Money Marketing
12 May 2004

  • 'Changing family lives will increase demand for care'

    13 May 2004

    Demand for long-term care will rocket by around 60 per cent by 2050, leading to a significantly bigger market for LTC insurance, a major research project has predicted. The research, conducted by the Cass Business School, in the City of London, and a Swedish economist has found that changes in demographics and the traditional family structure in Japan, Sweden, Germany and the UK will bring about a rise in care costs. It predicts the cost of care will rise by 30 per cent ...

  • 'Equity recovery will be tentative'

    13 May 2004

    Recovery in the equity markets will be tentative in 2004, with fiscal tightening after the 2004 US presidential election bringing even more difficult times, say senior investment specialists. India, China, Japan and other Far Eastern opportunities are the only bright spots in world markets, a panel of fund managers and investment experts told IFAs at last week's Money Marketing Live in London. None of the panel members felt positive about the outlook for equity markets ...

  • 'Industry should develop European pensions'

    13 May 2004

    European-wide personal pension plans should be developed from industry initiatives and not designed by regulators or legislators, according to a report on insurance and pensions published last week by the European Commission. The report says the scope for cross-border company schemes is set to grow but that relatively few pension providers have fully exploited the freedoms provided by existing EU legislation. It calls on the UK Government to bring in further measures ...

  • 'Investors uncertain if FTSE 100 can rise in short term'

    13 May 2004

    Investor confidence has fallen sharply since the start of the year, according to JP Morgan Fleming's monthly index. The survey, which was carried out among a randomly selected national sample of around 500 private investors in early April, shows a fall in confidence for the third consecutive month. The index stood at 73 in April, down from 92 in January (base index 100 in April 2000). Yet more investors believe the stockmarket will be higher in six months ...

  • 'Lenders ignored 1998 warning over shortfalls'

    13 May 2004

    DWS Investments aims to top the brand awareness league by striking a sevenfigure deal to become the official sponsor of Premiership football club Aston Villa. The agreement will put DWS's logo on players' shirts and Villa's stadium during the 2004/05 season, after which the group will decide whether to extend its association with the club, which is currently pushing for a Uefa Cup place. The move is part of DWS's strategy to boost its brand awareness in the ...

  • 'Liabilities of ex-IFA networks'

    13 May 2004

    Mortgage firms looking for a principal firm should steer clear of IFA organisations, mortgage and general insurance network Network Data has warned. Speaking at the Money Marketing Live event, Network Data managing director Richard Griffiths issued a stark warning to firms still deliberating over which mortgage network to join. He thinks firms should be cautious about approaching former IFA networks offering mortgage network propositions. Griffiths believes these types ...

  • 'Multi-ties will not benefit consumer'

    13 May 2004

    Only IFAs who are "gliding toward retirement" will opt to go multi-tied as they look for a comfortable last few years of their working lives, says Tenet director Geoffrey Clarkson. Participating in a panel discussion on the likely impact of depolarisation on the IFA market, Clarkson played down the impact of multi-ties and claimed that most IFAs will choose to remain independent. He said while Tenet will offer members the choice to go multi-tied, it will strongly urge ...

  • 'Set Sandler standards'

    13 May 2004

    The Financial Ombudsman Service has asked the ABI to publish fit and proper business practices when Sandler comes in to prevent future standards being applied to past business. Principal ombudsman (banking and loans) David Thomas told delegates at the BSA conference that it would be advantageous to have a yardstick for Sandler products similar to the various versions of the Banking Code, which make it easy to check past practice. Thomas believes this yardstick should ...

  • A half-baked recipe for PI?

    13 May 2004

    Less than seven months remain for every UK IFA firm, regardless of size, to obtain the £1m insurance cover that all firms will need to comply with the European Insurance Mediation Directive. From January 15, 2005, Brussels' new PI requirements mean that the FSA will no longer be able to hand out temporary PI waivers to IFA firms. While many IFAs are finding that the surge in PI premiums may have peaked, the FSA still has concerns over the level of supply in the ...

  • A yen for Japan?

    13 May 2004

    The departure of star fund manager David Mitchinson from Framlington could shake many of those banking on a Japanese revival in the investment market. Mitchinson's move to JP Morgan Fleming could be the biggest endorsement we have seen yet of renewed interest in Japan. Mitchinson is joining JPMF and will be based in Tokyo although he will not be running a UK retail fund. The Framlington Japan fund has had great success under Mitchinson, who took the helm in February ...

  • ABI to update best practice guidance for critical illness

    13 May 2004

    The ABI plans to revise its critical illness statement of best practice, saying the changes will bring its guidance into line with the FSA's proposals for statutory regulation, which is due to come into effect next January. As reported in Money Marketing two weeks ago, the trade body is also compiling a reference guide on CI terminology to help bring clearer medical definitions and consistency to the industry. The ABI wants IFAs, consumer organisations and the Financial Ombudsman ...

  • Absolute beginner

    13 May 2004

    I am in the process of reaching a financial settlement as part of my divorce from my husband. He has accumulated benefits under personal pension plans and a company scheme. My solicitor has advised me that I can negotiate for part of the settlement to be made from benefits secured under one of the pensions. As I am in my 50s and have no personal provision for retirement, this would seem sensible and it has been agreed that these benefits can be secured from one of my husband's personal ...

  • ACA appoints new chairman

    12 May 2004

    The Association of Consulting Actuaries has elected Adrian Waddingham as its new chairman. Waddingham, a founding partner of actuaries and consultants Barnett Waddingham, will take office from June 1, replacing Mercer HR Consulting worldwide partner Gordon Pollock, who had been in the position for two years.

  • AIG Life comes in with income fund

    17 May 2004

    AIG Life has added the AIG Life managed income fund to its range of unit-linked multi-manager funds, bringing the number of funds up to five.The new fund is available through AIG Life's pensions and investment bonds. It aims to provide a balanced income-orientated portfolio with a target yield of between 1 per cent and 2 per cent above the Bank of England base rate. The current estimated yield is 5.25 per cent.The fund invests in externally managed funds that are already ...

  • Annuity rethink on money purchase

    13 May 2004

    Trustees of occupational money-purchase schemes will be forced to offer members access to the open market for annuity purchase when the simplified pensions regime takes effect in April 2006. Currently, many members lose out when trustees take annuities away from the pension provider, denying some scheme members access to improved rates from other providers because of lifestyle, health and other factors. The new rules, set out in amendments to the Pensions Bill, require ...

  • Axa in £1m drive for core funds

    13 May 2004

    Axa is rolling out a £1m ad campaign for its core funds, including its distribution fund which is celebrating its 25th anniversary in July. Other funds to be included in the campaign are the deferred distribution fund, the reserve fund, the property fund, the high-yield distribution fund and the higher-income fund. The campaign, which is costing Axa £1m this year, will involve advertising, online promotions, direct mail and other promotional events. Research ...

  • B&W backs home plan for Muslims

    13 May 2004

    The Arab Banking Corporation and Bristol & West have joined forces to launch an Islamic home finance product. Tailored to the needs of the Muslim community in the UK, the product will be marketed by ABC under an Islamic brand name, alburaq. Financing and full back-office support services will be provided by B&W. The agreement will bring together B&W's expertise in the housing market and ABC's authority within the world of Islamic finance to create a ...

  • Baiting the hook

    13 May 2004

    Fidelity is offering IFAs £50 and their clients £25 to re-register their investments with its platform FundsNetwork. Do you see the offer working, either with clients or IFAs? With re-registration currently the main way for many platforms to gather assets, can you see rival platforms launching similar offers? Hughes: As with any financial incentive, I believe it will attract some business to the platform but it is difficult to gauge to what degree. There is still a great ...

  • BBB drops out of Inter-Alliance merger as talks fail over price

    13 May 2004

    Merger talks between Inter-Alliance and Berkeley Berry Birch have broken down after BBB pulled the plug on four months of negotiations which failed to agree the structure and price of a deal. BBB group chairman Cliff Lockyer, who would have gone from a controlling to a minority shareholder under the deal, says fluctuations in both firms' stock price have made pricing a deal difficult. Product providers with stakes in both firms are understood to have blocked any deal ...

  • BBB may buy firms to bolster IFA arm

    13 May 2004

    Berkeley Berry Birch says it may acquire IFA firms to develop the adviser arm of its business but is unlikely to merge with another firm after the collapse of talks with Inter-Alliance. A statement put out last week said trading in the year ending March 31 was in line with market expectations and said BBB made an operating profit in February and March. The firm said it had cash reserves of over £10m at the end of March. Industry sources say the deal collapsed because ...

  • Berkeley Independent Advisers appoint new head of development

    17 May 2004

    Berkeley Independent Advisers, a subsidiary of Berkeley Berry Birch has appointed John Ripley as its new head of development for its network division.

  • Boost to medical service

    13 May 2004

    Access to electronic medical information will drastically improve service levels that protection providers offer to IFAs, according to Abbey for intermediaries head of marketing and product development Nick Kirwan. Kirwan stressed the importance of technology to turn-round times to delegates at the MM Live Protection Arena last week. He said it will be very easy to get hold of medical information with the launch of new technological systems linking life companies with ...

  • Brokers slam Bupa over firm's 'appalling' processing of CI cover

    13 May 2004

    Bupa has been accused by Lifesearch of having "appalling turnaround times" in processing new critical-illness business and other brokers have joined in the criticism. Lifesearch says it is dismayed by Bupa's turnaround in applications, saying its staff have been left on hold for up to 45 minutes. Nursing Home Fees Agency says it has taken up to six weeks to place new business on risk. Bupa says the delays stem from unexpected levels of CI business which take longer ...

  • Brokers warned on principal ties

    13 May 2004

    Mortgage brokers shopping around for a principal to tie themselves to should be wary of making the wrong decision and end up regretting it, senior industry figures have cautioned. Speaking at a panel session debating mortgage regulation at the Money Marketing Live conference in London last week, brokers were told to ensure that they choose a reputable outfit if they want to avoid direct regulation by joining a network. Premier Mortgage Services head John Malone predicted ...

  • Brown aims to discourage pension saving, claims Altmann

    13 May 2004

    Pension experts have accused the Government of actively discouraging pension saving to encourage consumers to carry on spending and maintain a buoyant economy leading up to the next general election. Speaking at last week's Money Marketing Live conference in London, independent pension consultant Ros Altmann claimed Chancellor Gordon Brown is deliberately making pensions an unattractive option for lowerand middle-income groups. She believes the Chancellor wants to ...

  • BRS team back with eyes on at-retirement

    13 May 2004

    The team that put Britannic Retirement Solutions on the map is set to re-enter the market with an annuity, equity release and long-term care proposition, Money Marketing has learned. The new company is understood to have significant corporate backing to target the at-retirement market and is believed to be on track for FSA approval in June or July, with a launch date yet to be fixed. Many IFAs were disappointed to see Britannic Group close BRS to new business last November, ...

  • BSA urges consumers not to pay to trace dormant accounts

    13 May 2004

    Building Societies Association urges consumers not to pay to trace dormant accounts. The BSA wants people who have forgotten money in a building society to track their money for free rather than use schemes that charge.

  • Bun for your lives

    13 May 2004

    The Diary understands that PRs at Lansons were forced to make a mass exodus from their Farringdon headquarters last week after one of their best and brightest set off the fire alarm while making a snack. Liz Wilder, or Smokey as she is now known by her colleagues, was apparently so distracted by her work that she apparently forgot to keep an eye on the toaster, resulting in a rather well-done bagel. While the Diary applauds Liz's obvious dedication, may we make one ...

  • Call for vigilance on self-cert mortgages

    13 May 2004

    Lenders should not be complacent about selfcertification mortgages, warned FSA chief executive John Tiner at the Building Societies Association's annual conference in Manchester last week. Tiner said while the FSA's investigation into self-cert mortgages - which was prompted by allegations of abuse made by the BBC - concluded that lenders' systems and controls were broadly adequate to counter the risk of financial crime, there was no room for complacency. He ...

  • Casting off the stigma

    13 May 2004

    The provisions of the Enter-prise Act 2002 and the amended insolvency rules dealing with personal insolvency came into effect on April 1. First, there has been a reduction in the bankruptcy period. Pre-April 1, once declared bankrupt, the period of bankruptcy generally lasted for three years. During this time, there are various restrictions on what a bankrupt can and cannot do. The Enterprise Act has reduced the period of bankruptcy so that in most cases, the bankrupt will be ...

  • Children's CI claims rise by 20% at ScotProv

    13 May 2004

    Scottish Provident saw a 20 per cent increase in children's critical-illness claims in the last six months of 2003. The protection specialist has revealed to Money Marketing that the two biggest causes of claims for children are now leukemia and bacterial meningitis. Head of marketing and product development Nick Kirwan says although it is difficult to make conclusive interpretations based on the data, recent reports on children's lifestyles should not be overlooked ...

  • Churchill appointed to head up pension protection fund

    14 May 2004

    Former Zurich Financial Services chief executive Lawrence Churchill has been appointed as chairman of the Pension Protection Fund after leaving the life office last week.Secretary of state for work and pensions Andrew Smith announced Churchill's appointment at the National Association of Pension Funds conference in Glasgow yesterday.Smith said: "Lawrence is a very respected figure in the financial services industry. His leadership and the experience he brings will help ...

  • Churchill is stepping down as ZFS life chief

    13 May 2004

    Zurich Financial Services chief executive Lawrence Churchill is stepping down from his role as head of UK, Ireland and International Life businesses following a revamp of its management structure. He is being replaced temporarily by Global Life Insurance Businesses chief executive Paul van de Geijn until ZFS appoints a successor, who is believed to be former Zurich Advice Network marketing director Kevin Ronaldson. Ronaldson, along with ZAN finance director Steve Colsell, ...

  • Citibank expands advisory service

    12 May 2004

    Citibank has announced the expansion of its UK investment advisory service to include in-house investment advice and a broader range of equity funds. The new service includes access for Citibank's customers to JP Morgan Fleming Asset Management's Isa and Oeic range.

  • CitiSolutions' business is fully compliant

    13 May 2004

    Two recent articles about CitiSolutions in Money Marketing on April 29 and May 6 deserve reply. CitiSolutions delivers simple, appropriate and competitively priced protection products primarily to the UK's underserved middle-income consumer market. Our business model ensures that we can serve a market that many other financial services companies choose not to. Contrary to the inference in the article of April 29, trainee representatives do receive comprehensive training before ...

  • Consumer confidence in Government pensions policy on the rise

    17 May 2004

    The latest ABI Pensions and Savings Index indicates consumer confidence in the Government's pensions policy has increased by five per cent since September 2003, up three per cent since January.The number of people confident they will have enough money to retire stands at 38 per cent, having increased by 3 per cent since September 2003. The third phase of the research also indicates that the public's attitude towards long-term saving is changing for the better. Thirty-three ...

  • Correspondent's week

    13 May 2004

    "Personal finance journalism? I've never understood why you guys do it. It's so boring. What's wrong with showbiz?" So starts another eye-popping week in the mini-Manhattan that is Canary Wharf. Tuesday's telephone accuser is a testy contact who, bless him, will not believe that I actually like my job. He thinks that financial services is the lonely refuge of nearly-rans. To be fair, he has been an IFA for more than 12 years so his grasp of reality is undoubtedly frazzled. Bu

  • Current account mortgage debt fears

    13 May 2004

    An Aberdeenshire IFA is calling for lenders to toughen up on borrowers who do not stick to their current account mortgage repayment plans. Geissler Financial Services adviser Wolfgang Geissler says borrowers are not being made aware of the risks attached to current account mortgages. He says the products have become popular with cash-rich local oil workers earning around £80,000 a year. He fears borrowers see the products as a soft option that will enable them to ...

  • Datamonitor sees CI fall and tells IFAs to explore new avenues

    13 May 2004

    Datamonitor has warned IFAs of a slump in criticalillness sales, saying it expects only a 20 per cent growth from the current £330m to £389m by 2008. The analyst does not believe there will be a market crash but advises IFAs to seek other sources of revenue if their business streams are heavily reliant on CI. In a report published this week, entitled, UK Critical Illness 2004 Report, Datamonitor predicts that with an expected stockmarket recovery by 2005, there ...

  • Easy to stumble in front of the pension goal

    13 May 2004

    Risk is always with us in everything we do but, for some reason, many people seem to have particular difficulty in managing their financial risk. If things go wrong because of mismanagement of financial risk, that damages the whole industry, regardless of whose fault it is. I define financial risk as the possibility of a loss arising as a result of an uncertain future event. This is not rocket science although, in some circumstances, the evaluation of risk can become horrendously ...

  • Enable pens distribution deal with More Than

    18 May 2004

    Online broker Enable has agreed on an intermediary distribution deal with More Than to sell its buildings and contents insurance products through its appointed representatives and business partners. The deal is the first distribution deal of this kind to be struck by More Than.The product offered will either be buildings insurance or contents insurance or combined cover. Enable will be offering the same pricing structure as More Than offers to its direct customers ...

  • Every dog has its day

    13 May 2004

    I use a slide for presentations which contains a few statements relating to the debate over whether or not annuities should be compulsory. They include: "Annuities are legalised theft", "Annuities are one of the biggest rip-offs of all time" and - my all-time favourite - "Almost anything has to be better than the present system. I think that my dog could have done better." These statements were responses to an online survey by Interactive Investor in 1999 but they are still relevant ...

  • Forsyth keeps eye on UK funds

    18 May 2004

    FORSYTH PARTNERSFORSYTH UNITED KINGDOM FUNDType: Offshore Oeic fund of funds Aim: Growth by investing in open-ended UK equity funds Minimum investment: Lump sum £5,000 Investment split: 100% in open-ended UK equity funds Place of registration: Dublin Charges: Initial 1%, annual 2% Commission: Subject to negotiation Tel: 020 8649 9440 The Forsyth United Kingdom fund is an ...

  • From another planet

    13 May 2004

    I was interested to read Terrence O” letter (Money Marketing, April 29).I have read his odd letters over the years and have refrained from providing comment but his latest suggests he is firmly upon another planet as far as the debacle of with-profits is concerned.Sadly, it would appear that Mr O’ continues to reflect the ignorant naivete of the average insurance salesman who began to realise that things were turning rather bad a decade or so ago.There ...

  • FSA says split-cap debacle is worst case it has seen

    13 May 2004

    The FSA has described the split-capital investment trust debacle as the worst case of misconduct it has seen but is struggling to get the 21 firms involved to sign up to its compensation package. The statement is believed to be a further attempt by the regulator to force the firms to compromise on a compensation deal or risk an in-depth investigation. But some of the companies implicated in the splits debacle believe the evidence against them is thin. The FSA has also ...

  • Going round in circles on endowments

    13 May 2004

    With regards to the endowment scandal, our authorities do seem to be going round in circles on this issue. As I understand it, the FSA are responsible for the general contents of the so-called new-style review letters. However, they unfortunately contain insufficient information to enable the planholders to make any form of valued decision and in many cases, after reading the letter, panic sets in and they attempt to encash the plan. I now understand that the FSA have stepped ...

  • Government sets up fund for victims of occcupational scheme collapses

    14 May 2004

    The Government is establishing a £400m fund to compensate people who have lost pension rights through collapsed occupational schemes.The fund will give phased payments over the next 20 years, with payments reviewed every three years.Amicus general secretary Derek Simpson says: "The threat of having little or nothing to live on after 30 or 40 years has been lifted by the establishment of this fund."

  • Home truths

    13 May 2004

    The Government has sensibly conceded regulation of home-reversion loans. The move had been resisted by the Treasury which argued there was little evidence of consumer detriment. But there was a clear moral hazard in regulating equity release but not home-reversion plans. But there is still likely to be a regulatory gap because regulating home reversion requires legislation and Parliamentary time is unlikely to be found until after the election. It is regrettable a decision was ...

  • Howard calls for Blair intervention on pensions compensation

    14 May 2004

    Leader of the opposition Michael Howard has waded into the increasingly heated row over compensation for the 60,000 pensioners whose funds have been wound-up. He is calling for the Prime minister to make a personal intervention.

  • IFAs at loggerheads on fees

    13 May 2004

    Two leading IFAs clashed over whether consumers are willing to pay fees for financial advice at last week's Money Marketing Live. True Financial Planning managing director John Baxter, whose umbrella organisation advocates fee-based advice, and Berkeley Independent Advisers chief executive Richard Howells disagreed with each other over how easy it is for commission-remunerated advisers to move to a fee-charging basis. Baxter said as long as a firm demonstrates it is ...

  • IFAs welcome home reversion regulation

    17 May 2004

    Research has shown that 89 per cent of IFAs support the Treasury's decision to regulate home reversion plans.The research, by Norwich Union, also shows that 83 per cent of IFAs are concerned about the lack of awareness among consumers, stating they do not believe consumers are aware of different types of equity release schemes.Norwich Union also discovered that 78 per cent of consumers over 50 can not correctly identify a description of home reversion plans and 61 per ...

  • Incredible bulk

    13 May 2004

    The Financial Technology Research Centre has conducted a study into the ecommerce facilities available to group pension IFAs to see what their top priorities are. High on the list is the providers' ability to share information on the pension scheme with the IFA, allowing the adviser to populate information back to their client management system and plan campaigns around it. Standard Life's new bulk download service aims to do just that. Obtaining bulk messages from ...

  • Independent view

    13 May 2004

    This whole fees verses commission debate is making my head spin. Why do people think that previously dishonest and "income hungry" advisers will suddenly become any more trustworthy by charging fees? If you speak to any accountant or solicitor who is frank enough, they will confirm it is just as easy to over-charge clients with fees as it is by receiving commissions. I can imagine the scenario in years to come. The fraudulent adviser will claim a piece of work took, say, ...

  • Insurers' duty is to protect clients, not themselves

    13 May 2004

    Isn't it ironic that in an industry which is as closely regulated as financial services, the concept of duty of care is so often blatantly lacking. As an IFA, I have almost now become used to seeing the business introducer and, more important, the client being left in the corner while the insurance company undertakes its priority, namely, protecting its legal and regulatory position. Skandia is not a company that I have had a lot of problems with in the past. However, ...

  • Inter-Alliance still seeking partners

    13 May 2004

    Inter-Alliance says it is still looking for consolidation partners after its merger talks with Berkeley Berry Birch collapsed last week. The listed IFA rejected speculation that it would need a further injection of funds to stay afloat and said it would become cashflow positive in the final quarter of the year, delayed in part by the costs of the merger negotiations. Inter-Alliance issued a better than expected trading statement last week showing revenues up by 23 per ...

  • International Health Insurance - IHI First Choice

    17 May 2004

    Type: Group private medical insurance for expatriatesMinimum-maximum ages: From birth-no maximumMinimum group size: ThreeMaximum benefit: £1m, euros 1.5m, $1.8mCover provided: Module one - hospitalisation, inpatient treatment including outpaient/day case treatment in a hospital, local transport by ambulance, hospital cash for maximum of 25 nights and emergency treatment, module two - outpatient treatment, online wellness benefits, ...

  • Investment analysis

    13 May 2004

    It was another volatile week for equity markets as a potentially inflationary surge in oil prices and another positive US Jobs report brought the prospect of higher interest rates for the world's biggest economy ever closer. By the end of the week, the FTSE World index had fallen by 1.1 per cent and is now in negative territory since the start of January. In the UK, the Bank of England raised interest rates by a quarter-point to 4.25 per cent, the third increase since November. ...

  • Investment view

    13 May 2004

    It is always a pleasure to lunch with Ian Chimes, the head of Credit Suisse Asset Management. His down-to-earth manner belies his instinctive grasp of how this great industry works - and he is a Brummie. I may be a Londoner but I have spent enough years working in Birmingham to have formed an affection for Britain's second city. Over lunch, we talked about the way the multi-manager market is going. He is fortunate to have had one of the more solid and successful teams in this ...

  • Investors may regret switching

    13 May 2004

    I have just read the letter from Ian Thomas from Skandia regarding its new high-charge bond, which it euphemistically calls its enhanced allocation bond (Money Marketing, May 6). When I saw Danny Cox's review at the back of Money Marketing the week before, I could have thought it was me rather than Danny. However, if Danny (who has incidentally been IFA of the Year a couple of times) is critical, you can rest assured the product has its shortcomings. Let me recap what ...

  • Isa go-ahead for Credit Suisse fund

    12 May 2004

    Credit Suisse has received the go-ahead from the Inland Revenue to offer its new target return fund within an Isa. The recently-launched fund is now Isable for the full £7,000 stocks and shares allowance following the decision. From the start of June, investment into the fund through an Isa or Pep will be available exclusively through FundsNetwork, Cofunds, Selestia, Transact and Hargreaves Lansdown's Vantage supermarket.

  • Japan and emerging markets best bet for 2004, says F&C

    17 May 2004

    Japan and emerging markets are set to make the best gains this year, according to F&C investment trust manager Jeremy Tigue.Tigue believes the 15-year bear market in Japan has come to an end, with prices stabilising and the banking sector steadily improving. This has prompted a pick-up in consumer confidence, he says.There has also been big improvements in political, economic and corporate governance in many countries in emerging markets, according to Tigue.He says: "Long-term ...

  • John Joseph on Protection

    13 May 2004

    As this column is all about protection I thought I would widen the remit to include protecting our profession. I am sure I am not alone in being bombarded with emails which promise to make me rich beyond my wildest dreams. We have to make a decision as to what we read, as too much information gives us overload and a jackdaw mentality, leaping from one thing that glistens to the next, never laying down continuity. The investment houses operate in a similar fashion, ...

  • Julian Gibbs

    13 May 2004

    There are very few sensible ways in which investors can hope to receive a return of over 10 per cent a year with capital security. Probably the most innovative and exciting product I have come across recently which should achieve this target is the Close Man hedge fund, which is targeting absolute returns of between 13 to 15 per cent a year net of all fees and with full return of capital after eight-and-a-half years. The Close Man hedge fund is designed to give investors exposure ...

  • Kenmir warns lack of capital poses big threat to IFA sector

    13 May 2004

    The economic model of the IFA sector may not be viable, according to FSA managing director David Kenmir, who believes substantial reform is needed if IFAs are to continue to thrive. Kenmir claims most firms are substantially undercapitalised, with the main financial risks coming from their back-book of business rather than that currently being written. Using a rough calculation, Kenmir told delegates at the Money Marketing Live event in London last week that the maximum ...

  • Key Retirement points to equity release boom

    13 May 2004

    Specialist intermediary Key Retirement Solutions estimates that the number of consumers entering the equity release market rose by 36 per cent last year and it expects this trend to continue. The report says that as people see a continued fall in their income post-retirement and a rise in the cost of living, equity release will become an more integral part of financial planning. Last year, the equity-release market increased by 36 per cent, with £1.16bn released ...

  • Legg Mason outsources way to success

    13 May 2004

    LEGG MASON INVESTMENTSLEGG MASON US SMALLER COMPANIES FUNDType: Oeic Aim: Growth by investing in smaller US companies Minimum investment: Lump sum £3,000 Investment split: 13.1% technology, 12.7% financial services,12% health, 10.4% industrial products, 9.6% industrial services, 8.6% natural resources, 7.4% consumer services, 5.6% financial intermediaries, 1.7% consumer products, 18.9% cash & equivalentIsa link: ...

  • Long live with-profits

    13 May 2004

    If you believe all you read in the financial press, it would appear the die has already been cast - some commentators are suggesting that with-profits are on the way out and so is mutuality. This is absolutely not the case and we see no reason why IFAs should not continue considering with-profits policies for clients in the same way they have sold hundreds of thousands of them in the past. The life savings of millions of policyholders are tied up in with-profits policies ...

  • Magian warning on non-reg business

    13 May 2004

    Magian Mutual says it will be very wary of offering professional indemnity cover to intermediaries which have carried out a significant amount of nonregulated business. The statement comes after leading broker Direct Life & Pensions revealed in Money Marketing last week that it was told by its PI broker it would have to disclose any critical-illness rebroking it had been involved in before its PI would be renewed next year. Magian Mutual director Glyn Morris has gone ...

  • Man Investments - Man Global Strategies Diversified Series 2

    12 May 2004

    Type: Capital protected fund of hedge fundsAim: Income or growth by investing in managed futures and hedge fundsMinimum investment: Lump sum $ 50,000, euros 50,000, CHF 50,000Place of registration: BermudaInvestment split: 33.3% arbitrage, 30% managed futures, 15% directional, 13.4% equity hedge, long/short equities 8.3%Term:13 YearsReturn: Capital bonds 12-15% growth a year depending on currency denomination, income ...

  • Marlow appointed AFFS marketing chief

    18 May 2004

    Alexander Forbes Financial Services is appointing David Marlow as marketing director. Marlow was previously head of marketing at The Bureaux which was acquired by AFS in January 2004 and will continue to oversee the marketing of The Bureaux companies.AFFS corporate development director Robert Macgregor says: "The corporate pensions market is constantly developing, with the move from final salary pensions to defined contribution schemes gaining pace all of the time. Effective ...

  • Material benefits

    13 May 2004

    The Material Girl's latest world tour sold out almost as soon as the tickets hit the UK box offices. But lender Northern Rock and Clarion Events, the organiser of this year's Mortgage Business Expo, have got their mitts on a pair of tickets for the Madonna Invention tour. They intend to auction the £150-a-head tickets, which include overnight accommodation, on the www.mortgagebusinessexpo.co.uk site until August 12. Proceeds will go to The Children's Foundation for ...

  • Members Mortgages in advice deal for IFAs

    13 May 2004

    Members Mortgages Network has introduced a scheme allowing brokers unwilling to give mortgage advice to refer clients to it under a scheme called the platinum service. The scheme lets brokers refer clients to qualified advisers for mortgage-only advice while still maintaining "ownership" of them. The company supplies a no cross-selling guarantee. Brokers will get 50 per cent of the procuration fee for completed cases. Members Mortgage will let the broker know when the ...

  • Millfield gets shareholder go-ahead for share issue

    18 May 2004

    Millfield shareholders have passed a special resolution enabling the group to boost its working capital by £3.6m through the issue of 6.4 million shares.At an extraordinary general meeting, shareholders agreed to the move, which Millfield hopes will enable it to become self-financing.The shares are expected to be admitted to listing on AIM today at 60p each.

  • More PI woe as EU is set to force 50% rise in IFA cover

    13 May 2004

    IFAs have condemned as pointless a new EU directive that will force IFAs to increase their professional indemnity cover by 50 per cent by April 2006. Already reeling at the financial pain of dealing with the ins-urance mediation directive which requires firms to have £1m cover by January 2005, it has emerged that a separate directive places further PI demands on firms just over a year later. The market in financial instruments directive - also known as ISD2 - will ...

  • Morley forming small cap team

    13 May 2004

    Morley Fund Management is forming a new UK specialist and small cap team responsible for high-risk/ return UK equity funds and small UK cap funds. The team of five will manage more than £800m and will be looking to outperform the sector benchmark by 4 per cent a year. The team, led by David Lis, who manages the Morley UK focus and Norwich UK growth funds, will focus on identifying emerging growth companies with potential to enter the FTSE 350. It will invest ...

  • NDF Administration - European Defined Bonus Plan

    14 May 2004

    Type: Capital-protected bondAim: Growth linked t the performance of the Dow Jones Eurostoxx 50 indexMinimum-maximum investment:£10,000-no maximum, Isa £7,000Term: Six yearsReturn: 10% of original investment at end of year one if the index is at or above its initial level, 20% at end of year two if the index is at or above its initial level, 30% at end of year three if the index is at or above its initial level, 40% ...

  • NDF Administration - UK Defined Bonus Plan

    14 May 2004

    Type: Capital-protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £10,000-no maximum, Isa £7,000Term: Six yearsGuarantee: Original capital returned in full provided index does not fall by more than 50% and returns to at least its initial levelReturn: 7.5% of original investment at end of year one if index is at or above initial level, 15% at end of year two if ...

  • New Star puts Ridgewell in spotlight

    12 May 2004

    New Star Investment Funds has made the New Star UK special situations fund available to retail investors now the fund has built up a three-year institutional track record.This Oeic is managed by James Ridgewell who joined New Star Institutional Managers - formerly WorldInvest - in 1999. Ridgewell took over the management of the fund in May 2003 from Guy de Blonay, who now runs the New Star global financials fund. Previously Ridgewell worked as an equity analyst at Abbey Life ...

  • NU admits strengthening Govt hand on price cap

    13 May 2004

    Norwich Union has admitted it would not agree to a 1 per cent stakeholder cap if it had its time again and accepted its actions strengthened the Government's hand. Fielding questions from IFAs at Money Marketing Live last week, NU Life chief executive Gary Withers said criticism of the insurer's handling of the price cap issue was fair but should be seen in the context of equity markets at the time. Withers said strategic decisions on 1 per cent were made in 2000 ...

  • NU's with-profits fund will take on all comers

    13 May 2004

    Norwich Union has thrown down the gauntlet to the fund management community, saying its with-profits product will take on all comers in the fight for long-term business. NU Life chief executive Gary Withers told IFAs at last week's Money Marketing Live conference that he sees fund managers' attempts to offer products that aim to mimic with-profits as a compliment to his business. He said he takes heart from fund managers who do not offer with-profits but are trying ...

  • Opra Publishes New Guidance for Whistleblowers

    13 May 2004

    Opra has published a new guidance for voluntary whistleblowers on reporting to the regulator, following consultation with the industry.Opra note 6 - the power to report problems to Opra - is intended to help non-statutory reporters decide whether or not to report a breach of law and identify risks to scheme assets and members' benefits. This is based on the Opra traffic light system of reporting where legal breaches are classified as either red, amber or green.A series of ...

  • Out of context

    13 May 2004

    •"If you don't shut up, I will kiss you." - NU Healthcare PR Lorna Wiltshire threatens Lifesearch's Kevin Carr. •"Compulsion - I think we will get that at the same time we find weapons of mass destruction." - Sofa chairman Nick Bamford. •"I will be celebrating my birthday at a conference in Manchester with 2,000 IFAs. What more could a girl wish for?" - Mainland PR Rosanna Crawley. •"Either 2 per cent of the advisers did not understand ...

  • Outcry as FSA tells IFA its fees are too high

    13 May 2004

    The FSA has told a central London-based IFA that its £150 an hour fees are too expensive and it must lower them. The move has left IFAs aghast at what they see as blatant market intervention and has sparked fears that the regulator may be determined to push down IFAs' tariffs despite clients' willingness to pay what is perceived to be the market rate. Money Marketing understands that, following a recent FSA supervisory visit, a fee-based advice company operating ...

  • Parker fights corner for smaller societies

    13 May 2004

    Incoming Building Societies Association chairman John Parker of Stroud and Swindon Building Society is keen to use his experience as chief executive of one of the smaller societies to help alleviate regulatory pressure on those societies with fewer resources. He says: "The pressure of regulation is acute for smaller societies. The large societies such as Nationwide will have separate compliance, marketing and strategic planning departments. For a smaller building society, this ...

  • Peers call for FSA to be monitored

    13 May 2004

    A report on the UK's most powerful regulators concludes that the FSA needs to be monitored by the National Audit Office. The House of Lords' select committee on the constitution recommends that the FSA's cost-effectiveness and budgetary control are monitored by the NAO in a report entitled, The Regulatory State: Ensuring its Accountability. The report includes evidence from the Equitable Life Members Action Group, in light of the Penrose report, calling for the ...

  • Pension edge

    13 May 2004

    There has been an active debate about the price cap on stakeholder pensions and Sandler products - should it stay at 1 per cent or should it be increased? Whatever the outcome, one thing is clear - people are not saving enough to secure their own financial futures. In the short term, this is painful for providers and distributors but the real loser is UK plc and the millions of individuals who will reach retirement without the necessary funds to meet their lifestyle aspirations. ...

  • Pension edge

    13 May 2004

    With a perfect storm of events - a litany of misselling scandals and stockmarket volatility - it is not surprising consumers are reluctant to commit to insurance company pensions for 30 to 35 years. This is true when the Government expects pension portfolios to grow at about 6 per cent a year before charges over the next few decades. A 2003 Consumers' Association survey found that less than half of those questioned were contributing to a pension and only one in 12 who were ...

  • Premier and NDF see in end of term

    13 May 2004

    NDF and Premier Fund Managers have both introduced FTSE-100-linked capital-protected bonds which could mature earlier than the six-year investment term.NDF's offering, the UK defined bonus plan, provides a full capital return provided the index does not fall by more than 50 per cent during the term. Even if it does, investors will still get their capital back as long as the index returns to at least its initial value.The early maturity feature means that each year, if ...

  • Product changes at Rooftop Mortgages

    17 May 2004

    Rooftop Mortgages has announced revised rates across its product range. It has reduced its loan to values and self-certification loadings, and says this means as much as 0.55 per cent has been shaved off some products.It has also introduced a stream-lined service for loans of 70 per cent LTV or lower to alleviate delays caused by obtaining proof of mortgage payments.Head Jonathan Naylor says: "This further demonstrates our commitment to leading edge product development. ...

  • Product matters

    13 May 2004

    There are products that make headlines and there are good-value products. Only rarely are these the same. Unfortunately, West Bromwich Building Society's Brum Brum mortgage fits squarely into this presumption. This is one of those products that is full of gimmicks and short on value. The Brum Brum in question is an MG Rover 25. For first-time buyers or remortgage customers, this unbelievable offer with "no catch" is to provide a car in return for a mortgage. But ...

  • Profits boost for Positive Solutions

    12 May 2004

    Positive Solutions more than doubled its pre-tax profits in the year to December 2003 as it boosted its number of IFAs by 35 per cent. The national IFA's profits rocketed 161 per cent to £1.11m from £425,716 with turnover rising 41 per cent to £25.6m from £18.1m. PS increased its number of IFAs to 750 from 552 and says it expects this expansion to continue, having already recruited around 50 advisers this year.

  • Pru could pass rivals on with-profits, says Cazalet

    13 May 2004

    Prudential could gain significant distribution in the building society sector by nailing its colours to with-profits distribution, says a top independent analyst. Cazalet Consulting analyst Ned Cazalet believes the post-depolarisation carve-up could enable the Pru to overtake Legal & General and Norwich Union, the biggest players in the sector. Axa and Zurich also have links to a handful of societies but Cazalet believes the winners will be those that set their multi-tie ...

  • PYV criticises FSA over capital cover

    13 May 2004

    Professional indemnity insurance broker PYV says there is no science in the way the FSA assesses capital cover for firms that are granted waivers in lieu of compliant cover. Managing director Ian Boscoe says the amounts set by the regulator for capital cover in lieu of PI when waivers are given bear no relation to the actual level of claims the company might face. Boscoe says the waiver procedure is leaving firms exposed to compensation claims that could put them out ...

  • Rate of change

    13 May 2004

    Still on the trail of identifying key issues emanating from this year's Budget and Finance Bill, I would like to turn my attention to the introduction of a minimum rate of corporation tax in respect of profits paid out as distributions (usually in the form of dividends) to other than corporate shareholders, in most cases, individuals and trustees. Many years ago, there was a principle of apportionment in relation to corporate profits. Before this was abolished in 1989, there ...

  • Record Q1 business at Skandia

    13 May 2004

    Skandia UK Group achieved record new business growth in the first quarter of 2004. Sales were up by 75 per cent over the same period of 2003 and assets under management reached a record £17.2bn. Unit-linked bond sales rose by 392 per cent over 2003 levels on the back of favourable equity markets and an enhanced allocation offer. New single-premium pension business increased by 25 per cent. SIM, the asset management company launched by Skandia last year, ...

  • Regulation may do more harm than good to the public, says Goodfellow

    13 May 2004

    Outgoing Building Societies Association chairman John Goodfellow, who is also the chief executive of Skipton Building Society, has warned that the regulation of mortgages could be introduced at the detriment of consumers. In his final speech as the chairman of the association last week, Goodfellow called for vigilance by the Government, regulators and the mortgage industry to ensure this does not happen and said this year's designer disease was "Regulitis, part of the rigor ...

  • Rightmove in buoyant mood over prices

    13 May 2004

    Rightmove was again the most upbeat in its report of the house price indices of 2004, stating that last month's strong growth in prices has been repeated again in April, with a 2.8 per cent rise. Rightmove says, so far this year, prices are up by 8 per cent compared with last year's rise of 3.8 per cent. London and South-east prices have continued to increase but are not as strong as Yorkshire and Humberside - up by 5.8 per cent - and the West Midlands - up by 5.3 per cent. Accordi

  • Ruegg & Co - Projects Distribution Group

    12 May 2004

    Type: Enterprise investment schemeAim: Growth by investing in a company that produces extreme sports equipment, clothing and footwearMinimum investment: Lump sum £1,500Closing date: June 2, 2004Charges: NoneCommission: Initial up to 2%Tel: 020 7584 3663

  • Sarasin Investment Management - Sarasin Guaranteed Portfolio - GlobalSar Protected Guaranteed Note Series 5

    17 May 2004

    Type: Capital-protected fundAim: Growth linked to the performance of the Sarasin CI GlobalSar sterling fundMinimum investment: Lump sum £7,000Term: Five yearsCharges: Initial 5%, annual 1.5%Commission: Initial 3%, renewal 0.25%Closing date: June 15, 2004Tel: 020 7246 0430

  • Scarborough Building Society - Offset-Flexible Base Rate Tracker

    13 May 2004

    Type: Offset tracker mortgageTracker term: Lifetime of loanTracker rate:0.99% above Bank of England base ratePayable rate: 5.24%Minimum loan: £25,000Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £500,000, up to 75% of valuation subject to a maximum of £750,000, ...

  • Scottish Widows Investment Partnership - European Corporate Bond Fund

    18 May 2004

    Type: OeicAim: Growth by investing in euro-denominated corporate bondsMinimum investment: Lump sum £25,000Investment split: 42.6% financial, 35.5% industrial and commercial companies, 13.1% utilities, 8.9%Isa link: YesPep transfers: NoCharges: Initial 3.75%, annual 1%Commission: Initial 3%Tel: 0207 203 3329

  • Scottish Widows Investment Partnership - UK Opportunities Fund

    18 May 2004

    Type: OeicAim: Growth by investing in UK equitiesMinimum investment:Lump sum £25,000Investment split: 28.8% cyclical services, 26.12% financials 15.73% non-cyclica services, 9.02% resources, 8.82% utilities, 3.28% non-cyclical consumer goods, 2.89% general industrials, 2.79% information technology, 1.51%basic industries, other 1.05%Isa link: YesPep transfers: NoCharges: Initial 5%, annual 1.5%Commission: ...

  • Scramble for value

    13 May 2004

    Over the last year, a new trend has emerged, with some of the UK's major pension funds increasing the number of investment managers managing their funds. They are taking this action to reduce risk by diversifying management of their assets. The reason behind this shift is that investing with a single manager involves a lot of risk or uncertainty about adding value - no matter how good we think the manager is. There is a way to reduce this risk and more and more pension funds ...

  • Sesame offers up to 20% PI cut for new members

    13 May 2004

    Sesame is setting out its stall in a bid to attract new members, offering professional indemnity premium cuts of 20 per cent to firms joining its network as well as promising existing members substantial reductions in their PI costs. The mega-network says some members will see their PI premiums cut by up to 30 per cent, with over 90 per cent seeing premiums fall by a fifth. Sesame believes the imp-roved PI offering will bring in new members ahead of the introduction of ...

  • Simon Chamberlain

    13 May 2004

    On the eve of depolarisation, many IFA networks are looking pensively towards a hitherto quiet player rising quickly from the other side of the fence. With the announcement this week that Thinc has secured "massive institutional backing" for aggressive expansion plans, the warning has gone out from the multi-distribution platform that prime adviser firms will be acquired and poached from competitors in its bid to firmly imbed its distribution model on the financial services landscape. The ...

  • Skills Council accused of lacking direction

    13 May 2004

    Industry trade bodies branded the Financial Services Skills Council an ineffectual organisation lacking direction at the Money Marketing Live event last week. Member of the Training Debate panel LIA head of public affairs John Ellis raised concerns that the council has floundered since the departure of chief executive David Jackman last December. He thinks the loss of Jackman, the driving force behind the exam review agenda, has stalled the entire exam programme and is ...

  • Smee 'coy' in face of MPs' wrath over dumped liabilities

    13 May 2004

    Aifa director general Paul Smee was hauled over the coals by the Treasury select committee this week for failing to condemn IFA firms that dump liabilities in shell companies. Labour MP Nigel Beard demanded to know what Aifa stands for if it fails to protect the name of the industry from scandals such as Berkeley Berry Birch ringfencing potential liabilities in its Berry Birch & Noble Financial Services subsidiary. BBB was cited by MPs as one of the firms that should ...

  • Smith admits public may have been misled on pension safety

    13 May 2004

    The Department for Work and Pensions has admitted that Government statements may have led the public to believe their final-salary pensions were more secure than they really are. Work and Pensions Secretary Andrew Smith told Channel 4's Liam Halligan that an FSA leaflet made final-salary pensions appear "safer than they turned out to be". Occupational Pensions Advisory Service chief executive Malcolm McLean told the documentary, How Safe is Your Pension?, aired at ...

  • Societies urged to prepare for new endowment claims

    13 May 2004

    Lenders should brace themselves for a fresh wave of endowment mortgage complaints, according to the principal Ombudsman (banking and loans) David Thomas. Thomas told delegates at the Building Societies Association annual conference that a significant number of holders of end-owment mortgages have not yet lodged complaints but will have a shortfall upon maturity. He put this down to people burying their heads in the sand, planning to trade down to a smaller property or ...

  • Stop EU inflicting more damage

    13 May 2004

    IFAs must be looking skywards and asking whatever god they worship when the PI nightmare is going to end. The screw is to be turned tighter still by the EU. From 2006, IFAs doing both insurance and investment business will have to have £1m PI coverage to comply with the insurance mediation directive and a further £500,000 coverage to comply with investment services directive or £25,000 in capital. It could fracture the market between those doing investment ...

  • Supply and demand boosts market

    13 May 2004

    The housing market continued to display its strength in April, with brokers left unsurprised by the house price indices for the month. London & Country mortgage specialist David Hollingworth says: "The trend is continuing in much the same manner as in recent months. "The market has kickstarted again from the start of the year so homebuyers' confidence must be up. "Of course, it is a blow for first-time buyers who are hoping the market will go in the other ...

  • Talkback

    13 May 2004

    "I do not think structured products will be a widespread problem. I think these products have been sold intensively in small areas but will not be a big concern for the industry."Graham Laverick, WR Financial Management "If you look at their history, structured products to date have not made their target projections. So, yes, I think there could be a misselling scandal."Graham Smith, Blythswood Associates "Yes, and I think there is already evidence of it. Intrinsically, they ...

  • That will be the A-day

    13 May 2004

    Taxbriefs should have to write out: "Pension simplification comes in from April 2006" 100 times, says the Diary after seeing its Spring Financial Review that was being handed out at last week's Money Marketing Live. The Diary knows it can be expensive to get a reprint but, with a lead article putting A-day a year early in 2005 and describing the lifetime limit as unchanged at £1.4m, the Taxbriefs pension experts should be forced to relinquish their anoraks and use umbrellas ...

  • The Exchange signs up to Unipass

    18 May 2004

    The Exchange has signed up to standards body Origo's digital certificate system Unipass. This will give the 20,000 Exchange users the option to use the Unipass certificates or stick with the Exchange's own log-on process to access provider information.

  • The LIA's view

    13 May 2004

    The LIA has firmly established its path towards professional body status. We have spent the last year putting together a package of proposals which were, first, agreed by our membership at an EGM in March and, second, set out in detail in a manifesto published at the time of our annual conference two weeks ago. This path carries with it a responsibility to establish new principles of operation for what has always been a not-for-profit organisation. Of course, there is nothing ...

  • Tiner warning as more investors look to BTL

    13 May 2004

    FSA chief executive John Tiner has warned lenders about the risks of investing in higher-margin lending such as the buy-to-let market. Speaking at the Building Societies Association's annual conference in Manchester last week, Tiner said more private investment was being attracted to the housing sector despite falling rental yields and the relatively high costs of acquisition and disposal. In 2002 alone, building society figures showed a 160 per cent increase in buy-to-let ...

  • Tough line on advertisers

    13 May 2004

    If it sounds too good to be true, then it probably is. How many of us have glimpsed an advert and been lured in by something that looks like an amazing deal, only to find that, on closer inspection, there are hidden features or conditions that mean it is not nearly as attractive as it first seemed? Regulators are always trying to ensure that ads are clear, fair and not misleading and the FSA is no different. In fact, we are increasing our resources and widening our focus in this ...

  • Traded lives fund bids for 12% return

    13 May 2004

    A new market entrant is launching a traded lives investment fund which is aiming for a 12 per cent return by investing in American life insurance policies. The Fortress Group International fund is an alternative investment opportunity which buys life insurance policies from US citizens with short life expectancies. Fortress says the collective investment fund offers investors the chance of doubledigit returns regardless of the performance of equity markets in an asset ...

  • Treasury rethink on complaints

    12 May 2004

    The Treasury has announced its intention to merge National Savings & Investments' complaints procedure with that of the rest of the industry, a move which would see the Government-backed savings initiative come under the voluntary jurisdiction of the Financial Ombudsman Scheme. The Treasury this week published a consultation paper outlining how the FOS' remit would need to be modified in order for NS&I to join it, although it is not expected to do so for 18 months.

  • Treasury says home reversion to be regulated

    13 May 2004

    The Treasury announced this week that home reversion schemes are to be regulated by the FSA alongside lifetime mortgages but has already run into criticism over the length of time before the new regime come into effect. Financial secretary Ruth Kelly says regulation of the sector will help people make informed choices. It will also offer consumer protection, which is important because buying a home reversion pol-icy can have implications for tax, benefits, inheritance and long-term ...

  • Universal Building Society - Two-Year Fixed Rate

    13 May 2004

    Type: Fixed-rate mortgageFixed term: Until July 1, 2004Fixed rate: 4.99%Minimum loan: £20,000Maximum loan: Up to 95% of valuation subject to a maximum of £500,000Income multiples: Up to three times principal income plus second or 2.5 times jointConditions: Capital repayments of up to 10% a year permitted without penaltyArrangement fee:£395Redemption fee:6% of original loan ...

  • Upset for Framlington as Japan star Mitchinson quits

    13 May 2004

    By IFAs fear Framlington will struggle to find a suitable replacement for its star Japan fund manager David Mitchinson. Mitchinson resigned from Framlington last week to take a role with JP Morgan Fleming in Tokyo. During his tenure, the Framlington Japan fund returned 124.3 per cent over just one year and is first of 55 in its sector, according to Standard & Poor's. Over two years, it has returned 64.8 per cent and is first out of 53 funds. Framlington ...

  • Verity's view

    13 May 2004

    Norwich Union's decision to charge for guarantees on its policies has met with little controversy, just as with Standard Life. With Standard Life, at least, the tendency has been to say something like: "Well, it is in a mess after its disagreement with the FSA. Something had to be done. There was always a cost of providing these guarantees. All this does is make it more explicit. At least now everyone knows what those guarantees really cost. It is transparent, it is clear and ...

  • Wealth Management buys Fairs

    12 May 2004

    Software provider Wealth Management Software has announced it is acquiring rival provider Fairs for £2m, half to be paid upfront with the rest coming upon completion of the deal. Fairs has a long-standing presence in the IFA software market, having at one time being amongst the leading players, although it has failed to keep up with developments in recent years.

  • Wesleyan appoints new managing director

    18 May 2004

    Wesleyan Assurance Society has appointed Craig Errington as managing director designate. This is in preparation for the retirement of Frank Brooks, current managing director, in April 2005.Errington is currently responsible for sales, marketing and operations. Wesleyan is now looking for a new sales director, who would report to Errington.Brooks says: "Craig has been heavily involved in all areas of the salesforce development. He has played a significant part in the transformation ...

  • Widows boosts e-commerce capabilities of pensions operation

    17 May 2004

    Scottish Widows is launching a straight-through process for IFAs quoting and applying online for individual stakeholder and personal pension plans through its extranet. Widows is also establishing a direct link from the Exchange portal to its IFA Extranet service which will allow IFAs to apply online for stakeholder and personal pension plans. Scottish Widows marketing manager, retirement planning Ann Flynn says: "As a major provider of individual stakeholder and personal ...

  • Win the latest home cinema system worth £3,000

    13 May 2004

    About Marlborough Stirling and The Exchange The Exchange was acquired by Marlborough Stirling in 2001 to realise the benefits to intermediaries and product providers of integrating the Exweb portal with Lamda, Marlborough Stirling's policy administration system used by product providers. This integration provides straight-through processing (STP) on a single integrated technology platform through Exweb - the UK's most heavily used intermediary trading platform. This ...

  • Woolwich changes gear

    18 May 2004

    Woolwich Plan Managers has brought out the Woolwich Accelerated Growth Plan, a capital-protected bond linked to the FTSE 100 index for six years.The bond provides a full capital return unless the index falls by more than 50 per cent during the term and fails to recover to at least its starting value. If this safety net is breached, investors will lose 1 per cent of their capital for every 1 per cent fall in the index. Investors will get 3.5 times the rise in the FTSE 100 index ...

  • Workers feel betrayed by pension cuts says TUC

    14 May 2004

    TUC general secretary Brendan Barber told the National Association of Pension Funds conference today that workers feel "let down, betrayed and angry" at the retreat from good pensions provision by many employers.Barber said: "Pensions have shot up the union agenda. This is not because they have suddenly become of interest to activists and union leaders, but because they are a top concern for people at work."He warned that staff would no longer "meekly accept" a cut in their ...

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