming a bancassurance partnership with Spain's fifth largest savings bank Caixa Galicia, which will see it take a 50 per cent stake in the Spanish bank's life and pensions subsidiary.

  • Clerical comeback

    2 Aug 2001

    Clerical Medical is unveiling a new £1.5m TV advertising campaign on August 1 which develops the modern cleric and medic characters introduced last year. Paul, a doctor, and Kate, a vicar, will be used to show how flexible financial products offered by Clerical Medical are suitable for lifestyle changes such as moving from full-time to part-time work or taking early retirement. Viewers are given a freefone number to help them find an IFA to learn more about Clerical ...

  • Clerical Medical not taking the multi-tie route

    2 Aug 2001

    Regarding the article in last week's Money Marketing headlined, Clerical joins the race to buy IFAs, Clerical would like to clear up any misunderstandings that IFAs may have on its stance on polarisation. Clerical Medical is a firm supporter of IFAs and polarisation and believes that multi-ties represent the worst possible scenario as a distribution channel for the financial services industry. The introduction of multi-ties would effectively mean that providers rather ...

  • CML fears over lenders' role as de facto brokers

    2 Aug 2001

    The Council of Mortgage Len-ders is seeking clarification from the FSA over proposed mortgage regulations which could force lenders to act as de facto brokers. The trade association has written to the regulator after fears were raised that lenders may have to compare all mortgage deals offered to a borrower before accepting an application as part of the FSA's disclosure requirements. The new rules could force lenders to check the presale illustration documents of rival ...

  • CML warns repossessions may rise

    2 Aug 2001

    The number of borrowers with mortgage arrears and having property repossessed has fallen this year, according to the Council of Mortgage Lenders. The CML welcomes the news but it fears uncertain economic prospects mean the numbers could rise. Lenders took 10,460 properties into possession during the first half of the year - 1.5 per cent lower than the 10,620 homes repossessed in the second half of 2000. This was driven by the number of borrowers with up to six months' ...

  • Code trio setting up rival loan trade body

    2 Aug 2001

    Three Mortgage Code Compliance Board directors are understood to be setting up a non-profit-making trade association for intermediaries to rival the proposed Nat-ional Association of Mortgage Brokers & Advisers. Exchange FS managing director Jim Gaskin, Allied Dunbar franchise develop-ment director Dave Seviour and Mortgageforce managing director Rob Clifford are believed to be drumming up support among top brokers for the venture. In a move likely to create tension between ...

  • Come and see us first, urge IFAs

    2 Aug 2001

    IFAs are urging Ron Sandler to visit them in person before making any assumptions about their role in the market. Advisers say if Sandler wants to get a true understanding of the industry, he must go beyond industry groups and talk to the individuals at the ground level who are advising consumers. Sandler has been accused of potentially misinterpreting the industry and advisers say it is up to their fellow IFAs to educate the review team about the realities of the IFA ...

  • Companies face £2.5bn in stakeholder fines says Virgin Direct

    6 Aug 2001

    Scottish Widows Investment Partnership is relocating its find management function to new head quarters.Swip says the move puts the finishing touches to its year long programme of enhancing and rebuilding its fund management business which include creating an environment to encourage and stimulate its partnership with Scottish Widows Group.

  • Divorce 'best way out of Equitable'

    6 Aug 2001

    Getting divorced could be the only escape route for Equitable Life annuitants, according to The Annuity Bureau.

  • Dresdner RCM Global Investors appoints marketing manager

    7 Aug 2001

    Dresdner RCM Global Investors has appointed Tamsin Kyle as its new marketing manager.Kyle joins from Goldman Sachs Asset Management where she was responsible for marketing its offshore funds. Previously she worked in the marketing department at Singer & Friedlander.In her new position, she will be responsible for marketing Dresdner’s 16 unit trusts, and will report to head of marketing Nick Smith.

  • DTI approves Misys - DBS deal

    2 Aug 2001

    The DTI has announced that is not to refer Misys's proposed acquisition of DBS to the Competition Commission.The £75m deal had raised issues of competition as Misys will now have almost 30 per cent of all IFAs under its umbrella.

  • Eagle Star - With Profit Bond

    1 Aug 2001

    Wednesday, 1 August 2001. Type: With-profits bond. Aim: Income and growth by investing in unitised with-profits and up to 12 unit-linked funds. Minimum investment: £5,000. Bonus rate: 5.25 per cent. Allocation rates: Option one - £5,000-£19,999 - 95 per cent, £20,000-£29,999 - 95.25 per cent, £30,000-£49,999 - 95.5 per cent, £50,000 and above 96 per cent. Option two - £5,000-£19,999 ...

  • Eagle Star swoops on with-profits

    1 Aug 2001

    Eagle Star has introduced a unitised with-profits bond that offers investors the choice of three charging options.

  • Exchange launches MPPI range

    6 Aug 2001

    The Exchange is launching a range of mortgage payment protection insurance products, available exclusively to its users.

  • Exclusive Connections brings in mig-free self cert

    3 Aug 2001

    Exclusive Connections has introduced the Mig-free self-cert mortgage.

  • Exclusive Connections tracks on

    6 Aug 2001

    Exclusive Connections has introduced a base-rate tracker mortgage that remains at 0.50 per cent for the first three years.

  • Fighting fund appeal as court rules out windfalls

    2 Aug 2001

    The High Court has ruled out the inclusion of windfall payments within pension review calculations in a decision that could cost the financial services industry at least £175m. The decision, which will also serve as a precedent for FSAVC and mortgage endowment compensation cases, must be accepted by the industry if money cannot be found to fund an appeal, prompting a call by PI insurer Collegiate for an industrywide fighting fund. Collegiate put up £250,000 ...

  • Financial Services Forum appoints marketing head

    1 Aug 2001

    The Financial Services Forum, a membership-based organisation for senior marketers, has appointed Fiona Kelso as head of marketing.

  • Finsbury Tech Trust interim results show 11 per cent fall

    1 Aug 2001

    Finsbury Technology Trust saw its net asset value per share fall 11 per cent in the six months to May, down 4 per cent on its benchmark, the Morgan Stanley Capital International World Index, which fell 7 per cent.

  • First National launches website

    3 Aug 2001

    Abbey National subsidiary First National, which offers business finance to small to medium sized companies, has launched a new website for clients.

  • Foresight may be short-sighted in hindsight

    2 Aug 2001

    Given the number of takeovers, strategic deals and rumours circulating in the financial services industry recently, one might be forgiven for thinking phase two of the polarisation review was already decided. The industry appears to be acting as if the matter is done and dusted, with the result being that multi-ties are on their way. Whether it's Amp's purchase of Towry Law, Barclays white-labelling deal with Legal & General, Bristol & West's takeover of Willis ...

  • Friends Prov 's new business dives 12 per cent

    3 Aug 2001

    Friends Provident new business figures have plummeted by 12 per cent to £181.6m from £206.8m EPI for the first half of the year.

  • FSA probes policies for cash bias

    2 Aug 2001

    The FSA has launched an investigation to determine if IFA commission levels affect the products and providers they recommend to clients. The regulator is demanding that life offices supply it with information about the commission they pay IFAs on the extent of their product range. Life offices must hand over the numbers of new policies sold and the commission paid on single premiums and regular premiums on 53 products over the last five years. The findings of ...

  • FSA publishes stakeholder persistency monitoring

    1 Aug 2001

    The FSA this week publishes its consultation paper on how accurate information on persistency rates for stakeholder pensions will be monitored. The move follows the acceptance by the regulator that existing methods of collecting and analysing persistency are not always appropriate to stakeholder schemes which are explicitly designed for policyholders to take payment holidays. 

  • FSA warning on money laundering

    1 Aug 2001

    The FSA has warned that some firms in the financial services industry will need to do more to meet their obligations to prevent and detect money laundering. The FSA has highlighted that there are gaps in the understanding of IFAs of the risks associated of cash purchases of offshore products.  

  • Fund firms beating life offices on effective ads

    2 Aug 2001

    Life offices are spending up to five times more on advertising their investment funds than pure fund managers but with sales typically around five times smaller. Figures released in the UK fund industry review 2001 show life office ad spends on funds account for as much as 1 per cent of gross sales while fund managers are on average spending around 0.1 per cent. Prudential spent £4.1m on advertising its unit trust and Isa business in 2000 but took just £442.9m ...

  • Fund sales are down by 28% but IFA share rises

    2 Aug 2001

    Sales of unit trust and Oeic Isas continued to plummet in June, down by more than a quarter on the same month last year. Gross Isa sales for the month fell by 28.1 per cent to £571.7m compared with £795.5m in June last year, according to the latest figures from Autif. Total retail sales fell by 6.6 per cent to £2.51bn from £2.69bn. The amount of Isas cashed in rose by 19.1 per cent to £1.88bn from £1.58bn. Despite ...

  • GAM deploys global trading III

    1 Aug 2001

    Global Asset Management (GAM) is following up its launch into the multi-manager hedge fund market with Global Trading III.

  • Gartmore launches stable growth fund

    3 Aug 2001

    Gartmore launches its new Stable Growth fund today, investing in zero dividend preference shares.

  • Gartmore's AlphaGen Pictor fund tops $50m in first month

    3 Aug 2001

    Investment house Gartmore has announced that its AlphaGen Pictor fund now tops the US $50m mark a month after launch. Managed by Chris Palmer and Seok Teoh, it is a non-directional long/short Pacific and emerging markets equity hedge fund and is the latest addition to Gartmore’s AlphaGen range. Its Japanese equity hedge fund Hokuto, launched in November 2000, is the only other fund still open to new business.

  • Gartmorte Stable Growth

    3 Aug 2001

    GARTMOREStable Growth FundType: Unit trust.Aim: Growth by investing in zero dividend preference shares.Minimum investment: Lump sum £1,000, monthly £50. Isa lump sum £3,000, monthly £50. Pep transfers lump sum £3,000.Investment split: 100 per cent in zero dividend preference shares.Isa link: Yes.Pep transfers: Yes.Charges: Initial 1.5 per cent, annual 1.5 per cent.Commission: Initial 3 ...

  • Giving a portfolio new properties

    2 Aug 2001

    I have a significant amount of money to invest but am reluctant to put that money in shares. I already have a portfolio of shares managed by my broker and also unit and investment trusts. I am looking for capital growth in the long term and am quite interested in property investments. What might I consider? If I invest in property, what might I expect? Property as a long-term investment has a number of attractions. Typically, it will bring capital growth and also the potential ...

  • Government set to reap £2.5bn in stakeholder fines

    7 Aug 2001

    UK firms could face total fines of up to £2.5bn for not meeting the Government's stakeholder regulations, according to Virgin Direct. According to Virgin's research there are around 50,270 companies which have yet to act on their stakeholder compliance duties and could chance a £50,000 fine from Opra. 

  • Grosvenor and Kleinwort Benson go to Chelsea

    3 Aug 2001

    Fund management group Grosvenor, which specialises in property investment, has teamed up with Kleinwort Benson Private Bank to create the Grosvenor Kleinwort Benson residential property investment fund.

  • Guides aid IFA retail business

    2 Aug 2001

    Threadneedle Investments is aiming to help IFAs with a series of investment guides for retail investors. The three guides, Investing For Your Future, Why Do I Need a Financial Adviser and How to Build a Portfolio of Investments, will be distributed through investment advisers and Threadneedle's website. The guides are offered at a time when first-time investors have been alarmed by recent market volatility. Threadneedle says the move is part of its ongoing commitment ...

  • Halifax doubles market share

    1 Aug 2001

    Halifax more than doubled its share of mortgage market in the first six months of the year and now provides a quarter of all UK loans. The lender’s net market share rocketed to 25 per cent from 12 per cent in the half-year to June but group profits before tax slid to £839m from £931m due to tighter margins and its merger with Bank of Scotland. It also ploughed £140m into its internet arm Intelligent Finance. 

  • Healthcare 4 Life offers switch on same terms

    2 Aug 2001

    PMI provider Healthcare 4 Life is offering a deal for corporate clients switching into its four-in-one policies from another provider to keep the same terms they have under their original plan. This type of business accounts for 50 to 80 per cent of the group PMI market. H4L says it is common for providers to offer the switching option on group plans and it has been under pressure from intermediaries to include it since the plan's launch in May. The advantage to companies switching ...

  • Higher cost of compensation for lenders post N2

    1 Aug 2001

    Lenders failing to correctly calculate borrowers’ mortgage repayments will have to pay substantially higher compensation costs under Financial Ombudsman Service rules after N2.

  • IFAs boost Zurich as Dunbar falters

    2 Aug 2001

    Zurich's half-year new business sales through IFAs increased by 25 per cent on last year to £135m from £108m in equivalent premium income. Sales through Sterling, Zurich's IFA-only investment brand, rocketed by 287 per cent compared with the same period last year, with IFA new investment premiums up by 43 per cent. In contrast, new business through Zurich's tied Allied Dunbar franchise grew by just 2 per cent to £148m from £146m EPI. ...

  • IFAs rocked by claims they lack investment knowledge

    2 Aug 2001

    IFAs have been accused of lacking investment knowledge and of spending more time choosing between different providers than on investment strategy in Sandler's wide-ranging review. Sandler says IFAs are more versed in areas such as tax planning than they are in understanding the often complicated nature of investment savings vehicles. He also believes they often do not come up to scratch when deciding between asset allocation strategies for clients. Some IFAs have hit ...

  • IFAs way ahead of the pack on LTC business

    2 Aug 2001

    IFAs are leading the way in the sale of long-term care policies, accounting for more than 90 per cent of the 30,000 plans sold, according to a report from market analysts Laing and Buisson. The annual report, Care of Elderly People Market Survey 2001, says growth in the industry has been held back by continuing uncertainty of the Government's plans for funding. But now the Government has finalised its plans, the report says the market is set for a major boost to sales. Voluntary ...

  • IFS goes electronic

    3 Aug 2001

    The Institute of Financial Services has introduced electronic testing to allow members to sit its Certificate for Financial Advisers when and where they want.

  • Independent view

    2 Aug 2001

    There seems to be a common theme evolving for the industry. A lengthening list of names from Robert Maxwell to Independent Insurance and now Towry Law seems to suggest that thorough external scrutiny by professional firms has proved to be less than robust in the cold light of day. Despite increasing requirements for record-keeping and additional external monitoring, we are never going to prevent such situations from occurring. But these cases, particularly the two recent ...

  • Inside EDGE ANDREW BEDFORD

    2 Aug 2001

    The recent announcement of changes to Equitable Life policy values has stimulated much concern and uncertainty about the most appropriate course of action to recommend to clients. The Countrywide network removed Equitable Life contracts from its recommended product list 12 months before the court case that ultimately caused the issues now being faced. But that does not protect IFAs from giving advice on existing policies. As with all advice, any recommendation should ...

  • Insurance premiums will continue upward growth

    3 Aug 2001

    Insurance premiums will continue to rise over the next 12 months and possibly for the next three years according to two leading UK life offices.Both Royal & Sun Alliance and Norwich Union have predicted a rise in premiums, despite the fact some policyholders have seen rates rise 26 per cent during the past year.

  • Investment view

    2 Aug 2001

    Well, I did put my money where my mouth was. Last week, I dipped a toe back into the market. The trigger was the FTSE100 flirting with the low that was plumbed back in March. Judged purely on short-term considerations, the timing could have been better. The stockmarket is at the same level as it was at the beginning of 1998. That year saw the FTSE100 soar above 6,000, only to be pulled back by the triple whammy of the Russian debt crisis, the implosion of Far Eastern ...

  • Issues over default options

    2 Aug 2001

    I refer to Nick Edmans' letter (Money Marketing, July 26).I agree completely with Opra that the form SHP100 (which is not prescribed in legislation) is entirely clear and that schemes can have more than one default option. My concern arises over two issues. First, my information was that some schemes have listed more than one default option but without specifying the categories of member to which each applied. If Opra can confirm that, where there is more than one default option, ...

  • It takes two

    2 Aug 2001

    Over the last two weeks, I have looked at income-splitting between a couple where the means of producing earned income is capable of being influenced by one or both of the couple. I would like to turn to tax-planning opportunities that may exist for a couple in relation to capital invested to produce income. Some of these opportunities are so obvious that they may not be raised as regularly as they should be. Perhaps the most obvious of tax-efficient investment wrappers ...

  • JPMF and Schroders eye index-linked arena

    2 Aug 2001

    JP Morgan Fleming and Sch-roders are looking to launch into the guaranteed index-linked product market following the recent success of prov-iders such as NDF. Over the last 18 months alone, NDF has sold around £600m of its income & growth products while many traditional active fund managers have been struggling to sec-ure new business due to the volatile markets. Index-linked guaranteed products have traditionally been set up by administrative houses such as NDF ...

  • Julian Gibbs

    2 Aug 2001

    I am a great fan of Future Value Consultants, the independent organisation which evaluates stockmarket-linked plans. The average rating of over 100 plans analysed is only 5.7 out of 10 but the new GE Life high income & growth plan VI is an exception. It scores eight out of 10 for higher-rate taxpayers and seven out of 10 for basic-rate taxpayers. It is particularly recommended because of its high annual income of 10.25 per cent a year or 33 per cent growth and because of its low ...

  • L&G sees 30% rise in sales

    2 Aug 2001

    Legal & General achieved a 30 per cent rise in life and pension sales in the first half of this year to £266m from £205m in equivalent premium income. The life office says it is planning more partnerships similar to its Barclays, Woolwich and Alliance & Leicester tie-ups. Individual pension sales were up by 15 per cent to £202m from £175m while corporate pension business more than doubled to £64m from £30m. UK unit trust and Isa sales ...

  • Letters of the law

    2 Aug 2001

    I have just received a copy of the Regulation of Mortgages consultation paper sent to me by the MCCB, one of the numerous regulatory bodies to which I am required to subscribe. Very soon I can see that the first page of my letters will be taken up by a list of regulatory bodies with the letters PTO for the rest of them, with the main body of my letter starting on page two. Why was mortgage regulation of IFAs left out of the FSA's remit when in fact the syllabus for ...

  • LM Financial pursues Bermudan dream

    7 Aug 2001

    IFA firm LM Financial are pursuing a Bermudan dream as part of funding drive to raise capital for a Brit flick which it hopes will deliver clients onshore tax-breaks .

  • Lords ruling on liability puts IFAs in the frame

    2 Aug 2001

    IFAs can be personally sued for advice after lea-ving a firm even though they gave the advice in the capacity of an employee following a House of Lords decision this week. The judgment is not open to appeal and means that IFAs must face up to exposure to personal liability where any firms they have worked for do not have sufficient cover to meet all claims. The Court of Appeal judge who made the original decision recomm-ended that advisers should take out personal run-off ...

  • Low stakeholder sales raise compulsion again

    2 Aug 2001

    Legal & General and Prudential, two of the highest-profile stakeholder providers have voiced concern over low take-up levels of plans, reopening the debate over compulsion. In its annual results, Pru said it has set up 9,000 stakeholder schemes in the first half of this year, offering 340,000 employees access to stakeholder, but just 500 people - 0.15 per cent of the total, are contributing to plans. Pru suggests that in 12 to 18 months it will be advising the Government ...

  • Manchester gets the four-year discount itch

    6 Aug 2001

    Manchester Building Society has brought in a four-year discount mortgage.

  • Master blaster

    2 Aug 2001

    With a fair degree of justification, the UK financial services industry is considered to be one of the best in the world. One of the forerunners in the explosion in global growth of financial services in saving for retirement, protection of capital and out and out aiming for capital appreciation, the UK has often represented a template for other countries. But there have been developments elsewhere which show how even good original designs can be adjusted and improved. A case ...

  • Merrill Lynch HSBC and BA in Air Miles deal

    2 Aug 2001

    Merrill Lynch HSBC and British Airways have set up a marketing deal designed to benefit clients of both companies by offering cash, shares and BA Air Miles. The online financial services provider, launched earlier this year, also hopes to raise its profile among its target market of affluent investors who fly with BA. As part of the deal, BA UK executive club members who fund their Merrill Lynch HSBC Investment and Banking Portfolio with at least £5,000 in cash ...

  • MGM to promote alliance of agents

    2 Aug 2001

    MGM Assurance is spearheading a new alliance between its tied agents with the aim of boosting premium income and cross-selling opportunities by pooling resources. The Master Associate Alliance scheme is also bidding to improve customer relations. The scheme will allow tied agents to remain separate businesses. One business is nominated the master agency and the others become associated agencies. The businesses must be MGM appointed representatives. The master ...

  • Nationwide chief blasts the banks

    2 Aug 2001

    Nationwide Building Society chief executive Brian Davis has slammed banks for confusing borrowers into believing they are getting a good deal when many are paying over the odds. Davis, who is due to retire in December, claims banks and plcs are treating their mortgage customers with disdain by keeping them on a high standard variable rate after their initial cheap discount deal has expired. He claims they rely on their borrowers failing to realise their special deal has ...

  • NDF zooms in on dividends

    1 Aug 2001

    NDF Administration has introduced the income plan, which offers a fixed rate of tax-free income in the first year.

  • Neville James launches interactive website

    3 Aug 2001

    Market maker Neville James is a launching an interactive website which allows mortgage endowment customers and IFAs to submit policy valuation forms online. As well as giving instant quotations, the traded endowment website can accept offers online, print copies of the contract note and provide a detailed list of the policies on sale and their current status. It also has the ability to specify search criteria according to a policyholder’s specific requirements and can store the ...

  • No place like home for Credit Suisse

    1 Aug 2001

    Credit Suisse Asset Management has introduced a fund of funds that invests in the UK and overseas.

  • Northern Rock rolls out three savings bonds

    3 Aug 2001

    Northern Rock has launched three new fixed rate bonds with fixed interest rates of 5.80 per cent gross for one year, 5.90 per cent gross for two years and 6.00 per cent gross for three years.

  • Norwich Union endorses Raising Standards

    1 Aug 2001

    Norwich Union is throwing its weight behind the Raising Standards initiative and is issuing a briefing document to IFAs and business partnerships.

  • On good terms

    2 Aug 2001

    I already issue terms of business letters. What possible benefit would issuing a separate engagement letter offer my business? The difference between terms of business and a letter of engagement is that your terms of business will set out the parameters within which you conduct your business towards clients generally and further explain the rights of clients and your obligations to clients arising from the PIA rules. By contrast, an engagement letter is specific to each ...

  • OUTSIDE EDGE David ferguson

    2 Aug 2001

    Imagine a world in which everything is ideal. Trains arrive on time, mobile phones do not have irritating ring tones and the Welsh woman on Big Brother is not on your telly every night. Now take a deep breath and imagine even harder - think of a world in which instead of routinely misleading their clients, investment companies make every effort to fairly explain the features and limitations of their products. Am I being a little harsh? Er, no I don't think so. From ...

  • PIA expels 'unfit' Surrey IFA

    2 Aug 2001

    The PIA has expelled a Surrey IFA for being unfit to conduct investment business and failing to meet the regulator's financial requirements. The PIA says Professional Advisers Investment Services of Regent House, Guildford, which had four RIs, was expelled after being placed into creditors' voluntary liquidation on March 10. At least one of its clients lodged a claim with the Investors' Compensation Scheme, which resulted in the ICS declaring the firm in default. It ...

  • PIA fines London IFA £50,000

    6 Aug 2001

    The PIA has fined IFA City Assurance Consultants of The White House, 100 Wimbledon Hill Road, London £50,000 for pensions review failings.

  • PIA revokes suspension of Blenheim Financial Services

    7 Aug 2001

    The PIA has revoked the suspension of IFA Blenheim Financial Services of Bidmead, Cheltenham Road, Bisley, Stroud, Gloucestershire. The firm had been forced to cease conducting investment business regulated by the PIA because it had failed to renew its PI cover as required. It has now done so and satisfied the regulator's rules. The PIA has suspended 16 firms for failing to renew their PI cover so far this year. 

  • PIA revokes suspension of Gloucestershire IFA

    1 Aug 2001

    The PIA has revoked the suspension of IFA Blenheim Financial Services of Bidmead, Cheltenham Road, Bisley, Stroud, Gloucestershire. The firm had been forced to cease conducting investment business regulated by the PIA because it had failed to renew its PI cover as required. It has now done so and satisfied the regulator's rules. The PIA has suspended 16 firms for failing to renew their PI cover so far this year.

  • Positive Solutions puts Exchange in frame

    7 Aug 2001

    Positive Solutions is incorporating a customised version of The Exchange into its extranet site as part of a deal to provide members with extra technology services.

  • Price goes before a fall in scramble for distribution

    2 Aug 2001

    IFAs are facing a tough dilemma as the scramble for distribution heats up and life offices start to approach firms with open cheque books. In last week's Money Marketing, it was revealed that Clerical Medical representatives, at least at the level of broker consultants, have app-roached at least one national IFA and other smaller firms, apparently advising them that multi-ties are inevitable. At a recent polarisation conference, Charcol wealth development director ...

  • Product matters

    2 Aug 2001

    I am often sceptical when an established retail asset management house launches new funds. After all, there are so many funds in the marketplace, you do have to question whether there is room for any more. In addition, many of those who launch new funds would do well to concentrate on sharpening up some of their existing funds. However, I do welcome those fund launches that bring something new to the party. I feel that, in launching its Private Portfolio ...

  • Regulation by risk

    2 Aug 2001

    The FSA is focusing on a radical new risk-based approach to supervising firms to apply resources to the areas we believe pose the greatest risk to statutory objectives. We will be seeking to identify areas of concern. The risks will relate to the FSA's four statutory objectives of market confidence, consumer protection, public understanding and reducing financial crime. They should not be confused with commercial risks and within financial markets generally. Over ...

  • RLAM poaches Gartmore head of UK equities

    6 Aug 2001

    Royal London Asset Management has appointed Andrew Carter as its new chief investment officer.Carter, who will join RLAM in September, leaves Gartmore, where he was head of UK equities and a member of its investment executive committee.He has been at Gartmore for 14 years and head of its UK equities team since 1999.

  • Ronnie Lymburn

    2 Aug 2001

    When not trying to get his golf handicap below 16, Ronnie Lymburn lives and breathes financial services. In the industry for 40 years and with a wife (Sandra) who is investment marketing director of Zurich IFA, Lymburn is still looking to broaden the service he can give his customers. At the age of 58, the director of both The Income Drawdown Advisory Bureau and The Annuity Bureau is looking at pastures new with the launch of a long-term care operation, The Care Bureau, due to ...

  • Saga searches for IFAs to boost advice business

    2 Aug 2001

    Saga Services is recruiting IFAs in a bid to become a major player in financial advice to its customer base of people over 50. The financial services, holidays and publishing company which targets the growing and increasingly wealthy grey market in the UK is looking for FPC3-qualified IFAs to work from home on a salaried basis. It is hoping to attract people who are working in banks and building societies as well as existing IFAs to join its PIA-approved Saga Investment ...

  • Saltr charges may be cut to attract smaller brands

    2 Aug 2001

    The Pensions Protection Inv-estments Accreditation Board says it is considering introducing a lower charging bracket for Saltr accreditation in a bid to ensure that smaller brands chase the quality mark. The PPIAB, the independent body responsible for awarding life offices the Raising Standards quality mark, says it is considering lowering the bar on charges to encourage smaller life offices, particularly friendly societies, to think seriously about joining the initiative. Some ...

  • Sandler commission bombshell

    2 Aug 2001

    The head of the Treasury's financial services review Ron Sandler has dropped a bombshell on IFAs by questioning their relationship with clients because of commission. The move, which comes as the FSA launches its own probe into commission, fuels speculation that payments may be capped through a new maximum commission agreement or Catmarking of advice. Sandler has published a consultation paper on the review this week in which he raises the idea of a cap on commission. ...

  • Sandler slams 'poor-value' with-profits

    2 Aug 2001

    Ron Sandler has launched a blistering attack on with-profits policies, slamming them for lacking transparency and offering poor surrender values. He has also savaged fund managers, questioning their investment objectives and accusing them of viewing good marketing as more imp-ortant to sales than investment performance. The role of the Government as a regulator of product design has also been included in the consultation, questioning what effect these regulations have ...

  • Schroders - West End of London Property Unit Trust

    1 Aug 2001

    Wednesday, 1 August 2001. Type: Unit trust. Aim: Growth by investing in freehold and leasehold properties in London. Minimum investment: £1m. Place of registration: Jersey. Investment split: Mayfair and St James' 61 per cent, Soho 18 per cent, Covent Garden 14 per cent, Knightsbridge 7 per cent. Isa link: No. Charges: None. Commission: None. Tel: 0800 526540.  

  • Schroders cuts unit trust rates

    6 Aug 2001

    Schroders is to raise the annual charge on six of its unit trusts by 0.25 per cent from November 21.The Schroder Pacific, Tokyo, UK Equity, Income, Gilt & Fixed Interest and European funds will all have their annual management charge increased to 1.5 per cent from 1.25 per cent.Letters informing IFAs and unitholders of the changes will be sent out this week.

  • ScotLife moves into protection market

    2 Aug 2001

    Scottish Life is setting up a new protection business in Edinburgh, solving the mystery surrounding the identity of the new Scottish player. It is understood to be headed by former Scottish Provident head of marketing and business development David Robinson. Money Marketing understands ScotLife has been recruiting former ScotProv staff who have left since the takeover by Abbey National and merger with Scottish Mutual, to build a new company specialising in protection. Scottish ...

  • Scottish Mutual goes for tailored cut

    6 Aug 2001

    Scottish Mutual has designed the tailored flexible trustee investment plan for trustees of occupational and personal pension investors who are looking for a pooled investment option.It provides access to a range of Scottish Mutual pension funds including managed, with-profits, European equity and North American equity. Trustees can choose up to 10 funds and are allowed to switch between funds without charge. They can make regular and single contributions ...

  • Scottish Mutual launches investment plan for pensions

    6 Aug 2001

    Scottish Mutual is launching a new flexible trustee investment plan for its pension products.

  • Scottish Mutual looks at the classic flexible way

    7 Aug 2001

    Scottish Mutual has introduced the classic flexible trustee investment plan.

  • Sir Brian Stewart to chair Standard Life

    6 Aug 2001

    Scottish & Newcastle chairman Sir Brian Stewart is to become the new chairman of mutual life office Standard Life.

  • Six high-income funds win S&P's top accolade

    2 Aug 2001

    Six funds have been awarded AAA ratings by Standard & Poor's in its latest review of high-income fund sectors. Threadneedle's UK corporate bond, Aberdeen's sterling bond income and Schroders' international selection emerging market debt fund were all upgraded from AA status. The Invesco GT gilt, Hend-erson horizon sterling bond and Henderson preference & bond funds all kept their top ratings. The best-performing high-income sectors over the past 12 ...

  • Skandia concentrates on multi manager approach

    3 Aug 2001

    Skandia has added to its range of multi-manager funds with the introduction of the Skandia UK active equity fund.

  • Skandia offers multi-manager fund

    2 Aug 2001

    Skandia has set up a new multi-manager fund bringing together the talents of Jupiter, SG Asset Management and Merrill Lynch Investment Managers. The UK dynamic fund is available through Skandia's life and pension products and will be the third in its UK equity fund range alongside its UK index and UK equity funds. MLIM will manage 50 per cent of the portfolio, SGAM 35 per cent and Jupiter the remaining 15 per cent. The three managers will also assume responsibility ...

  • Skipton expands with five-year bond guarantee

    2 Aug 2001

    Skipton Financial Services, the IFA arm of Skipton Building Society, has appointed two new associate directors as part of its growth plans. Former head of branch sales Paul Isherwood has been appointed to associate director of sales, taking responsibility for managing SFS's team of 40 advisers and six managers specialising in inv-estment and inheritance tax planning. Corporate investments project manager Alison Miller steps up to associate director of business development ...

  • Skipton Guernsey looks to the FTSE 100 for growth

    6 Aug 2001

    Skipton Guernsey’s five-year guaranteed growth bond is aimed UK and offshore investors. Designed for those who are looking for growth by investing in the stockmarket it could also be attractive to those who want a guarantee of their original capital.

  • Smart thinking

    2 Aug 2001

    As October 8 approaches, there are strong suggestions around the market that there are just not enough advisers to meet the demand from employers to set up schemes before they face the prospect of a potentially stinging Opra fine. In the rush to establish stakeholder schemes before the deadline, it is important that IFAs are not storing up problems for themselves by choosing providers who are not able to cope with the admin strain that writing vast numbers of new schemes puts ...

  • Source of the interneet

    2 Aug 2001

    It is easy to lose sight of the real internet story through the stream of headlines chronicling the mood swings in the international markets. For IFAs, the fundamental drivers behind the internet are as attractive as ever. At its heart is the promise of new business, reduced costs, increased competitiveness and, above all, improved client service. But many IFAs feel the net has promised much and delivered little. There is a real disappointment that is hindering development ...

  • Southern Pacific discounts range by 1.25 per cent

    1 Aug 2001

    Southern Pacific Mortgage Limited is offering a 1.25 per cent discount across its whole range of standard, buy to let and right to buy mortgage products, which include self certification options for both employed and self employed applicants up to 85 per cent loan to value.

  • St James's Place 'not looking to multi-tie'

    2 Aug 2001

    St James's Place Capital is hoping the polarisation review will bring further opportunities for gap-filling but is not looking to multi-tie, the group reveals in its half-year results. New business figures for the first half of the year, which were unveiled last week, show that equivalent premium income was up by 21 per cent to £106.9m from £88.4m. Single-premium unit trust business was down by 7 per cent to £187.5m from £200.8m while pension ...

  • Standard Bank Offshore takes the balanced approach

    6 Aug 2001

    Standard Bank Offshore has completed its range of strategist funds with the introduction of the US $ balanced strategist portfolio.

  • Standard rebuts Stewart rumour

    7 Aug 2001

    Standard Life has dismissed as "pure speculation" claims that Scottish & Newcastle chairman Sir Brian Stewart is to become its new chairman.The mutual life office says no decision has been made as to who will replace current chairman John Trott, who is expected to announce his retirement at Standard's AGM next April. 

  • Sun Bank profits up 39 per cent

    7 Aug 2001

    Sun Bank pre-tax profits jumped 39 per cent to £6.2m from £4.46m for the first six months of the year.

  • Sun Life warms to with-profits

    6 Aug 2001

    SUN LIFEINTERNATIONAL WITH PROFITS BONDType: Offshore with-profits bond.Aim: Income and growth by investing in Axa Sun Life's with-profits fund.Minimum investment: £25,000.Place of registration: Isle of Man.Investment split: Property 8 per cent, equities 92 per cent.Isa link: No.Charges: Annual 1 per cent.Bonus rate: 6.5 per cent for sterling, 6 per cent for US dollars and Euros. Additional bonus of 0.5 ...

  • Swip move headquarters

    3 Aug 2001

    Scottish Widows Investment Partnership is relocating its find management function to new head quarters.Swip says the move puts the finishing touches to its year long programme of enhancing and rebuilding its fund management business which include creating an environment to encourage and stimulate its partnership with Scottish Widows Group.

  • Teacher's add up discount

    7 Aug 2001

    Teacher's Building Society has introduced a five-year discounted rate mortgage that is available for loans of up to 95 per cent of valuation.

  • The Daley Update

    2 Aug 2001

    Legal & General has redrawn the terms and conditions on its unit trust range, axing many of its withdrawal char-ges and introducing monthly savings plans. All L&G index unit trusts, as well as the fixed-interest trust, high-income trust and ethical trust, will have their 1 per cent withdrawal fee removed from July 31 while all unit trusts will be eligible for a new monthly savings scheme, with a minimum contribution of just £25. Invesco Perpetual has appointed Rita Whig ...

  • The drag trade

    2 Aug 2001

    Last week, I looked at continuing improvements in life expectancy, the implications of which form what I perceive may be the severest risk with income drawdown recommendations - the probability that annuity rates will continue to fall over the next couple of decades, even if interest rates remain static. I strongly believe that drawdown and staggered vesting - when properly understood and considered - should, in fact, account for a much greater share of the retirement income market ...

  • The reel thing...

    2 Aug 2001

    IFAs can help clients finance movies such as Henry V through a bespoke film sale and leaseback package from media lawyers Finers Stephens Innocent. The scheme aims to help IFAs pool investment clients into finance schemes entitling investors to tax relief of 40 per cent.

  • TMO leaves tracks

    3 Aug 2001

    The Mortgage Operation has unveiled the freedom mortgage, a flexible base rate tracker that discounts the Bank of England base rate by 0.45 per cent in the first nine months.This gives a current payable rate of 4.55 per cent and after the discount period, it will track at 1.2 per cent above the base rate for the mortgage term. It is available for loans of up to 90 per cent of valuation and there is no early redemption penalty.Borrowers can make overpayments, underpayments, ...

  • Top-selling funds lag on performance

    2 Aug 2001

    The best-selling funds in 200 are among this year's worst performers, with just two of last year's 50 best sellers ranked in the top quartile. Of the 50 most popular active retail funds in 2000, 16 are now bottom quartile for the year to the end of July, with 20 in the third quartile and 12 in the second in their respective sectors. Only Fidelity's American and M&G's corporate bond funds are ranked top quartile in their respective sectors. The 50 best selling funds ...

  • UCB raises fixed rates

    6 Aug 2001

    Nationwide specialist lender UCB Home Loans is increasing rates on its fixed rate products by up to 0.2 per cent from today, following increases across the fixed rate mortgage market.

  • West Brom appoints deputy chairman

    7 Aug 2001

    West Bromwich Building Society is appointing Norman Cooper as deputy chairman.Cooper has been a non-executive director at West Bromwich since 1998, and was formerly with Royal Insurance, where he was director and general manager prior to its merger with Sun Alliance in 1996.West Bromwich chairman Roger Dickens says: "Norman has made a considerable impact during the three years he has been on the board. His support and positive insight into our business has been phenomenal."

  • Wide-angle review needs to focus on the real picture

    2 Aug 2001

    The day-to-day business practices of almost every IFA in the UK are being challenged by the Treasury-sponsored Sandler review. In his "consultation" document, the former Lloyd's of London chief Ron Sandler has questioned just about everything advisers do. The two "observations" - IFAs might argue they are accusations - of most concern are IFAs' lack of investment knowledge and that commission may be skewing the market to the detriment of consumers. The ...

  • Winterthur move to raise trade and consumer profile

    2 Aug 2001

    Winterthur Life, the life and pension arm of Credit Suisse, has appointed London business communications agency VLP to handle its PR and media relations. The agency's brief is to focus on raising Winterthur's trade and consumer profile in the growing preand post-retirement marketplace. VLP says it will be focusing on promoting Winterthur as having an innovative app-roach to pensions and its position as one of the UK's top 10 providers of group personal pensions ...

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