Money Marketing
12 March 2003

  • GMAC-RFC outsources to HLM

    12 Mar 2003

    GMAC-RFC is cutting up to 130 jobs among its 700 employees in the UK as a result of a deal to outsource post-completion activities to third-party servicing company, Home Loan Management. It says some of those facing redundancy will be able to take up new posts at HML. GMAC-RFC says this partnership with HML will help it almost double its business volumes to over £6 billion in the next three years, making it a top ten lender and help it improve its service to intermediaries.

  • ཌ-24 year-olds too relaxed about debt'

    12 Mar 2003

    The Mortgage Lender is warning 16 to 24 year olds have a worryingly relaxed outlook on debt and think nothing of running up debts of £3,130. Research by the specialist lender of 2,000 people last month shows this figure is over double the amount people older than 55 think is an acceptable amount of debt, saying £1,712 should be considered the limit. TML says these findings come shortly after the FSA warned the UK has taken on an unsustainable level of borrowing.

  • ཌ-24 year-olds too relaxed about debt'

    13 Mar 2003

    The Mortgage Lender is warning that 16-24-year-olds have a worryingly relaxed outlook on debt and think nothing of running up debts, with an average of £3,130. TML's research of 2,000 people last month shows that this figure is well over the amount that people over 55 think is an acceptable amount of debt, with an average of £1,712.

  • 'Basel II may force sub-prime firms to raise prices'

    13 Mar 2003

    Sub-prime lenders could be forced to raise prices by Basel II capital requirements because of their high level of exposure to riskier borrowers, warns the Council of Mortgage Lenders. A CML report, called, Basel II Capital Accord: Impact on UK Mortgage Lenders, published this week, warns that this could be one of several unintended consequences of forcing lenders to price products more transparently in relation to risk from 2006. The report also warns that some sub-prime lenders ...

  • 'Rip-off' row erupts over Green Paper rules

    13 Mar 2003

    A row is brewing after Scottish & Newcastle Breweries pension trustee Ray Martin accused IFAs of wanting to rip off clients in the run-up to the implementation of the Pensions Green Paper. Martin told delegates at a recent high-level Inland Revenue pension simplification meeting in Edinburgh that life companies and IFAs wanted to use the long run-up to the new rules as a mis-selling opportunity. Speaking as a representative of the occupational sector, Martin's attack was ...

  • 'We will stay on the rollercoaster. You have more to lose by delaying going into the market than staying in'

    13 Mar 2003

    Standard Life is rattled by the extent of the negative publicity it has received since the beginning of the year. As one of the initiatives to improve its public relations - and to meet its obligations following its £1bn bond issue last year - Standard has begun to issue results and give briefings in the City in a similar manner to its publicly quoted rivals. Standard Life was one of the last companies to impose a market value adjuster and reduce equity holdings. Speaking ...

  • 'WP payouts set to fall for 20 years'

    13 Mar 2003

    Maturity values of with-profits funds will con-tinue to plummet even if the stockmarket rises 7 per cent annually until 2020, according to F&C. It claims research reveals that a 25-year with-profits policy taken out in 1977 with a £50 monthly premium would have had a maturity value of around £75,000 at the end of last year. But if the same policy had been taken out in 1995, the projected maturity value in 2020 would have plunged to around £25,500 - even if ...

  • £1bn loans prop up R&SA's life funds

    13 Mar 2003

    Royal & Sun Alliance has revealed contingent loans of £1bn to its ailing life funds but remains in discussion with the FSA over its solvency. R&SA says it may have to find more money to support the funds if the FSA clamps down on the use of future profits and reinsurance contracts. Under its new regime, the FSA is examining all financial engineering to see if they have genuine effect before comp-anies are allowed to use them. In its 2002 results published last ...

  • 57% see emergence of European super-regulator

    13 Mar 2003

    Most IFAs believe they will be under the jurisdiction of a European super-regulator for financial services within five years. The State of the Nation poll found that 57 per cent of IFAs believe that UK financial services would be controlled by a European authority by 2008 but 40 per cent were not convinced this would happen and 3 per cent were undecided. In addition to pan-European financial groups such as Axa and Aviva, both the Treasury and the FSA are broadly in favour of a ...

  • 65% of loan advisers in dark over new FSA rules

    13 Mar 2003

    Mortgage intermediaries are unaware of how FSA regulation will affect their business, says the Association of Mortgage Intermediaries. A survey of 200 brokers finds that many do not understand the full implications of the FSA regime due to be implemented in October 2004, such as the fact they will not be able to remain independent for mortgages if they are tied for other business. It reveals that 65 per cent say they either know little about the proposals to extend the appointed ...

  • A consumer's view

    13 Mar 2003

    With only three weeks left before the end of the consultation period on the Pension Green Paper on April 11, it is time for consumers to make their voices heard. There are many points which require a rethink. First, the proposal for a lifetime limit on the size of an individual's pension fund of £1.4m should be scrapped or increased to a higher level. Very few individuals save the maximum under the existing legislation, so there is little point in introducing a cap now. More ...

  • A Weeks Moment

    13 Mar 2003

    Debra Weeks of the ABI claimed recently on BBC News that up to 50 per cent of all insurance claims were fraudulent. What grounds are there for assuming that least 50 per cent of all so-called "misselling" claims are dishonest, especially when they cannot be tested in the courts? There is surely room for class actions against consumer organisations such as the Consumers' Association, whose reference book, Which Way to Buy, Own and Sell a Flat, written by Michael Haley in 1996, ...

  • Abbey Nat gets on board Ship

    13 Mar 2003

    Abbey National has joined Safe Home Income Plans, the voluntary regulator for equity-release providers. It brings the total Ship membership to 13. The bank will be bound by Ship's code of conduct, which includes the requirement for a client's independent solicitor to sign a certificate of agreement before a sale can be completed. Equity release is a rapidly growing market, which many commentators predict will boom in the coming years. There have been several new entrants ...

  • Abbey Shipping takes to the investment waters

    12 Mar 2003

    Noble & Company is aiming to raise up to £4.7m for its Abbey Shipping enterprise investment scheme (EIS).The EIS gives investors an opportunity to invest in a Romanian-built double-hulled ship, the Santa Ana, which will be used for the transportation of oil products. The ship is valued at $22m and 75 per cent of the purchase price is being raised through a bank loan with a repayment period of seven years. It is currently at sea, transporting gasoline, jet fuel and kerosene, ...

  • Acorn Corporate Management - CellFactors

    17 Mar 2003

    Monday, 17 March 2003Aim: Growth by investing in the development of Skeletex and NeuCellMinimum investment: Lump sum £2,000Opening/closing date: March 12, 2003/April 4, 2003 for 2002/2003 tax year, April 30, 2003 for 2003/2004 tax yearCharges: NoneCommission: Initial up to 3%Tel: 0870 1225420

  • Ailing MFR is driving down transfer values

    13 Mar 2003

    The minimum funding requirement is now so weak that young scheme members' transfers are only worth 15 per cent of the cost of buying the benefit with a life company, according to leading actuaries. Assumptions for price inflation, longevity and gilt and equity returns have changed so much since the MFR was introduced that minimum transfer valuations have shrunk in real terms, according to data published in The Actuary, the professional body's publication. But Scottish Equitable ...

  • Alliance Trust cuts paper use to help environment

    13 Mar 2003

    Investment trust Alliance Trust Savings is launching a campaign aimed at helping the environment by halving the paperwork it sends to investors. It predicts its Save a Tree in 2003 campaign could save up to 50 trees a year. Last year, it sent out a total of 920,000 sheets of paper in 368,000 envelopes to investors, equating to around 100 trees. By cutting this usage in half, it hopes to reduce that to 50 trees a year. ATS says it is being helped in its drive by recent relaxations ...

  • Analyse this

    13 Mar 2003

    Pension funds, charities, advisers and investors are finding it increasingly difficult to select and, more important, keep track of investments. Volatile markets are sadly not the only problem. External factors such as corporate activity, declining client bases, forced redemptions, high staff turnover and changing processes are all too common in the current environment. So is it any wonder that independent advisers are looking for professional help to ease the burden of fund selection ...

  • Annuity reform bill wins through in Commons

    13 Mar 2003

    The Conservatives have inflicted another defeat on the Government over annuity reform as Tory MP Edward Garnier's Bill which is aimed at changing the present annuity regime passed a second reading in the House of Commons last week. With voting tactics reminiscent of last year's private member's bill sponsored by Tory MP David Curry when the Government was defeated three times, Tory and LibDem MPs flooded the Commons last week to win the vote 127-26. Garnier's bill is ...

  • Average age of critical-illness claimants falls

    13 Mar 2003

    The average age of critical-illness claimants is falling, says Scottish Provident. The average age for a CI claim was 42 in December 2002 compared with 44 in June 2002. Women are claiming on policies two years younger than men, 41 compared with 43. Scottish Provident suggests that the extra years of life traditionally enjoyed by women may not necessarily be healthy ones. The firm says the figures also show that cancer tops the list of causes of claims, accounting for 55 per ...

  • Banks and societies still pose biggest IFA threat

    13 Mar 2003

    IFAs believe that their main competitors will remain banks and building societies, according to the annual Money Marketing/One Account State of the IFA Nation poll. The survey shows that 40 per cent of IFAs believe highstreet banks and societies are the main threat to their business while 35 per cent think future bank and building society multi-ties would be their main competitors in five years. Thirty-five per cent of advisers believe that rival IFAs are their main competitors ...

  • Bear market prompts caution by women but men still favour equities

    13 Mar 2003

    Women are reacting more cautiously to the continuing bear market and are more likely to choose bond funds than men, according to research conducted on behalf of Fidelity Investments. The company says 25 per cent of females plan to invest solely in bond funds this Isa season while men are much less risk-averse, with only 7 per cent saying that bond funds will be their sole choice. The polarisation bet-ween the sexes is equally evident when it comes to equity investments, with 25 ...

  • Boxing clever

    13 Mar 2003

    The world seems to have stopped for everything other than war. We have entered new political territory, with the Tories more likely to man the barricades than most of Tony Blair's own troops. The announcement that the Budget will again take place in April makes some sense in terms of strategic planning on the battlefield but will not help the strategic planning of most financial planners right now. Last year, the Budget was also put back until April following the tragic events ...

  • British investors deluded at the adequacy of their company pensions says Cavendish

    14 Mar 2003

    British investors are showing remarkable complacency over their company pension provision, according to research from Cavendish Asset management.

  • Brokers facing £1,400 fees for loan regulation

    13 Mar 2003

    FSA proposals for regulating mortgage and general advice could hit brokers with a bill for up to £1,400 in application fees, according to a draft consultation seen by Money Marketing. The LIA says the move could see up to 30 per cent of brokers decide not to become authorised. The paper, which outlines what it will cost firms to seek authorisation once mortgages become regulated in October 2004 and general insurance in January 2005, says advisers could be charged up to £1,400 ...

  • Brown urged to rethink equity Isa tax

    12 Mar 2003

    Isis Asset Management has written to Chancellor Gordon Brown urging him to reconsider Treasury plans to scrap the tax break on equity Isa dividends in April 2004. The letter, written by head of communications & strategy director Jason Hollands, says abolishing the break will send a negative signal to small investors and could undermine public faith in Isas.

  • Business up by 24% at Swiss Life

    12 Mar 2003

    Swiss Life has reported an increase of 24 per cent in new business written during 2002, up to £53m from £42m in 2001. The provider says during the last year it enjoyed substantial growth in both critical illness and income protection sales. Managing director Brian Hurd says the fact IFAs have stuck with Swiss Life as it searches for a new parent company pays testimony to the strong market position it enjoys.

  • Business up by 24% at Swiss Life

    13 Mar 2003

    New business at Swiss Life rose by 24 per cent to £53m last year from £42m in 2001. The company says that during last year it enjoyed substantial growth in both critical-illness cover and income protection sales. Managing director Brian Hurd says the fact that IFAs have stuck with Swiss Life as it searches for a new parent company is testimony to its strong market position.

  • Cautious Pru plan is exclusive for Wifas and Sedgwick

    13 Mar 2003

    Prudential is cementing its relationship with Woolwich Independent Advisory Service and Sedgwick Financial Services by offering them an exclusive structured product. Both Barclays-owned IFAs will be able to sell the Prudential capital secure growth plan which has been designed for cautious investors following an industry trend away from with-profits towards structured profits. Pru says the product was designed in conjunction with Wifas, and offers 100 per cent capital protection ...

  • Cavendish says pension savers have their heads in the sand

    17 Mar 2003

  • Cavendish says pension savers have their heads in the sand

    17 Mar 2003

    Forty two per cent of investors believe their occupational pension scheme is all they need for retirement, according to research by Cavendish Asset Management. Despite the closure of many schemes, 52 per cent of people under 30 are putting all their trust in an occupational pension. However only 18 per cent of those questioned believe that the state pension will be sufficient in retirement.The research also shows that people are responding to difficulties in the pension ...

  • CellFactors breaks through via EIS

    14 Mar 2003

    CellFactors is a company that aims to raise up to £3.5m through an enterprise investment scheme (EIS) for its human cell therapy projects.The company says degenerate and dying cells cause conditions such as Parkinson's disease, diabetes, cancer and heart disease. Human cell therapy can cure these problems through implanted cells, which can also help to repair broken bones.The money raised by the EIS will be used for the commercial development of Skeletex, the company's ...

  • Chancellor berated for 'poor' job on finance policy

    13 Mar 2003

    In the increasingly difficult climate for the industry, dispirited advisers have slammed Gordon Brown and the Government's financial services policy. According to the survey, IFAs have become increasingly disillusioned with Brown in the past year, with 88 per cent believing that the Chancellor has not done a good job in establishing a favourable climate for private savers and investors. This is a 15 per cent increase on last year's survey. Eighty-nine per cent said they rated ...

  • Children's Mutual teams up with Boots to promote saving for kids

    13 Mar 2003

    The Children's Mutual is linking up with national chemist chain Boots to promote the sales of its baby bond long-term savings plans in stores around the UK. It says this strategic alliance will give more families easy access to baby bonds at 332 of the biggest Boots' branches, with dual-branded literature being put on display in the mother-and-baby areas of the stores. Around 200,000 Boots Advantage Card holders will also be sent promotional information by direct mail to ...

  • CIS wants Govt to raise insurance Isa limits

    13 Mar 2003

    CIS is calling on the Government to raise insurance Isa contribution levels if it is serious about creating a level playing field between life offices and fund managers. The company notes the wide anticipation that the 5 per cent tax deferral rule on life bonds will be axed in the next Budget. Last year's Sandler review argued that life companies benefited from a more favourable tax regime and suggested scrapping the 5 per cent deferral rule. But CIS says doing away with ...

  • Clerical ad campaign looks to the long-term

    13 Mar 2003

    Clerical Medical will be appearing on TV screens throughout March with a series of ads showing an optimistic approach to long-term saving. The central theme of the adverts is "Plan for Tomorrow, Live for Today", projecting the message that people can relax more today if they know they have sorted out their finances for the long term. The first ad shows a woman who gets a taxi to perform a U-turn in order to cross a busy road. The second shows a man who puts his alarm on snooze ...

  • Cofunds makes trail commission deal

    12 Mar 2003

    Fund supermarket Cofunds has struck a deal with fund managers including Schroders which will see the groups pay trail commission to IFAs introducing unwrapped business. The four fund managers, also including Baring Asset Management, Rathbone Unit Trust Managers and Liontrust Asset Management, have agreed to the move even though none pay trail for directly placed business.

  • Consumer Panel welcomes FSA misselling plans

    18 Mar 2003

    The Financial Services Consumer Panel has welcomed FSA plans to extend the scope of compensation awards to misselling victims.

  • Correspondent's week

    13 Mar 2003

    Sunday 6.30am (5.30am UK time), Meribel, France. Early morning call for a 7.30am taxi to Grenoble after a glorious week of powder snow, blue sky and back-country hiking while the kids are in ski school. Winding mountain roads, a heavy breakfast and five green-gilled children. Mental note to lay off the booze at the next last-night party. 12.10pm. Arrive at Stansted in time for a quick journey home to watch Scotland beat France and start off my week on a happy note. Somehow, ...

  • Cross lines

    13 Mar 2003

    Having just wasted at least seven minutes on hold (at peak time) waiting to be put through to talk to anyone at all at Liverpool Vic in Exeter (what if I wanted them to quote on a £500,000 term insurance?), I have given up in disgust. Correspondence routinely goes unanswered, as do subsequent reminders. A simple mortgage protection term insurance we submitted to Scottish Provident in early November took until the end of February for terms to be issued (and then twice). By this ...

  • Dampier bucks income trend and goes for growth

    13 Mar 2003

    Hargreaves Lansdown head of research Mark Dampier has broken with the prevailing investment trend by selecting six growth funds in a list of his top fund choices. Dampier, one of the UK's most respected investment commentators, has chosen just two equity income funds, which are most IFAs' preferred option at present, in his canon of 15 funds which he believes are best buys. His growth choices include Cazenove's UK growth & income fund, the recently launched UBS smaller ...

  • Davies warns of impediments to single EU market

    13 Mar 2003

    A series of potential obstacles may prevent the single European financial services market from realising its full potential, according to outgoing FSA chairman Sir Howard Davies. Speaking in London last week at the City & Financial Conferences event, The Impact of the EU Financial Services Action Plan on the Regulation of the European Securities Markets, Davies outlined the FSA's priorities for developing the single financial services market by 2005. Davies said a serious ...

  • Defining moment

    13 Mar 2003

    If Opra's decision to allow scheme trustees to stop members leaving schemes has achieved anything, it is to ram home the point that final-salary schemes are in serious difficulty. What Opra is effectively saying is that defined-benefit schemes are in so much trouble that we cannot let members have their money until the Government gets round to making new rules that will give them less of a transfer value - and we do not know when those rules will be in place. Many in the pension ...

  • EIS to raise cash for new Capt Scarlet

    12 Mar 2003

    Fund management group Margetts is helping to set up a production company under an Enterprise Investment Scheme to finance a new television series of kids' favourite Captain Scarlet. The company - Gerry Anderson Productions - is seeking £15m to create 26 new episodes of the show, which was originally sold to more than 60 networks worldwide. Margetts says Anderson, who also created classics including Thunderbirds, Fireball XL-5 and Stingray, has been working on the ...

  • Fear and loathing in the split-cap market

    13 Mar 2003

    It has become apparent, following the Treasury select committee, that some of the professionals who were involved in the split-capital market did not really fully understand some of the risks that investors were taking when they bought shares in a split-capital investment trust. This begs the question - what hope did the rest of us ever have? However, the split-capital sector is not as complex as it first appears so long as you avoid split-capital trusts which invest in other split ...

  • Field's scheme wind-up bill is blocked

    12 Mar 2003

    Labour backbencher Frank Field MP's Private Members Bill to amend the priority order on pension scheme wind-ups has been blocked by the Government. Field's Bill would have given increased protection to members who had not yet retired by basing entitlement on numbers of years service rather than giving priority to retired members.

  • Field's scheme wind-up bill is blocked

    13 Mar 2003

    Labour backbencher Frank Field private member's bill to amend the priority order on pension scheme wind-ups has been blocked by the Government. Field's bill would have given increased protection to members who had not yet retired by basing entitlement on numbers of years service rather than giving priority to retired members.

  • Former LIA chief exec Travis joins Amas board

    13 Mar 2003

    Amas, the IFA acquisition and merger specialist, has appointed former LIA chief executive Jeff Travis to its board. The company hopes that Travis, who will take up his position as a director with immediate effect, will be able to use his many industry contacts to "open doors that at the moment remain closed," according to Amas founder Phil Calvert. Travis was formerly chief executive of the LIA between 1995 and 2002. Prior to that, he was head of sales at Pearl Assurance. Amas ...

  • Friends warns of more payout cuts

    13 Mar 2003

    Friends Provident is slashing payouts on with-profits by up to 20 per cent and warning of further pain to come. The life office says unless there is a strong recovery in the stockmarkets it will again cut payouts when it conducts a review later in the year. It says policyholders are still getting smoothing on maturity and surrenders but that this is limited. Friends says the with-profits fund is still run as though it was a mutual and that shareholder considerations have minimal ...

  • FSA inviting claims to blame for PI fiasco

    13 Mar 2003

    May I state what a good read your February 27 issue is - especially the comment pages with your editorial, which again hit the spot, and you have brought out the big guns in the letters by Nick Bamford, Alan Tonks, Terence O'Halloran and Harry Katz. All contributors have pertinent points to make via their personal experiences in the industry. What does concern me, however, and no doubt every other IFA, is a quote on your back page by FSA spokesman David Cliffe which says: "The ...

  • FSA relents on fund firms' performance advertising

    13 Mar 2003

    Past performance would be allowed to be the dominant feature in fund advertising but only in an FSA-standardised format, according to draft FSA proposals seen by Money Marketing. Ads would not be allowed to use sums of money invested to illustrate returns because the FSA feels consumers would pay too much attention to them. FSA plans to increase the prominence of risk warnings appear to have been shelved. Fund companies would be permitted to use other styles of presenting past ...

  • FSA says thousands face losses on bonds

    13 Mar 2003

    The FSA has admitted that tens of thousands of investors could be facing losses to their capital when dozens of index-linked structured products mature this year. Managing director Michael Foot, speaking to bankers at The Retail Banking Conference sponsored by The Economist in London last week, said that thousands of investors with bonds maturing in the coming months were likely to be disappointed. He said many investors had assumed that using terms such as guaranteed in product ...

  • Future shock

    13 Mar 2003

    The Treasury is recommending that the equity products in its suite of stakeholder products should have a maximum equity exposure of 60 per cent, mirroring the constraints of a cautious managed fund. Do you think this balance is right, or is the Treasury simply substituting advice with a conservative product? MB: I think the fundamental problem with the Treasury's recommendation is that it is trying to micro-manage advice without being responsible for the consequences. An examination ...

  • Gartmore hires fund managers for global hedge fund

    17 Mar 2003

    Gartmore has recruited two new fund managers to run a hedge fund for its global fixed income team.

  • Gartmore strengthens investment team

    14 Mar 2003

  • Golden fleece

    13 Mar 2003

    Is the endowment review just another opportunity to fleece the client? I today received endowment review data for a new client. With the inevitable shortfall letter came an illustration for an increased premium to deal with the potential shortfall. The extra premium is 25 per cent of the current cost. At the 4 per cent growth rate, more than double the possible shortfall is projected at maturity. On page two, an allocation rate of 43 per cent is shown for three years and more initial ...

  • Group reshuffle at Misys

    13 Mar 2003

    Misys has appointed Charles Bryant to head its IFA portal and its financial services division as part of a reshuffle across the group which sees Assureweb chairman Helen O'Dea become CEO of its risk management services division. Bryant is promoted to AssureWeb chairman and director of Misys' financial services division. He will be responsible for preparing the financial services businesses for flotation within two years. As part of the group restructuring, Marlborough Stirling ...

  • Hargreaves Lansdown sums up with-profits

    13 Mar 2003

    Hargreaves Lansdown is producing a guide to with-profits which it claims is aimed at tackling "ambiguous bonus announcements" and "shifty actuaries apologising for getting their sums wrong". The report covers financial strength ratings, the mechanics of with-profits, asset allocation and how it affects fund performance, payouts and the future of with-profits schemes. As well as explaining the FSA solvency margins, the report shows the Standard & Poor's financial strength ...

  • Homeowners fear floods but fail to protect their property

    13 Mar 2003

    Homeowners are concerned about the threat of flooding but many are confused about what steps to take to avoid their property being damaged, says Norwich Union. NU questioned 2,200 adults around the UK last month, including 1,200 residents in what are classified as high-risk flood areas, and found that one in five people knows someone who has been affected by flooding. However, NU found that 90 per cent of homeowners in the areas most at risk from flooding have not taken even the ...

  • House prices still strong, says Halifax

    13 Mar 2003

    The average UK house price increased by 1.7 per cent in February to £125,558 from £123,422 in January, according to the latest Halifax house price index. Halifax says this is a sign that the market remains strong, with February's increase representing a 23 per cent jump from £101,708 in February 2002. The bank says it is still a sellers' market, with the stock of properties for sale on estate agents' books remaining low, maintaining an upward pressure ...

  • How the FSA has failed income drawdown clients

    13 Mar 2003

    It is naive in the extreme of David Cliffe of the FSA to say that PI insurance costs have not risen because of regulatory failings. Many of these were clearly not the responsibility of the FSA in its current form but even now it is not dealing properly with the highest-risk areas of the IFA market. An obvious example is pension fund withdrawal. I am dealing with several cases where IFAs, no doubt highly competent to a point, have put their own long-standing clients into drawdown plans, ...

  • IFAP shows £4bn is being wasted in tax

    13 Mar 2003

    Nine out of 10 adults in the UK - 45 million people - will waste £4bn this year paying unnecessary tax, according to IFA Promotion. IFAP says its 11th annual TaxAction investigation shows an average of £114 is wasted per person and it is vowing to continue its War on Wasted Tax. It has calculated that the UK's tax wastage is enough to create a new millionaire every day for the next decade. It now has a website, www.taketaxaction.co.uk, to explain the steps that ...

  • IFAs are getting more positive media coverage

    13 Mar 2003

    Positive coverage of IFAs is on the increase, with more of the public than ever before now exposed to favourable stories according to research by media agency Impacon for IFA Promotion. The research on the volume and effect of media coverage for 2002 shows each adult in the UK has had 16 "opportunities to see" coverage of IFA related articles and programmes generated through IFA Promotion or Lansons PR. This figure was calculated by looking at the audience/readership figure of ...

  • Independent view

    13 Mar 2003

    The single biggest problem facing IFAs today - what might that be? I imagine that many might think it is professional indemnity insurance. After all, it is difficult to get. Premiums are massively higher than they have been in previous years and excesses are such that IFAs are self-insuring and paying a premium. Only the biggest of claims will be covered by the policy and I guess that is why most of us would not trade without it. But professional indemnity insurance is not the ...

  • Inside Edge

    13 Mar 2003

    Investing in a quality IFA firm is a means of securing long-term return for the overall group, not about buying short-term sales. Over the last 12 months we have seen a number of providers investing in IFAs. Critics have dismissed this trend as insurers rushing to "buy business" and secure guarantees of increased sales of their products as the "better than best" rule is set to disappear. The reality is somewhat different. There is no doubt the IFA sector has flourished in recent ...

  • Insight creates Isa duo

    13 Mar 2003

    INSIGHT INVESTMENTINSIGHT INVESTMENT FOCUS PLANType: Oeic mini or maxi Isa Aim: Income or growth by investing in a choice of six funds Minimum investment: Lump sum £3,000 Catmarked: No Investment choice: Income - equity high income, monthly income, global bond funds. Growth - UK discretionary, UK select opportunities, European discretionary funds Yield: Depends on fund Charges: Initial 5.25%, annual 1.15% - 1.5% ...

  • Invensys is first firm to lock up pension

    13 Mar 2003

    Invensys, the blue-chip engineering group which is expected to fall out of the FTSE 100 this week, has become the first employer to lock final-salary members into its underfunded pension scheme. It is using Opra's decision to allow schemes to defer transfers until new rules come in that will allow lower valuations, as reported in Money Marketing. Alan Pickering says Opra's move is consistent with the proactive approach he wants from the new kind of regulator first proposed ...

  • Investment analysis

    13 Mar 2003

    Growing fears about war in Iraq, disappointing corporate news and weak economic data sent global bourses lower last week, with the benchmark FTSE World index shedding a further 2 per cent. In the US, news from the retailers and poor economic news ensured that it was a losing week for markets. Sears Roebuck was among the biggest fallers in the sector after it reported worse than expected results and Costco Wholesale, the biggest Warehouse club operator, announced a fall in profits. ...

  • Investment trust and Isa sales down by 25% in Q4

    13 Mar 2003

    Sales of investment trust savings schemes and Isas plunged by 25 per cent in the last quarter of 2002 compared with the same period in 2001, according to the AITC. Quarterly figures show that total sales of IT saving schemes in the fourth quarter of last year fell by 28 per cent to £42.64m from £58.91m in the fourth quarter of 2001. In the third quarter of last year, sales fell by 16 per cent. Sales of Isas through ITs and their managers fell by 26 per cent to £10.97m ...

  • Investment view

    13 Mar 2003

    It seems that the sage of Omaha is in the news again as a consequence of one of his pithy sayings. Over the years, his letters to the shareholders of Berkshire Hathaway, the investment company he heads, have been a source of great inspiration. In 2001, he dismissed the technology boom (which by then had descended into bust) with the apposite comment that "nothing sedates rationality like large doses of effortless money". How right he was. I wonder how right he will turn out to be this ...

  • Isa portfolio offers from Saga

    17 Mar 2003

    Provider Saga Investment Direct is cutting the initial charge on two of its equity Isa portfolios to 0.25 per cent from 4 per cent until the end of April.

  • Julian Gibbs

    13 Mar 2003

    With the UK stockmarket around 50 per cent off its high and European markets around 60 per cent off, a plan which gives a potential return of 100 per cent over five-and-a-half years looks to me to be outstanding value for money, especially as there is 50 per cent downside protection. The NDF Growth Plan 2 gives double the rise in the FTSE 100 index over this term, subject to maximum maturity proceeds of 200 per cent. It provides a superb opportunity for underperforming Isas and Peps. ...

  • Jupiter warning on move to buy-to-let investment

    13 Mar 2003

    Delaying re-entering the stockmarket or choosing buy to let as an alternative could be an expensive mistake, according to Jupiter chief executive Edward Bonham Carter. Jupiter is concerned that 25 per cent of its current investors plan to put their spare cash into property through a buy-to-let scheme or by reducing their current mortgage. Overall, 36 per cent are adopting a cautious wait and see approach to the stock-market, only willing to put their money into an Isa if the market ...

  • Keydata Investment Services - Dynamic Growth Plan Special Edition

    13 Mar 2003

    Thursday, 13 March 2003 Type: Capital protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £3,000-no maximumTerm: Five years six monthsGuarantee: Original capital returned in full provided index does not fall by more than 50% and returns to at least its initial levelReturn: Double the rise in the FTSE 100 index subject to a maximum of 100% at end of termClosing date: April 30, ...

  • King of hearts

    13 Mar 2003

    If you have met Norwich Union PR hound dog James Evans, you won't be surprised to hear he is taking his wife to Las Vegas to get their wedding vows resworn by Elvis. Evans, who demands that people in the NU press office call him The King, is flying out to the gaming capital of the world next April - 11 years after tying the knot. The King is happy to have hymns such as Blue Suede Shoes in the service but says Love Me Tender is far too soppy for such an event.

  • Kingsbridge team of companies is splitting up

    13 Mar 2003

    Kingsbridge, the Aim-listed IFA that specialises in advising professional sportspeople, is facing a demerger as one of the IFAs it acquired two years ago is splitting away from the firm. Independent Financial Planning, the Harrogate, London and Sunderland-based firm Kingsbridge bought in 2001 is demer-ging from the group, taking 24 RIs with it. Among IFAs, the firm, which specialises in high net worth and corporate clients, is best known for one of its directors, former Sofa chairman ...

  • Leeds & Holbeck Building Society - 5-Year Access Bond (Issue 2)

    12 Mar 2003

    Wednesday, 12 March 2003 Type: High interest accountMinimum-maximum investment: £1,000- £250,000Interest rate: 3.5% gross in year one, 3.75% gross in year two, 4% in years three and four, 5% in year fiveTerm: Five yearsWithdrawal penalties: No withdrawals permitted during the fist yearTel: 0500 225777

  • Legal & General - Protected Index Plan 2

    18 Mar 2003

    Tuesday, 18 March 2003Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £1,000-no maximum, £7,000 Isa Term: Five years six months Guarantee: Capital returned in full regardless of the performance in the index Return: 100% of any growth up to 55% Closing date: April 25, 2003 Commission: Initial 3% Tel: 020 7528 6773

  • Legal & General launches two new investment plans

    17 Mar 2003

    Legal & General is offering two new capital protected investment plans. The protected index plan will provide growth in the FTSE 100 Index up to a maximum of 55 per cent. The index growth and protection plan is an index linked investment, that will provide 70 per cent of any growth in the FTSE 100 Index uncapped. The plans must be held for five and a half years and will offer capital protection at the end of this fixed term.

  • Life is a closed book

    13 Mar 2003

    Life is brutal. For years, you take everything it throws at you, yet show no ill effects. Then suddenly it all seems to catch up with you. That once trim body starts to flag, showing clear signs of its past mistreatment. Oh, how you wish that you had invested earlier in keeping your body in peak condition. For around 200 years, as stewards of personal savings and providers for family security, the trustworthiness of life companies was hardly ever doubted. But it is all looking rather ...

  • Little hope of improvement with new-style with-profits

    13 Mar 2003

    Advisers do not believe the next generation of with-profits products encouraged by Sandler with a 100/0 policy holder/shareholder split will be any improvement on the current model. On the back of a series of bonus cuts, IFAs are fairly evenly split over whether the new-style withprofits would be effective but 51 per cent say they think the new products would be no improvement on the traditional model. With-profits "the sequel" has been developed as a simpler version of the product, ...

  • Liverpool Victoria goes live with online processing for IFAs

    14 Mar 2003

    Liverpool Victoria has today launched its online processing service for IFAs interested in its protection products.IFAs will be able submit applications as well as get quotations online. The friendly society says this will be followed by a direct debit system. Straight forward applications will not require an signature. IFAs who use the service will see enhanced rates of commission.

  • Location annuity is still in the post for Norwich Union

    13 Mar 2003

    Norwich Union is putting plans for a postcode annuity on hold and says any decision on the product will not be made until 2004. The life company first mooted the idea of an enhanced annuity based on where people live last June, but says concerns over the complexity of the project mean geographical factors will not be seen until 2004 at the very earliest. NU says it is still looking at location as one of a number of factors for more individualised annuities but has expressed concerns ...

  • London & Country remortgage guarantee

    13 Mar 2003

    National mortgage broker London & Country is guaranteeing it will complete remortgages in 28 days or pay clients any money they lose out on. L&C will pay the difference between a borrower's old mortgage payment and new one if it runs over 28 days. Initially, the pledge only applies to an exclusive Alliance & Leicester remortgage but it is in talks with several other lenders, including Yorkshire and Nottingham building societies. It is calling on "Dickensian" lenders ...

  • Make the switch to charging fees

    13 Mar 2003

    IFA Fee Based Advice is organising a two-day course for advisers on the 4th and 5th of April in Manchester on how to switch to charging fees. The course is aimed at developing the skills of practice managers. It will be lead by Ken Moore, a director of Fee Based foundation - a sister company of the IFA. He will be joined by Annette Barnes, who will be supported by training team from Scottish Equitable. Moore says: "IFAs who are serious about a future based on charging fees need ...

  • Mandate with destiny for GSAM

    13 Mar 2003

    Among the handful of companies intending to launch a fund this year is Skandia Investment Management. Although the European equity fund is its first offering, SIM will not manage the fund as that job has been handed to Goldman Sachs Asset Management. A global giant with mainly institutional clients, GSAM has vast resources and a European equities team that SIM claims is one of the most successful in the world. Twenty-four investment managers and analysts will run the SIM fund. But, ...

  • McDonald Glencross - McDonald Glencross Approved EIS Fund 4

    13 Mar 2003

    Thursday, 13 March 2003 Aim: Growth by investing in unquoted companiesMinimum investment: Lump sum £40,000Opening/closing dates: March 3, 2003/April 30, 2003Charges: Initial 5%, annual up to 2.5%Commission: Initial up to 3%Tel: 020 7229 0054

  • McVeigh replaces Seager at ailing Jupiter fund

    13 Mar 2003

    Jupiter UK growth fund manager Justin Seager has been replaced by former Schroders star Ian McVeigh after failing to reverse the poor performance which had IFAs up in arms. Chief executive Edward Bonham Carter moved the manager from the fund although he continues running institutional money. Bonham Carter publicly backed Seager last December following a barrage of criticism from IFAs over the ailing fund's inferior performance. According to Lipper, the £430m fund has ...

  • More Than - Guaranteed Growth Bond Issue 6

    14 Mar 2003

    Friday, 14 March 2003 Type: Guaranteed growth bondMinimum-maximum investment: £5,000-£250,000Term: Six yearsInterest rate: £5,000 - £10,000 5% gross a year, £10,001 and above 6% gross a yearCharges: NoneReturn: 5% or 6% gross a year on half of the amount invested at the end of year one, plus 50% of the average growth in the FTSE 100 index on the other half at the end of the termGuarantee: Original capital ...

  • Morley Fund Management - Morley High Income Property Fund

    14 Mar 2003

    Friday, 14 March 2003Type: Unit trustAim: Growth by investing in direct property, property related corporate bonds and cashMinimum investment: Lump sum £10,000Investment split: Direct property 75%, property related corporate bonds 20%, cash 5%Isa link: NoPep transfers: NoCharges: Initial 5%, annual 1.5%Commission: Initial 3%Tel: 0800 5874561

  • Mortgage rate cut for UK residents buying in Spain

    13 Mar 2003

    Halifax has cut the cost of buying a property in Spain following the decision to reduce mortgage interest rates at its Spanish subsidiary Banco Halifax Hispania. Loans for up to 60 per cent of the property value are now available at 3.705 per cent and at 3.955 per cent up to 70 per cent loan to value. In addition to offering mortgages for the increasing number of UK residents looking to move to Spain or buy a holiday home, BHH also offers a range of support services to help buyers ...

  • NI increase will kill savings warns Sofa

    17 Mar 2003

    The 1 per cent hike to National Insurance from April will sound the death knell to any possibility of convincing people to save, Sofa has warned.

  • No place for secrecy

    13 Mar 2003

    A refusal by a UK insurance company to release figures to the public at large on the performance of endowment policies should not be taken lightly. Any insurer doing so is putting up its hands and claiming membership of a club that doesn't believe in transparency but in secrecy instead. The insurer or insurers concerned may plead that any issues affecting such policies are a matter for communication with customers. Why should journalists be privy to such information? It ...

  • Norwich Union investors prosper through bond

    18 Mar 2003

    Norwich Union has established the Prosper income bond, a guaranteed equity bond that offers investors the choice between income and growth over a five-year term.The bond is linked to the FTSE 100 index and investors can choose to take income of 5.5 per cent a year, 0.44 per cent a month or 29.6 per cent after five years. Investors get all their original capital back provided the FTSE 100 index does not fall by more than 30 per cent of its initial value, without recovering at the ...

  • NUHC expands its small corporate PMI offering

    18 Mar 2003

    Norwich Union Healthcare has announced it is expanding its small corporate healthcare product to larger companies and adding access to its online health manager service. Solutions had been restricted to companies with 50 to 99 employees since its launch last May, it is now being extended to those with 50 to 249 employees. The Personal Health Manager allows policyholders to assess their own medical symptoms, devise personalised health plans and have access to GPs via a ...

  • On golden bond

    13 Mar 2003

    Tax planning is - or should be - enjoying a time of higher than usual interest and, hopefully, demand. The reason why has been well explained in this column in past weeks but here it is again for good measure. In a time when investment markets are difficult, interest levels in increasing the bottom line through tax planning should increase. Only just recently it was reported that, for higher-rate taxpayers, it was the tax relief on pension contributions that prevented them making a ...

  • On the rebound?

    13 Mar 2003

    Statisticians are reminding us that because the market has fallen for three years in a row, the likelihood of a further fall remains the same. It seems the mathematicians forgot one seriously important factor and that is that we are not talking about flies crawling up a wall and randomness but about shares which are actual businesses with underlying fundamental values. The best analogy is to consider the "elastic" theory. According to the ferocity of the movement from our previous ...

  • Out of context

    13 Mar 2003

    •"She's dancing round a pole tonight." - Skipton Building Society's Steve Allder on the wherabouts of PR Jennifer Holloway. •"I have not worn any for a while." - Britannic Retirement Solutions' Jim Boyd on going out without make-up. •"I don't understand how that lead actress has done so well. She looks like a horse." - Boyd on Sex and the City's Sarah Jessica-Parker. •"If I tell you, I will have to kill you." - Axa Sun Life press officer Steve ...

  • Out of its element

    13 Mar 2003

    Life insurance Isas seem to be forgotten about most of the year. Then, around March, they come under a great deal of scrutiny before being written off as too small to make any difference to individual savers. It might perhaps be worth noting what few benefits insurance Isas have: •They offer investment free from income tax and capital gains tax. •Life insurance Isas have traditionally been considered a halfway house between cash and equities because most are invested ...

  • Outside edge

    13 Mar 2003

    Although I am sure most industry observers would agree that we are in the midst of a period of intense structural change, largely fuelled by regulatory and economic circumstance, I am less sure that there is consensus on the ultimate winners and losers. Nowhere is the debate more divided than across the life office/IFA divide, a gulf that may be forced to narrow as life office ownership of IFA equity continues to increase. Although the financial and economic issues are certainly ...

  • People spending more at the pub than on pensions

    13 Mar 2003

    Thousands of Britons are enjoying "rock and roll lifestyles," spending more each month on alcohol and cigarettes than they save, according to new research by Birmingham Midshires. The bank reports that three in five Britons are spending more money in pubs each month, an average of £60.56, than they do in saving for their retirement. The study, which comes as part of BM's Saving Britain 2003 campaign, looks at spending and savings habits of UK consumers each month. It ...

  • PFB focus on property

    13 Mar 2003

    Pinder Fry & Benjamin is targeting small self-administered schemes (SSASs) and self-invested personal pensions (Sipps) with the introduction o the Gold 5 property income portfolio.This exempt unit trust aims to provide income of 8.2 per cent during the first year, rising to 9.3 per cent a year from year two. It will provide the potential for capital growth after an investment term of between seven and nine years.Retail investors will coinvest alongside institutional investors ...

  • Philip Scott

    13 Mar 2003

    Philip Scott runs a small apple co-operative in Norfolk producing cider. He is also executive chairman of Norwich Union Life and director of global insurance giant Aviva. Scott's path to the top has been slightly unusual. He was studying engineering at Kings College when the sudden death of his father meant he had to return home to manage the family holiday business in the Norfolk Broads. His upbringing has left him with a lifelong love of the water and he still spends as much time ...

  • Pints of view

    13 Mar 2003

    As I strolled into the pub, I thought to myself - at last a couple of hours of peace and quiet. No Green Paper, no pension simplification, no consultation papers and most of all no pensions. Carefully carrying my first pint of Old Stokestrangler and the most recent copy of Hello magazine, I found myself a comfortable seat next to the fireplace. Barely had I started reading when my attention was strangely drawn by a conversation going on between three older gentlemen no more than a ...

  • Portman and Sun Bank merge teams

    12 Mar 2003

    Portman Building Society and its specialist lending subsidiary Sun Bank are combining their intermediary sales teams, although Sun Bank will remain a separate operation with its own staff, branding and product range. The new 12-strong team will be headed up by associate director, group intermediary sales Paul Howard. He says this means IFAs will only have to speak to one person about the full range of Portman and Sun Bank products, including self-certification, buy to let ...

  • Portman and Sun Bank merge teams

    13 Mar 2003

    Portman Building Society and specialist lending subsidiary Sun Bank are combining their intermediary sales teams although Sun Bank will remain a separate operation with its own staff, branding and product range. The new team of 12 will be headed by associate director (group intermediary sales) Paul Howard.

  • Premier Connections offers free PI cover

    18 Mar 2003

    Premier Connections, the intermediary network for life, medical, general insurance and mortgages, is offering professional indemnity cover with run-off at no cost to its members. It says with premiums for indemnity cover running into thousands of pounds for intermediaries each year, its members will benefit financially as well as saving time and effort on finding cover.

  • Price rise slows to just 0.4%

    13 Mar 2003

    The average house price rose by 0.4 per cent in February to £118,521 from £118,048 in January, according to Nationwide Building Society. The annual increase hit 24.8 per cent but it was the smallest monthly price growth since October 2001. Nationwide says it is too early to say if this is the start of a sustained slowdown as other factors must be taken into account, such as changes in take-home pay. It warns that pay settlements and bonuses have been weak and the ...

  • Product matters

    13 Mar 2003

    Newton's protected higher income plan is a new arm of structured products in the retail market. Instead of tracking an index or using an average of a basket of shares, Newton is using its higher income fund, which has had top-quartile performance every year since launch in 1987. The five-year plan is 100% capital protected if held until maturity, which means for every £1 invested, there will be £1 returned, provided there is no default from issuers JP Morgan. Strangely, ...

  • Property boosts wealth figures

    13 Mar 2003

    The net wealth of the average UK adult rose to £70,000 in 2002 from £64,000 in 2000, according to a report from IBM Business Consulting Services. The report, Personal Wealth in Britain, says that while people have lost £182bn in the stockmarkets since 2000, this has been outweighed by a £245bn increase in the value of properties over the period. The net effect is that IBM estimates the average wealth of UK adults has increased by 10 per cent with property's ...

  • Property funds come top as WP alternative

    13 Mar 2003

    Many IFAs will be advising their clients to invest in property funds after being scared off selling with-profits funds by the current negative publicity surrounding the products. The poll reveals that 153 advisers said they did not think that the next generation of with-profits products would be an improvement on the current model and when asked where they would place their clients' money instead, property came out as favourite. Property funds were chosen by 46 per cent of the ...

  • Pru fined £750k for endowment misselling

    13 Mar 2003

    Prudential has been fined £750,000 by the FSA for endowment misselling. The fine comes after subsidiary Scottish Amicable was found to have missold mortgage endowments between January and December 2000. The FSA says ScotAm advisers did not ensure that consumers had the right risk profile for investing in a product where the loan might not be paid off in full at the end of the term. Prudential was instructed by the regulator to conduct a sample review of its endowment ...

  • Pru may consider applying for waiver

    12 Mar 2003

    Prudential says it is now considering applying for a solvency waiver despite initially claiming that it would not. It says the move would be a purely technical issue as it moves to manage its business on a realist rather than statutory basis. The company has not relied on future profits this year.

  • Pru raises CI premiums by average 22%

    13 Mar 2003

    Prudential is the latest in a growing list of product providers to increase critical-illness cover premiums. The Pru's rates on its only CI product, Prudential protection, a mortgage term-linked policy, will increase by an average of 22 per cent from this week. The company says it is maintaining rates on a guaranteed basis for the length of their term, which goes against the trend of many of its rivals. Last week, Scottish Provident increased premiums on its combined life ...

  • Putting risk in perspective

    13 Mar 2003

    Risk is fundamentally inherent to all investing. We believe one of keys to successful long-term investing is not to avoid risk altogether but rather to do all one can to manage risk prudently, avoid unnecessary risks and get compensated properly for the risks that one knowingly takes. In other words, every investment must be subject to a very diligent and stringent risk/return analysis. It is very important for investors to maintain a proper perspective on risk. With stockmarkets down ...

  • Relative values

    13 Mar 2003

    With European equity markets now down by 56 per cent from their 2000 peak, faith in the European equity story is at an all-time low. Investors have probably thrown in the towel following the shock revelation last week of an accounting fraud at the Dutch food retailer, Ahold, the third-biggest global operator. European markets have faced many headwinds in recent years from the pricking of the TMT bubble to the stagnation of the region's biggest economy, Germany. The Ahold ...

  • Relief as Euro threat recedes

    13 Mar 2003

    The threat to the UK's tax-free lump sum on pensions has receded after a compromise on the EU pensions directive. The European Parliament had called for the 25 per cent tax-free lump sum to be used for retirement income only, which would have effectively ended the tax break. It has also agreed to water down the required benefits of its prototype pan-European pension. It had wanted to include life insurance benefits as an obligatory requirement of the EU-wide pension that life ...

  • Research row as FSA claims tree triumph

    13 Mar 2003

    The FSA says people find stakeholder decision trees easy to use amid claims it is using research findings to paint an optimistic picture. Eighty-four per cent of people who have used stakeholder pension decision trees have found them easy to use, claims the FSA. It says 77 per cent found trees helpful in determining whether they are eligible for stakeholder. The FSA research used a total sample of 301 consumer focus group respondents and 59 per cent (178) said that they read decision ...

  • Royal Liver snaps up Park Row

    18 Mar 2003

    Friendly society Royal Liver is set to buy Park Row group for £16.7m. Royal Liver intends to take full ownership of the business but Park Row will continue to operate under its own name as a stand-alone business. Royal Liver says it has made the offer to increase its distribution and product development.  

  • Royal London slashes equities and payouts

    13 Mar 2003

    Royal London Group has sold approximately £3bn in equities and is slashing with-profits bonuses by up to 24 per cent for Scottish Life compared with 19 per cent for Royal London policyholders. The cuts have led IFAs to question Royal London's commitment to existing policyholders in the closed Scottish Life with-profits fund. The company now admits it will be seeking a solvency waiver. It has declared a free asset ratio of 7.6 per cent although without future profits, this ...

  • Sandler takes over education role from Godfrey

    13 Mar 2003

    Ron Sandler, architect of the Treasury's long-term savings review, is to become chairman of the Personal Finance Education Group as Daniel Godfrey steps down. AITC director general Godfrey is stepping down from the PFEG after four years. Sandler dismissed speculation that he would apply for the role of FSA chairman when outgoing chairman Howard Davies leaves in September to become director at the London School of Economics. Candidates had to apply for the FSA post by this week. Speaking ...

  • Scottish Provident CI premiums

    13 Mar 2003

    Money Marketing would like to point out that the maximum Scottish Provident has increased its critical-illness premiums is an average of 14 per cent on policies with a 25-year guarantee. Policies with a 15-year guarantee are seeing an average rise of 12 per cent, not 25 per cent, as reported last week.

  • Skandia offers protected Isa

    17 Mar 2003

    Skandia is offering investors the chance to invest in a capital-protected Isa that is linked to the performance of four actively managed funds for a term of six years and three months.Fidelity special situations carries the highest weighting in the portfolio at 30 per cent, Invesco Perpetual corporate bond and Norwich property each represent 25 per cent, while the remaining 20 per cent is linked to the Schroder UK Mid250 fund.The Isa has two options for different risk profiles. ...

  • SMEs are the new pensions - Abbey National

    18 Mar 2003

    Small businesses are the new pensions for many bosses according to research by Abbey National. Instead of passing the business down to the next generation, 31 per cent of today's SME owners are building up successful businesses to sell to the highest bidder upon retirement. Only 15 per cent want to keep it in the family and 6 per cent said they would sell it to their staff. The research reveals the average SME boss intends to step down at 62. Only 2 per cent feel they ...

  • SPML completes £350m securitisation

    17 Mar 2003

    Southern Pacific Mortgage Limited has completed a securitisation of £350 million of its mortgage assets, consisting of 85 per cent first charge and 15 per cent second charge loans. The securitisation was led by Lehman Brothers and also managed by Barclays Capital and NIB Bank. Of the total loan book, 95 per cent were rated AAA and 5 per cent were rated A.

  • Standard slams rivals on 'manipulated' FARs

    13 Mar 2003

    Standard Life has hit out at rival insurers for manipulating free asset ratios while accepting that it has used new bases for calculating its own. Analyst Ned Cazalet has criticised Standard for using different criteria to calculate this year's FAR despite admitting to an investment loss of £4bn. Standard's FAR has increased to 8.9 per cent excluding future profits from 5 per cent last year. Group actuarial director Bob King says the company is using the new calculation ...

  • Structural strengths

    13 Mar 2003

    In uncertain times, the reaction of many people is to take out insurance, just in case the worst should happen. This is no more true than in financial markets, where the growth in sales of capital-protected products in recent months has been significant. This has prompted the arrival of more and more product providers. However, sales of structured products, of which capital-protected products are just one element, have been growing steadily for years. Sales reached an estimated £6.3bn ...

  • Stub out cigarettes and double your pension, says L&G

    13 Mar 2003

    Legal & General is encouraging smokers to bin their cigarettes and put the money towards a pension pot. The firm believes smokers could more than double their pension pot by quitting. It says a male basic-rate taxpayer paying £100 a month gross for 35 years would have a projected pension at retirement of £17,900. If this man smoked 20 cigarettes a day at around£5 a packet, he could quit and increase his pension contribution by £120 a month, which ...

  • Supermarket's not so clean sweep

    13 Mar 2003

    I read with interest the article about Norwich Union closing its fund supermarket after one year, having spent £230m to get 250 Isa customers. If the figures are correct, that amounts to about £920,000 spent to attract each Isa customer who will be paying annual management charges of about £70 a year each, assuming that their Isa is still worth £7,000. With hindsight, very few fund supermarkets have proved to be successful for the host organisation. While ...

  • Talkback

    13 Mar 2003

    "No, I don't think it's right, quite frankly." Mike Higgs,Verulam Investments & Pensions "Yes they should have the power. It is basically a market value adjuster and protects those in the scheme. It is only something they will do in difficult times." Byron Longstaff, Byron Longstaff Independent Financial Consultancy "No. People should be able to get their hands on their own money when they want to. Trustees were already able to delay payments by three months ...

  • Thames River Capital - Thames River Topaz Fund

    12 Mar 2003

    Wednesday, 12 March 2003 Type: Hedge fundAim: Growth by investing in global emerging marketsMinimum investment: Lump sum $100,000Place of registration: Cayman IslandsInvestment split: 100% in global emerging marketsIsa link: NoPep transfers: NoCharges: Initial 5%, annual 2%Commission: Initial 3%Tel: 020 7360 1200

  • The Diary hears

    13 Mar 2003

    The Diary hears a swarm of Bees were last month seen buzzing off to Amsterdam. Scottish Life pension guru Steve Bee apparently flies between Edinburgh and London so much, his Air Miles tally meant he could take a party of 10 to the Dutch culture capital for the weekend.

  • The simple truth about Ucits 3

    13 Mar 2003

    The FSA would like to have a disclosure regime which could be applied seamlessly across life and non-life products but a recent EU directive means that a slightly different approach will be required for investment funds. The directive, known as Ucits 3, has introduced the requirement for a "simplified prospectus" to be given to clients at the point of sale. This document is basically an EU equivalent of the key features' concept to be used pan Europe. The FSA has sensibly decided ...

  • Tiebreaker

    13 Mar 2003

    The Diary's favourite read has to be The Actuary and not just because of this month's riposte to the BBC's Great Britons debate, the Greatest British Actuary Ever poll. Yes, it's the puzzle section. Full of mathematical problems, mile-long formulae and anagrams, it is the equivalent of page 3 for the actuarial profession. Actuary puzzle - five marbles are in a conical funnel and all marbles touch the funnel wall. The smallest marble has a radius of 8mm and the biggest ...

  • TMB boosts packagers to 150

    12 Mar 2003

    HBOS specialist lending subsidiary The Mortgage Business has increased the number of packagers it uses to do business by 39 per cent to 150 from 108 between 2001 and 2002. It says packaged business now accounts for 65 per cent of its total lending, up from 3 per cent in 1997. TMB's net mortgage advanced in 2002 totalled £3.5 billion, up from £2bn in 2001.

  • TMB boosts packagers to 150

    13 Mar 2003

    HBOS specialist lending subsidiary The Mortgage Business increased the number of packagers it does business with from 108 to 150 between 2001 and 2002. It says packaged business accounts for 65 per cent of its total lending, up from 3 per cent in 1997. TMB's net mortgages advanced last year totalled £3.5bn compared with £2bn in 2001.

  • Transact adds offshore bond to range

    13 Mar 2003

    Wrap provider Transact is adding an offshore bond facility to its wealth management wrapper range which already covers Peps, Isas and pensions. The offshore bond wrap gives investors the benefits of the Isle of Man tax regime for life products. Annual charges are 0.2 per cent to 0.6 per cent, depending on portfolio size.

  • Transact adds offshore bond to range

    12 Mar 2003

    Wrap provider Transact is adding an offshore bond facility to its wealth management wrapper range that already covers Peps, Isas and pensions. The offshore bond wrap gives investors the benefits of the Isle of Man tax regime for life products. Annual charges are 0.2 per cent to 0.6 per cent depending on portfolio size.

  • Turning over a new relief

    13 Mar 2003

    I have recently sold a second property in Central London for a substantial profit. I am looking for tax-saving ideas and also longer-term investments that are fairly speculative to take advantage of weak markets. If I buy another property, will I get rollover relief on the funds? Also, can I make a single-premium pension payment as I am behind on my pension provision? First, let me deal with the belief that investment properties qualify for rollover relief - they don't. The ...

  • Turning to technology

    13 Mar 2003

    IFAs are increasingly coming to realise the benefits of technology. Technology that makes tasks like policy valuations and report-writing possible at the touch of a button are becoming invaluable. Allowing IFAs to access services quickly and easily has become the industry's goal and straight-through processing of business is considered the ultimate aim, although this still has some way to go. Service aggregation is also a key to saving time and costs, with Unipass digital certificates ...

  • Walker Crips Weddle Beck looking to double its range of funds

    13 Mar 2003

    Fund manager and stockbroker Walker Crips Weddle Beck is planning to acquire new funds under management and double its range of investment products. WCWB will add a UK equity income fund and a UK smaller companies fund to its range, subject to market conditions. The company wants to take over the management of unit trusts where the existing manager and unitholders want to place their fund with new management rather than face the administrative burden and expense of winding up. WCWB's ...

  • Webline, IFAEngine, Cofunds on Unipass

    13 Mar 2003

    IFA portals Webline and IFAEngine and fund supermarket Cofunds have gone live with Origo's Unipass digital certificates. The certificates allow IFAs to have a single user name and password to access all the industry websites they use. Unipass has been created by industry technology standards body Origo. It is free to IFAs and non-regulated advisers such as mortgage brokers. Webline will be offering Unipass to its 4,000-plus users and IFAEngine, Bankhall's exclusive portal, ...

  • Weigh to go

    13 Mar 2003

    After three years of stockmarket losses and high volatility, it is not too difficult to understand why a lot of investors are reluctant to put new money into equities. While investment comparisons tend to concentrate on fund performance, for many investors, the only comparison that makes sense right now is the return they can get from their building society account. They look at the success or failure of their stockmarket or bond investments by asking whether their rock-solid savings ...

  • Whittingham in multi-manager move

    13 Mar 2003

    Insight Investment has appointed Nigel Whittingham as managing director of the multi-manager business it bought from the Rothschild family in December last year. Whittingham is expected to join in May from Edinburgh Fund Managers where, as group business development director, he oversaw the acquisition of multi-manager specialist Edinburgh Portfolio. He has been with the group for 10 years. His resignation comes just days after it was announced that Portfolio managing director Paul ...

  • Zurich refuses to give details in Eagle payout cuts

    13 Mar 2003

    Zurich Financial Services has reduced with-profits payouts for its 500,000 Eagle Star policyholders by an average of 25 per cent but is refusing to give fully detailed information. The Raising Standards-accredited brand says it is cutting payouts but is not giving out industry-standard illustrations to show how its policies are performing compared with last year or compared with rivals. Zurich also says there are market value adjusters in place of up to 30 per cent. At the ...

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