Money Marketing
11 July 2001

  • 'Hedge' aims for 15% growth

    12 Jul 2001

    Sophisticated high-net-worth clients are being targeted by the Frank Russell Company to invest in the alternative strategies fund. This offshore Oeic aims to produce ret-urns of between 10 and 15 per cent a year.It invests in hedge fund strategies such as event-driven, market-neutral arbitrage and long and short selling. Event-driven strategies take advantage of circumstances such as stockmarket flotations and takeover bids and market-neutral arbitrage involves ...

  • 1% extra allocation on R&SA lifestyle bond

    12 Jul 2001

    Royal & Sun Alliance is offering an extra 1 per cent allocation to all new customers investing in its with-profits bond until October 31. The company is making the offer to mark the fifth anniversary of its lifestyle bond. With-profits is one of 20 fund options currently available on the bond. The extra allocation means new clients will get 102.5 per cent allocation on their lifestyle investment. Clients can reinvest with-profits bonuses in a ...

  • 100% and self-cert loans by non-conformist C&G

    12 Jul 2001

    Cheltenham & Gloucester is launching into the non-conforming lending market for the first time. The UK's third-biggest lender is set to offer self-certification mortgages through IFAs and its branch network for a three-month pilot trial, after which it has pledged to "take a closer look at what customers want". At present, the only mainstream lenders to have delved into the non-standard sector under their own brand are Bristol & West and Chelsea Building ...

  • 84% of IFAs put faith in with-profits bonds

    12 Jul 2001

    An overwhelming 84 per cent of IFAs believe with-profits bonds have outperformed inv-estor expectations over the past 10 years, according to research from Prudential. IFAs say with-profits bonds are not outdated and irrelevant, as they are often portrayed by consumer groups, but are becoming an important investment option in times of stockmarket volatility and falling interest rates. The survey of 250 IFAs, carried out by independent research ...

  • A&L ads emphasise need for questions

    12 Jul 2001

    Alliance & Leicester says it is putting the consumer back into the banking equation with a TV marketing campaign. The ads, which have the strapline, Making questions count, stresses the importance of asking questions. Working with online customer service developer Q-go, the ads are targeted towards users of A&L's online banking service. Q-go says one of the major issues that has contributed to the success or failure of online banking operations ...

  • ABI chooses new chairman

    13 Jul 2001

    The ABI has elected Scottish Widows chief executive Mike Ross as chairman at its annual general meeting, succeeding CGNU group chief executive Bob Scott.

  • Accountant claims IR35 tax edict will not hit IFAs

    12 Jul 2001

    A London accountant has disputed recent claims that IFAs could fall foul of the Inland Revenue's IR35 legislation. Friedmans Chartered Accountants partner Jonathan Friedman says the chance of most IFAs being hit by the new rule is unlikely because it is aimed at individuals or limited partnerships who serve only one client, unlike the type of businesses IFAs operate. But consultancy firm TAff Associates director Terry Foul-kes, who made the original ...

  • AKG Actuaries & Consultants issues offshore financial strength report

    16 Jul 2001

    AKG Actuaries & Consultants is publishing the first issue of its financial strength reports on leading offshore life offices. AKG says the reports are the result of a major initiative to provide experts independent financial strength analysis for use by IFAs in offshore best advice selection. The reports will be free of charge for intermediaries and requests can be made at www.akg.co.uk/offshore.

  • Alliance & Leicester - Alliance & Leicester

    16 Jul 2001

    Monday, 16 July 2001.Type: Guaranteed equity bond.Aim: Growth linked to the FTSE 100.Minimum-maximum investment: £1,000-£1m.Term: Five years.Guarantee: Capital returned in full at end of term regardless of movement in FTSE 100.Return: Up to 60 per cent of growth in FTSE 100.Closing date: September 1, 2001.Commission: None.Tel: 0800 412214.     

  • Bad connection

    12 Jul 2001

    Am I the only IFA that suffers from hanging about syndrome or phone "queueitis"? Maybe we should have provider performance tables based on response times to your phone call, not forgetting, of course, that past perform-ance is no guide to the future. Oh, for the days of human phone operators. At least they answered the phone. Must dash. Have just been advised that my queueing time is down to four minutes. Exciting, isn't it? By the way, who ...

  • BCAM constructs property investment trust

    12 Jul 2001

    BC Asset Management's property income and growth fund is a split-capital investment trust that invests in commercial property. It consists of ordinary shares, zero-dividend preference shares and bank debt. The aim is to provide ordinary shareholders with a high level of monthly income and other shareholders with a predetermined capital return on May 31, 2009. The backbone of the investment trust is the property portfolio - covering the office, ...

  • Behind the times

    12 Jul 2001

    In today's world of high technology, I was totally bewildered at a clause in the terms and conditions of a well known investment house who shall remain nameless. In these terms and conditions, the section on change of agency states change of agency instructions will only be accepted in the form of a handwritten communication from the client. So, where communications can be typed and transmitted around the world in a few seconds, we have a company ...

  • BFS Investments - BFS Managed Properties

    11 Jul 2001

    Wednesday, 11 July 2001. Type: Split-capital investment trust. Aim: Income and growth by investing in freehold and long leasehold property and split-capital investment trusts. Minimum investment: Subject to negotiation with stockbroker. Place of registration: Guernsey. Investment split: Freehold and long leasehold property 65 per cent, split-capital investment trusts 35 per cent. Isa link: Yes. Charges: Annual 1 per cent. Commission: ...

  • BoE hedges out the competition

    13 Jul 2001

    BoE International, the South African investment banking group, has introduced a fund of hedge funds that will initially invest in 12 hedge funds.

  • BOE International - BoE International Market Neutral Fund

    11 Jul 2001

    Wednesday, 11 July 2001.Type: Open ended investment company.Aim: Growth by investing in hedge funds.Minimum investment: $15,000.Place of registration: Isle of Man.Investment split: US 75 per cent, Europe 15 per cent, Japan 10 per cent.Isa link: No.Charges: Retail share class initial 5 per cent, annual 1.5 per cent.Commission: Retail share class initial 3 per cent.Tel: 01624 690840. 

  • Borrowers unaware of their mortgage rate

    11 Jul 2001

    Almost two-thirds of borrowers have no idea what interest rate they are paying on their mortgage, according to research by Yorkshire Building Society.

  • Britannic Asset Management - Britannic UK Income Trust

    11 Jul 2001

    Wednesday, 11 July 2001.

  • Building societies see surge in business

    11 Jul 2001

    Building societies saw their volume of business rise at the fastest rate since December 1996 according to the most recent quarterly financial services survey from PricewaterhouseCoopers and the Confederation of British Industry.

  • Burrows offers annuity alerts

    12 Jul 2001

    Morestead director Billy Burrows is setting up a free website and offering IFAs with email alerts when annuity rates change. The site, www.askannuity ifa.com, aims to help IFAs who do not specialise in the annuity market to offer the best advice to clients after or at retirement. Burrows has already signed up a number of big annuity providers, including Canada Life, Legal & General and Standard Life, to offer comprehensive information on the latest ...

  • Business is there if you work for it

    12 Jul 2001

    I have just finished reading a recent copy of Money Marketing and with a less strong constitution would have jumped off a cliff at the volume of doom and gloom that apparently exists in our industry. As a director of a small City-based IFA practice, business has never been better. Our joint turnover is growing month on month which has been achieved from sheer hard work. Sure, we have to deal with varying investment climates and severe regulation ...

  • Change in lifestyles brings buy-to-let boom

    12 Jul 2001

    Sun Bank is predicting a boom in the buy-to-let market after revealing a 67 per cent increase in applications for the first six months of 2001 over the same period last year. The lender believes the buoyant property market and lifestyle changes are behind the increase. It also cites tax changes which have resulted in limited companies buying more rental properties. The move introduced in the 1999 Budget makes it beneficial for landlords to set ...

  • Chequebooks are out in the dash to gain distribution

    12 Jul 2001

    Despite the season, IFAs should keep their umbrellas handy in case they get caught in a hail of chequebooks. The price range is dumbfounding, from around £18,000 per adviser offered by one insurer to an estimated £357,000 paid per RI at one recently acquired national. These are rough figures but providers are stumping up the cash. The dash for distribution is upon us. Clearly, the uncertainty over polarisation is a catalyst for change. ...

  • Consumers' in dark on credit cards

    11 Jul 2001

    Consumers' knowledge of their credit cards is extremely low, with 91 per cent of credit card holders not knowing the annual percentage rate on their cards and only 29 per cent knowing what the term means, according to a new survey.

  • Date fixed for N2

    13 Jul 2001

    Economic secretary Ruth Kelly has announced the FSA will become the statutory regulator from midnight on November 30, 2001.

  • David Marlow

    12 Jul 2001

    I say tosh to all those who think execution-only services cannot work. Focused advice or, in compliance speak, limited advice, where a client does not receive advice on financial needs and objectives but instead receives advice on one specific aspect or area of need, is another of the issues which seems to provoke opposing views. Personally, I think there is a place for both focused and holistic advice. Going further than that, I think it is good ...

  • Distribution battle lines are drawn

    12 Jul 2001

    Bristol & West's £40m move to snap up IFA Willis National is the latest example of a provider elbowing competitors aside in the dash for distribution. The move comes hard on the heels of Australian giant AMP's decision to acquire Towry Law. Suddenly, national IFAs are looking over their shoulders in anticipation of an approach from a provider offering a golden future. B&W has made three advi ce-based acquisitions in the past year alone ...

  • DWP medic chief opens dialogue

    12 Jul 2001

    The new Department of Work and Pensions' chief medical adviser says the DWP is looking forward to co-operating with the insurance industry over the design of protection products. Mansel Ayward says the Government wants to have an open dialogue on protection plan development. The comments have been welcomed by the industry which accused the DSS of not listening over initiatives such as stakeholder pensions. One area that Ayward is concerned ...

  • Economist Julius seizes on Treasury over the gaps in mortgage regulation

    12 Jul 2001

    A Government-backed report written by a leading economist has slammed the Treasury's decision not to regulate mortgage advice as a failure to protect consumers. The report, issued this week by the Banking Services Consumer Codes Review Group led by Bank of England economist DeAnne Julius, blasts the proposed statutory framework for failing to plug regulatory gaps. Stating that advice "sho-uld have been regulated", the group is calling for the mortgage ...

  • Equitable slashes pensions

    16 Jul 2001

    Equitable Life is slashing 16 per cent off the value of pension funds in a bid to balance its books.

  • Fanfare for the common trust plan

    12 Jul 2001

    Over the last few weeks, I have been discussing various fundamental aspects of trusts with particular regard to their use in core financial planning recommendations. My main aim at the start of this series was to stress the importance, first of all, of using trusts in a greater proportion of recommendations than is commonly the case with most financial advisers. I also wanted to highlight the crucial decisions which must be taken by the adviser ...

  • Financial services websites launched by Roberts Clark

    16 Jul 2001

    Roberts Clark Independent Financial Solutions is launching a series of financial services, legal, tax and accountancy web sites.

  • Fiona Price

    12 Jul 2001

    W hen the Women's IFA Group, the new industry body, launches in September it will be a culmination of Fiona Price's life work. You could almost see it as an inevitable result of the decisions she has made up to this point. From establishing her own IFA firm 14 years ago and building it into the country's biggest all-women IFA firm to the number of networks determined to tackle financial exclusion of women that she has belonged to over the years, ...

  • Firms urged to tighten security to halt Tessa money laundering

    12 Jul 2001

    The maturing Tessa market could open the door for millions of pounds-worth of money laundering, according to the UK fraud advisory service Cifas. In an article for the Pep and Isa Managers' Association this month, Cifas executive director Peter Hurst warns that the lack of anti-fraud precautions on maturing Tessa certificates has made them easy to counterfeit. Current regulations stipulate that individuals can reinvest Tessas up to six months after ...

  • First National offers commercial loans for Sipps

    12 Jul 2001

    First National has introduced a commercial mortgage which enables individuals to take advantage of the tax benefits of a self-invested personal pension by investing in commercial property. Its Sipp commercial mortgage allows policyholders to invest their pension assets in commercial property and land, with no income tax payable on the rent received by the Sipp and no capital gains tax to pay the later sale of the property. Loan to value ratios ...

  • Florida Prize for online golfers

    12 Jul 2001

    Prize details The prize includes the following for two people: Competition website is www.ifagolf.co.uk l Return flights from London to Orlando l Seven nights bed and break-fast at the Grenelefe Resort in Haines City, Orlando l Five rounds of golf on any of the three championship courses at Grenelefe l Golf cart hire l Car hireMoney Marketing has once again teamed up with Scottish Provident to ...

  • Foot and mouth and floods blamed for slump in sales

    12 Jul 2001

    The Pep and Isa Managers Association is reassuring IFAs and fund managers that the recent plummet in Isa sales is not a sign that the funds are losing their appeal. Isa sales were down by 43 per cent to £1.3bn in March from more than £2.3bn in the same month last year and the new tax year started off just as badly, with April and May Isa sales down by 25 and 17 per cent respectively on the same months last year. But in its latest newsletter, ...

  • Former EMX boss joins management consultant

    17 Jul 2001

    Former EMX chief executive Caroline Lee has been appointed to the wealth management team at financial service management consultancy City Consultants.

  • Forsyth adds sterling global balanced fund to range

    16 Jul 2001

    Research and investment management company Forsyth Partners has added to its range of funds with the introduction of the Forsyth sterling global balanced fund.

  • Forsyth Partners - Forsyth Sterling Global Balanced Fund

    13 Jul 2001

    Friday, 13 July 2001. Type: Sicav. Aim: Growth by investing in equities and bonds. Minimum investment: £5,000. Place of registration: Dublin. Investment split: UK equites 55 per cent, international 20 per cent, bonds 20 per cent, cash 5 per cent. Isa link: No. Charges: Annual 1.75 per cent. Commission: Initial up to 5 per cent, renewal 0.75 per cent. Tel: 01534 285195.

  • Forsyth Partners - Forsyth Sterling Global Growth Fund

    13 Jul 2001

    Friday, 13 July 2001. Type: Sicav. Aim: Growth by investing in equities and bonds. Minimum investment: £5,000. Place of registration: Dublin. Investment split: UK equities 60 per cent, international 25 per cent, bonds 10 per cent, cash 5 per cent. Isa link: No. Charges: Annual 1.75 per cent. Commission: Initial up to 5 per cent, renewal 0.75 per cent. Tel: 01534 285195.

  • FSA's Aitken wants debate on Towry

    12 Jul 2001

    An FSA official has admitted that the role of the ICS in taking on £30m of Towry' Law's liability must be urgently debated. Head of relationship management investment firms division Robert Aitken made his comments under pressure from IFAs during a question and answer session at M&E Network's annual conference. He said: "We need to look at the ICS and can't keep hammering the industry. We need to redebate compensation." An ICS ...

  • FSA's Equitable Life report delayed until the autumn

    13 Jul 2001

    The FSA's report into its role in the Equitable Life crisis is to be delayed until the autumn the Treasury announced yesterday.

  • Fund firms set up Sway alternative

    12 Jul 2001

    Five of the UK's leading fund managers are turning their backs on Sway to launch their own annual investment conference in a move which could also pose problems for Pims. Schroders, SG Asset Management, M&G, Invesco Perpetual and Aberdeen will join forces with leading providers to launch an intermediary conference next year. Credit Suisse Asset Management, which has not taken part in Sway, says it has been approached. Fund managers complained ...

  • Future Mortgages bought by Citigroup

    12 Jul 2001

    Independent sub-prime mortgage lender Future Mortgages has been bought by global financial services giant Citigroup for an undisclosed sum. The deal leaves Mortgages plc as the only independent sub-prime lender left in the market.

  • GAD reveals insurance pensions are booming

    12 Jul 2001

    Funds invested in insurance-administered individual and occupational pensions have shot up by 18 per cent to £500bn in 1999 from £425bn the previous year, according to latest ABI figures. The figures, published in the latest ABI quarterly research review Insurance Trends, are provided by the Government Actuary's Depart- ment and give an estimate of the amount of funds invested in insurance products. A further £235bn was invested ...

  • Gartmore - Stable Growth Fund

    11 Jul 2001

    Wednesday, 11 July 2001.

  • GISC delays decision on members

    12 Jul 2001

    The General Insurance Standards Council has delayed its decision on forcing its members to deal only with other GISC members until October 15, a month later than originally expected. An appeal before the Competition Commission Appeal Tribunal is pending and the council wants to give members adequate time to consider its decision. The anticipated final date of December 31 for full implementation of rule F42, which prevents GISC members from doing business with ...

  • GISC rule change delayed

    11 Jul 2001

    The General Insurance Standards Council has delayed its decision to allow its members to only deal with other GISC members until October 15, 2001, a month later than originally expected.

  • Give ICS fair hearing

    12 Jul 2001

    It is very difficult to stomach paying for the failures of others, particularly when third parties benefit. But the ICS should be given a fair hearing over Towry Law. If it can prove this intervention is the most cost-effective way out, then IFAs may do well to accept it. Before IFAs bring the scheme to its knees, they should ask themselves who or what might step in to fill the void?

  • Goodfellow writ against Burns-Anderson

    12 Jul 2001

    The Goodfellow group of companies is set to issue a writ against Burns-Anderson for infringement of trademark over use of the names UV and Ultraviolet. Burns-Anderson uses the names for its new network services but Goodfellow claims it registered both names as trademarks last year and is using them for its specialist e-business and website advice company and a number of other financial services. Burns-Anderson had recently declined to buy the trademarks.

  • Henderson Electric and General Investment Trust down

    16 Jul 2001

    Henderson Electric and General Investment Trust saw its net asset value per share fall by 20.3 per cent in the year ended May 2001. The fall compares to a 6.8 per cent fall on the FTSE All-Share Index over the same period. Blaming the results on the slowdown in the US economy, trust chairman Lindsay Bury says: "We shall focus on reliable growth companies with the intention of investing the cash held in the portfolio as opportunities arise."

  • Hewitt blocks Lloyds TSB bid for Abbey

    12 Jul 2001

    Lloyds TSB's £18bn bid for Abbey National has been blocked by Trade and Industry Secretary Patricia Hewitt for being against the public interest. The takeover was stopped after Hewitt accepted the conclusions of the Competition Commission which feared the merger would lead to higher prices and reduced innovation in the current account market.

  • High Court date for Windfall test case

    12 Jul 2001

    The windfall shares test case to decide whether demutualisation shares and benefits should be taken into account when calculating loss in the pension review is being heard next week. The Needler Financial Services Limited Taber case is expected to start on July 16 for three days at the High Court at the Royal Courts of Justice in London. The misselling involved Needler advising Mr Taber to transfer his deferred occupational pension to a personal pension plan ...

  • Hotels and restaurants hardest hit by stakeholder says Pru

    17 Jul 2001

    Hotels, restaurants and engineering companies are the most likely to be affected by the need to offer stakeholder pensions to their employees says a survey from the Prudential.

  • ICS deal over Towry Law was the best option

    12 Jul 2001

    The Investors' Compensation Scheme is very concerned to set the record straight on our agreement with Towry Law and others. One of ICS' main concerns is to save the levy payer money in the event of a company being unable to pay the claims against it and being declared in default. This was the case with Advizas. In this situation, ICS was looking at a burden on industry presently estimated at £48m. The ICS deal has reduced that burden by ...

  • ICS defends move as ProAct seeks review

    12 Jul 2001

    Aifa is sending out a newsletter to its members giving the Investors' Compensation Scheme's explanation for taking the unprecedented step of assisting Towry Law over its pension misselling black hole. The move comes as ProAct Legal launches a legal challenge against the ICS which has taken responsibility for £30m of Towry's £48m liability to let its AMP deal go ahead. In the newsletter, the ICS claims the deal is in the interests ...

  • IF banking on healthy future with gym deal

    12 Jul 2001

    Intelligent Finance is aiming to create a healthier image by signing a deal with 200 fitness clubs across the UK that will see its products promoted in gyms across the country. The IF brand and information about its full range of personal banking products will be advertised at health and fitness clubs such as David Lloyd Leisure, LA Fitness, Virgin Active, Harpers Leisure and Invicta. The deal will give the bank the potential to reach a target audience ...

  • IFA reprieve on N2

    17 Jul 2001

    The Treasury has confirmed the FSA will receive its full regulatory authority from midnight on November 30.

  • IFAP offers guide on endowments

    12 Jul 2001

    IFA Promotion has produced a factsheet called Confused about Endowments? to help consumers understand endowment-linked mortgages and encourage them to seek independent advice. It explains why endowments are linked to mortgages, how they work, why providers are reviewing them and what people should do if their policy is unlikely to cover their mortgage.

  • Ill-gotten gains

    12 Jul 2001

    At age 54, I have accumulated over £290,000 in various pension funds. My plan is to take early retirement and possibly continue with some consultancy work. I quite like the thought of taking tax-free cash now but will need only a modest level of income in the short term. I take an active interest in investments and most of mine are planned to mature in 10 years or so. While my health is not too good (two heart attacks in the last five ...

  • Independent View by Stephen Lansdown

    12 Jul 2001

    Technology stocks may have taken a pounding over the last 18 months but there is no doubt that technology has an important part to play in all our lives, not just now but in the future too. The IT spend in my own firm has been in the millions over the last couple of years as we seek to deal with more business, make sure we look after our clients' investments properly and embrace the internet to enhance our business development. This spend is likely ...

  • INSIDE EDGE by John Cowan

    12 Jul 2001

    A week is said to be a long time in politics. But nothing quite prepares you for the news blackout that is two weeks in the Cuban sunshine. Granma, the Cuban government newssheet, emerges when paper supply permits, usually with rivetting pieces on Bulgarian fish prices and the latest American outrage. The UK general election did not rate a mention although the latest ideologically sound exploits of Glasgow City Council featured prominently. So ...

  • Invesco Perpetual - UK Aggressive Fund

    11 Jul 2001

    Tuesday, 10 July 2001. Type: Unit trust. Aim: Growth by investing in UK equities. Minimum investment: £1,000. Investment split: 100 per cent in UK equities. Isa link: Yes. Pep transfers: No. Charges: Initial 5.26 per cent, annual 1.5 per cent. Commission: Initial 3 per cent, renewal 0.5 per cent. Tel: 0800 0282121.  

  • Investment analysis

    12 Jul 2001

    What promised to be a better week after a positive first day of trading ended disappointingly, with the major global stockmarkets finishing the first week of the third quarter lower. Further profit warnings, particularly Marconi's, dampened market sentiment even further. In the US, a shorter trading week stated positively with encouraging economic data from the National Association of Purchasing Managers showing a rise in manufacturing activity. Howev

  • Investment View by Brian Tora

    12 Jul 2001

    Ever thought that events are conspiring against you to the extent that things cannot possibly get worse - but then discover that they can? Last week was much like that in technology. The Techmark index plumbed new lows. There were profit warnings galore - and not solely from technology companies. But the story of the week was Marconi. It is one thing for a small technology company engaged in speculative internet activities to lose 90 per cent of its value ...

  • IR35 issues

    12 Jul 2001

    I write to clarify IR35 and issues raised on criminalisation of IFAs. I urge readers to under-stand the real implications. First, the Inland Revenue does not make it a policy to incarcerate taxpayers indiscriminately Second, if IFAs were to come under IR35 (which in most cases is unlikely), this usually would be dealt with by means of financial redress. IR35 centres on the question of whether an IFA trading would have been employed were it not ...

  • Is the FSA manacling marketing?

    12 Jul 2001

    If you hear the sound of bated breath, whatever that sounds like, whenever you come across any investment marketing people these days, there is a reason. We are waiting to see where the FSA comes out on the question of the use of past performance figures in investment marketing. You remember the background. Last August, the FSA published an "occasional paper", possibly so called because it was occasionally comprehensible, which aimed to demonstrate ...

  • Julian Gibbs

    12 Jul 2001

    With more than £21bn in Tessa funds maturing this year, the Tessa-only Isa market has become huge. But it is unlikely that investors will get more than 5 per cent on average from variable-rate Toisas. A much better alternative for most investors is a very popular product called Tessa Triple Plus issued by NDF in asso- ciation with Credit Suisse First Boston. Many IFAs have quite rightly recommended ...

  • Kelly to announce date for N2

    12 Jul 2001

    Economic secretary Ruth Kelly is expected to announce today the date for N2, the day the FSA will receive its statutory authority.Most industry commentators expect a date in November for N2.

  • Kempster back at Pru as IFA head

    12 Jul 2001

    Former DBS chief executive Tony Kempster is rejoining Prudential in thenew role of distribution director for its intermediary business. The reorganisation, driven by Scottish Amicable chief executive Kim Lerche Thomsen, is set to leave current group sales director John Cowan without a role. Other senior positions are expected to be scrapped. Kempster will head Scottish Amicable Financial Services, Pru's new distribution firm. He headed Prudential's IFA division ...

  • L&G named ABI life insurer of the year

    13 Jul 2001

    Legal & General was named Life Insurer of the Year at the British Insurance Awards for the third time in four years.

  • LeggMason Investors appoints regional sales manager

    12 Jul 2001

    LeggMason Investors has appointed Justin Eede as its regional sales manager.Eede joins from Invesco Perpetual where he was southern regional sales manager, and will work closely with LeggMason assistant director of mutual funds Andy McNulty in his new position.LeggMason managing director of mutual funds Paul Boughton says: "We are strengthening our sales team in order to build our awareness amongst intermediaries and capitalise on our strong product range."

  • Life offices slam Opra on multi default funds

    12 Jul 2001

    Life offices are claiming an oversight by Opra unwittingly hands some stakeholder prov-iders an "unfair advantage" and could open employers up to misadvice liabilities. This week it is revealed that the regulator has allowed some providers to offer more than one default fund on stakeholder schemes although many providers had believed they were only allowed to register one default fund. It is feared that life offices which offer only one default fund may ...

  • Limited advice may be the shape of things to come

    12 Jul 2001

    As IFAs move upmarket and rely increasingly on fees, financial advice has moved into the spotlight as a commodity sellable in itself. It is clear that people are becoming ever more informed at the same time as a proliferation of distribution channels emerges from which to buy financial products. Pretty Technical partner Kim North is fresh from a feasibility study into the future of advice. She says the advent of multi-ties, ready to sell off-the-shelf ...

  • Liverpool Vic buying nurses fund

    12 Jul 2001

    Liverpool Victoria is buying the Royal National Pension Fund for Nurses for £248m. About £200m of RNPFN's estate will be distributed in the form of enhanced benefits for 155,000 policyholders.

  • Liverpool Victoria strengthens presence in affinity market

    17 Jul 2001

    Liverpool Victoria is acquiring specialist provider of financial services and independent financial advice to the affinity sector Bishopscourt Financial Holdings for an undisclosed sum.

  • Lumsden leads Standard in protection challenge

    12 Jul 2001

    Standard Life is aiming to make a big play in the protection market, challenging established specialist Scottish Provident, Skandia and new entrants such as Scottish Equitable. Finance director Iain Lumsden, who will succeed managing director Scott Bell next year as group chief executive, says Standard will also be working to develop new annuity products to meet criticisms of falling annuity rates and inflexibility. Standard is looking to integrate ...

  • M&G urges Government to bring in children's Isa

    12 Jul 2001

    M&G is calling on the Government to launch a children's Isa as part of its baby bond initiative. The child trust fund sch-eme, which is under Government consultation, was first suggested in the Treasury's Savings and Assets for All paper, published in April. The scheme would provide a lump-sum saving plan for every new baby, with top-ups at five, 11 and 16 years and maturity at 18 or 21. But M&G is calling on the Government to build ...

  • Marketing chief for Family

    12 Jul 2001

    Family Assurance is appointing a new head of marketing in anticipation of further relaxations in polarisation. Miles Bingham was at Abbey National, where he spent six years as head of mortgage marketing. He previously worked in a number of positions with HSBC. The friendly society bel-ieves the FSA will move tow-ards further changes in polarisation this year which it expects will benefit specialist providers. Family has signed a deal with Abbey National ...

  • Marsden brings in three-year fix

    17 Jul 2001

    Marsden Building Society is getting fixed with the introduction of the three-year fixed rate mortgage.

  • Melton limits 2 year fix

    16 Jul 2001

    Melton Mowbray Building Society has introduced a two-year fixed rate mortgage that is available for loans of up to 75 per cent of valuation.

  • Men more aware of stakeholder than women, survey says

    11 Jul 2001

    New research by Barclays and Legal & General reveals awareness of stakeholder pensions is much higher than average among men as opposed to women and those in full-time, as opposed to part-time work.

  • Merrill Lynch HSBC pips into the FTSE 100

    17 Jul 2001

    Merrill Lynch HSBC is introducing the FTSE 100 growth protected investment product (PIP).

  • MGM diversifies with mortgage shop franchises

    12 Jul 2001

    Life and pension specialist MGM Assurance is setting up a franchised network of mortgage shops offering independent advice as part of a major diversification drive. It plans to open 40 high-street branches across the UK within the next five years after it commissioned research which found that 80 per cent of borrowers would rather buy through a broker than direct from a bank or building society. It is looking to recruit experienced mortgage brokers ...

  • Misys and Skandia in fund supermarket link

    11 Jul 2001

    Users of Misys's portal m-link will now have access to Skandia's online fund supermarket, multifundshop, as the two companies announce a partnership.

  • MOORE's CODE

    12 Jul 2001

    So, goodbye DBS and goodbye Towry Law. It would be charitable to say it has been nice to know you but people would accuse me of lying if I did. The deals and circumstances that have seen these former stalwarts of the IFA community relinquish their longheld and cherished independence appear very different. Look closer, however, and there are a number of striking similarities. Both DBS and Towry have been under the weather for some time, suffering from ...

  • Mortgage medicine

    12 Jul 2001

    Research by NOP for the ABI found that one person in five believe they can rely on the Government for financial support with their mortgage if they were unable to work. What they did not realise was how long they would have to wait. Whether buying a new home or remortgaging, borrowers whose loans completed on or after October 1, 1995 have to wait 39 weeks for any help from the state. For people whose loans started earlier, the rules are a little more generous ...

  • Muggles could be Quidditches in

    12 Jul 2001

    "Only Muggles buy annuities." So I am informed by my children who are devoted fans of Harry Potter. So it is good to know that back at the Hogwarts School of Actuaries they are turning their magic towards reforming the present system of compulsory annuities. The Institute of Actuaries has set up a working party which has published a report entitled Extending Retirement Choices, which calls for more flexibility for pensioners when they reach retirement. The ...

  • New mortgage network launched

    11 Jul 2001

    A new mortgage network, Mortgage Promotions, is being launched for all Mortgage Code Compliance Board regulated mortgage advisers.

  • Norwich & Peterborough enter into Union

    17 Jul 2001

    Norwich and Peterborough Building Society has unveiled the third issue of the portfolio bonus bond.

  • Odey Asset Management - Odey Latham Global Fund

    12 Jul 2001

    Thursday, 12 July 2001. Type: Offshore hedge fund. Aim: Growth by investing in long and short equities globally. Minimum investment: $100,000. Place of registration: Cayman islands. Investment split: 100 per cent in long and short equities. Isa link: No. Charges: Initial 1-5 per cent, annual 1 per cent. Commission: Initial 1-5 per cent, renewal subject to negotiation. Tel: 020 7208 1425.  

  • Old Mutual to split chief executive and chairman

    16 Jul 2001

    Australian financial services group Old Mutual is set to split the roles of its chief executive and chairman in response to pressure from institutional investors.

  • Ombudsman for Isle of Man

    16 Jul 2001

    The Isle of Man will have its own financial ombudsman from early next year. The Isle of Man says the scheme will provide extra security for customers around the world who take advantage of the offshore centre.

  • Opposition parties renew pressure on annuities

    17 Jul 2001

    The Government has come under pressure again from the opposition ranks to make a move towards relaxing the annuity rules.

  • Out for the discount?

    12 Jul 2001

    The decision to axe the controversial "its" advertising campaign will have disappointed marketeers in the industry who understand the benefits of long-term brand building. Some of the smaller specialist investment trust managers, for whom the campaign had attractive economies of scale, may also regret the move. Nevertheless, for IFAs and investment trust managers, the decision to focus funding on developing the IFA market and PR activity has to be ...

  • Outside Edge by Robert Reid

    12 Jul 2001

    In my last column I expressed my surprise at the recent Towry Law deal done with the ICS. From the point of timing, it could not be worse as levies will be collected in July and August (yes, there are two this time). Is this the chance we have been waiting for? Polarisation will go,and we need to ensure that what follows gives professional advisers a chance to prosper. Am I alone or is there a feeling of déjà vu about some of the recent ...

  • Outsider triumphs in Isa selling race

    12 Jul 2001

    Autif's decision to release details of its members' Isa funds under management has come as a bit of a surprise - not least to some of the fund managers. Having gone to great lengths to conceal Isa sales due to their "commercially sensitive" nature, several fund managers may be less than happy that their rivals will now have relatively up-to-date data on how they are faring. M&G and Invesco both claimed to be unable to even provide an estimate ...

  • Pensions key financial services product for retaining staff

    17 Jul 2001

    Pensions are the most important financial services product in terms of recruiting and retaining staff according to a new survey of employers’ attitudes toward a range of financial services provided at work. The survey by Legal & General and Barclays of 771 employers, pensions scored 56 per cent as the most important benefit, compared with 31 per cent for healthcare. 

  • PIA disciplines three firms

    13 Jul 2001

    The PIA has taken disciplinary action against IFA Wood Tompson of 46 Ridgeway, Weston Favell, Northampton for pensions review failings and ordered it to appoint external consultants at its expense to assist in the completion of its review cases.

  • PIA ends membership of two firms

    12 Jul 2001

    The PIA is terminating the membership of IFAs JDH Blackburn (Life & Pensions) of Premier House, The Green, Guiseley, West Yorkshire and MA Olymbios Financial Services of George Lane, South Woodford, London. Both firms had their membership terminated on the ground that they had not conducted any business regulated by the PIA for a continuous period of 12 months.

  • Premier Asset Management - C-lect Cautious Portfolio

    12 Jul 2001

    Thursday, 12 July 2001.Type: Oeic.Aim: Growth by investing in zero-dividend preference shares.Minimum investment: £1,000.Investment split: 100 per cent in zero-dividend preference shares.Isa link: Yes.Pep transfers: Yes.Charges: Initial 5 per cent, annual 1.25 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 01483 306090. 

  • Pressure on for LTC and gene tests

    12 Jul 2001

    The Government has been criticised by both major opposition parties again last week for not making its position clear on long-term care funding and the use of genetic test results by insurance companies. In a debate in Westminster Hall, LibDem spokesman for older people Paul Burstow said people suffering from dementia are at risk because of the way the Government's funding plans are designed. Burstow said people in residential homes face higher ...

  • Principality tracks for eight

    16 Jul 2001

    Principality Building Society has brought in an eight-year tracker flexible mortgage.

  • Private Label limits flexibility

    17 Jul 2001

    Private Label's freepay flexible mortgage is aimed at borrowers who want to make limited overpayments but do net get around to it.

  • Product matters

    12 Jul 2001

    Skipton should be congratulated for producing a genuinely innovative mortgage with the Manhattan Mortgage, which, for the financially sophisticated borrower, offers a potentially competitive rate. It is based on US short-term interest rates but is a sterling mortgage and there is no currency risk. Like all other Skipton mortgages, potential borrowers must be aware there are four rate options. I will take the sub-85 per cent rate with no insurance ...

  • Pru and ScotAm valuations on AssureWeb

    11 Jul 2001

    AssureWeb is to offer online life and pension policy valuations from Prudential and Scottish Amicable.

  • Pru extra 2 per cent allocation offers

    17 Jul 2001

    Prudential is giving an extra 2 per cent allocation on all investments made to Prudence Bond to celebrate its 10th anniversary. From July 16, both new investors and customers topping up their existing investment will have an additional 2 per cent added to their fund. The extra allocation offer closes on December 31, 2001. 

  • Pru urges firms to act on stakeholder or face fines

    12 Jul 2001

    Prudential is running a a nationwide stakeholder ad campaign urging employers to act now or risk stiff fines later. The campaign will include the national and trade press, radio, online and ads in taxis. Alongside the ads, the Pru is writing to 300,000 small to med-ium-sized companies. A spokesman says although it already has more than 10 million employees signed up for stakeholder through its deals with the Trades Union Congress and ...

  • RBS joins Scottish Life Mortgages panel

    16 Jul 2001

    Scottish Life Mortgages is appointing Royal Bank of Scotland to its panel of mortgage lenders.RBS is offering a 100 per cent loan to value mortgage with a four year stepped discount, The mortgage is discounted by 3 per cent off the standard variable rate, currently 7.49 per cent, until August 2002, and then by 0.75 per cent until August 2005.Redemption penalties are 3 per cent of the loan value until August 2004 and then 2 per cent until August 2005.  

  • Scarborough flex goes redemption free

    16 Jul 2001

    Scarborough Building Society has introduced the flexible lifetime discount mortgage.

  • Scot Mutual combines Isa with shares

    12 Jul 2001

    Scottish Mutual is offering an income and growth plan which combines an Isa with direct share investment. The single-premium plan buys shares in Dublin-based investment company Census Investments 24, which invests in 32 stocks from the FTSE 100 index. Return on capital depends on the performance of the 32 stocks. Investors can have a fixed annual income of 10 per cent, quarterly income of 2.4 per cent or growth of 31 per cent. The term is three years and two ...

  • Scottish firms lead over stakeholder awareness Website design deal

    12 Jul 2001

    Hallmark International Marketing subsidiary Ifa-websites.co.UK is giving away free professionally designed websites to IFAs. IFA get the website free but must pay £49.95 a month for web hosting fees, site updates, a mon-thly submission to main search engines, online support and admin fees. IFAs can set up a site by visiting Ifa-websites and choosing their design. Once an order form is completed, the websites can be live within days. The ...

  • Scottish Mutual - Income and Growth Plan

    16 Jul 2001

    Monday, 16 July 2001. Type: Stocks and shares mini or maxi Isa. Aim: Income and growth by investing in Census investments 24, a Dublin-based investment company. Minimum investment: £7,000. Maximum investment: Direct investment £500,000, Isa £7,000. Catmarked: No. Investment choice: Census investments 24. Yield: Either 10 per cent a year, 2.4 per cent a quarter, or 31 per cent after three years and two months. Charges: ...

  • Scottish Mutual works with Census

    11 Jul 2001

    Scottish Mutual has introduced its income and growth plan, which is available as an individual savings account or as a direct investment.

  • Scottish Widows wins motor industry stakeholder business

    16 Jul 2001

    The Retail Motor Industry Federation has selected Scottish Widows as its stakeholder pension provider.

  • Second round of MCCB roadshows

    12 Jul 2001

    The Mortgage Code Compliance Board is running a second series of regulatory update roadshows throughout November and December. The fiveweek roadshow includes venues such as Newcastle, Glasgow, Edinburgh, East Anglia, Leeds and Belfast.

  • Sizing up fund managers

    12 Jul 2001

    Over recent years, we have seen increasing waves of consolidation in the fund management industry, with a number of both traditional fund managers and life companies merging or being taken over. In tandem with the creation of these ever bigger companies, there has been similarly feverish activity at the other end of the market, with a steady stream of new start-ups frequently staffed by managers frustrated with life in a big company environment. But does ...

  • Societies' business levels best since 1996

    12 Jul 2001

    Building societies' business volumes rose at its fastest rate since December 1996, according to the quarterly financial services survey from PricewaterhouseCoopers and the Confederation of British Industry. This was in sharp contrast to banks, life offices and fund managers, which saw business levels decline. The survey also reports that life offices' overall profitability declined in the face of the 1 per cent world.

  • Standard & Poors Micropal top 10

    12 Jul 2001

    Artemis continues its run of strong performance as the only provider to have two funds among the top 10 unit trusts. Artemis UK special situations, which is top for the third week, has returned 39.17 per cent over the past year while Artemis income has grown by 27.45 per cent. The top 10 unit trust table continues to be a mixed bag, with offerings from seven different sectors. The average return for the past year is still negative at 13.5 per cent.

  • Standard Bank Offshore - Aggressive Fund

    17 Jul 2001

    Tuesday, 17 July 2001. Type: Fund of funds. Aim: Growth by investing in managed funds. Minimum investment: £10,000 or US$15,000. Place of registration: Jersey. Investment split: Equities 95 per cent, cash 5 per cent. Isa link: No. Charges: Initial up to 5.5 per cent, annual 1.5 per cent. Commission: Initial up to 4.5 per cent, renewal up to 0.5 per cent. Tel: 01534 881281.    

  • Standard's mutuality stalwarts step down

    12 Jul 2001

    Standard Life managing director Scott Bell, stalwart of the company's mutuality stance, is retiring in March next year after more than 40 years at the life office. Long-term colleague and chief executive of UK operations Jim Stretton is also standing down. He will take early retirement on December 15. Current group finance director and appointed actuary Iain Lumsden will take over as group chief executive. Standard Life Investments chief ...

  • Table turmoil as our research reveals charge/return reality

    12 Jul 2001

    The FSA's comparative tables were dealt yet another blow this week as new research conducted for Money Marketing revealed that lower-charging funds have consistently produced lower returns. Figures compiled by investment selection service Shouts show that, on average, funds with annual charges of 1 per cent or less produce returns up to 30 per cent lower than funds with annual charges of 1.5 per cent. The figures have renewed industry concerns that the FSA's ...

  • Talkback

    12 Jul 2001

    Will other lenders follow Portman Building Society's lead and pull out of the remortgage market? "No, I don't think so. Where else will they get the business from?" Jim Russell, Russell & Co "Not immediately. They must be concerned that service levels are slipping." Mark Harris, Savills Financial Planning "No, there is too much money out there for them to pull out." Peter Brown, Mortgage & Pensions Bureau "No ...

  • Taper chase

    12 Jul 2001

    Owners of shares qualifying for business assets taper relief have long looked forward to April 6, 2002 as a key date. From that time, the full 75 per cent taper relief will apply for those shareholders who have held shares for four years, the commencement of this favourable regime having been in 1998. Many sales of private companies will have been planned so as to defer the effective date of disposal until after April 5, 2002. A 10 per cent ...

  • Tax break deals on Govett offshore corporate bond fund

    12 Jul 2001

    Govett Investments has set up a new offshore corporate bond fund offering income tax breaks for UK basic and higher-rate taxpayers. The Govett corporate monthly income fund was launched on Monday and has a target pre-tax yield of 7.4 per cent a year. The Dublin-based fund will invest predominantly in investment-grade corporate bonds, with up to 20 per cent of the portfolio in lower-grade bonds. The minimum investment limit is £1,000 ...

  • The 'its' obits

    12 Jul 2001

    Gartmore recently became the third major fund manager this year to launch a fund of zeros. How do you think the launches will be received by the IFA community? Aaron: The zero unit trust market is becoming crowded. The oldest established one in the sector, Exeter Zero Preference, has an excellent record over a 10-year period, returning 9.9 per cent a year. With interest rates falling, returns are likely to be a bit less but this fund has a proven record ...

  • The Daley Update

    12 Jul 2001

    Newton head of fixed interest Helena Morrissey has been promoted to chief executive after a string of departures last week. Theresa Egan will take control of Morr-issey's high-yield bond and European high-yield bond funds while Stewart Cowley will manage the international bond fund. Ed Britton will become head of fixed interest.New Star Asset Man-agement has poached Toby Thompson from Newton to manage its new higher income unit trust, to be launched later ...

  • Towry Law leaves a sad legacy to the industry

    12 Jul 2001

    As a former employee and director of the Towry Law Group for over 16 years,I am saddened by the fact that the legacy being left to the financial services industry by Towry Law would appear to be a misselling liability of £30m, which will have to be picked up by other IFAs, including myself, via the Investors' Compensation Scheme. Clearly, as the purpose and presumably only remit of the ICS is to compensate investors only when any appropriate liabilities ...

  • Tuning in to broadband

    12 Jul 2001

    The prospect of high-speed access that is always on, delivered for a flat fixed fee must be one that is highly attractive to any regular internet user. This is what is promised in the advent of broadband services. We have had to learn to love the web (or not as the case may be) using unreliable dial-up connections at slow speed. It is not surprising that Fletcher Advisory, in a survey for BT Open World, predicts massive take-up of broadband services ...

  • US giant setting sights on UK IFAs

    12 Jul 2001

    US investment giant Massachusetts Financial Services is set to enter the UK IFA market in January with a new range of UK-based funds with different share classes for fee and commission-based advisers. Boston-based MFS, which has around $150bn (£107bn) under management, is the fifth-biggest fund manager in the US. The company plans to start its UK assault with the launch of four or five core funds and will principally target the IFA and institutional ...

  • Warning that stakeholder scandal looms

    12 Jul 2001

    The Government and the ind-ustry have been issued a high-level warning of the likelihood of a stakeholder misselling scandal in a report by the International Institute of Banking and Financial Services. In a section called Decision Trees - Another Pensions Scandal in the Offing?, the report states: "The risk for IFAs is that many consumers in the core target market will avoid seeking independent advice altogether, going instead to a tied agent. "The ...

  • Website designs for IFAs

    12 Jul 2001

    Hallmark International Marketing subsidiary Ifa-websites.co.uk is giving away free professionally designed websites to IFAs. IFA get the website free but must pay £49.95 a month for web hosting fees, site updates, a mon-thly submission to main search engines, online support and admin fees. IFAs can set up a site by visiting Ifa-websites and choosing their design. Once an order form is completed, the websites can be live within days. The ...

  • Which? confused by WP stakeholder ringfence

    12 Jul 2001

    With-profits funds under stakeholder have been dealt a further blow by Which? after the consumer magazine voiced concerns over the lack of clarity surrounding how funds are ringfenced. The news comes ahead of a Which? report on stakeholder due in August. The report looks at fund choice from different life off-ices' plans and at which office offers with-profits under stakeholder. Providers are said to be neither marked up nor down on with-profits ...

  • Widows is the shock Isa leader

    12 Jul 2001

    Autif hailed Scottish Widows as surprise champion of its first Isa fund tables last week but prompted controversy as several listed managers expressed concerns over the figures' market-sensitive nature. The tables, which rank Autif members by their unit trust Isa funds under management, show Widows towering over second-placed Fidelity with £2.17bn under management. Fidelity, with £1.55bn under management, Jupiter, Aber-deen and Invesco ...

  • Widows' loan note date nears

    12 Jul 2001

    Scottish Widows policyholders who took their demutualisation windfall as a loan note have their second opportunity to redeem their windfall on September 30. The life office is sending out reminders to more than 63,000 customers who chose loan notes to mitigate against capital gains tax liabilities. Holders must submit their redemption instructions by August 31 to redeem the loan in September. The interest rate payable over the current interest period ...

  • Woolwich in L&G protection plans deal

    12 Jul 2001

    Woolwich is to offer Legal & General protection prod-ucts through its UK distribution channels from October. The L&G deal is part of a restructuring of Woolwich's salesforce, which will see sales of all long-term savings, investments and pensions moving to Woolwich Independent Financial Advisory Service later this month.

  • Yorkshire BS creates dream team with L&G

    12 Jul 2001

    Yorkshire Building Society has teamed up with Legal & General to offer the combination bond.The bond is a fusion of a two-year fixed rate savings account from Yorkshire Building Society and the with-profits income bond from Legal & General. Investments are split equally between the two elements.The savings account part of the bond pays 7.25 per cent gross a year until August 31, 2002. Alternatively, investors can take monthly interest at 7.02 per cent. If they need cash ...

  • Yorkshire Building Society - Combination Bond

    17 Jul 2001

    Tuesday, 17 July 2001.

  • Zero CD Rom from Aberdeen

    12 Jul 2001

    Aberdeen Unit Trust Managers has produced a free CD Rom which explains how zero dividend preference shares work.

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