Money Marketing
1 September 2004

  • 'HBOS would axe Abbey brand and cut public choice'

    2 Sep 2004

    An HBOS takeover of Abbey would see the Abbey brand disappearing and would be bad for consumer choice, says Charcol senior technical manager Ray Boulger. He believes if HBOS were successful, it would mean an end to the 60-year-old Abbey brand. He points to the fact that HBOS has five brands with Halifax, Bank of Scotland, Intelligent Finance, Birmingham Midshires and The Mortgage Business, saying there is no logic in buying Abbey and maintaining two strong high-street brands. Boulger ...

  • 'House prices grinding to a halt' - Rightmove

    1 Sep 2004

    The rise in house prices is grinding to a halt in the North and Northwest according to Rightmove, which looked at asking prices from August 14th to August 28th. Rightmove says national asking prices fell by 0.6 per cent or £1,217 in the last two weeks and puts the average property asking price at £191,118. Northern prices fell by 0.3 per cent while prices in the northwest remained the same over the period.

  • 19 firms struck off by FSA

    2 Sep 2004

    The FSA has cancelled the permission of 19 firms in the last year and caused over 100 to make changes to the way they operate. In the year to June 30, around 50 firms addressed breaches of the FSA's threshold conditions when faced with the prospect of a referral to the regulator's threshold conditions team while 59 other firms took remedial steps when they were threatened with imminent enforcement action. Nineteen firms had their permission to conduct investment ...

  • A&L moves all IFA mortgages online

    2 Sep 2004

    Alliance & Leicester claims to be the first lender to move 100 per cent of its intermediary mortgage business online. A&L already receives over 90 per cent of intermediary applications online and has decided to move all its business online from October 1. It says this will help intermediaries with their record-keeping and enable them to meet their compliance obligations from October 31. A&L's online application system provides intermediaries with ...

  • Abbey relaunches loan club with new services

    2 Sep 2004

    Abbey for Intermediaries is relaunching loan club The Mortgage Alliance to cater for directly authorised loan brokers with support services provider Threesixty. TMA will offer enhanced services and facilities to help intermediaries adapt to regulatory changes as well as a new flexible compliance service tailored to meet the needs of individuals. The service will be off the shelf so intermediaries will only pay for services they use in a similar way to the support services ...

  • Advisers split on paying FSCS bill

    2 Sep 2004

    Half of IFAs do not intend to pay their Financial Services Compensation Sch-eme levy by the deadline this week. An MM online survey showed that 49.5 per cent of IFAs were not planning to pay their FSCS bill in the next week while 50.5 per cent said they would pay the bill. FSA managing director David Kenmir told Money Marketing last week that if IFAs do not pay their bill in time, they face an admin charge of £250 as well as interest payments of 5 per cent above ...

  • Aifa's View

    2 Sep 2004

    I did enjoy my holiday but I could have done without a return marred by the continuing Financial Services Compensation Scheme saga. I would also prefer to be able to give a more upbeat assessment of this situation than a comment that discussions with regulator and providers are continuing. But that is where we are at. I do deplore (good word, for which thanks are due to the Treasury select committee) the tone of some of the FSA comment, when it is clear that the reason for IFAs' ...

  • Alliance & Leicester - Two Year Fixed Rate Standard Package

    7 Sep 2004

    Type: Fixed-rate mortgageFixed term: Until October 31, 2006Fixed rate: 4.95%Minimum loan: £15,000Maximum loan: Up to 95% of valuation subject to a maximum of £250,000Income multiples: Up to 95% of valuation - up to 3.3 times principal income plus second or 2.75 times joint, up to 85% of valuation - up to 3.6 times principal income plus second or three times joint, up to 75 % of valuation - up to ...

  • Apcims tells Government to stop blaming savers

    1 Sep 2004

    The Association for Private Client Investment Managers is calling on the Government to stop blaming savers for not saving. Apcims wants the governmentto make beneficial policy changes instead of pointing the finger. Apcimschief executive Angela Knight says regulatory change should be minimised and the value of advice to be promoted in order to get people to save.

  • Arla warns BTL investors to use registered agents

    2 Sep 2004

    The Association of Resid-ential Letting Agents is warning landlords that they should use regulated letting agents which belong to professional associations. Arla says it knows of several failures of letting agents this year, with collapses in major cities around the country. But it says that buy-to-let investors are unaware of the risk to their money posed by the collapse of letting agents. Arla says its letting agents are fully bonded, hold professional indemnity ...

  • ARs should submit multiple network applications - PMN

    6 Sep 2004

    Intermediaries looking to become an appointed representative should consider submitting membership applications to at least three mortgage networks in order to ensure they are able to continue trading from M-Day, according to PMN.PMN believes that as many as 20 networks won't be in a position to offering full network facilities to members by October 31st.Managing director Dale Knight says: "My recommendation is that anyone seeking AR status through a network should submit ...

  • August house prices fall

    6 Sep 2004

    House prices fell by 0.6 per cent in August according to the latest house price survey from HBOS.The sharp drop in mortgage approvals in July is consistent with house price inflation in the 10 per cent and 15 per cent area. The Halifax says although it expects house price inflation to slow, the property market continues to be well underpinned by a string economic background, historically low debt-servicing costs and supply shortages. It is expected the base rate will remain ...

  • Axa putting guarantees at centre of Protection proposition

    2 Sep 2004

    Axa Sun Life is developing a guaranteed-rate product as part of a revamp of its protection proposition due to be unveiled in November. It is believed that Axa has been studying market developments and pinpointed consumer demand for a guaranteed product. Product providers believe consumers have become more keen on guaranteed rates because of the hike in premiums since the start of the year. So far, however, providers have preferred to launch products where the ...

  • Bank of Ireland hit with £375,000 fine

    2 Sep 2004

    Bank of Ireland has been fined £375,000 by regulators for failing to have systems to stop a series of high-risk cash transactions worth £2m.The FSA said that the transactions were a breach of policies and procedures and appeared to be suspicious. The transactions are currently being investigated by law enforcement.

  • Baronsmead 2 VCT stages comeback

    7 Sep 2004

    Isis Equity Partners is aiming to raise up to £20m in C shares as a top-up to the baronsmead 2 venture capital trust.Baronsmead 2 was established in 1998 and currently has around 60 holdings. Approximately 84 per cent of the current portfolio is invested in qualifying companies so the directors believe it is now time to expand the portfolio to around 80 holdings. Part of the reason for the top-up is that the recent changes to the tax advantages of VCTs, where income ...

  • Bestinvest concerned over better than best business

    2 Sep 2004

    An IFA has raised concerns that the better than best rule is only being adopted loosely across the market. The rule, which is due to be scrapped by the FSA after depolarisation, prevents IFAs from placing business with product providers which own more than 10 per cent of their firm unless they can demonstrably prove it is the best product available But Bestinvest head of communications Justin Modray says he is worried that the rule is loosely followed across the market and believes ...

  • Branson's pickle...

    2 Sep 2004

    What do the Diary and entrepreneur Richard Branson have in common? We both rely on Lansons PR Liz Willder for our mobile phone solutions. Avid Diary readers may remember Liz's champion effort in tracking down the Diary's mobile phone after a long night on the town and it seems even Sir Richard has taken note of her prowess. While shepherding journalists around the V-Festival in Chelmsford, Liz was coat-hangered by Sir Richard, perplexed by the workings of his ...

  • Bristol & West Mortgages - 5.75% Self Cert Discounted Rate

    7 Sep 2004

    Type: Self-cert discounted rate mortgageDiscounted term: Until September 30, 2007Discount: 1.09%Payable rate: 5.75%Minimum loan: £25,001Maximum loan: Up to 85% of valuation subject to a maximum of £500,000Income multiples: Up to 3.5 times principal income plus second or 2.75 times jointConditions: Maximum one CCJ/default satisfied for at least 12 months, £300 cashback, free valuationArrangemen

  • Cable slams Revenue over tax on endowment payouts

    2 Sep 2004

    Liberal Democrat Party Treasury spokesman Vincent Cable has written to the Inland Revenue to ask why victims of endowment misselling will be forced to pay tax on their compensation.The Revenue has made it clear in its latest bulletin that thousands of people getting compensation for misselling claims will have to pay tax on their payout.But Cable believes the Government should have foreseen any tax costs to misselling victims. He says the Treasury could have ...

  • Charity attacks NU over stance on cancer

    2 Sep 2004

    A leading cancer charity has hit out at an insurer's decision to exclude a new bowel cancer treatment from its PMI policies and fears that others will follow suit. In a letter seen by Money Marketing, Norwich Union Healthcare tells a consultant that it will not pay out for cancer patients who need a certain chemotherapy treatment. The letter says that Cetuximab monotherapy, which is used to treat bowel cancer, is not eligible for benefit on NU Healthcare policies. ...

  • Chelsea Building Society - Prospect Three Year Fixed Rate

    6 Sep 2004

    Type: Fixed-rate adverse credit mortgageFixed term: Until October 1, 2007Fixed rate: 6.39%Minimum loan: £25,000Maximum loan: Up to 85% of valuation subject to a maximum of £250,000Income multiples: Up to 3.75 times principal income plus second or 2.8 times jointConditions: Maximum £3,000 in CCJs, current and satisfactory IVAs allowed, discharged bankruptcy and past repossessions consideredArrangement ...

  • Cheltenham & Gloucester - Two Year Premium Fixed Rate

    1 Sep 2004

    Type: Fixed rate mortgageFixed term: 4.99%Fixed rate: Until September 30, 2006Minimum loan: £100,000Maximum loan: Up to 80% of valuation subject to a maximum of £3mIncome multiples: Based on affordability calculation and credit scoreConditions: Capital repayments of up to 10% a year allowed without penaltyArrangement fee: £499Redemption fee: 2% of amount repaid in year ...

  • Clerical changes track

    1 Sep 2004

    CLERICAL MEDICALFTSE 100 Tracker FundType: OeicAim: Growth by tracking the performance of the FTSE 100 indexMinimum investment: Lump sum £10,000, monthly £400, Isa lump sum £3,000, monthly £200Investment split: 100% in UK equitiesIsa link: YesPep transfers: YesCharges: Initial 4%, annual 1%Commission: Initial 3%, renewal 0.5%, Isa/Pep transfers ...

  • Clerical widens range of drawdown options plan

    2 Sep 2004

    Clerical Medical is launching an updated version of its inc-ome-drawdown retirements options plan, with a wider range of benefits and a simplified charging structure. Changes include a wider range of investment funds from HBOS's asset management arm Insight Investment as well as external fund managers. The new charging structure gives a 100 per cent allocation rate on all funds of £100,000 and over, with an additional 0.5 per cent allocation offer to the end of ...

  • Cofunds sees growth in Isa sales

    3 Sep 2004

    Cofunds has reported total sales of £445m in ISAs, PEPs and investment funds for the second quarter of 2004. The fund supermarket has also seen a 10 per cent increase in Isa sales in the first quarter of the year.Cofunds marketing director Rick Andrews says: "It just goes to show that we are delivering what intermediaries want in terms of value for money, choice and quality of service. We are looking forward to building on this solid foundation over the rest of the year."

  • Commission to recommend compulsion

    1 Sep 2004

    ABI director general Mary Francis says she believes pensions commission chair Adair Turner will recommends the Government adopts compulsory pensions in the workplace. The pensions commission was established after a Government white paper on pension reform issued in 2002.

  • Correspondent's View

    2 Sep 2004

    Monday morning finds me staring into a BBC camera with the words "financial expert" quite ludicrously tagged next to my name. The camera rolls and with that fake self-assurance I learnt from Carol Vorderman when she once recorded a show from my Islington bedroom (and that is absolutely true), I start my expert analysis of Duran Duran, learnt seconds earlier. Other personal finance editors start the week reviewing the Saturday and Sunday papers and scheduling stories for ...

  • Creation or extinction

    2 Sep 2004

    Why did Millfield merge with Inter-Alliance? Simple. Those who are not creating the future are protecting the past. Companies that do not evolve are signing up for extinction. Stability is bad news for all companies - especially young, dynamic companies such as ours. On the other hand, change gives people the opportunity to advance far more rapidly. For a company to create the future - to be a shaper of that future rather than a follower of it - you need to have winning ...

  • David Aaron banned for life

    1 Sep 2004

    The FSA has cancelled the permission granted to David M Aaron, personal financial planners, for life for mis-selling structured capital at risk products (scarps).The FSA says the firm mis-sold a substantial number of scarps between January 1998 and June 2003, and its internal risk assessment process was fundamentally flawed.The regulator says financial promotions issued by the firms contained misleading statements.

  • David M Aaron bosses could work again

    2 Sep 2004

    THE FSA has confirmed that the directors of banned IFA David M Aaron (Personal Financial Planners) Limited could still work in financial services.Regulators have said that the firm's directors David M Aaron, Andrew Jones, Michael Aaron and Stephen Aaron could all reapply for FSA authorisation again.All four men would have to go through a rigorous authorisation process but could still be employed in the financial services industry.David M Aaron (Personal Financial ...

  • Destini sails in to buy Lifeboat

    2 Sep 2004

    IFA consolidator Destini is buying the core infrastructure of stricken IFA and non-regulated network Lifeboat in a deal that will see outstanding pipeline commission paid in full. Around 100 RIs will join Destini and between 300 and 400 full-time Lifeboat mortgage and protection brokers will move across to form the basis of Destini's multi-tie offering which will launch in September. Destini was introduced to the deal by Bank of Scotland, which is also the banker for ...

  • Devotion to duty

    2 Sep 2004

    Any advisers turning up to Gartmore's multi-manager launch at London's posh Claridges restaurant will be greeted by a PR truly dedicated to her work. Corporate comms manager Kimberley Robinson is flying in from her holiday in Portugal the night before the bash, doing her PR thing over the lunch and then flying back to her holiday again that night. The Diary is sure it will be worth it.

  • Don't rob Paul to pay Peter

    2 Sep 2004

    I do wish Peter Hargreaves would refrain from telling the small fry how to conduct their business (Money Marketing, August 12). If he has a problem convincing John McFall to let him keep his trail commission, would he please not deflect the argument elsewhere. It is noticeable that Mr Hargreaves always refers to himself as a broker. Brokers, by definition, are transaction-driven, broking for their clients in the market for competitive products, possibly at risk ...

  • Exclusive Connections - Bristol & West 3 Year Discount

    1 Sep 2004

    Type: Discounted-rate mortgageDiscounted term: Three yearsDiscount: 1.7%Payable rate: 5.14%Minimum loan: £15.001Maximum loan: Up to 95% of valuation subject to a maximum of £999,999Income multiples: Up to four times sustainable income plus second, up to 3.5 times principal income plus second or 2.75 times jointConditions: £500 cashbackArrangement fee: NoneRedemption ...

  • Ex-LIA chief Travis says board should quit now

    2 Sep 2004

    A former chief executive of the LIA has accused its board of misleading members to push through its merger with Sofa and says it should step down. Jeff Travis, who was LIA chief executive for six years, warns that a merger could lead to members losing the vote, letters after their name and the right to hold office. He says the board should step down to campaign as ordinary members on a merger platform rather than steamroller the deal through. But LIA head of ...

  • First IFA qualifies for profit scheme

    2 Sep 2004

    A Sussex IFA has pipped other Positive Solutions members to be first to gain shares in the national IFA's £28m incentive scheme. Within seven weeks of the Prophitshare scheme's launch, adviser Patrick Stuart has already hit the £50,000 qualifying turnover threshold. The incentive scheme, financed by parent company Aegon, could see advisers share in a pool of £28m, the size of which will be determined by the company's 2006 results. The ...

  • FSA says 40% now have PI covering IMD

    2 Sep 2004

    The FSA says 40 per cent of intermediaries now have professional indemnity cover which is compliant with the requirements of the insurance mediation directive. Katharine Lynch, a member of the retail intermediary sector team at the FSA, says: "Things are getting slightly better for IFAs on PI but the market has not improved dramatically and we do not want to be complacent. However, we are finding that firms are getting cover a bit more quickly, and that it is IMD-compliant." Chubb ...

  • Fund managers see big fall in Isa sales

    2 Sep 2004

    Net sales of Isas took a big hit in July, falling by 36 per cent from June and 72 per cent compared with a year ago, according to the IMA. Net ISA sales were £77m in July, down from £120.9m in June and £279.1m a year ago. Net retail sales of investment funds fell to £108.6m from £279.4m in June and £872.7m a year ago. The IMA suggests that the fall in sales relates to the lack of investor confidence in what has been a stagnant market, ...

  • Ghiloni's parting shots

    2 Sep 2004

    What is this we hear? A certain Mr Francis Ghiloni, the departing sales and marketing director at Britannic Asset Management, had no less than five, yes five, leaving dos. One for everyone at Opus, a popular Glasgow drinking joint, three for various teams at the business although we hear the compliance team did not get their own night out - shame on you Francis - and finally for the singers and extroverts, an event held at a Chinese Karaoke Restaurant, Francis' favourite track ...

  • Greenshields has marketing licked

    2 Sep 2004

    Former Scottish Widows head of communications Robert Greenshields and marketing consultant Brendan Llewellyn are starting a business which aims to help financial services companies develop their communication and marketing capabilities. Communication for Business will provide a range of services including coaching for teams and individuals, masterclasses run on an open or in-house basis as well as copywriting and marketing strategy classes. C4B will begin by running classes ...

  • HBOS levels its guns against the Spanish armada

    2 Sep 2004

    A war of words is escalating between HBOS and Santander Central Hispano as both adopt stronger tactics in the battle for Abbey. Although HBOS has not yet launched a formal bid for Abbey, it went on the offensive last week by lodging a protest with the European Commission, calling for an examination of the cross-holdings of Santander and Royal Bank of Scotland. The two have common directors and HBOS is thought to want clarification on whether Santander plans to outsource Abbey's ...

  • IFAs paying FSA fees by direct debit will not be penalised

    2 Sep 2004

    Many of the IFAs who have not yet paid their FSA fees will not face penalties bec-ause they are paying by direct debit while some companies have not yet received their invoices. Last week, FSA mana-ging director David Kenmir said only 388 IFAs had paid their fees despite 3,627 invoices being sent out. The deadline for fees was the end of August. But Money Marketing understands that a considerable proportion of IFAs pay their fees - a combination of FSCS, FOS and FSA fees ...

  • Iimia chooses chief investment officer

    2 Sep 2004

    Iimia Investment Group - the firm formed from the merger of the original iimia business with Exeter Investment Group - has appointed Nick Greenwood as chief investment officer. Greenwood, who has been running the iimia accelerated fund and the iimia investment trust, will run a team that will include iimia fund manager Daniel Lockyer and Exeter Investment Group fund managers Richard Scott, Nick Brind and Max Schlaefli. The firm's financial planning division will be ...

  • Impact on cash cuts support for compulsion

    2 Sep 2004

    Public support in principle for pension compulsion falls away when the impact on wages is realised, according to research by the ABI. It says that opinion polls consistently show that 70 per cent would support compulsion but the ABI survey reveals that only one in four people want compulsion to affect them personally. The research also shows that the 4.5 million working adults who are most at risk of having insufficient income in retirement oppose compulsion. Opposition ...

  • Independent view

    2 Sep 2004

    The financial services compensation culture, fuelled by the negative, sensationalist and ill-informed media and furthered by the FSA, is spiralling out of control. Complaints to the Financial Ombudsman Service have doubled over the last 12 months to 98,000 a year. During the last year, just 25 complaints were thrown out as frivolous and vexatious. This is hardly surprising as the FOS has been earning a £360 case fee from the defendant for every complaint, no matter whether ...

  • Interactive Investor sets up wealth service

    2 Sep 2004

    Investors will be able to check out their overall wealth with a new service from financial website Interactive Investor. Interactive Investor says it is the first financial services website to offer people an overall picture of their total net worth. The site will give investors the chance to see what shares other users are holding, make product comparisons and make decisions about a range of products. The site will offer an adv-anced portfolio which gives users ...

  • Investment view

    2 Sep 2004

    What constitutes a "safe" investment? If you are an investor, what does "safe" look like? I was put in mind of the way in which the concept of "safe" will vary from person to person by comments from Michael Hughes at the Skandia/Gerrard IFA seminar in Essex. In response to a question on how to construct a personal pension portfolio, he suggested that a significant proportion should be committed to index-linked bonds. The act-ual percentage, in his view, could be equivalent to ...

  • Investors 'dip their toes'

    2 Sep 2004

    Investors are slowly returning to the market, according to the latest ABI figures. Life and pension business in the first half of 2004 rose by 4 per cent annual premium equivalent to £2.61bn compared with £2.47bn in the same period last year. Sales of single-premium collective investment schemes, including Isas except insurance Isas, Peps, Oeics and unit trusts, increased by 22 per cent to £164m compared with £94m last year. But there was ...

  • Julian Gibbs

    2 Sep 2004

    Higher oil prices and political uncertainty mean that the UK equity market is suffering from the summer doldrums, not helped by higher interest rates. But some of the bigger companies - as well as many smaller ones - are undervalued, taking into account their future potential profits. Some, such as banks, have exceeded forecasts by considerable margins. I believe that in current stockmarket conditions, investing in undervalued shares could prove very profitable. I particularly ...

  • Keydata fills income gap

    1 Sep 2004

    Keydata has introduced a new issue of the extra income plan, a capital-protected bond linked to the performance of the FTSE 100 index for a term of five years.The bond, which is also available as an Isa and for Pep transfers, provides a choice of annual income at 6.25 per cent gross, quarterly income of 1.53 per cent or a growth option of 35 per cent at the end of the term. Investors will also get a full capital return unless the index falls by more than 30 per cent and fails to ...

  • Keydata Investment - Extra Income Plan 11

    6 Sep 2004

    KEYDATA INVESTMENTExtra Income Plan 11Type: Capital-protected bondAim: Income linked to the performance of the FTSE 100 indexMinimum-maximum investment: £5,000-no maximum, Isa £7,000Term: Five yearsReturn: Annual income 6.25% gross, quarterly income 1.53% grossgrowth option 35% gross at end of termGuarantee: Original capital returned in full at end of term provided the index does not fall ...

  • Lay blame at the right door

    2 Sep 2004

    Are you not just fed up of the disproportionate criticism of the IFA sector with: •Misselling, over 80 per cent of which is attributable to the tied sector. •Misinformed criticism of fund-based trail commission. With defined-contribution pension provision in the private sector, how does the Treasury select committee expect the essential ongoing advice to be paid for? •When Sandler wants a minimum of 1 per cent below bank base rate, what has the ...

  • Leading a merry avoidance

    2 Sep 2004

    Over the last two weeks, I have considered the pre-A-Day position of funded unapproved retirement benefit schemes. I will now look at how the anti-avoidance provisions might operate in respect of offshore Furbs. First, let's look at income. Chapter IA Part XV ICTA 1988 can apply if there has been a settlement under which the settlor can benefit. Where there is a close connection between the member and contributing company - say, an owner-manager - income can be assessed on ...

  • Leeds offers curious combination

    2 Sep 2004

    LEEDS & HOLBECKCOMBINATION MORTGAGEType: Discounted rate mortgage followed by capped rateDiscounted term: Until November 1, 2006Discount: 1.75%Payable rate: 4.99%Capped term: Until November 1, 2009Capped rate: 5.75%Minimum loan: £25,000Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, ...

  • Lifetime stays under wraps after FundsHub closes

    2 Sep 2004

    Lifetime is criticising JP Morgan after its planned November launch was delayed by the closure of FundsHub. The wrap project, owned by Norwich Union and Millfield, was set to use FundsHub as its IT solution provider until JP Morgan sent out letters last month announcing that it would close. Lifetime says the closure has taken it by surprise as it had been told the operation had a long-term future. FSA approval for the Lifetime portfolio was granted last month. Lifetime ...

  • Like it or lump it

    2 Sep 2004

    In a previous article, I raised the question of whether a section 32 contract is the ideal product to be in before A-Day (Money Marketing, July 29). The argument went that a blanket decision to move all individuals into a section 32 is not the panacea it has been made out to be. Rather than having discussions as to which section 32 has the most bells and whistles, perhaps more thought needs to be given to whether section 32s are actually appropriate vehicles in the first place, as the ...

  • Man guarantees the hedge

    7 Sep 2004

    MAN INVESTMENTSMan RMF Multi-Style Series 2Type: Capital-protected hedge fundAim: Growth by investing in managed futures, relative value, event driven equity hedge and global macro strategiesMinimum investment: Lump sum $50,000, euros 50,000Investment split: 50% managed futures, 23% relative value, 13% event driven, 7% equity hedge, 7% global macroPlace of registration: BermudaGuarantee: Original capital returned ...

  • Man Investments - Man RMF Multi-Style Series 2

    3 Sep 2004

    Type: Capital-protected hedge fund of fundsAim: Growth by investing in managed futures, relative value, event driven equity hedge and global macro strategiesMinimum investment: Lump sum $50,000, euros 50,000Investment split: 50% managed futures, 23% relative value, 13% event driven, 7% equity hedge, 7% global macroPlace of registration: BermudaGuarantee: Original capital returned in full at end of term regardless of ...

  • Mark Lund

    2 Sep 2004

    S hadowing the person you are about to take over from is rarely possible and Mark Lund, who this week has taken the chief executive position at St James's Place from Mike Wilson, has made the most of such a rare chance since moving to the asset manager in January as chief executive designate. Between Wilson and industry veteran Sir Mark Weinberg, who at 72 has stepped down as chairman to take up the role of president, Lund says he has found himself in the enviable position ...

  • Meet offshore challenge

    2 Sep 2004

    Next month's Money Marketing Live in Manchester will once again feature an arena dedicated to the fut-ure of offshore finance. Taking place at the G-Mex Centre in Manchester on September 28, the International Money Marketing Arena will provide financial intermediaries with an insight into the international investment industry. Speakers in the seminar programme include Bradford and Bingley International director and general manager John Sheath who will open the day ...

  • Merrill Lynch offers discount protection

    1 Sep 2004

    Merrill Lynch has become the latest firm to introduce a discount protectionmechanism. The new policy means investors in the Merrill Lynch greater Europeinvestment trust clients will be able to sell back their shares at a 2 per cent discount of net value twice a year regardless of whether the shares are selling for a bigger discount in the market.

  • Mortgages Direct receives its MTA letter

    7 Sep 2004

    Mortgages Direct, the independent mortgage broker, has received its minded to approve letter from the FSA. Mortgages Direct director Peter Gladdy says: "We're very pleased to have received our MTA letter. It is a testament to the significant amount of time and money which Mortgages Direct has invested in compliance since the announcement of the pending FSA regulations."

  • Multi-ties are last throes of old age of industry, says Marr

    2 Sep 2004

    Multi-ties will not bring any benefit to the consumer and are the "last throes of the old age of financial services", says Origen chief executive Gareth Marr. The head of the Aegon-owned national IFA has att-acked multi-tying IFAs, saying that for too long, the industry has been focusing on itself, squeezing out margins between distributors and manufacturers rather than focusing on what is right for the consumer. Marr says that although multi-ties benefit the manufacturer ...

  • No defence of Aaron - Aifa

    1 Sep 2004

    Aifa will not be supporting David M Aaron, the first IFA to be banned for life, as it says it does not defend those who have been in breach of FSA rules.Aifa spokeswoman Tracey Mullins says: "We don't defend people who have breached FSA rules resulting in consumer detriment and so we cannot say anything in support of David Aaron."

  • Nvesta - Secure Multi-Tracker Plan

    2 Sep 2004

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100, S&P 500 and Nikkei 225 indicesMinimum-maximum investment: £3,000-£2m, Isa £7,000Term: Six yearsReturn: 110% growth in the indicesGuarantee: Original capital returned in full regardless of performance of indicesClosing date: October 22. 2004, October 15, 2004 for Pep/Isa transfersCommission: Initial ...

  • Offshore opportunities

    2 Sep 2004

    Offshore providers recognise that investors have very specific needs and offer high-quality solutions to meet these needs. Offshore bond providers can boast of innovative product designs and high-quality administration and servicing capabilities. In the past, however, it could have been argued that a proportion of their UK-based sales relied on tax loopholes that could be better exploited with offshore rather than onshore bonds. Historically, a UK investor using an offshore bond ...

  • Old Mutual breaks free

    2 Sep 2004

    Old Mutual Asset Management has created the dynamic bond fund, a unit trust that aims for income and growth in all market conditions by investing in a range of fixed-interest securities.The fund will invest in both investment-grade and high-yield corporate bonds, but can also invest in government bonds, convertibles and other forms of fixed-interest. It has a target monthly income yield of 6.18 per cent and this will be achieved by investing in the right type of security for the ...

  • Out of context

    2 Sep 2004

    "When you've just spent £6,000 on something, you don't want to get too violent." - Nick Bamford of Informed Choice sorts out his computer problems. "Why is the mortgage sector the only industry that calls customers who shop around tarts?" - Purely Mortgages' Ian Giles reflects on the semantics of the lending sector. "When I'm stroked I always rise to the occasion." - Alasdair Buchanan of Scottish Life persuades MM journalist to stroke his tigger (tie). "Hello ...

  • Pink Home Loans - Freedom Finance Buy to Let 5 Year Bank Base Rate Tracker

    2 Sep 2004

    Type: Buy-to-Let tracker mortgageTracker term: Five yearsTracker rate: Up to 85% of valuation - 1.24% above Bank of England base rate, up to 75% of valuation - 1.09% above Bank of England base ratePayable rate: Up to 85% of valuation - 5.99%, up to 75% of valuation - 5.84%Minimum loan: £25,001Maximum loan: Up to 85% of valuation subject to a maximum of £300,000, up to 75% of valuation subject ...

  • Product Matters

    2 Sep 2004

    This year will undoubtedly be one of the best for venture capital trusts for some time. A whole raft of existing and new names will be seeking funds as they capitalise on the higher popularity of VCTs due to increased tax rebates for investors. The fact that many new names will be entering the market brings problems as investors and IFAs struggle to sort the wheat from the chaff. Well, Baronsmead 2 VCT is a candidate for the wheat. Isis Equity Partners, which ...

  • Product providers are set to ditch IFA subsidy

    2 Sep 2004

    Product providers are unlikely to continue to subsidise IFAs' Financial Services Compensation Scheme levy next year because of the changes brought by depolarisation. Negotiations are under way between providers and Aifa to extend the subsidy but Money Marketing understands that it is unlikely to be renewed. Three years ago, the FSA decided that it was no longer appropriate for the regulator to have in-built provider subsidies and so a voluntary scheme, run by Pass, ...

  • Property is still the favoured investment

    3 Sep 2004

    Property is still seen as the best short and long term investment according to research by GMAC RFC.Despite the reports of a slowdown in house price growth, the research shows 46 per cent of British people consider property the best form of investment in the current financial climate, well above stocks and shares.The research shows 68 per cent of British people think that property will yield the best return over 25 years, while only 13 per cent believe stocks and shares ...

  • Prudential - PruFund Investment Plan

    3 Sep 2004

    Type: Smoothed unitised investment bondAim: Growth and income by investing in a choice of two smoothed managed fundsMinimum investment: Lump sum £5,000Fund links: PruFund growth fund, PruFund growth and income fundCharges: Regular income option - establishment charge 0.45% a year for first five years, annual 1.5% until year 10, thereafter 1%, no income option - establishment charge 0.25% a year in first five years, ...

  • Prudential chooses Focus Solutions for adviser website

    6 Sep 2004

    Prudential has chosen technology provider Focus Solutions to provide e-commerce solutions for its UK intermediary website.

  • Prudential takes rough with the smooth

    6 Sep 2004

    PRUDENTIALPruFund Investment PlanType: Smoothed unitised investment bondAim: Growth and income by investing in a choice of two smoothed managed fundsMinimum investment: Lump sum £5,000Fund links: PruFund growth fund, PruFund growth and income fundCharges: Regular income option - establishment charge 0.45% a year for first five years, annual 1.5% until year 10, thereafter 1%, no income option - establishment ...

  • Resist the fee-dom fighters

    2 Sep 2004

    I have some experience of fee charging, having created and managed a successful accountancy practice over 30 years before becoming involved in the IFA sector. The feeding frenzy indulged in by politicians and financial journalists, having died down for a while, has been whipped up again by the Treasury select committee's report. So I would like to join the party, if I may. Repeat after me several times until you know it off by heart: "Commission bad, fees good." What decent ...

  • Roo the day

    2 Sep 2004

    Rumour has it that the arrival of the Intelligent Finance team bus at the England football team's Hertfordshire headquarters was fuel for a familiar joke among the players. The Diary hears that when granite-jawed star Wayne Rooney, also known as Shrek, asked what Intell-igent Finance meant, team-mate Kieron Dyer replied "You wouldn't understand, Wayne." But as the source is from North of Hadrian's Wall, the Diary wonders whether this is just jealousy speaking. ...

  • Santander admits that its takeover of Abbey would slash adviser sales

    2 Sep 2004

    A takeover of Abbey by Santander Central Hispano would see the Spanish bank cutting down significantly on distribution through intermediaries. A Santander analyst presentation at the end of July says the bank would want to increase the proportion of business done through branches from the current 35 per cent to 50 per cent. This would cut the 65 per cent of Abbey business that is currently sold through the intermediary channel to around half of the total. Santander ...

  • Smart New Homes sees the housing market stabilising

    7 Sep 2004

    New data released by SmartNewHomes, the homes website, shows the average price of a new property in August was £277,445 up by 1.8 per cent over the last month. The figures suggest the seasonal slowdown is drawing to a close and confidence is returning to the market. The price homebuyers are willing to pay has increased by 1.5 per cent over the last month, and 6.9 per cent over the year. This is the highest rate of annual growth demand since the end of 2003.London ...

  • Smooth operators

    2 Sep 2004

    Fund managers say the vehicle of choice for medium-term equity exposure is changing for many consumers. City investment groups such as Credit Suisse Asset Management are lining up medium-term products with downside protection to attract investors looking for alternatives to with-profits. Credit Suisse head of product development Tony Hogbin says IFAs will play a crucial role in determining where their clients should keep their money. He says it will be vital for IFAs ...

  • Societies at seven-year high as assets rise 15%

    2 Sep 2004

    The UK's building society sector has recorded its strongest growth in seven years with assets rising by nearly 15 per cent to £224.8bn, according to consultancy KPMG. The growth in the sector has been driven by Nationwide, which now represents 45 per cent of the sector, with £100bn in assets in the year to April, up by 19 per cent from £85bn the previous year, which was 15 per cent up on 2002. Market share for total mortgages outstanding with building ...

  • SP Mortgage Administration adds GMAC to its lender panel

    3 Sep 2004

    SP Mortgage Administration, the mortgage packaging business, has added GMAC to its existing lender panel which already includes SPML, Platform Home Loans, Amber Home Loans, Bristol & West and BMS.SP Mortgage Administration operations director Nigel Woodhouse says: "We are delighted to add GMAC to our lender panel, offering brokers an even wider range of choice especially within the non conforming sector."

  • Standard brings in clearer charges on bonds

    2 Sep 2004

    Standard Life is revamping its investment bond proposition with the aim of making its charges more explicit. Investors can choose between a stepped option which includes exit penalties or a level option without exit fees. The changes apply to Standard Life's capital investment, distribution and with-profits bonds. The stepped option includes a 1.5 per cent annual management charge in the first five years, falling to 1 per cent from year six, plus an exit penalty ...

  • Standard Life creates new template

    3 Sep 2004

    Standard Life has brought out the secured capital plan, a capital-protected Oeic established under the European Ucits III legislation.The fund is linked to the FTSE 100 index for a term of five years and 48 days and will replace Standard Life's range of guaranteed bonds. The fund resembles guaranteed equity bonds in that it has a specified investment term, at the end of which a full capital return is provided regardless of index performance. It will also provide 82.4 per cent ...

  • Standard makes fast return with newly built s32 plan

    2 Sep 2004

    Standard Life is launching a new section 32 contract just three months after it withdrew its old one because it was not compliant with Raising Standards. The company has constructed an entirely new s32 contract that meets the requirements of Raising Standards. It will aim the product at deferred pension scheme members in poorly performing funds with high charges rather than active members of executive personal pensions and contracted-in money-purchase schemes. Standard's ...

  • Success story

    2 Sep 2004

    Bruce Love Gooding: 'Women tend to take a more holistic approach to building relationships with clients and providing advice. A lot of research has shown that they are naturally better listeners and provide more considered opinion' Belcher: 'It is difficult to gain the kind of exposure I have had since winning the award. To be able to comment on issues of the day and sit on panels with some of the industry's leading experts is very rewarding' Price with her dog Benjamin: ...

  • Survey will set out a league table of IFAs

    2 Sep 2004

    IFAs will be ranked in terms of efficiency and profitability under a new study being launched by the Institute of Financial Planning, Aifa and Clerical Medical. A survey, run by Advisor Impact, will be sent to around 5,000 businesses on the databases of Aifa and IFP and will ask questions about each firm's profitability, productivity, RI productivity, use of time, business efficiency and cost management. It will group IFAs by size and by turnover to benchmark their ...

  • Takeover choice splits IFAs

    2 Sep 2004

    IFAs are split between a takeover of Abbey by Santander or HBOS. Fifty-one per cent of IFAs say they would prefer Santander Central Hispano while 49 per cent support HBOS. HBOS has yet to decide if it will make a formal bid for Abbey while Santander told IFAs last week it would be able to offer more to the market. The survey was conducted on Money Marketing's website www.moneymarketing. co.uk over the last week. Some advisers would prefer Santander ...

  • Talkback

    2 Sep 2004

    "Yes. They are being too hard on IFAs about this. Besides, you used to be able to do that in the past." Arthur Temlett, Abacus Insurance Consultants "Yes. IFAs should have the option. It is a very large amount and the FSA is not being very helpful to the sector." Bob Espie, Bob Espie & Co Financial Services "Yes, this would be reasonable, given the larger increases IFAs have seen this year." Peter Taylor, Financial Life Planning "No but I think the ...

  • Tep sales up 50% at AAP

    2 Sep 2004

    Sales at traded endowment policy market-maker Absolute Assigned Policies have increased by 50 per cent in the last 12 months. Tep providers Policy Portfolio and Beale Dobie recently stopped buying endowments after reviewing the potential of the Tep market. But AAP says it expects to trade more than £150m of Teps from now up to the end of 2005. Both Policy Portfolio and Beale Dobie will not trade as Tep market-makers but the two companies will continue to ...

  • That's another fine mess...

    2 Sep 2004

    The compensation scheme's system of payments is in a fine mess. The question is, who got us into it? Is the regulator playing Oliver Hardy to the providers' Stan Laurel? Maybe. The bills for this fatal showdown between IFAs and the FSA over non-payment of their compensation scheme levy have not reached all advisers. Some invoice batches are still to go out so it may be impossible for many IFAs to meet this deadline despite the threat of having to pay interest or arguably ...

  • The holy trail

    2 Sep 2004

    I have read articles that seem to suggest that my adviser is receiving so-called trail or renewal commission that is costing me a good deal in investment returns. Why should I be paying this and how can I stop this being paid to my adviser? You are absolutely right that there has been a good deal of media coverage on this subject. I suppose this is often the case when ill-informed people are allowed to pontificate on a subject when they have failed to do the necessary research. In ...

  • The whole tooth

    2 Sep 2004

    I am constantly amazed at the way other professions are implementing technology to improve the way they look after their clients. Let us take a very simple example. I had a filling replaced rec-ently. Instead of filling the cavity himself or taking a mould and sending it to the laboratory to build, the dentist used a digital camera to take precise measurements of the cavity. He then mapped the perfect replacement with a graphics package before placing a small ceramic ...

  • Thinc in critical and term multi-tie deal with Friends

    2 Sep 2004

    Multi-channel distributor Thinc has signed its first multi-tie agreement with Friends Provident. Thinc members will have access to Friends' term insurance and critical illness protection products and will be provided with a complete online quotation and new business service including automated underwriting. Thinc and Friends will work together to provide training and technology support for the advisers. The two firms believe IFAs are making decisions on their ...

  • TMO receives its MTA letter

    7 Sep 2004

    The Mortgage Operation received todays its MTA letter today from the FSA.Mark Charlesworth, Managing Director says: "After discussions with our Membership earlier in the year we know that many will be Directly Authorised after 31st October and that it will be business as normal. However, many others are looking at the Introducer route. Consequently we put together a unique proposition which gives our Members three Introducer options. These options are currently being promoted at ...

  • Tom Baigrie on protection

    2 Sep 2004

    Consumers and non-specialist IFAs alike often underestimate the amount of cover needed to protect properly against financial disasters. I think this is because we all try to quantify the need in terms of a lump sum which leads to huge errors of estimation and under-insuring.When we buy family financial protection, what we are doing, most often, is looking to provide in the event of loss of income. As an extreme example, this is true even when we are protecting a mortgage ...

  • TUC wants reps to help staff on pension issues

    2 Sep 2004

    The TUC is calling for the Government to introduce a network of lay pension representatives to work with scheme members to raise aware- ness of pension issues. It has published the plan in its final agenda ahead of its annual congress in Brighton this month. It wants to establish pension representatives in workplaces to mirror the function of health and safety and learning representatives for employees. The motion calls for the Government to appoint and train representatives ...

  • Verity's view

    2 Sep 2004

    Imagine a client coming into your office full of anxiety. He has all his money tied up in a big, risky investment that has done very well for him in the last seven years, consistently yielding 20 per cent a year. In the last five years, the investment has done particularly well, doubling in value. However, he knows from reading the newspapers that his type of investment is quite capable of falling in value. Economists are saying that this particular asset is now 30 per cent overvalued ...

  • Walking back to happiness

    2 Sep 2004

    The Diary applauds the craze for pedometers and believes that if widely adopted across financial services, it will soon be rewarded by svelte figures sported by sales and marketing teams as opposed to the current somewhat undeserved rotund reputation. To this end, we are launching a search for the most pedometry done by a section of the industry. We will provide pedometers to the first life and pension person, the first mortgage person, the first fund management person and the ...

  • Whatever happened to the heroes?

    2 Sep 2004

    The "new" mortgage borrower lifestyle types - "cross-shifters", "new authentics" and "heros" - described in Standard Life's The Shape of Dreams report (Money Marketing, August 26) are as dangerous as they seem to be enlightening. Any segment labelling like this always tends to imply that consumer behaviour can be popped into neat pigeonholes and that these pigeonholes describe fundamental and abiding changes in consumer behaviour. Neither is true. In fact, one could ...

  • Which? probe points finger at mortgage advisers

    2 Sep 2004

    Which? magazine is accusing mortgage advisers of flagrant disregard for the MCCB code of practice after an undercover probe found only three out of 39 advisers gave acceptable advice. It claims that two out of three brokers failed to explain properly how mortgages could be repaid and nearly half gave misleading information. Seven of the 39 did not mention the Mortgage Code Compliance Board's voluntary code of practice. Some advisers at high-street firms, such as Abbey, ...

  • Widows ponders offshore comeback

    2 Sep 2004

    Scottish Widows is believed to be considering starting a new international operation two years after closing its Scottish Widows International arm. The firm has been in talks with key providers and IFAs in the offshore sector and is looking at the possibility of white-labelling a product from one of the leading providers to cut down on set-up, investment infrastructure and admin costs. It is believed the new operation will be run out of Dublin or the Isle of Man. Scottish ...

  • Women wanted for the third Wig annual award

    2 Sep 2004

    Entries are open for this year's IFA Woman of the Year award. The Women's IFA Group award is now in its third year and recognises the growing success of women IFAs, with entrants judged on technical proficiency, applied knowledge, communication and understanding of industry issues Nominations close on September 30 and entries close on October 14. Candidates can complete an entry form online at www.womensifagroup. co.uk. The award will be presented at a gala dinner ...

  • Work & pensions secretary resigns from the cabinet

    7 Sep 2004

    Andrew Smith resigned as the Government's Work and Pensions Secretary last night amid rumours he was at odds with the upcoming welfare reforms.The welfare reforms involve changes to the rules on invalidity benefit claimed by nearly three million people in the UK.The resignation pre-empts a reshuffle where it is expected Alan Milburn will return to the cabinet after he left eighteen months ago.Smith says he has chosen to leave to devote more time to his Oxford ...

  • Zurich bond shares choice with investors

    6 Sep 2004

    Zurich is offering investors another chance to invest in a capital-protected bond that is linked to the FTSE 100 and Halifax House Price indices for five years and six months.The select guaranteed account issue 2 is available to those with between £2,500 and £250,000. Investors decide whether they to link their capital to the FTSE 100, Halifax House Prices index or a combination of the two. If they choose a combination of indices they decide how much to invest in each ...

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