Money Marketing
11 February 2004

  • 'Corporate Sipps can beat group stake and PPs on cost'

    12 Feb 2004

    Corporate Sipps could work out cheaper than group stakeholders and group personal pensions, according to research for PY Sipp Solutions. Independent research from independent actuary Philip Moore of MW Trustees shows that a scheme with 100 members running over 25 years with a vanilla fund management charge of 0.2 per cent could cost £1.75m compared with £3.15m in a 1 per cent stakeholder fund. PY Sipp Solutions says corporate Sipps offer investment profiles ...

  • 'PMI growth is the best in 10 years'

    12 Feb 2004

    The private medical insurance sector has seen more growth in new products recently than it has for a decade, according to the creators of the 2004 PMI Handbook. The handbook is put together by West Sussex specialist PMI intermediary Green Denman & Co consultant Andrew Green. Green says the 2004 edition of the handbook has increased in size by more than 15 per cent compared with last year due to new product launches from existing providers and new plans from new providers. Th

  • £10bn black hole at UK life firms

    12 Feb 2004

    Europe's life insurance sector had a £68bn black hole,with the UK accounting for£27bn at the end of 2002 although this has now been cut to £10bn in the UK, says strategy consultancy firm Mercer Oliver Wyman. In its forthcoming report, Life at the End of the Tunnel? The Capital Crisis in the European Life Sector, the firm warns that the shortfall will dramatically affect life companies' ability to write some types of new business. It predicts a move towards ...

  • 1st Software launches risk profiling software

    13 Feb 2004

    Software provider 1st Software is launching an investor profiling software to help advisers assess their clients' appetite for risk, measured against their expectations for investment return.

  • A cautious step away from WP

    12 Feb 2004

    When President Gorbachev launched glasnost in the Soviet Union in 1985, his policy of openness revealed the flaws in a system strangled by the arcane rules of an unaccountable bureaucracy and ultimately this led to its downfall. The FSA's investigation of misselling of endowment policies, coupled with a severe and prolonged equity bear market, has brought glasnost to bear on the practices of the UK investment industry and revealed the fundamental contradiction behind the incomprehensible ...

  • A consumer's view

    12 Feb 2004

    The Government's proposals to encourage all employees to join a company pension scheme look like the first steps towards compulsory pension saving for both employers and employees. Like inertia selling, the proposal is that in future, unless an employee makes a positive decision to opt out of a company pension scheme, they will be automatically enrolled. The hope is that apathy would rule and the vast majority would stay in company schemes and find themselves saving ...

  • Abbey offers IFAs a hand through regulatory maze

    11 Feb 2004

    Abbey for Intermediaries is sending out independent guides to help IFAs through the regulation maze. Eighteen thousand intermediaries will receive the free guide, which is described as a "clear and straightforward outline" of how and when regulatory changes take place. It also covers the choices available to intermediaries and their likely affect on their businesses, with a section on the financial and practical implications of choosing a certain status. Abbey says it has produced ...

  • ABI and actuaries split over advice in the workplace

    12 Feb 2004

    The ABI and the Association of Consulting Actuaries have taken opposing positions on the Department for Work and Pensions' Informed Choices proposals for workplace pension information. The ABI welcomes the drive to improve the knowledge of the millions of people believed to be saving nothing or to little for their retirement. But the ACA is concerned that the idea that employers which fail to contribute to stakeholder schemes should be required to pay for advice to ...

  • ABI survey shows faith in pensions and savings edging up

    12 Feb 2004

    The ABI is claiming that confidence in saving is creeping up following the release of the latest results of its pensions and savings index. The survey of 2,479 people in January shows a "small but significant" change in attitudes and confidence levels, with trust in the Government's pension policies rising slightly to 17 per cent from 15 per cent in the initial survey which was carried out in October last year. The number of people confident that they will have enough ...

  • ABI wants action over gender agenda

    12 Feb 2004

    The ABI is calling on the UK Government to take a stronger stance on proposed unisex rates for annuities ahead of a new EU presidency. ABI head of EU and International affairs Hugh Savill wants British MEPs to lobby harder against the draft gender discrimination directive that could see unisex tariffs imposed on all annuity products. Social affairs European commissioner Anna Diamantopolou is campaigning hard for the directive to be made law before the end of the current ...

  • Acorns and oaks for First State fund

    12 Feb 2004

    First State Investments' global resources fund has grown to £32m since its launch in October as UK investors seek similar returns to those generated by the highly-rated version offered by its Australian parent. The UK-registered fund's unit price has shown a good rise since launch, growing from £1 in October to £1.15 at the end of December although this has retreated slightly. Investors are clearly confident that the fund can repeat the success of the Colonial ...

  • Aifa warns FSA over timing of EU directives

    17 Feb 2004

    Aifa has warned that the FSA needs to be more concerned with the timing of the many upcoming EU directives rather than the precise wording of each document, saying taking on so many directives at once will be costly and confusing.The warning comes as Aifa responds to the FSA's consultation on the implementation of the EU Insurance Mediation Directive.Aifa director general Paul Smee says: "The FSA is going to be implementing several EU directives over the coming years. ...

  • Asia: From minor to major

    12 Feb 2004

    Asia has been a powerful card to play for emerging market investors in recent years. Not only did local markets outperform the world's top economies in 2003 but the region has also outperformed the MSCI World index over the last five years. Such strong performance has helped Asia shake off its emerging mantle and it is starting to become a mature economic force in its own right. In short, Asia has emerged. Improving local economic conditions and earnings growth have ...

  • Balancing the scales of risk

    12 Feb 2004

    Operating in an increasingly regulated climate has already put many burdens on adviser firms, not least with the rise in associated costs. Mitigating the risks within a business can help reduce the worries of regulation but, ultimately, the solution must lie with reducing the risks associated with providing advice. We put this theory to the test when we researched advisers on their attitudes to risk. Seventy-three per cent said they were very concerned about their clients' ...

  • Barnsley Building Society signs partnership deal with Zurich

    16 Feb 2004

    Zurich Financial Services has announced its fifth partnership link with a building society, with South Yorkshire-based Barnsley Building Society to offer its products.The insurer says the move reaffirms its commitment to providing face to face advice with the public through the bank and building society market.Zurich distribution marketing director Ian McLaughlin says: "The Barnsley is our fifth building society and bank tie, and is important to us. This market sector ...

  • Baronsmead VCT 4 reports good progress as it moves towards £30m

    11 Feb 2004

    Baronsmead VCT 4 plc, managed by ISIS Equity Partners, has announced its results for the year ended 30 November 2003 with a total return for the year increasing by 5.3 per cent based on total dividends for the year of 2.2p per share and an increase in the net asset value per share increasing from 94.1p to 96.7p per share. It says the pace of new investment has quickened and the portfolio has grown to 20 qualifying companies, after 2 recent realisations. Baronsmead VCT 4 chairman ...

  • Batten down the hatches

    12 Feb 2004

    The Diary would like to warn readers to hide any illegal contraband they might have is stashed safely away from Group 300 chief executive Chris Batten. Before entering financial services, Batten served in the army and was involved in undercover drugs operations while stationed in Belize in Central America. One of the most memorable operations apparently involved a one-ton bale of cannabis which was to be dropped from an aircraft into an incinerator. Batten's ...

  • BBC re-hashes last year's program

    12 Feb 2004

    The BBC's Wednesday night Panorama program on self-cert mortgages was little more than a re-hash of a similar program it aired in October 2003, many in the industry claim.London & Country mortgage specialist David Hollingworth says the show did not particularly open any new issues.He believes the timing of an FSA review into self-cert mortgages "blew the wind out of the BBC's sails" and left the Panorama program void of any real issues or use to the consumer.The FSA published ...

  • Berkeley Jacobs fined for pensions unlocking

    11 Feb 2004

    Berkeley Jacobs Financial Services has been hit by the FSA with a £175,000 fine for poor advice and misleading advertising in marketing its pensions unlocking service.The regulator has forced the firm to set aside £1m to compensate up to 5,000 consumers who were encouraged to use their cash for short-term benefits such as holidays and buying luxury goods.The FSA said the campaign, which aired extensively on Sky television, gave no explanation that releasing ...

  • Best Doctors bidding to build UK business

    12 Feb 2004

    US medical specialist database service Best Doctors is looking to gain a stronger foothold in the UK following the appointment of its first UK and Ireland general manager. Former Munich Re protection new business manager Peter Mannion has taken on the role and is looking to make the UK as prominent a territory for the company as the United States and Canada. Best Doctors offers services such as diagnosis review through specialist medical staff as well as sourcing and ...

  • Big deal

    12 Feb 2004

    I was interested to read that two loss-making firms, Inter-Alliance and BBB, propose to merge (Money Marketing, January 22). However, each company has demonstrated that big is not necessarily beautiful. My practice is a firm believer in providing clients with the opportunity to obtain independent financial advice from both local and national firms but I do not see a great deal of advantage in using a national firm with over 2,000 advisers, as the merged firms would have, over ...

  • Bill may not achieve key objective of reform - ACA

    12 Feb 2004

    The Association of Consulting Actuaries is concerned that the key proposals in the Pensions Bill will not meet the objective of greater employer pension provision.It says it is worried about the cost of pitching initial Pension Protection Fund benefits too high, particularly if the risk based levy is delayed in its introduction.Chairman Gordon Pollock says: "While considerable progress has been made to simplify pension tax regimes for the majority of people, I really wonder ...

  • Bristol & West raises proc fees for adverse credit

    12 Feb 2004

    Bristol & West is putting a greater focus on the sub-prime market by increasing the procuration fees on all its adverse-credit products. Brokers submitting applications for any of the products in B&W's adverse-credit range can get an enhanced proc fee of 1.5 per cent, up from 1 per cent for an initial period of six months. The new rate applies to applications received and completed on or after February 2. Applications received before this date but which complete ...

  • Bullivant named new Sofa MD

    11 Feb 2004

    Bob Bullivant has been named the new managing director of Sofa ahead of Brian Lawless's departure on February 23.Lawless has relocated to Exeter where he has become business development director with IFA the Jelf Group.Bullivant joins Sofa from Britannic Retirement Solutions where he was corporate development director.Reporting to Sandy Scott this is a full-time position and Bob Bullivant will join the CII's board of directors. He will also be a member of the SOFA board.CII ...

  • Child trust fund is poised for major extension

    12 Feb 2004

    The Government is believed to be preparing to expand the child trust fund to include an extra nine million children. It is believed that the Inland Revenue has been consulting with the financial services industry over the viability of offering the fund to all children under 16 as a result of pressure from the Treasury select committee and lobbying groups. The fund is presently set to be delivered to all children born after September 1, 2002. However, it is believed that ...

  • Clerical cuts with-profits payouts

    12 Feb 2004

    Clerical Medical is cutting regular bonus rates on most with-profits policies but is leaving bonuses on its with-profits income fund unchanged at 4.5 per cent. Bonuses on most with-profits bonds will be cut from 2.5 per cent to 1.5 per cent and bonuses on pension policies will be cut from 3 per cent to 2 per cent. A 25-year with-profits endowment at £50 a month will pay out £55,450 compared with £68,142 last year, a drop of 18.5 per cent and a yield ...

  • Clerical Medical back for good

    16 Feb 2004

    Clerical Medical has returned to the commission-based group pension market after an absence of almost two and a half years because its systems could not cope with the amount of business it was attracting.The company is now set to woo IFAs with new features on its group pensions such as online fund valuations for members and a simpler joining procedure. Instead of the long paper trail generated by letters passed back and forth between IFAs and Clerical Medical, the application process ...

  • Commentary: Realistic world

    12 Feb 2004

    One of the issues emerging from Standard Life's recent announcement has been speculation about the impact that it will have on other companies and on the market generally. The reaction of IFAs will undoubtedly be a key factor in determining the first of these issues but how will consumer confidence in the long-term savings industry generally be affected? Some people have suggested that this is a major concern. I do not believe it needs to be but some key points need ...

  • Confidence high but only for mini Isas

    12 Feb 2004

    Investor confidence is at its highest for 18 months but many potential buyers only intend to put their money into a mini cash Isa, according to Hargreaves Lansdown. The company's investor confidence coefficient rose to 226 in January - its highest level since July 2002 aside from a brief blip in September but 41 per cent of its clients say they plan to buy nothing but a mini cash Isa this year. Twenty-four per cent say they are unlikely to buy an Isa of any sort while ...

  • Corporate punishment

    12 Feb 2004

    Change to the financial, commercial, tax and/or legal context in which we work is the lifeblood of effective communication from IFAs to their clients. What a cornucopia of communication subjects the pre-Budget report has given us, from reforms of trusts, inheritance tax anti-avoidance measures, Isas and corporate tax to a worrying attack on small companies. The latter comes in the form of an expressed concern about dividend strategies typically adopted. The mischief is to be found ...

  • Correspondent's week

    12 Feb 2004

    It is 5.30am on Monday when I stumble out of bed in search of inspiration, black coffee and clean clothes. I am driving to work and if I do not leave the house before 6am I will be stuck on the chaotic A40 for the best part of two hours. Crash downstairs to discover that Tara, our barmy lurcher, has created her own version of the River Ouse in the conservatory. Curse her, kick her into the garden and spend the next 10 minutes on my hands and knees trying to stem the floods that ...

  • Coventry Building Society - First Time Buyer - 4.99 Fixed

    11 Feb 2004

    Type: Fixed rate mortgageFixed term: Until February 28, 2009Fixed rate: 4.99%Minimum loan: £1,500Maximum loan: Up to 90% of valuation subject to a maximum loan of £200,000Income multiples: Up to 3.75 times principal income plus second or 2.75 times jointArrangement fee: NoneRedemption fee: Six months' interest until February 28, 2009Introducer's fee: Subject to negotiationTel: ...

  • Destini beats 70 to buy Aaron Client list

    12 Feb 2004

    The Destini group has bea-ten around 70 other bidders to buy the client list of collapsed investment IFA the David Aaron Partnership. Destini was one of about 70 firms interested in the Milton Keynes IFA which was liquidated in December last year. It has secured the deal to purchase certain remaining assets but will not be taking on the business or any of the employees and there is no continuing involvement for David Aaron. Destini group chairman and chief executive ...

  • Digest

    12 Feb 2004

    Mr Pink, Mr Orange, Mr Blonde, Mr Blue and Mr White seem to have transferred their line of business from diamond robberies in Los Angeles to pension research in London. The Diary would like to introduce the faculty at the new pension institute at Cass Business School in London - Georges Selim, Martin Dockray, David Blake, Alec Chrysta and Steve Haberman. Mr Purple was on another job, trying to create a universal pension.

  • Duncan for Aon's Mom retail push

    12 Feb 2004

    Former Skandia sales director Angus Duncan is joining Aon Asset Management to roll out its institutional multi-manager offering to the retail market. Duncan, who took voluntary redundancy during Skandia's cost-cutting exercise last July, will be responsible for the wider distribution of six funds of managers within Aon's Dublin-based Oeic. The funds, which include UK, Europe, North American and Japan portfolios, have a total of around £650m of assets, with ...

  • Equitable execs receive copies of report before publication

    14 Feb 2004

    Senior executives at Equitable Life have received copies of the report ahead of its publication. Financial secretary Ruth Kelly said the serving directors had been given extracts of Lord Penrose's report early to assist the Treasury ' with its public functions.'

  • Equitable faces claims from late contributors

    12 Feb 2004

    The Equitable Life Late Contributors Action Group is claiming that thousands of late contributors could be in line for compensation. The group is calling for volunteers and new members to help organise a campaign to seek compensation through the courts or the Financial Ombudsman Service. Founder Paul Weir says hundreds of Equitable late joiners have received proper compensation and believes that thousands of "late contributors" could be entitled to the same. He says even ...

  • Excising the excise

    12 Feb 2004

    In January, the Association of Investment Trust Companies and JP Morgan Fleming Claverhouse Invest- ment Trust jointly lodged an appeal in the VAT Tribunal against HM Customs and Excise. This move initiated a legal test case to challenge the charging of VAT on the fees paid by investment trusts to external fund managers. This is not a new issue as the AITC has been lobbying for some time against the Government's discriminatory VAT treatment of investment trusts. We ...

  • Fowler to take Euro role at Isis

    12 Feb 2004

    Aberdeen Asset Management's Adrian Fowler is to take over as director of European equities for Isis Asset Management. Fowler, who headed pan-European equities at Aberdeen as well as managing its European growth fund until April last year, will manage portfolios for institutional clients at Isis. He is is an economics graduate who began his career as a quantitative analyst at Frank Russell and worked for Provident Mutual before moving to Prolific in 1996, which was ...

  • Friends Prov cuts bonus rates

    11 Feb 2004

    Friends Provident is cutting bonuses on its with-profits policies with payouts falling by an average of six per cent.Regular bonus rates on its with profits "Main Series" products have fallen by between 0.25 per cent and 1 per cent. The changes see regular bonuses on its new generation pensions fall from 3.4 per cent in August to 2.4 per cent this month. Pension investment bond bonuses are down to 1.5 per cent from 2.5 per cent, and unitised with-profit bonds are down to 1.5 per cent ...

  • FSA clears self-cert of fraud claims

    12 Feb 2004

    The FSA says there is no evidence of mortgage application fraud among self-cert lenders. Research from the regulator this week, based on information from 15 major lenders, finds that lenders "generally have adequate controls in place to protect themselves from becoming conduits for mortgage application fraud." It says genuine self-cert lending only accounts for around 6 per cent of all mortgage balances and that data for arrears does not show significantly higher rates ...

  • FSA urged to set the agenda for exams

    12 Feb 2004

    The FSA has been urged to take more responsibility for the development of exams for mortgage brokers by the Association of Mortgage Intermediaries. The AMI is concerned over lack of progress on exams by the Financial Services Skills Council. Director Chris Cummings says the Skills Council will not be setting approved exams but just a list of appropriate exams, putting the onus on individual firms to draw up their own requirements. Under the MCCB, advisers have had to ...

  • FSA's structured probe uncovers 'magic circle'

    12 Feb 2004

    The FSA and Financial Ombudsman Service suspect that they have discovered inappropriate collaboration between providers and IFAs as part of their work into structured products, according to the ABI. Money Marketing has seen an ABI circular revealing that the FSA and FOS believe that providers collaborated with IFAs and stockbrokers to sell products on the basis of volume rather than suitability. This, along with other incidences of poor practice, has prompted the regulator to ...

  • FTB house price average tops £100k for first time

    12 Feb 2004

    House prices continued to flourish in January, increasing by 2.2 per cent compared with 2 per cent in December, according to Halifax's monthly house price index. The average house cost was £145,610 in January compared with £142,408 in Dec-ember while the average price paid by a first-time buyer passed £100,000 for the first time at £101,719. A year ago, a first-time buyer would have paid an average of £82,968. Key workers such as nurses, ...

  • Gartmore - Gartmore Portfolio: Balanced Strategy

    16 Feb 2004

    Type: Oeic fund of fundsAim: Growth by investing in a managed portfolio of investment fundsMinimum investment: Lump sum £1,000, monthly £50Investment split: 55.6% UK equities, 12.4% bonds, 8.9% Europe ex UK,9.3% US equities, 4.5% Japanese equities, 6% Asia ex Japan equities, 1.5% emerging markets, 1.8% cashIsa link: YesPap transfers: YesCharges: Initial 5%, annual 1.2% plus underlying fund ...

  • Gartmore widens fund of funds

    17 Feb 2004

    Gartmore has altered its fund of funds, allowing it to invest in funds managed by other investment houses.The arrival of Bambos Hambi and the rest of the multi-manager team in November last year prompted the decision to rename the existing fund the Gartmore Portfolio: balanced strategy fund and change its remit.The new fund will hold a set of lower-risk core funds and will boost the return from these by including some high-risk satellite funds. The multi-manager will focus ...

  • GE Life - Capital Secure Investment Plan

    13 Feb 2004

    Type: Capital-protected bondAim: Growth linked to the performance of the FTSE 100 and Halifax House Price indicesMinimum-maximum investment: £7,000-£1m, Isa/Pep transfers £3,000Term: Five yearsReturn: Up to 100% growth in the FTSE 100 and Halifax House Price IndicesGuarantee: Original capital returned in full regardless of performance of indicesClosing date: May 4, 2004, April 16, 2004 for ...

  • General insurance network CETA signs up with six mortgage networks

    17 Feb 2004

    General insurance network Central Electronic Tracking Agency has been appointed by six mortgage networks to provide a range of general insurance products to their members. The networks are First Mortgage Options, Genesis, Guaranteed Home Loans Network Services, Mortgage 2000, Optima and PMH Alliance.

  • GMAC deal better for remortgages

    16 Feb 2004

    GMAC RESIDENTIAL FUNDINGTwo-Year Express DiscountType: Discounted-rate mortgage Discounted term: Until April 1, 2006 Discount: 1.85% Payable rate: 3.89% Minimum loan: £25,001 Maximum loan: Up to 90% of valuation subject to a maximum of £350,000, up to 85% of valuation subject to a maximum of £500,000, up to 75% of valuation subject to a maximum of £750,000 Income multiples: ...

  • GMAC deal better for remortgages

    16 Feb 2004

    GMAC RESIDENTIAL FUNDINGTwo-Year Express DiscountType: Discounted-rate mortgage Discounted term: Until April 1, 2006 Discount: 1.85% Payable rate: 3.89% Minimum loan: £25,001 Maximum loan: Up to 90% of valuation subject to a maximum of £350,000, up to 85% of valuation subject to a maximum of £500,000, up to 75% of valuation subject to a maximum of £750,000 Income multiples: ...

  • GMAC-RFC launches 25 year mortgage

    16 Feb 2004

    GMAC-RFC has launched a customised 25 year mortgage. Borrowers are able to choose between a fixed rate of 5.95 per cent, a variable rate that tracks the base rate plus 0.75 per cent, or combinations of the two.The fixed rate is available at up to 5 times income, and the tracker has no redemption penalties.Head of marketing services Jeff Knight says: "Advisers and borrowers understand that paying no more than 5.95 per cent for the rest of your mortgage life is outstanding ...

  • Goodfellows - Safetyfirst

    16 Feb 2004

    Type: Accident, sickness and unemployment insuranceMaximum benefit: £1,000 a month or 50% of gross monthly incomeBenefit payment term: 12 months Deferred period: 30 days Premium: £3.50 per £100 for unemployment cover, £3.50 per £100 for incapacity cover, £5.50 per £100 for unemployment and incapacity coverCommission: Initial 20%Tel: 0870 2403946

  • Goodfellows leads protection gang

    11 Feb 2004

    Goodfellows has established safetyfirst, an accident, sickness and unemployment product that does not depend on the policyholder having a mortgage.Safetyfirst is identical to Income Insurance, a product Goodfellows established last year. Unemployment cover costs £3.50 per £100 of monthly benefit and incapacity cover is available at the same rate. Unemployment and incapacity cover is more expensive at £5.50 per £100 of monthly benefit.In the event ...

  • Group 300 in aggregate race

    12 Feb 2004

    IFA business Group 300 is in the first stages of developing an aggregating wrap platform that would allow IFA clients to transfer their own assets and view portfolio values online. Group 300 chief executive Chris Batten claims that the product will not remove the need for advisers and says it would be designed to help financial planning. Batten says the firm intends to complete the first stages of the design process and then seek backing from a bigger player, possibly ...

  • Hargreaves Lansdown warns on 'reckless' trail grab

    12 Feb 2004

    Hargreaves Lansdown has slammed Intelligent Money's bid to claim back trail commission on personal pensions, calling its move reckless and warning that policyholders could be left facing a major tax bill. IM was launched last month by Julian Penniston-Hill, who believes most IFAs do little to deserve ongoing commission. He has spent the last few weeks running a campaign urging IFA clients to sign over trail commission to IM, which will rebate the cash for a £35 annual ...

  • Henderson ITs offers guide to active management

    11 Feb 2004

    Henderson Investment Trusts has commissioned a guide extolling the virtues of active fund management.The guide, written by personal finance journalist Simon Hildrey, highlights the importance of good stock-picking and offers tips on how to spot whether a manager is really a just closet index tracker.Hildrey says: "The past year has seen markets fall back on an upward trend. As a result, more private investors are feeling comfortable about equity investment. The challenge ...

  • Higher viewings boosting market

    12 Feb 2004

    Brokers have seen an upturn in activity in the housing market in January with the number of viewings increasing and pushing up house prices. Mortgageforce chief executive Rob Clifford says January saw a slight increase in the average loan size to around £110,000. He says activity levels are higher than they have ever been in January, which is a sign that the market is bouncing back. Hamptons International Mortgages technical director Jonathan Cornell says estate ...

  • Home condition report gets strong backing from buyers and sellers

    12 Feb 2004

    Consumer trials of the home condition report have shown strong support among buyers and sellers.The trials, carried out by the Building Research Establishment, show that 95 per cent of buyers find the HCR useful and 88 per cent of buyers and 78 per cent of sellers believe the HCR accurately reflected the condition of the property.Eighty-nine per cent of sellers and 79 per cent of buyers describe it as very useful while 54 per cent of buyers who had bought a home ...

  • Homeowners Friendly Society offers new life plan

    16 Feb 2004

    The Homeowners Friendly Society is targeting UK residents aged between 50 and 75 with its friendly life cover plan.The guaranteed acceptance life insurance plan can be used on death to help pay outstanding debts or to pass on a tax-free lump sum to loved ones. For a monthly payment of £16, a female non-smoker aged 65 would receive life cover worth £3,451. In comparison, HFS says a similar policy with another provider would offer cover of £2,482 a difference ...

  • HSBC Asset Management merges institutional and intermediary businesses

    17 Feb 2004

    HSBC Asset Management has merged its UK intermediary and institutional business development teams in a move which sees Jonathan Polin, managing director of the intermediary business, leave the group.The decision comes following a strategic review of the business, which HSBC says found convergence in the skills required to service both markets. Geoff Cheetham, previously head of institutional business development, is assuming responsibility for the merged business with immediate effect. ...

  • IFAs say Standard should demutualise rather than sell off

    12 Feb 2004

    Most IFAs believe Standard Life should demutualise and would rather see it demutualise than sell off subsidiaries such as Standard Life Healthcare and Standard Life Bank, according a Money Marketing Online survey. Fifty-seven per cent of the respondents to the online survey believe Europe's biggest mutual insurer should abandon mutuality and 47 per cent believe it should have demutualised in 2000. But 66 per cent of the 318 respondents do not want Standard to sell its subsidiaries ...

  • IFAs to shun Standard for new WP business

    12 Feb 2004

    IFAs do not plan to advise their clients to transfer out of Standard Life's with-profits fund but will not recommend Standard for new with-profits business, according to a survey for Money Marketing. Four-fifths of the IFAs in an online poll say they will not recommend their clients to transfer out of Standard's with-profits fund while 20 per cent say that they will recommend clients to transfer but 67 per cent say they will not recommend Standard for new with-profits business. The

  • IHT planning a growing market for IFAs says ScotEqu

    16 Feb 2004

    The doubling of the amount of inheritance tax collected by the Inland Revenue over the last 10 years to over £2.3bn in 2001/02 from £1.2bn in 1992/93 presents a growing opportunity for advice for IFAs says Scottish Equitable.The provider says the number of people likely to be hit by IHT is likely to have soared as the average property price rose 21 per cent in the 2002/03 tax year, compared to a 2 per cent rise in the nil rate band for inheritance tax.ScotEq ...

  • In a class of its own

    12 Feb 2004

    I would like to close this series of articles with a discussion about the outlook for returns from equities. Projecting future returns from equities requires much greater subjectivity than the other major asset classes. However, this does not mean that there are no objective methods of estimating returns. One method is to consider dividend yield and dividend cover. Looking at the FTSE All Share index, the average dividend yield is 3.11 per cent at the time of writing. However, ...

  • Independent view

    12 Feb 2004

    In one of the most significant weeks we have seen in politics for quite some time, intense focus was directed on the issues of corporate governance and personal debt. It was not just the BBC which made the headlines, rather than presenting them, but we also saw the major life offices explaining their position with regard to the long-running issue of endowments. Irrespective of the rights or wrongs of university top-up fees, there is no doubt that those who go into higher ...

  • Intelligent Finance mortgage applications up

    16 Feb 2004

    Intelligent Finance says mortgage applications have soared by 21 per cent since it launched its two new standalone products - fixed rate and tracker rate mortgages - through professional advisers two weeks ago.On the back of this strong demand, Intelligent Finance will be offering these two new products directly to consumers from 16 February. The bank will be offering fixed rate mortgage at 5.19 per cent until July 2006 followed by an additional one year discounted variable ...

  • Invested interests

    12 Feb 2004

    Many fund managers invest in their own funds but does it improve performance? After analysing track records, investment boutique Charlotte Square is launching a fund of managers who put their money where their mouth is. Charlotte Square found a huge discrepancy between the performance of funds with monetary backing from their managers and those without. William Forsyth, who will run the new product, says the 10 funds that comprise his portfolio would have returned 118 per cent ...

  • Investment view

    12 Feb 2004

    Is the era of cheap money coming to an end? If it is, then you cannot say you were not warned. The world and his wife were anticipating a quarter-point increase from the monetary policy committee last week. They were not disappointed. The Bank of England delivered according to expectations. Equally unsurprisingly, mortgage lenders were quick to follow suit. The real question is, where do interest rates go from here? The level of interest rates is not just about how much your mortgage ...

  • Investor confidence rockets

    12 Feb 2004

    January saw a surge in investor confidence, according to the latest surveys from JP Morgan Fleming Asset Management and Ample. JP Morgan Fleming's monthly investor confidence index shows a rise of eight points to 92 in January from 84 in December and is now not far off the index's high of 103 which was seen in April 2001. JPMF says 44 per cent of investors believe the stockmarket will be higher in six months compared with 40 per cent in December while only 17 per ...

  • Is the cap up in the air?

    12 Feb 2004

    Has the Government thrown in the towel on the 1 per cent price cap? Not yet. But it has certainly accepted that a policy and product dear to its redistributive heart - the child trust fund - can be charged at 1.5 per cent annual management charge. Does this mean that pensions and the rest of Sandler's recommended suite of stakeholder products will be allowed a price increase? Certainly, the argument has not been entirely conceded. The Government is still making ...

  • James Hay revamps Sipp platform

    17 Feb 2004

    Sipp administrator James Hay is relaunching its secure internet-based Sipp management service, James Hay Online. The service allows intermediaries and customers to view and manage over 32,000 Sipps online.The new look site allows transactions to be carried out faster and gives IFAs and customers access to portfolio valuations, breakdowns of asset holdings and values, personal and contact details, transfer and contribution details and send investment instructions.

  • Judging the judge

    12 Feb 2004

    I was delighted by Communication Workers Friendly Society chief executive Edward Chapman voicing his opinion that the Government might not be taking the most appropriate action with Sandler products (Money Marketing, January 29). It ought to be remembered that Sandler has his personal pension with Equitable Life and does not have the ideal background to comment on fundamental industry issues. Why does the Government place such faith in his judgement? It is refreshing ...

  • Julian Gibbs

    12 Feb 2004

    There have been numerous attempts at replacing with-profits bonds. The product I like best is from Keydata. Its UK protected growth plan is totally transparent and is already winning much praise from leading investment IFAs. Best Invest's John Spiers, who I greatly respect, says: "This novel product could be the 21st Century's replacement for with-profits, offering both transparency and liquidity. It will be particularly interesting to cautious investors approaching retirement ...

  • Kelly denies mutual prejudice as MP raises fears on reserves

    12 Feb 2004

    Scottish National Party MP Alex Salmond has challenged the Treasury over its financial reserve requirements for mutual companies. Salmond raised fears over the future of demutualised life companies in a debate at Westminster Hall in London last week. He is concerned that Standard's mutuality review could see the company taken over by a rival, similar to Scottish Amicable's acquisition by Prudential and Scottish Mutual's purchase by the Abbey group. Salmond ...

  • Kenmir on training board to monitor progress

    12 Feb 2004

    FSA director of investment firms David Kenmir has been appointed to the board of the Financial Services National Training Organisation which governs the Financial Services Skills Council. Many believe the move is aimed at enabling the regulator to more closely monitor the progress of the organisation. Aifa director general Paul Smee believes Kenmir's main function will be to ensure that the industry's exams review remains a top priority. Smee says: "I am ...

  • Kevin Duffy on mortgages

    12 Feb 2004

    A delicious rumour has it that my ex-boss Mark Chilton may soon be back in the market with his latest venture. The mercurial architect of Savills Private Finance, where he made a lot of people financially secure, Chilton is an ex-PriceWaterhouseCoopers heavyweight who needs no lessons from me in how to build a dynamic business with healthy margins. The dynamic of a brokerage has evolved dramatically since the mid-1990s. You could even say that Chilton's earlier credits at First ...

  • Kreis Consulting - Johnson Seafarms - Cod 1

    12 Feb 2004

    Type: Enterprise investment schemeAim: Growth by investing in a Shetland-based cod farmMinimum investment: £30,000Opening/closing date: January 1, 2004/March 1, 2004Charges: Initial 4%Commission: Initial 2%Tel: 0141 5641523UNIT-LINKED BONDSSKANDIAMultiBond - Skandia Distribution BondType: Unit-linked bondAim: Income and growth by investing in a range of distribution fundsMinimum investment: ...

  • Lenders are hit by fast-track TV attack

    12 Feb 2004

    The Money Programme's second investigation into fraud in the mortgage market moves the spotlight from brokers to lenders, accusing them of turning a blind eye to flagrant abuse of self-certification and fast-track mortgages. The programme, broadcast on Wednesday night, shows the anger of brokers who feel that lenders are taking no responsibility for the problems the BBC identified with self-cert last October. Many high-street lenders fast-track mortgages through their ...

  • Lending boost for Chelsea

    12 Feb 2004

    Gross mortgage lending at Chelsea Building Society increased by 35 per cent from £1.72bn in 2002 to £2.32bn last year. Net mortgage lending increased by 28 per cent from £686m to £878m while profits rose by 13 per cent from £50.1m to £56.8m. The number of borrowing members at the Chelsea has risen to 85,000 and the society says a low-risk lending strategy underpinned by strict underwriting criteria has resulted in mortgage arrears of ...

  • Letwin paves a path between taxation and public services

    17 Feb 2004

    Oliver Letwin has unveiled key elements of his economic strategy designed to put the brakes on overall public spending while ensuring that more cash is pumped into health and education.And while the Shadow Chancellor aims to reduce the share of national wealth spent by Government - by slashing back on bureaucracy and curbing the funds available for other state services -he claims he will be able to save the country from another round of tax rises inevitable if Labour wins a third ...

  • Liberty Ermitage - Diversified Strategies Fund

    17 Feb 2004

    Type: Hedge fund of fundsAim: Growth by investing in a portfolio of between 80 and 100 hedge fundsMinimum investment: $50,000Place of registration: Cayman IslandsInvestment split: 100% in hedge fundsCharges: Annual 1.5%, performance fee 15%Commission: Subject to negotiationTel: 01534 615500

  • Life offices look for more incentives

    12 Feb 2004

    Product providers have given their approval of the plans to encourage staff to join occupational pension schemes but several life offices are calling for the DWP to do more now to encourage saving. Scottish Widows says it is disappointed there is nothing from the DWP that deals with the issue of the disincentive to save which is caused by means-tested benefits. Prudential is calling for financial incentives to encourage smaller employers to give contributions because ...

  • Liverpool Vic ties up Boots life deal

    12 Feb 2004

    Friendly society Liverpool Victoria has joined the procession of insurers aligning themselves with major retail outlets, with a deal to sell life insurance through Boots. In contrast to other insurers, it will offer a free advice line for customers to seek guidance on their insurance needs from a specialised adviser. A typical policy will see a female non-smoker aged 35 next birthday paying £8.10 a month for a 20-year policy with £100,000 cover and a male ...

  • Man Investments - Man RMF Multi-Style

    17 Feb 2004

    Type: Capital protected hedge fund portfolioAim: Growth by investing in hedge funds and managed futuresMinimum investment: Lump sum $ 50,000, euros 50,000Place of registration: BermudaInvestment split: 50% managed futures, 23% relative value, 13% event driven, 7% equity hedged, 7% global macroGuarantee: 100% of capital returned regardless of performance of underlying investments at maturityCharges: Annual 1.5%, ...

  • Margetts Fund Managenent - Carry On Entertainment

    12 Feb 2004

    Type: Enterprise investment schemeAim: Growth by investing in the production of Carry on London and rights to further Carry On filmsMinimum investment: Lump sum £10,000Opening/closing date: January 27, 2003/April 2, 2003 for 2003/2004 tax year, April 30 for 2004/2005 tax yearCharges: Initial 5.5%, annual 1.5%Commission: Initial 3% .0.25%Tel: Tel: 0121 236 2380

  • MGM leaves bonuses unchanged on unitised WP

    13 Feb 2004

    MGM Assurance is to leave regular bonus rates on its unitised with-profits policies unchanged.This move means bonuses on life funds continue at 3 per cent and on pension funds at 3.5 per cent.The insurer says the move reflects its ongoing commitment as a mutual to with-profits, saying it comes at a time when many other insurers such as Standard Life, Clerical Medical and Norwich Union have cut their rates.MGM Assurance chief operating officer Neil Walker says: "We ...

  • Miles in turn on churn

    12 Feb 2004

    Professor David Miles says he did not mean to point the finger at intermediaries and accuse them of churning in the mortgage market. Last December, when he published his interim report on long-term fixed-rate mortgages in the UK, Miles hit out at mortgage brokers, saying they contributed to churn because it is to their advantage to sell shorter-term products. This was met with a barrage of criticism from brokers who point out that remortgaging can be in a consumer's ...

  • Minesweeping the pension proposals

    12 Feb 2004

    The major worry about the Government's pensions tax proposals, Simplifying the Taxation of Pensions, published in December 2003, is that they might be shelved. Despite the fact that considerable simplification of pensions will result if the proposals are implemented, some organisations and individuals have complained about the number of people who will be affected adversely by the introduction of the new lifetime allowance of £1.4m. The National Audit Office ...

  • Mortgage edge

    12 Feb 2004

    At 337 pages and 13 chapters, the final mortgage rules were published last October. By ensuring that publication came before the end of October, the FSA met its commitment to the industry to publish the final rules a clear year before the start of statutory regulation. This is an important point to note - as there is no grandfathering or transitionary per-iod with the onset of mortgage regulation. Unlike other parts of the market, where there has been say, a six-month run-in period, ...

  • Mortgage edge

    12 Feb 2004

    The biggest mortgage news last year is also destined to be the biggest thing to happen in 2004 and it will hit every broker and lender for years to come. It is now more than three months since the FSA published its final rules covering the sale of mortgages, thereby giving the industry a full year to prepare for their implementation on October 31. In terms of the differences between MCCB regulatory controls and the statutory regime, the key principles are very similar. You must ...

  • Mortgages plc buys Genesis

    11 Feb 2004

    Subprime lender Mortgages plc has bought Genesis for an undisclosed sum. Mortgages plc will have a hands off relationship with Genesis, and the business will continue to be run by Genesis managing director Barry Robson and business development director Nigel Gardner. Genesis comprises branded lender Genesis Home Loans and packager Genesis Mortgage Services.

  • Myners wants company voting rethink to aid shareholders

    12 Feb 2004

    A new report from Paul Myners has recommended that company voting should be integrated fully into the investment process. The report was commissioned by the shareholder voting working party, an organisation involving the AITC, the ABI, the IMA and the NAPF aimed at providing a better system of voting for shareholders in the UK. Myners' recommendations are not binding on the Treasury but the working party says it hopes its findings will persuade the Government to implement ...

  • Nationwide launches new fixed and tracker mortgages

    11 Feb 2004

    Nationwide has launched a new range of fixed and tracker mortgages.The new range includes a two year fixed rate from 4.79 per cent, a three year fixed rate from 5.09 per cent and a five year fixed rate from 5.29 per cent.Trackers available will be a two year tracker from 4.04 per cent, a three year tracker from 4.14 per cent and a five year tracker from 4.24 per cent.

  • Noble offers investors a capital idea

    13 Feb 2004

    Noble & Company is aiming to raise up to £10m for the capital pub company 2 enterprise investment scheme (EIS), which will acquire an initial portfolio of 12 pubs over the next three years. The first capital pub company EIS was established in 2001 and has raised £15.4m through two share offers and a private placing. EIS rules prevent the company from raising ...

  • NU in cashback pledge for with-profits bond

    12 Feb 2004

    In a bid to revive with-profits sales, Norwich Union is to introduce a five-year money-back guarantee on all new with-profits investments into its portfolio bond this year as it endeavours to lure investors back into the market. The change means that investors are guaranteed their original investment back on the policy's fifth anniversary, regardless of whether markets go up or down, and applies to investments made up until the end of the year or earlier if fully subscribed. Investmen

  • Out of context

    12 Feb 2004

    •"I'm sorry, have you got to go now? Can't I bore you about how brilliant our mortgage is for another 10 minutes?" - Norwich & Peterborough press chief Alison Rolls. •"I'm just licking my lips because he is about to open a bottle of sour cherry vodka." - HSBC Asset Management PR Dolly O'Neill on Friday afternoon office antics. •"I might put some lipstick on and pull my shirt down a bit." - Mainland PR Kat Milne prepares to go out on Friday ...

  • Over £16bn completions for L&G mortgage club in 2003

    13 Feb 2004

    Legal & General's mortgage club members completed over £16bn of mortgages in 2003, up 24 per cent from 2002.It says that part of its success is down to the volume of exclusive deals it negotiates with lenders on its panel, which accounted for almost £3.5bn of the mortgages completed last year.

  • PAFS adds to equity release range

    11 Feb 2004

    The Pension Annuity Friendly Society is to launch an equity release product that will allow elderly people who are infirm or who have bad medical histories to release more equity from their homes. Pafs hopes it will be able to offer lower rates than average, and allow consumers to borrow higher proportions of their properties' value, because its customers will have shorter life expectancies. It plans to launch the product within three months.

  • Panorama was not the whole self-cert story

    12 Feb 2004

    The BBC has been criticised by mortgage intermediaries for not presenting the whole story in its Wednesday night edition of Panorama, featuring self-cert mortgages.Clear Cut sales and marketing director Ben Thompson says the BBC presented the self-cert issue out of context. He says the issue needs to be discussed in terms of the bigger picture of lenders reluctance to change income multiples with the times.Without saying there was any problems with self-cert, Thompson suggested ...

  • Parties clash on pension policies

    12 Feb 2004

    The Department for Work and Pensions' proposals for improving take-up of occupational pensions schemes have been welcomed by the Conservatives and the TUC but the Liberal Democrats say the plans are wasting time. The Tories support the proposal that employees should have to opt out rather than opt into company schemes. But the LibDems accuse the Government of "twiddling their thumbs while pensions burn" and has branded the proposals for dealing with take-up of pensions ...

  • Penrose report finally near publication

    11 Feb 2004

    The long awaited Penrose report into what went wrong at troubled insurer Equitable Life looks likely to be published the week of February 23. The 800-plus page report was expected to be made public earlier this month, but speculation over the weekend suggests it will be later due to the "legal complexities" of going through the document and preparing the Government response.

  • Pensions Bill not enough - NAPF

    12 Feb 2004

    The National Association of Pensions Funds says today's Pensions Bill fails to address the fundamental long-term weaknesses in the UK pension system. The occupational pensions trade body says it supports the bill's proposals to increase security for defined benefit schemes, better information, a more flexible approach to scheme funding and better regulation, but argues there is nothing to encourage new saving.NAPF chairman Terry Faulkner says: "Is there anything in ...

  • Pensions Bill published with details of Pension Protection Fund

    12 Feb 2004

    The Pensions Bill has just been published and includes details of the Pension Protection Fund.The Bill also reveals that a separate pensions regulator will be established, which it says will make it easier for businesses to get on with running good pension schemes.Simplification measures will also be introduced, and schemes will be free to set their investment strategy to their own particular characteristics.

  • Positive start for property prices

    12 Feb 2004

    Halifax saw the most positive movement in house prices in January, with its index showing a 2.2 per cent increase over the month, up from a 2 per cent rise in December. Halifax puts the average house price in January at £145,610, and says annual house price inflation stands at 16 per cent. General manager, group economics Shane O'Riordain says: "Interest rates are set to rise further this year, which will act as a brake on the market. The extent of the rise is, however, ...

  • Product matters

    12 Feb 2004

    HSBC Asset Management's limited offer capital and income plan offers higher-income potential with 100 per cent capital protection at the sixth anniversary. It is tagged to four indices with equal weightings - the FTSE 100, S&P 500, Nikkei 225 and Eurostoxx 50 - giving global exposure albeit in structured financial instruments for income only. Income is fixed in year one at 6.8 per cent with variable income thereafter. Income is annually in arrears and from year ...

  • PTI appoints Richard Garland to head assault on health care markets

    17 Feb 2004

    Personal Touch Insurance has appointed Richard Garland to set up its new specialist healthcare "supermarket" for intermediaries.Garland will become PTI health care director, having 20 years experience in the financial services industry, including being national account manager at BUPA.PTI is working to develop a network of financial services "superstores" in every town to become the "Tesco of the financial services marketplace" and says the healthcare supermarkets are integral ...

  • Public leading the technology march

    12 Feb 2004

    I read with some interest and then amusement that IFAs will transact at least £2.8bn-worth of business a year electronically within five years, according to research from The Exchange (Money Marketing, January 15.) My interest came as I am chief executive officer of a true innovator in the financial services sector, Group 300 Holdings. My amusement was at the superficial approach to surveying the market and how it feels about technology. The industry should wake up and realise ...

  • Reid all about it

    12 Feb 2004

    As part of a GCSE course, my son brought home a video which looks at the behaviour of sharks. This reminded me of that famous phrase from Jaws: "Just when you thought it was safe to go back in the water..." I felt a similar hesitancy when I read the comments made by Ron Sandler and Paul Myners to the Treasury select committee. Although I agree with many of their sentiments, I think it is impertinent of them not to have realised that a large part of the problem in encouraging saving ...

  • Ros Altmann

    12 Feb 2004

    Dr Ros Altmann has a unique position in the UK pension arena. No other figure both works for the Government while simultaneously whipping up such political momentum against it. An independent consultant to 10 Downing Street and an adviser to the Myners review, Altmann's high-profile campaigning on behalf of final-salary scheme members has been a key driving force behind the setting up of the Government's pension protection fund. Altmann's no-nonsense style is ...

  • ScotProv increases rates for critical-illness cover

    12 Feb 2004

    Scottish Provident is raising its rates on on joint critical-illness and life cover policies by an average of 11 per cent. Taking effect from February 23, the change applies to guaranteed and reviewable premiums, with the cost of the cover buyback option increasing to an extra 12 per cent of premium value from 10 per cent. Stand-alone critical-illness cover rates are unchanged. Abbey for Intermediaries head of protection, marketing and product development Nick Kirwan ...

  • Sixty nine per cent growth for equity release in 2003

    17 Feb 2004

    Figures from the Council of Mortgage Lenders show that lifetime mortgage lending grew by nearly 69 per cent in 2003.The CML says that over 25,000 lifetime mortgages worth over £1bn were advanced in 2003, up from 16,300 mortgages, worth £655m, in 2002.Senior policy adviser Jackie Bennett says: "Lifetime mortgages represent just a third of one per cent of the total mortgage market, although business is growing rapidly. We see lifetime mortgages as a growth area, ...

  • Skandia - MultiBond - Skandia Distribution Bond

    13 Feb 2004

    Type: Unit-linked bondAim:Income and growth by investing in a range of distribution fundsMinimum investment: Lump sum £5,000Fund links: Skandia Axa distribution, Skandia DWS managed distribution, Skandia New Star managed distribution, Skandia Norwich distribution, Skandia Prudential distribution, Skandia distribution portfolioAllocation rate: 100%Special offer: Allocation rate increased to 103%Offer period: Until ...

  • Skandia offers distribution choice

    12 Feb 2004

    SKANDIAMultiBond - Skandia Distribution BondType: Unit-linked bondAim:Income and growth by investing in a range of distribution fundsMinimum investment: Lump sum £5,000Fund links: Skandia Axa distribution, Skandia DWS managed distribution, Skandia New Star managed distribution, Skandia Norwich distribution, Skandia Prudential distribution, Skandia distribution portfolioAllocation rate:100%Special offer: ...

  • Skills Council accused of dumbing down tests

    12 Feb 2004

    The Financial Services Skills Council is believed to be planning an inter-mediate exam between FPC and AFPC based on multiple-choice questions, prompting fears of "dumbing down" ahead of next week's examination review update. The FSSC is scheduled to unveil its plans to move from approved to appropriate examinations and it is believed that it will set out proposals for a new exam to be positioned between the current FPC and AFPC levels. One industry source says the ...

  • Smith presents pension bill to parliament

    11 Feb 2004

    Pensions minister Andrew Smith has presented the Pensions Bill to the House of Commons. The bill, which aims to strengthen the rights of individuals with benefits in final salary schemes, will be published tomorrow morning. It is also expected to set out the structure of the pension protection fund.

  • Societies moving into offset mortgages

    12 Feb 2004

    Two building societies are challenging lenders in the growing offset mortgage market with new products from Norwich & Peterborough and Coventry. N&P says it is the first society to link a current account with mortgage and savings accounts while Coventry's product offsets savings against borrowing. N&P says its lifetime tracker product's rate of Bank of England base rate plus 0.8 per cent means higher-rate taxpayers can effectively earn up to 7.58 per ...

  • SQ2 - Bristol & West Two-Year Stepped Discount

    11 Feb 2004

    Type: Stepped discounted rate mortgageDiscounted term: Two yearsDiscount: 3.2% in year one, 0.54% in year twoPayable rate: 2.59%Minimum loan: £1,501Maximum loan: Up to 95% of valuation subject to a maximum of £150,000, up to 90% of valuation subject to a maximum of £450,000, up to 75% of valuation subject to a maximum of £1mIncome multiples: Up to 3.5 times principal income ...

  • Sting in the trail

    12 Feb 2004

    The year has started with optimism that things will get better as markets become more buoyant. But for the financial services market to seize the opportunities that this optimism brings, it must encourage customer confidence. This is tricky to achieve when customers are asking themselves who they should trust as the FSA fines high-street names. The FSA is not handing out fines without cause. Safeguarding the public from another endowment-style crisis is high on the list ...

  • Stockbroker sets the scene for film production plan

    12 Feb 2004

    Stockbroker Teather & Greenwood is seeking around £5m for its latest film partnership scheme. T&G, which has helped fund UK films including I Capture the Castle and The Heart of Me, starring Helena Bonham Carter and Paul Bettany, has already raised half of the £10m needed to help fund further productions. It is seeking the other £5m through IFAs with high-net-worth clients as the minimum investment is £50,000. The scheme, called Scene, ...

  • Strong case for renewals from an unlikely source

    12 Feb 2004

    Having become increasingly conscious of the recent commentary questioning the justification of IFAs getting renewable commission, Legal & General recently (inadvertently) made a very strong case to support its continuation. Having completed a mortgage for a new client last October and following our FSA authorisation in Dec-ember, I recently revisited the client to complete a full financial planning review. The interview was conducted on a commission rather than fee ...

  • Support packs show way to A-Day

    12 Feb 2004

    Life offices have issued support and analysis packs for IFAs following the Department for Work and Pensions unveiling new workplace advice proposals last week. Norwich Union and Legal & General have produced an information pack to help IFAs prepare for A-Day on April 6, 2005 - the Inland Revenue's proposed starting date for proposals that will simplify tax regimes for pensions. NU's information pack, entitled Simplification, sets out for IFAs how their businesses ...

  • Switch on to e-commerce

    12 Feb 2004

    IFAs will have a unique opportunity to take part in a debate with the industry regulator about the role of electronic business in financial services. With CP198 on the horizon, the regulator's requirements for electronic reporting will be one of the key issues on the agenda at the Advisertech show in Bristol this month. The event, taking place on February 26, will feature FSA policy manager, operations directorate Peter Cardinali, who will be part of a panel of experts discussing ...

  • Talkback

    12 Feb 2004

    "I don't know but it still does not leave much room for advice. If they do not raise the cap, it will make it very hard for these products to be sold." Martin Gale, Martin Gale "I think they will eventually - the market has been saying they should for a while." David Rigby, Beresford Insurance Brokers "Yes, I think it probably will. Without a doubt, this cap will be brought in for all the products." Steven Thorpe, Cave & Sons "I don't know. ...

  • The best-laid planners...

    12 Feb 2004

    Computer cock-ups at the launch of an online retirement planner left faces at the Department for Work and Pensions redder than the rear end of a baboon that has just completed the Tour de France, the Diary learns. The gremlins in the DWP's machinery meant that around 20 hacks, along with ministers Andrew Smith and Malcolm Wicks, were left twiddling their thumbs while the technician scowled at his machine. Thanks is due to the Financial Times' Nick Timmins for puncturing ...

  • The FSA's stance on Standard

    12 Feb 2004

    Thank you for your letter of January 23 about Standard Life. The question of the corporate structure of Standard Life and of any other mutual is entirely a matter for its board and its members. The FSA has not recommended that the company should demutualise and has no objective that this should happen. Our concern is to satisfy ourselves that all regulated firms, including this company, meet their regulatory obligations and that they will continue to do so. If ...

  • The precedent's brain is missing

    12 Feb 2004

    I was interested to read the comments of Walter Merricks on behalf of the Financial Ombudsman Service complaining about the industry holding contrary views on the issues of consistency in FOS decisions and the right of the FOS to set precedent (Money Marketing, January 22). He says if you want consistency, you must have a precedent. The precedent of mercantile law as I learned it was "let the buyer beware". In view of the fact that this seems to have changed for financial products, ...

  • The spouse trap

    12 Feb 2004

    I have recently started my own consultancy business within a limited-liability company structure. I want to be as tax-efficient as possible and, as my wife earns only £7,000 a year from her part-time job, I had considered paying her a salary to utilise some, if not all, of her basic-rate tax band. However, a friend has suggested that giving my wife half the company shares so that dividends can be paid to her would be more tax-efficient. Is this correct? In theory, ...

  • Tories say pensions bill not good enough

    12 Feb 2004

    Shadow pensions minister Nigel Waterson has slated the Government's Pensions Bill, released today, saying it contains no incentive to save for retirement.He claimed the Government's approach is like "tackling a fire by promising fire insurance for the future instead of calling the fire brigade".Specifically, the Tories say the Bill will do nothing to reverse the spread of means testing of state benefits for pensioners and only contains minor reforms where "almost ...

  • Trust boards face crucial votes

    12 Feb 2004

    Two investment trust boards are setting up EGMs after shareholder pressure which could result in their early wind-up and liquidation. The trusts are the £60m Amerindo internet trust, which invests in emerging US technology companies, and the £22m intrinsic value trust, which focuses on UK small caps. Amerindo's board held discussions with majority shareholder Millennium Partners and is bringing forward the continuation vote, originally scheduled for January ...

  • TUC: Pensions bill shows our influence

    12 Feb 2004

    The TUC has welcomed today's pensions bill as addressing many of the measures it has been fighting for.TUC general secretary Brendan says the TUC specifically welcomes the creation of the pension protection fund and a new pensions regulator.But he says employees who have already lost out should not be forgotten, especially those that were contractually required to join occupational pensions and were made a "specific pensions promise" by their scheme.Barber says: ...

  • UBS buys Scott Goodman Harris

    17 Feb 2004

    Swiss banking giant UBS is buying London IFA Scott Goodman Harris in the latest stage of its push into the UK wealth management sector. The deal sees the 15 RI firm, which specialises in pensions and investment advice to high net worth individuals, rebranded under UBS's wealth management arm.Scott Goodman Harris managing partner David Scott says: "This is a good fit because we will be able to offer our existing an even better service as well as working with UBS clients ...

  • UBS to take over Laing & Cruickshank

    11 Feb 2004

    UBS is acquiring wealth manager Laing & Cruickshank from Crédit Lyonnais for around £160m. The wealth management service will approximately grow £5bn client assets and 75 advisers to UBS's present £5bn client assets and 100 advisers in its four-year-old UK business. Subject to regulatory approval the deal is scheduled to be finished in the second quarter of 2004.

  • UK savers squander £110m in Isa tax breaks

    16 Feb 2004

    UK savers are squandering £110m in Isa tax breaks according to research from IFA Promotion.The research shows 5.4 million UK adults hold bank or building society savings accounts and stocks and shares but no Isas, and 4.2 million taxpayers hold equities but no Isas. IFAP estimates that of these 418,000 have increased their investment in the previous year, generating £82m of wasted tax breaks.A further 3.3 million savers without cash Isas have missed a further ...

  • Unipass security is needed in the e-compliance age

    12 Feb 2004

    Now that the FSA has announced its intention to make providers pass on compliance documentation relating to new business entirely electronically from the middle of next year, the industry has been left with yet more work to do as it readies itself for e-compliance. Providers will need to consolidate data feeds running from multiple product databases into single feeds flowing to the FSA. They will also need to submit all electronic files in a format called XBRL, which is widely ...

  • Unique boutique

    12 Feb 2004

    When I took the call from Money Marketing asking me to write an article on the world of investment boutiques, I was in a Birmingham City centre hotel with Jeremy Lang and colleagues, hosting a presentation to two dozen stockbrokers and financial advisers. I agreed to write the article there and then but, to construct a theme for it, I decided I would ask our guests' opinions of investment boutiques and why they support them. First of all, there was near unanimous belief that ...

  • Will Treasury capitulate on the price cap?

    12 Feb 2004

    The introduction of a 1.5 per cent price cap on child trust funds is being heralded by the industry as a climbdown by the Government but the victory dance may be short-lived if the move is not repeated across the entire Sandler range. The argument that the Treasury has used to justify the price cap indicates that it believes child trust funds are a special case and need to be made as attractive as possible to lure potential distributors. But Clerical Medical head of industry ...

  • Win a dream weekend in Palma with Scottish Widows

    12 Feb 2004

    The curtain rises on the new Scottish Widows television advertising campaign on Sunday, February 15 at 9.20pm. To mark the occasion, Scottish Widows, one of the leading providers of life, pensions and investments in the UK, is giving three lucky readers the chance to win a luxury weekend for two in Palma. The trip includes return flights, private transfers and two nights' accommodation at a top hotel. Palma has something for everyone, whether you want to visit an art ...

  • Winterthur finds right balance with online tool for IFAs

    12 Feb 2004

    Winterthur Life is offering a new tool it says will help IFAs maximise their clients' chances of achieving their financial goals. The portfolio balancer, an online portfolio planning and asset allocation program, includes a simulator which helps advisers work out the statistical probability of achieving their clients' goals through stochastic modelling techniques, target asset allocations and a personalised investment balancing strategy. The program lets advisers ...

  • Would you credit it?

    12 Feb 2004

    Isas quickly gained popularity with investors from their launch in 1999. Designed to replace Peps and Tessas, Isas offered the flexibility to shelter a wide range of investments from capital gains tax. Combined with a guarantee that the product would be available for a minimum of 10 years, Isas made an attractive long-term investment option both for experienced and new investors and, within four years, around 14 million people had subscribed over £100bn. Many financial ...

  • WPA says brokers need to go for PMI growth

    12 Feb 2004

    Intermediaries need to put more effort into growing the private medical insurance market rather than just rebroking existing business, according to PMI insurer WPA. Corporate business director Adrian Humphreys says its 100-strong direct salesforce brings in more than 90 per cent of its new small corporate virgin business. He estimates that only 10 per cent of its intermediaries are bringing in such new flows, with brokers spending more time consolidating their businesses ...

  • Wrestling with choice

    12 Feb 2004

    It emerged last month that the FSA had been urged to launch a review of structured products and the way they were marketed as early as October 2001. Considering subsequent events, do you think the regulator has done as much as it could have done? Whitbread: Guidance note 7 - the factsheet on high-income products - was issued very late and irrelevant bits such as corporate bonds were included so as to dilute the message as well. Altogether this doesn't appear to have been very ...

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