Money Marketing
12 November 2003

  • 'Brave move' by Fidelity to stem US fund inflows

    13 Nov 2003

    IFAs have welcomed Fidelity's unusual decision to curb inflows into its American special situations and offshore American growth funds by axing commission, raising charges and withdrawing discounts. From November 21, Fidelity is increasing the initial charge on Isa investments into its American special sits fund from 3.25 per cent to 5.25 per cent for new inflows, top-ups and switches. Investments into both funds outside an Isa will have discounts withdrawn, leaving ...

  • 'Sandler suite is loophole for the money launderers'

    13 Nov 2003

    The Sandler stakeholder suite is at odds with the FSA's money-laundering provisions and has an inherent potential to be misused, Sofa managing director Brian Lawless has warned IFAs. Lawless claims a case of the left hand not knowing what the right hand is doing has made stakeholder the hole in the FSA's money-laundering net. He says the regulator's decision to produce a "quick, dirty" sales environment without full money-laundering requirements neglects the ...

  • ...but brokers say market has already peaked

    13 Nov 2003

    Brokers are wary of reports that house prices increased significantly in October, saying this is not their experience of the market. Mortgage Advice Bureau chief executive Peter Brodnicki says although October was the best month of the year so far for him as a broker, prices are only creeping up. He says estate agents are showing that prices did increase in August but only slightly. Chase de Vere managing director Simon Tyler is surprised that some indices show price ...

  • 1st Software adds L&G term assurance

    18 Nov 2003

    IFA software provider 1st Software has added Legal & General's online term assurance to its back office system.

  • Aaron will not seek new buyer after deal collapse

    13 Nov 2003

    IFA David Aaron Partnership says it will not seek alternative buyers for the company following the collapse of its deal with acquisitive UK retail fund distributor The Money Portal. Founder David Aaron says he is "lying low" after committing months to the abortive deal, which The Money Portal says broke down last week because it was unable to resolve a number of issues which had hampered the agreement. Aaron says he will not chase further deals but he would consider selling ...

  • Abbey sets up large loans unit

    13 Nov 2003

    Abbey is opening a dedicated large loans unit available exclusively to Prudential's Premier Mortgage Service members until early next year. Abbey expects to extend the unit across the market next year. The move follows a letter from leading mortgage brokers to chief executive Luqman Arnold last month, saying Abbey needs to provide more competition to HBOS and provide a unit for high loans. PMS members will have access to a tracker at bank base rate plus 0.5 per cent ...

  • Aegon backs better IFA service

    13 Nov 2003

    Aegon has put its support behind Money Marketing's campaign for a Fair Deal for IFAs, saying IFAs must not be hindered by networks, the regulator or providers. Product providers and the FSA are getting behind our quest to help IFAs get better service. Aegon head of public affairs Scott White believes IFAs' ability to provide professional and independent advice must not be obstructed. He says in many respects there is the potential for significant hindrance at present. Sinc

  • Affordability is key to lending

    13 Nov 2003

    Labour MP James Plaskitt clearly does not understand the mortgage market in general or the self-certified mortgage market in particular (Money Marketing, November 6). The mortgage market is defined by lenders who provide funds on an income-multiplying basis. However, an income-multiplying basis is often an insufficient guide to affordability, as progressive lenders such as Standard Life and Nationwide have recognised. The self-certified mortgage has developed ...

  • AIFA's view

    13 Nov 2003

    There is no subject more calculated to send up IFAs' blood pressure than the Financial Ombudsman Service. So news from and about the FOS over the last two weeks should have much interest. Only 1,288 IFA firms had any complaint before the ombudsman last year. Only 124 firms had more than two. This is a good record and you must remember the ombudsman finds in favour of the firm in more than 50 per cent of cases. To me, this suggests pretty good compliance but, much more ...

  • Aldridge quits Cofunds

    13 Nov 2003

    Rodney Aldridge, who has led Cofunds' sales and marketing team since its inception three year ago, is leaving at the end of January. Aldridge says he wants to pass the baton as the supermarket enters the next stage of its development, which will include a wrap offering. His role will be taken on by Ann Akers, former managing director of Zurich Financial Services' strategic partnerships arm, who becomes business development director. The sales and marketing position ...

  • Annual annuity losses up to £345m, says Close

    12 Nov 2003

    As many as 215,000 people this year will purchase their annuity from their pension provider without shopping around, collectively costing them up to £345m in lost income, according to Close Wealth Management.CWM says that, despite the fact providers have to inform customers about the potential benefits of buying from another company, only around a third of people actually purchase their annuity elsewhere. Chief executive Martin Smith says: "As interest rates have ...

  • Axa's cutting edge

    13 Nov 2003

    It's time for for an update of the press contacts list at the Axa press office, The Diary thinks. The end of the postal strike saw the postbag bursting with no less than 12 versions of the same Axa press release this week, addressed to former staff members who have not worked at MM since the time it was printed by hand.

  • Barings' Francis to join Credit Suisse

    18 Nov 2003

    Barings UK fund manager Errol Francis, who took over Richard Buxton's funds when he left the group for Schroders last year, is to join Credit Suisse Asset Management in January. Francis, manager of the £122m UK growth and £8m equity income funds, will run a UK fund but CSAM has yet to decide which. He will work alongside Leigh Harrison, who took over Bill Mott's fund in September.

  • Base rate rise 'will not lower prices'

    13 Nov 2003

    House prices should not be affected significantly by last week's 0.25 per cent rise in the Bank of England's base rate to 3.75 per cent from 3.5 per cent, say mortgage experts. Despite the first increase in the base rate for almost four years, mortgage rates remain at historic lows. The last time that base rates were at such low levels was in 1955. Experts point to the fact that, after 1955, the UK did not see rates fall below 5 per cent until 2001. Figures ...

  • Berkeley stays top as poll says networks have boosted service

    13 Nov 2003

    Berkeley Independent Advisers leads the network pack in member satisfaction, according to research from Henry Samuels Marketing Services. For the eighth consecutive year, the survey has found Berkeley Independent is the most highly rated network by its members. Tenet's M&E and Interdependence networks are second and third, each up by one place from 2002. Burns Anderson is the biggest upward mover, going from 12th place in 2002 to fourth. After integrating ...

  • Blunkett attacks Child Trust Fund

    12 Nov 2003

    Home Secretary David Blunkett is believed to have attacked Chancellor Gordon Brown's flagship project, Child Trust Funds, in a letter to fellow cabinet colleagues. Although Blunkett was an enthusiastic supporter of the plans in his previous role as Education Secretary, he has reportedly criticised the 'low level' of proposed investment from the Treasury in the funds, rather than the whole concept behind them.

  • Board appointed for Post Office and Bank of Ireland joint venture

    17 Nov 2003

    Post Office Ltd and the Bank of Ireland Group are appointing Patrick Waldron as chief executive of its joint venture to launch Post Office-branded financial services products. Post Office chief executive David Mills will be chairman of the joint venture and will be joined on its board by two more directors each from the Post Office and Bank of Ireland. Mills says: "These appointments for the joint venture represent a key step towards the launch of a range of financial services ...

  • Bond winners

    13 Nov 2003

    Congratulations to Alex Ronald of Alexander Ronald and Bryan Rose of Bryan Rose IFA for winning the M&G/Money Marketing Bond Street competition. The two lucky winners will spend three nights at Claridges In London with a dinner at Gordon Ramsay's thrown in with theatre tickets, champagne reception and a pre-theatre dinner at another of London's premier restaurants. Twenty runners-up will get a box of three wines from wine merchants Bibendum.

  • Britannic is retiring too early

    13 Nov 2003

    It is almost always a shame when a product provider closes its doors to new business and this is the case with Britannic Retirement Solutions. Perhaps the move was inevitable when Britannic Assurance closed to new business last March. Clearly, Britannic Group failed to find a buyer for Britannic Retirement Solutions and deemed the business too costly to support. In many instances, where an insurance business shuts to new business, it is bad news for its existing policyholders ...

  • Broker asks MCCB to probe NU equity plan

    13 Nov 2003

    A mortgage broker has written to the MCCB and Safe Home Income Plans expressing his concerns over Norwich Union's lifetime mortgage after the issue was raised by Charcol senior technical manager Ray Boulger recently. Yorkshire-based Mortgage Portfolio Services principal Simon Chalk has written to the MCCB asking if a registered adviser would remain compliant with the code if he recommended the NU equity-release product. He does not believe that best advice is being ...

  • BSA chairman warns on slower growth in 2004

    14 Nov 2003

    Speaking at the Building Societies Association's annual lunch in London yesterday, chairman John Goodfellow warned those active in the mortgage market that they should be planning for much slower growth in 2004.Goodfellow said: "House price inflation will slow, interest rates will be higher and the level of activity will probably be lower. A delicate balancing act is necessary at all times in the mortgage lending process, but never more so than at the moment the market turns."

  • Bulk annuity rise could swamp life companies

    13 Nov 2003

    Life offices would not have the capital to meet a surge in the bulk annuity market that could accompany a significant recovery in the stockmarket, according to an ABI research paper seen by Money Marketing. The ABI says the next decade will see a rapid increase in the demand for price-indexed instruments at a time when gilts are scarce. A substantial increase in equity values, coupled with the Government's announcement that solvent employers wanting to wind-up schemes ...

  • Cazalet predicts death of with profits funds

    12 Nov 2003

    Speaking in front of the Treasury Select Committee independent insurance analyst Ned Cazalet sounded the death knell for with profits funds saying most had become obsolete. Cazalet says many companies' 'excess capital has fallen off a cliff.'

  • Charcol launches capped discount mortgage

    18 Nov 2003

    Charcol is offering an exclusive 1.55 per cent discounted mortgage to 31st January 2007, giving a current pay rate of 4.24 per cent (5.4 per cent APR), capped at 5.99 per cent.It has early redemption charges of 5 per cent to 31st January 2006 and of 4 per cent until 31st January 2007.Charcol senior technical manager Ray Boulger says: "Most fixed rate mortgages now look expensive when compared to discount and tracker deals. Capped rates are beginning to offer better value, ...

  • Clerical launches pension transfer tool

    14 Nov 2003

    Clerical Medical is launching a new software tool that shows the benefits of switching pension funds by comparing the future growth rate of existing funds with alternative investment strategies.The tool calculates projected values taking into account investment strategy, asset allocation, charges, exit penalties and expected returns to allow the adviser to demonstrate the benefits of switching to lower charge funds or those with a greater potential for fund growth.Clerical ...

  • Clerical Medical launches pension transfer software

    14 Nov 2003

    Clerical Medical is launching a new piece of software that will help IFAs transfer their clients pensions more easily, the Pensions Comparison Tool.

  • Clerical shake-up focuses on the top 25 producers

    13 Nov 2003

    Clerical Medical is restructuring its salesforce and is focusing on the firms that bring in the most business. Head of sales Graeme Riddoch says 62 per cent of Clerical's business comes from its top 25 firms and it will be putting more focus on those companies by setting up strategic teams to deal with them in a more "bespoke" way. He says other IFA firms will still be looked after in the same way they have in the past. The changes are to be introduced from January ...

  • Clients, not compliance

    13 Nov 2003

    Last week, I had an opportunity to look at new technology that a major IFA is using to achieve significant improvements in the productivity of its compliance staff and make the whole compliance review process more scientific. Park Row Group has 360 RIs operating from 23 main offices and seven satellites. Locations cover Aberdeen to Cardiff, Middlesbrough and Bournemouth and it has significant growth plans. All its advisers have access to a single centrally-hosted system so that ...

  • Close Finsbury returns to gilts

    18 Nov 2003

    Close Finsbury Asset Management has created a gilt fund that enhances returns using derivatives.The Close Finsbury UK gilt fund is an offshore Oeic that will draw on the skills of fixed-interest specialist Charteris Treasury Portfolio Managers.Charteris was appointed investment manager of the Close Finsbury fund because its investment philosophy is based around risk management. When selecting gilts for the portfolio Charteris will use Giltsoft, an ...

  • Clydesdale Bank hit by an exodus of IFAs

    13 Nov 2003

    Clydesdale Bank has seen an exodus of key advisers from its IFA division. Six advisers have resigned from the IFA division in the past year and nine are working under notice and are due to leave within the month. It is believed that a core group of the bank's top-performing advisers have been approached by a Glasgow-based financial services marketing firm which is looking to set up its own IFA business. Clydesdale Bank, which is based in Glasgow and owned ...

  • Dean Miller

    13 Nov 2003

    The Swiss Re family of closed books is growing, with the latest addition coming from Zurich Life, and now its sights are set firmly on the UK Swiss Re life and health deputy chief executive and chief operating officer Dean Miller explains that the company's mechanism for acquiring closed books of life business is through its subsidiary Admin Re, either through acquisition of the share capital of the company or through a reinsurance agreement. Once the acquisition is made, the ...

  • Digest

    13 Nov 2003

    Why, you might ask, did father of the network Jim Gaskin not try to leverage the goodwill of his name when setting up his new intermediary services venture last month? Maybe it is because web surfers navigating to jimgaskin.com come face to face with Jim Gaskin - The Kentucky Fiddler. One of the most inspirational figures in country, bluegrass and gospel (says the website), Jim is described as a legend in the world of folk and mountain music. Alter ego or namesake? Sadly, ...

  • Dismay at 'reluctance' to regulate reversion

    13 Nov 2003

    The Treasury has been slammed for failing to regulate home reversion amid claims that the lack of FSA scrutiny has allowed shoddy sales practices and misselling to go unpunished. The Treasury this week issued a consultation document seeking views on whether the market should come under the remit of the FSA. But critics say the paper makes it plain that the Government has little intention of introducing regulation, with Treasury Financial Secretary Ruth Kelly arguing it ...

  • Does winner take all in downsizing?

    13 Nov 2003

    While I endorse the FSA's consideration about advising clients of the option of trading down when discussing equity release, I trust that those responsible for the merit of this suggestion (Money Marketing, October 30) will take into account the detail that will appear on the other side of this best advice coin. As with most financial transactions, winners and losers usually exist. The winners? Naturally, this includes estate agents, solicitors, removal companies and a host ...

  • Early retirees get different worms

    13 Nov 2003

    Now that we have closed our final-salary scheme to new members, we have introduced a new stakeholder pension into which we contribute for new employees. What is the situation should an employee in either scheme wish to retire early through sickness? Before looking at the issues that confront you as employer and trustee, let us look at the fundamental differences in the schemes. The final-salary scheme promises a benefit. That benefit is determined by the rules of the scheme, controlled ...

  • Electoral role

    13 Nov 2003

    Some people are lucky enough to own more than one residence. They may desire a holiday home or buy property for their children or to let out. But which residence qualifies for principal private residence relief? The relief available in respect of gains made on the disposal of a principal private residence is available for the taxpayer's "only or main residence". Section 222(5)(a) TCGA 1992 provides that where for any period a taxpayer has more than one residence, an election ...

  • Equity release a growing market for solicitors - Pru

    17 Nov 2003

    Research from Prudential conducted among UK private client solicitors shows a growing need for advisory work in equity release.Twenty nine per cent of solicitors believe demand for legal guidance in the area of equity release will increase in the next five years and over the last two years, one in four (26 per cent) private client solicitors have provided views and advice to their clients about equity release.Prudential national mortgage club manager John Malone says: ...

  • EU move set to raise insurance premiums for women

    13 Nov 2003

    European commissioners have voted unanimously to push through proposals that could prevent UK life offices from pricing annuities and life products on grounds of sex. The proposals for removing sex discrimination in financial services - driven by EU social affairs commissioner Anna Diamantopolou - could result in reduced annuity payments for men and higher motor insurance premiums for women. The ABI has questioned whether the move would benefit women. Its figures show ...

  • EU rules threaten borrowing by Sipps and SSASs

    13 Nov 2003

    Sipps and SSASs face an EU ban on borrowing to invest in commercial property, warns Standard Life. Standard says its lawyers are concerned about the effect that the EU occupational pensions directive could have on Sipps and SSASs. Three-quarters of Sipps and SSASs use borrowing to fund commercial property investment. The Department for Work and Pensions is consulting on the directive, with implementation in the UK scheduled for 2005. Product providers warn that ...

  • Euro-Sterling value set for insurance regulatory purposes

    18 Nov 2003

    The Sterling value of the Euro for insurance regulatory purposes for the 12-month period beginning 31 December 2003 has been set at 68.63 pence.This is the value to be used for calculations in connection with the completion of the regulatory returns that insurance companies and friendly societies are required to deposit under the Interim Prudential Sourcebooks for insurers and friendly societies.

  • Exeter launches new Shared Care PMI product

    14 Nov 2003

    Exeter Friendly Society has launched a new Shared Care private medical insurance product, aimed at spreading the cost of treatment between the consumer and the insurer to reduce premium costs. Menu based, clients are able to select between three different benefit packages, ranging from the core coverage of in-patient and day patient treatment, to extras such as transport, private ambulance and physiotherapy.The minimum co-payment is 25 per cent, but the client can pay 50 per cent ...

  • Flight and Willetts keep roles in Tory reshuffle

    13 Nov 2003

    IFA champion Howard Flight has kept his position as Shadow Treasury chief secretary in this week's Tory reshuffle. New Tory leader Michael Howard has moved Oliver Letwin to Shadow Chancellor from his previous post as Shadow Home Secretary. Shadow Work and Pensions Secretary David stays in that position and also becomes head of policy co-ordination which means he will be largely responsible for drafting the Tory manifesto before the next general election. Stephen ...

  • Franklin Templeton - Templeton European Total Return Fund

    14 Nov 2003

    Type: SicavAim: Income and growth by investing in European government, government related and corporate bondsMinimum investment: Lump sum £3,000, monthly £60Investment split: 100% European government, government related and corporate bondsPlace of registration: LuxemburgCharges: Initial 3%, annual 1.05%Commission: Initial 2.1%, renewal 3%Tel: 0800 305 306

  • Franklin Templeton - Franklin US Short Term Bond Fund

    13 Nov 2003

    Type: SicavAim: Income by investing in US investment-grade bonds with a duration of less than three yearsMinimum investment: Lump sum £3,000, monthly £60Investment split: 100% short dated US investment-grade bondsPlace of registration: LuxemburgCharges: Initial 3%, annual 1.05%Commission: Initial 2.1%, renewal 0.3%Tel: 0800 305 306

  • Franklin Templeton - Franklin US Total Return Fund

    13 Nov 2003

    Type: SicavAim: Income and growth by investing mainly in US government, government-related and corporate bondsMinimum investment: Lump sum £3,000, monthly £60Investment split: Up to 75% investment-grade US bonds, up to 15% high-yield US bonds, up to 10% non-US bondsPlace of registration: LuxemburgCharges: Initial 3%, annual 1.05%Commission: Initial 2.1%, renewal 0.3%Tel: 0800 305 306

  • Franklin Templeton - Templeton Global Bond (Euro) Fund

    17 Nov 2003

    Type: SicavAim: Income and growth by investing globally in government, government related and corporate bondsMinimum investment: Lump sum £3,000, monthly £60Investment split: 100% government, government related and corporate bondsPlace of registration: LuxemburgCharges: Initial 3%, annual 1.5%Commission: Initial 2.1%, renewal 0.3%Tel: 0800 305 306

  • Franklin Templeton - Templeton Global Return Fund

    15 Nov 2003

    Type: SicavAim: Income and growth by investing globally in government, government related and corporate bondsMinimum investment: Lump sum £3,000, monthly £60Investment split: 100% government, government-related and corporate bondsPlace of registration: LuxemburgCharges: Initial 3%, annual 1.05%Commission: Initial 3% renewal 0.3%Tel: 0800 305 306

  • Franklin Templeton - Templeton US Value Fund

    17 Nov 2003

    Type: SicavAim: Growth by investing in a value-based portfolio of US equitiesMinimum investment: Lump sum £3,000, monthly £60Investment split: 100% US equitiesPlace of registration: LuxemburgCharges: Initial 5%, annual 1.5%Commission: Initial 3.5%, annual 0.5%Tel: 0800 305 306

  • Franklin Templeton Investments -Franklin US Growth Fund

    18 Nov 2003

    Type: SicavAim: Growth by investing in US equitiesMinimum investment: Lump sum £3,000, monthly £60Investment split: 100% US equitiesPlace of registration: LuxemburgCharges: Initial 5%, annual 1.5%Commission: Initial 3.5%, annual 0.5%Tel: 0800 305 306

  • FSA quizzes IFAs on network role

    13 Nov 2003

    The FSA is trying to assess the role of networks in today's marketplace in a series of phone interviews with IFA network members. The regulator has embarked on the project to try and provide itself with a better understanding of the workings of networks and to verify the role they play in financial services. The project is being run by research and analysis head Sarah Hunt, of the FSA's investment firms division, who has contacted a number of members from a variety ...

  • FSA will work hard to deliver Fair Deal for IFAs

    13 Nov 2003

    I was delighted to read in Money Marketing about your campaign for a fair deal for IFAs and wanted to take this opportunity to support this campaign publicly. As Money Marketing will know, we have made a concerted effort to help IFAs cope with the day-to-day burdens of regulation and it strikes me that we are trying to achieve the same thing. We have delivered an extensive communications programme to help IFAs understand our regulatory approach, the role of senior management ...

  • FSMA review could boost business angels says NBAN

    12 Nov 2003

    The Government's review of the Financial Services and Markets Act should boost the market for investment in small and medium sized enterprises says the National Business Angels Network.The NABN says business angel investor take-up has never taken off in the way the Act envisaged. It wants regulation to be stripped back to allow greater participation in SMEs by high net worth individuals. NBAN managing director Bernard Hallewell says: "SMEs are the bread ...

  • Fund fare

    13 Nov 2003

    Schroders head of UK retail Robin Stoakley believes fund managers are highly unlikely to take stakes in IFA firms because it makes little sense for any company to do so. What is your view of providers trying to secure distribution through IFA acquisitions? Does it compromise independence? Hughes: In theory, taking a stake in your channels of distribution sounds like a sens-ible approach. In reality, it must be asked what benefit fund managers can gain by purchasing IFAs as individual ...

  • GAM has stars in its eyes

    12 Nov 2003

    Global Asset Management has established the GAM star UK dynamic fund for its new investment director, Ross Hollyman.Hollyman joined GAM in August this year. Prior to this, he spent 12 years at JPMorgan Fleming, where he had been a fund manager since 1997.The GAM Star UK dynamic fund is a Dublin-based Ucits containing between 50 and 100 stocks that represent Hollyman's best ideas. The stocks are selected on a bottom-up basis according to three factors ...

  • Genesis polishes up its Onyx product

    18 Nov 2003

    GENESIS HOME LOANSGEMSTONES - ONYXType: Fixed-rate self-cert adverse credit mortgage Fixed term: Until April 1, 2005 Fixed rate 4.5% Minimum loan: £25,001 Maximum loan: Up to 80% of valuation subject to a maximum of £250,000, up to 75% of valuation subject to a maximum of £400,000 Income multiples: 3.75 times principal income plus second or 3.25 times joint Redemption fee: 6% of amount repaid in year ...

  • Home reversion controls vital to protect from misselling

    12 Nov 2003

    Controls on home reversion plans are vital to protecting the elderly from mis-selling, the National Consumer Council has said following yesterday's announcement that the government is seeking views on whether 'home reversion' equity release plans should be regulated alongside other equity release products.NCC senior researcher James King, says: "Failure to shelter 'home reversion' equity release schemes within the regulatory system would be a recipe for ...

  • House inflation dips in October

    13 Nov 2003

    House prices rose by 1.2 per cent in October, according to Halifax’ latest house price index.The increase was less than September’ rise of 1.6 per cent and considerably below October 2002’ increase of 4.2 per cent.Annual house price inflation now stands at 16.7 per cent compared with 24.5 per cent a year ago.The average house is worth £137,780, up from £136,087 in September and £121,618 a year ago. Halifax says there continues to be a chronic shortage ...

  • Ian Muirhead: Hive of activity

    13 Nov 2003

    In the sixth article in the series on making professional connections, Ian Muirhead, of Solicitors for Independent Financial Advice, explains the business models available to law firms which wish to become involved in financial services work. There are a number of different ways in which solicitors and IFAs can work together. In house The in-house option achieves the optimum synergy between legal and financial services. However, there are a number of snags: ?Regulatory ...

  • IFAs demand less secrecy on protection innovations

    13 Nov 2003

    Protection IFAs are calling on providers developing second-generation products to stick their heads above the parapet so the market can move on. Intermediaries say the sector needs new products soon as advisers and customers are becoming increasingly frustrated by constant rate changes and limits to cover on existing offerings. Providers are understood to be looking at new product structures that could remove the lists of conditions covered and replace them with a measure ...

  • IFAs' choices at the crossroads

    13 Nov 2003

    Those who have stayed on this three-week journey will, I hope, have detected my key passion that wrap platforms are revolutionary, not evolutionary, in UK retail financial services. My excitement comes from a recognition that the old product-based model is broken and that a new service-based proposition is capable of completely transforming the landscape. My concern is that the very dinosaurs that the platform is trying to extinguish may control the revolution and my ...

  • Independent view

    13 Nov 2003

    One of my current tasks at Charcol Holden Meehan is to have a lead role in discussions about the partners' remuneration package. In our firm, there are three grades of consultant - adviser, senior adviser and partner. My remit is to design a package that would appeal to the top IFAs in our industry. At this stage, there are various possibilities and the work is in progress rather than finalised. The best starting place for this is to talk to existing partners as the most senior ...

  • Informed Choice starts pension transfer service

    13 Nov 2003

    Informed Choice has set up a non-regulated company, Matrix Financial Solutions, to provide a pension transfer service to other IFAs. The service is aimed at advisers who are not part of an IFA network. For a fee negotiated on an individual basis, Matrix will cover report writing and admin of pension reviews through two retirement toolkits. One of the toolkits is on personal pensions and the other is for occupational money-purchase schemes. Matrix will generate a report ...

  • Insight director joins Framlington

    17 Nov 2003

    Insight Investment UK sales director Robert Bailey will join Framlington in January after resigning from the group he joined following its acquisition of Rothschild Asset Management. Bailey was head of UK sales at RAM before becoming UK sales director at Insight, which bought the company last year. He will join Framlington as UK sales director on January 5. Framlington sales and marketing director Nick Hodgson says: "His experience will lead our push to further strengthen ...

  • International benchmark 'will raise standards above FSA regulations'

    13 Nov 2003

    An international standard for financial planning being launched in the UK on December 2 will raise the standard of advice and give financial planning broader appeal, it is claimed. The ISO will be launched by the British Standards Institute, the Financial Services Skills Council and a coalition of trade and consumer bodies including Aifa, Sofa, the Institute of Financial Planning and the Consumers' Association. Skills Council director David Jackman believes standards ...

  • Investment analysis

    13 Nov 2003

    It was another good week for equity markets as, in spite of interest rate hikes in the UK and Australia, investors chose to focus on further positive economic data, in particular, Friday's US employment numbers which were far better than expected. However, in the US, stocks ended the week on a slightly subdued note as investors started to factor in the prospect of higher interest rates despite comments from Alan Greenspan that this was unlikely in the short term. Technology ...

  • Investment view

    13 Nov 2003

    With the final quarter of 2003 half completed and the end of the year galloping towards us, we are on track to complete what started as another difficult year in a positive mood. After three negative return years, optimism is growing that the worst is behind us. Economic numbers from around the world have been far better than we dared hope for. Before the festive season gets under way in earnest, it is a good opportunity to take stock of where we are in investment terms. At ...

  • ISIS Asset Management signs JP Morgan outsourcing deal

    17 Nov 2003

    ISIS Asset Management is outsourcing its operational administration to JP Morgan. A potential 70 of ISIS' 500 staff will have their jobs transfered to JP Morgan as a result of the deal.

  • It's time for a change, says Chartwell's Connolly

    13 Nov 2003

    Chartwell Investment Management head of discount broking Patrick Connolly says he decided to move to high-net-worth IFA firm JS&P because he needed a change. Connolly, who announced his departure last week after eight years at Chartwell, takes on his new role in December. He will focus on marketing and PR as well as investment research. He joins Ian Millward, formerly of RJ Temple, and Toby Strauss, former Charcol managing director, at JS&P, which has fee and ...

  • John Joseph on protection

    13 Nov 2003

    For over a decade, I have been a firm advocate of clients having a whole-life policy in preference to term. As I do not seem to be able to judge the future of clients' investments with any certainty, I sure as hell cannot judge the future in relation to their health. Many term policies are being sold by companies that have seen a loophole in the Financial Services and Markets Act in that term is not currently regulated so no advice needs to be given. There ...

  • JPMF recovery fund excels in first few months

    14 Nov 2003

    JPMorgan Fleming's Europe recovery fund has outperformed its benchmark by 18.9 per cent since launch in May. The fund, which invests in companies that are recovering after a period of underperformance, has also amassed almost £120m, defying poor markets and weak investment sentiment. JPMF says investors have been attracted by the focus on pure European stocks. Fund manager Jim Campbell says: "We define potential recovery stocks as stocks with a poor three year performance ...

  • Julian Gibbs

    13 Nov 2003

    Tracker funds are the idle investment adviser's way of giving investors average returns. Taking 10-year figures up to October 1, 54 out of 153 funds in the UK all companies sector outperformed the biggest tracker fund, L&G UK index. However, this hides the fact that 34 out of 54 UK equity income funds and 24 out of 41 smaller companies funds also outperformed the L&G fund. Twenty out of 60 funds outperformed the L&G US index fund while 36 out of 45 funds outperformed ...

  • Keydata turns to sophisticated investor

    12 Nov 2003

    KEYDATA INVESTMENT SERVICEEXTRA INCOME PLAN - ISSUE 7Type: Guaranteed equity bondAim: Income or growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: Lump sum £5,000-no maximum, Isa £7,000Term: Five yearsReturn: Option one - 7.5% income a year, 1.8% income a quarter, 40% growth at end of term. Option two LJ.75% income a year, 1.38% income a quarter, 30% growth at end of termGuarantee: ...

  • Lacomp - British Enterprise EIS Fund 2

    17 Nov 2003

    Type: Enterprise investment scheme fundAim: Growth by investing in unquoted small and early stage companiesMinimum investment: Lump sum £3,000Opening/closing date: October 1, 2003/December 15, 2 Charges: Initial 2.5%, annual 1.5%Commission: Initial up to 4%, renewal 0.5%Tel: 01726 475123

  • Lacomp looks for best of British

    13 Nov 2003

    The Lacomp British Enterprise Fund 2 is an enterprise investment scheme fund that will invest in a minimum of four unquoted companies at an early stage of their development.Lacomp was founded in 1985 by Peter Buxtorf to provide discretionary portfolio services for an international client base. It has created a second EIS fund because although the tax advantages of EiSs are better then venture capital trusts, investing in a single EIS carries greater risks. ...

  • Late news

    13 Nov 2003

    The Diary would like to query the claim of investigative journalism expressed last week in the chat column of a downmarket rival (they all are, of course, down market from the home of The Diary). The hacks intuitively related an empty Wesleyan Assurance Society table at their sales awards to an axe being taken to the salesforce. But the Wesleyan "scoop" on the front of their edition last week could have been more easily sourced by a quick look at the October 23 issue ...

  • Lenders 'must bring ads up to scratch'

    13 Nov 2003

    Lenders and mortgage brokers will have to look closely at the way they advertise products and services when they come under FSA regulation, says Charcol senior technical manager Ray Boulger. Final rules for mortgage regulation include detailed information about financial promotions, which will have to be balanced and give no less prominence to the possible disadvantages than the benefits associated with a product. Boulger says this will have a big effect on print advertising ...

  • Lifeboat launches mortgage solution

    12 Nov 2003

    Lifeboat Financial Group is launching Lifeboat Mortgage Solutions, which it says will offer free MCCB membership, free PI insurance, competitive procuration fees and packaging facilities to its members. Membership will also include access to Trigold's mortgage sourcing software and transaction technology.Trigold joint managing director Bill Safran says: "Lifeboat have a compelling proposition for advisers and we are pleased that they chose Trigold to solve their mortgage sourcing ...

  • Liv Vic extends extra allocation on with-profits bond

    17 Nov 2003

    Liverpool Victoria is extending its 2 per cent extra allocation rate on its with-profits growth bond, with the deal now running until December 5.Other features of the bond include a reduced "give up" from 3 per cent to 2.25 per cent off initial commission for advisers opting to get 0.5 per cent commission for the first 10 years. There is also no early exit charges on death and a new pricing series started from June 18 so investors are not affected by investment returns before ...

  • Liv Vic launches new with-profits income bond

    18 Nov 2003

    Liverpool Victoria has launched a new with-profits income bond with an initial regular bonus rate of 4.25 per cent per annum. The bond is for single premium investments from £10,000 to £500,000, with a minimum 100 per cent allocation for most clients. It features a MVR-free guarantee on death and a two-year smoothing policy so investors are not affected by previous poor investment returns. The income is delivered through regular withdrawls. Intermediary division ...

  • Long-established firms could face PI problems

    13 Nov 2003

    Older IFA firms could find this month a difficult period for PI renewals, says Aifa director of policy Fay Goddard. Dating back to the days of Fimbra, November has traditionally been when older IFA firms renew their PI. Goddard says these are the firms that PI providers tend to have issues with. Goddard points out that because PI providers look more at the length of the book of business, older firms still find it harder to get cover, no matter what the quality of the ...

  • M&G plays the equity card

    13 Nov 2003

    M&G managing director Phil Wagstaff believes the arrival of star manager Richard Woolnough from Old Mutual will silence critics who have questioned the group's commitment to the retail market. In an interview with Money Marketing, Wagstaff says securing Woolnough's services shows the ambition that exists within M&G following the high-profile losses of Theo Zemek and James Gledhill to New Star. By handing Woolnough its flagship corporate bond fund in addition to the ...

  • MBO bid fails as BRS shuts to new business

    13 Nov 2003

    IFAs are mourning the closure of Britannic Retirement Solutions to new business after an 11th-hour management buyout failed at the weekend. Britannic Group chief executive Paul Thompson said it was pulling the plug on new business at the enhanced annuity specialist because returns could not justify deploying further capital. Around 200 jobs are expected to be lost. An MBO of BRS is understood to have collapsed when the team and its venture capital backers could not meet ...

  • McFall says consumer trust should not be taken for granted

    14 Nov 2003

    Speaking at the annual BSA lunch yesterday, Chairman of the Treasury Select Committee John McFall said banks and building societies are no longer able to take consumer trust for granted,McFall said: "Consumer trust is being eroded rapidly and this is not good for businesses, consumers or society as a whole. Trust can be destroyed by a few people but can only be restored collectively. Leadership from the top is required."

  • Morgan Stanley maintains protection

    17 Nov 2003

    Morgan Stanley has introduced a third issue of the FTSE protected growth plan, a capital-protected bond with a six-year term that could mature in year three, depending on the performance of the FTSE 100 index.The bond will return investors' original capital regardless of the performance of the index, providing the investment is held until maturity.However, maturity may take place in year three if the FTSE 100 index has risen by at least 25 per cent. Where this happens, ...

  • Mortgage Edge - Kevin Duffy

    13 Nov 2003

    The measure of what represents a meaningful news story is whether it still has currency a week after its inception. This being the case, I would imagine that the Windsor household may presently be more occupied with some recent exposes than HBOS. Those of you who did not see The Money Progamme recently will at least have heard about its investigation into the supposed murky and spurious world of self-certification mortgages, which has since resulted in the suspension of three ...

  • Mortgage Edge - Rob Clifford

    13 Nov 2003

    Let's look at self-certification in perspective rather than through the eyes of a TV documentary producer. In the late 1980s, a high proportion of our clients seemed to have jobs for life. Many of them had every expectation of seeing out their career with the same employer. But how times have changed. Some 22 per cent of the workforce are self-employed and 12 per cent of workers have non-permanent contracts of employment. Consider the staggering statistic that more ...

  • MP accuses life offices of bribery

    13 Nov 2003

    A leading Labour MP has blasted the insurance industry, accusing it of complacency, misrepresentation and bribery of distribution channels at a Treasury select committee hearing. Committee member Angela Eagle slammed the insurance sector, saying she believes it is characterised by "misrepresentation of the products and bribery of the distribution channels". The panel focused on the structure of the sector, grilling ABI director general Mary Francis and Cazalet Consulting ...

  • MP says firms are playing poker on child funds

    13 Nov 2003

    A member of the Treasury select committee has hit out at product providers who say they will not offer child trust funds if a 1 per cent price cap is imposed on the new savings products. Labour MP Angela Eagle believes that companies such as Legal & General, Scottish Widows and Liverpool Victoria, which have all expressed doubts about offering the funds within a 1 per cent regime, are "playing poker". She is convinced that the big players cannot afford to remain outside ...

  • Mysterious affair of endowment policy top-ups

    13 Nov 2003

    We were recently appointed to new clients and as part of the exercise were asked to consider a low-cost endowment policy that the couple have in the light of endowment review letters that they have received. The policy started in April 1987 and is for a 21-year period. It is an old-style low-cost endowment with a basic sum assured of £15,183. The original monthly premium was £55.60. As a result of endowment review letters issued by the provider, this premium ...

  • No Revenue 'rift' on death benefits

    13 Nov 2003

    You state in an article headlined, Rift between Revenue and ministers on death benefits, that I see no reason why annuitants should not be allowed to pass on benefits to relatives (Money Marketing, October 30). In fact, I have never expressed that view. Government policy is clearly set out in paragraph 5.34 of the December consultation document: "...pension tax relief is not provided to encourage estate planning". I am happy to state that my own personal view fully accords with ...

  • Now FSA's Kenmir joins our campaign

    13 Nov 2003

    FSA director for investment firms David Kenmir has put his full backing behind Money Marketing's campaign for a Fair Deal for IFAs. In a letter to MM this week, Kenmir has expressed delight that MM is putting the spotlight on the top problems for advisers. He says he understands the industry's need to challenge the FSA and the Financial Ombudsman Service to justify their current practices. Kenmir believes the FSA has made a "concerted effort" to help advisers in ...

  • Office of fare trading

    13 Nov 2003

    The Diary says always chat to your taxi driver - you never know what you'll find out. One cabbie chatting to his IFA fare this week was bemoaning the fact that he had just lost his best-ever client. "For ages I have been getting paid £70 a day to drive this woman to Canary Wharf and back but she has just left her job this week," said the cabbie. Further investigation by the IFA revealed the said executive cargo was being delivered from the N14/N21 area ...

  • On the crest of a waiver

    13 Nov 2003

    The Financial Ombudsman Service looks set to waive the £360 case fee for the first two complaints made against an IFA firm in a year. This conciliatory step towards smaller firms follows research from the FOS showing that half of its work on complaints comes from 20 per cent of big firms. It will meet to consult on possible changes to its charging structure in January. Although most firms never receive more than one complaint in any 12-month period, the ...

  • Only 6% of FTBs understand mortgages

    13 Nov 2003

    Only 6 per cent of first-time buyers have a good understanding of mortgages, according to consumer research carried out by the MCCB. Forty-two per cent say they do not know much at all about mortgages while 49 per cent say they know a little but want some help. The research also reveals confusion over the level of service from intermediaries. Sixty-one per cent of consumers who received information on a single product feel service was explained clearly while 10 per cent ...

  • Out of context

    13 Nov 2003

    •"My profile has been raised and my reputation is now in tatters." - NU Healthcare PR Lorna Wiltshire. •"I'm going to start a campaign to give me the right to have a baby." - Hargreaves Lansdown's Tom McPhail on the EU unisex annuity proposal. •"Are you hung like a dog?" - Penrose PR Nicola Hankey uses obscure Canadian slang to ask whether an MM hack has a hangover. •"Do you think a kilt will cover it?" - Clerical Medical PR Gordon McAra ...

  • Over 40s looking to switch career not retire - Clerical Medical

    12 Nov 2003

    Most over 40s are looking to switch career rather than retire early according to an online survey carried out by Clerical Medical on more than 3500 people over 40. The results reveal that 78 per cent are seriously considering changing their career.

  • Park Row leads off with support services for mortgage advisers

    13 Nov 2003

    Park Row is setting up a support services firm for mortgage brokers. The Mortgage Partners will provide a menu of services, including enhanced procuration fees, compliance support, general insurance, training and competence guidance, mortgage processing and packaging, PR support and lead-generation. Park Row Independent Mortgages managing director Kevin Paterson feels that The Mortgage Partners will fill a gap in the market as brokers will be able to use it as a stepping ...

  • Pink parachutes down to base

    13 Nov 2003

    PINK HOME LOANSPARACHUTE MORTGAGEType: Menu-style adverse credit tracker mortgage Tracker term: Life of loan Tracker rate: Bank of England base rate plus 1% Payable rate: 4.5% subject to base rate loadings Minimum loan: £25,001 Maximum loan: Up to 85% of valuation subject to a maximum of £400,000, up to 75% of valuation subject to a maximum of £500,000 Income multiples: First time buyers - 3.25 times principal ...

  • Pot luck?

    13 Nov 2003

    I read with interest Lorna Bourke's excellent article on pensions (Money Marketing, October 23). Her comment regarding the target fund of £180,000 was quite startling and I, like many other IFAs, wonder if this is indeed correct? If it is, then possibly up to 90 per cent of people saving for a pension should give up right now. I have been a West Dorset-based IFA for over 16 years and in all that time over 95 per cent of clients with vesting pension funds (and ...

  • Product matters

    13 Nov 2003

    These are truly refreshing times in the world of investment. Yet another company is introducing performance-related fees on two existing funds. Following in the footsteps of Bedlam and Gartmore, DWS plans to offer a separate P share class on its UK opportunities and European opportunities funds from January. This will be in addition to the existing share class, which has a standard fee of 1.5 per cent. Annual fees under the P share scheme will depend on the funds' performance ...

  • Prudential hits the penalty spot

    17 Nov 2003

    PRUDENTIALPRUDENCE PROSPECTS BONDType: With-profits bondAim: Income and growth by investing in the Prudential optimum bonus fund and the Prudential optimum return fundMinimum investment: Lump sum £10,000 Bonus rates: Optimum bonus fund 3.6%, optimum return fund 2.85% Allocation rates: £10,000-£19,999 - 105%, £20,000-£49,999 - 105.25%, £50,000-£74,999 - 106%, £75,000 and above - ...

  • RJ Temple clients to get FSCS green light

    12 Nov 2003

    Investors with collapsed IFA RJ Temple will be able to file compensation claims with the Financial Services Compensation Scheme by the end of this month. The FSCS has already received 100 claims from clients claiming they were missold structured products by RJT, most of which have been redirected from the Financial Ombudsman Service. Liquidator KPMG is expected to pass on another 600 claims once the firm is officially declared in default.

  • S&P launch online tool for advisers

    17 Nov 2003

    Standard & Poor's has launched a comprehensive set of online nformation and analysis tools for fund management groups and financial advisors in Europe. The new products are available on www.funds-sp.com, Standard & Poor's dedicated funds website. The site has been redesigned to meet the growing demand among users for independent analysis and data and provides a broader range of information on investment, pension and insurance funds. S&P market and strategy director ...

  • Schroders casts doubt on distribution fund benefits

    13 Nov 2003

    Investors in distribution funds enjoy no more tax benefits than if they had comparable asset exposure to bond and equity funds, says Schroders. Distribution funds - funds with more than 60 per cent in bonds - have long been seen as tax-efficient as income can be distributed as interest. Investors can therefore reclaim the 20 per cent income tax deduction, which has led some groups to claim the funds will have a huge advantage when the 10 per cent tax credit on UK equity ...

  • Select committee set to probe child trust funds

    13 Nov 2003

    A sub-committee of the Treasury select committee is launching an inquiry into Chancellor Gordon Brown's child trust funds. The savings schemes have met with disapproval from some in the industry and the sub-committee will analyse their potential impact on the market. Providers such as Scottish Widows and Norwich Union have expressed reservations and say they may boycott the savings scheme if it is brought in under a 1 per cent price cap. The sub-committee ...

  • Sesame says its cull is cause of big fall in RIs

    13 Nov 2003

    Sesame claims one of the main reasons it has lost nearly 1,000 RIs over the last 18 months is because it has culled firms which were below its standard. Speaking to Money Marketing, Sesame commercial director Martin Davis says although there are a number of reasons for the drop, the main reason is because Sesame has set relatively high standards. Davis says there has been a fall over an 18-month period from 7,500 RIs to 6,500 but claims the advisers that have left have ...

  • Sesame warns of 'false promises' by small networks

    13 Nov 2003

    The proliferation of smaller networks over the past two years is a sign of the changing face of the industry but IFAs must be sure they are banking on a solid proposition, says Sesame commercial director Martin Davis. Responding to criticisms directed at the mega-network by IFA Mutual founder Jim Gaskin, Davis has told Money Marketing that IFAs need to ask themselves how long any of the large number of recent start-ups will last. "Our caveat is that IFAs need to be careful ...

  • Seven firms defaulted by compensation scheme

    13 Nov 2003

    Seven firms have been declared in default by the Financial Services Compensation Scheme, which is encouraging customers who may have lost money to come forward and claim compensation. The FSCS covers compensation for investments, deposits and insurance and is a safety net for those consumers who have claimed against regulated firms who are unable to pay them. The limit for investment compensation is £48,000. The companies in default are London-based firms Holden ...

  • Simply Biz pays for 600 members to join Aifa

    13 Nov 2003

    IFA services provider Simply Biz is paying for its 600 members to join Aifa as part of an initiative to work more closely with the trade body. The Huddersfield-based group, set up by DBS founder Ken Davy and Ian Thorneycroft, is joining forces with Aifa to give its members access to guidance on regulation and the menu system. Sole traders will save £250 in membership fees plus £80 for every additional IFA. The group has also launched Simply Biz Community, ...

  • Social studies

    13 Nov 2003

    To consider why IFAs may be ignoring socially responsible investment, I will first share one of my past experiences at Friends Provident. A few years ago, when I was working as a broker consultant, I took part in a teambuilding day at the company's central London office and was required to write a song. I must confess that I contributed nothing to this process, save my enthusiasm for SRI. The song included, "If you wanna be my broker better getta quote from Friends," ...

  • Stamping ground

    13 Nov 2003

    House prices have rocketed so it should come as no surprise if the Government is looking at ways to extract the wealth of the nation through this market. It was recently revealed that the Inland Revenue is already taking record levels of stamp duty on homes - £3.59bn this year compared with £675m in 1997, when Labour came to power. This is in part down to the reluctance of the Government to raise stamp duty thresholds, which see even first-time buyers hit ...

  • Standard removes angioplasty from CI cover

    12 Nov 2003

    Standard Life plans to make changes to its critical illness product next year saying it is likely to remove angioplasty from the list of conditions covered. Marketing development manager Gerry Warner says it will continue to have guaranteed rates, but will probably remove angioplasty in January. This follows Scottish Provident which last week announced that due to medical advances it no longer regarded the condition as critical and was removing it.

  • Standard's toolkit aims to repair WP damage

    13 Nov 2003

    Standard Life has introduced a toolkit to help IFAs explain how with-profits bonds work. The mutual argues that a lot of the criticism aimed at with-profits bonds over the past few years has been "without justification and, in many cases, just plain wrong". The toolkit tries to address concerns over past performance while explaining how Standard's own offering works. The toolkit guides IFAs through a series of steps designed to explain how with-profits has ...

  • Stonebanks up and running again

    12 Nov 2003

    Standard Life carpetbagger David Stonebanks' campaign to force the insurer to demutualise is up and running again. Stonebanks has announced he has posted a revised special general meeting request form on his website after having the wording checked and amended by solicitors. He needs 1000 signatures on the request for Standard Life to hold the meeting after which 75 per cent of policyholders need to vote in favour of demutualisation for it to go ahead. Standard Life rejected ...

  • Super wraps

    13 Nov 2003

    Wraps were characterised recently by a leading fund management group as the latest in a long line of Next Big Things - ideas presented as a panacea for the advice industry's ills but ultimately destined never to take off. The same accusation could have been levelled at fund supermarkets but they now sit firmly in the mainstream. At Skandia, 300,000 clients have over £2.6bn invested through its fund supermarket platform and overall an estimated 50 per cent of ...

  • Surveys still show solid growth...

    13 Nov 2003

    The Rightmove house price index shows the greatest increase in prices this month, with an increase in asking prices of 3.3 per cent in October, the biggest increase in 18 months. Rightmove puts annual house price inflation at 9.8 per cent in October, up from 9.1 per cent in September, and says the average price is £170,720. Commercial director Miles Shipside says: "There has been a clear upsurge in activity, with many first-time buyers and investors back looking ...

  • Swiss Re looks to build closed book company

    13 Nov 2003

    Swiss Re is aiming to grow its closed book company Admin Re to become a major part of its life and health business in the UK after completing its first British acquisition. Last week, it received regulatory approval to take over Zurich Life's closed book. Admin Re acquires closed books of life insurance business and outsources policy admin to a third party, generally Computer Science Corporation. Swiss Re life and health deputy chief executive Dean Miller says there ...

  • Talkback

    13 Nov 2003

    "Yes. It is a step in the right direction but why should we have to pay at all if we are found not guilty?" Steve Lawton, Lawton & Taylor "Of course I do. But then you are going to find that they have put up the fee for all the other cases." Chris Firminger, CV Firminger & Co "Yes, my colleagues and I agree. The problem is that occasionally we feel that we are being blackmailed to deal with minor cases and clients know we will be stuck with a fee." Brian Wigley, Millennium ...

  • Taxing times for Distribution funds

    13 Nov 2003

    The imminent loss of the tax break on UK equity Isa dividends has prompted some fund managers to extol the tax virtues of distribution funds. But Schroders says its research shows that distribution funds have no advantage over bond and equity funds. Distribution funds - funds with more than 60 per cent in bonds - have long been seen as tax-efficient as all distributable income can be given out as interest payments. Investors can reclaim the 20 per cent income tax deduction, ostensibly ...

  • The auto route

    13 Nov 2003

    The financial intermediary market in the UK has seen a myriad of entrepreneurial figures selling a myriad of financial products and servicing a myriad of clients. The last three years of falling equity markets have resulted in a reduction in the amount of investment products being sold (reduced income) but more particularly a greater transparency and awareness of the high costs of servicing the existing book of business (fixed cost). There is now a demand from the industry ...

  • The tender touch

    13 Nov 2003

    Against all the odds, it appears that the investment trust sector is about to enjoy a renaissance. The trend away from closet tracking towards absolute return objectives leaves investment trusts sitting in the right place at the right time, presenting the opportunity for the movement to return to its entrepreneurial roots. An investment trust structure allows a manager more scope to focus on their conviction bets. They can build a bigger position in these areas, free ...

  • Tiner calls on trusts to restore investor confidence

    13 Nov 2003

    FSA chief executive John Tiner has told the investment trust industry that it must go "that extra mile" to rebuild consumer confidence. Speaking at the JP Morgan Fleming investment trust industry round table last week, Tiner said the sector needs to do more to show consumers that the split-cap problem was a one-off. Tiner warned that board directors need to hold investment managers to account rather than delegate management to them. He said: "The investment trust industry ...

  • Treasury calls for views on reversion regulation

    13 Nov 2003

    IFAs and mortgage brokers face one-off costs of £6,000 if home-reversion plans are regulated, according to a Treasury consultation paper which calls for views on whether the sector should be regulated. Brokers who only advise on home-reversion schemes face a cost of around £11,000. The one-off cost to specialist home-reversion providers could be up to £475,000 while those already offering equity release would face a cost of £233,000 to offer home reversion ...

  • Verity's view

    13 Nov 2003

    Suppose you are a financial adviser in your early 20s who specialises in mortgages, with the status of a tied rep, based in but not employed by an estate agent's office in west London. You do not get paid very much, of course, unless you introduce or arrange a fairly spectacular number of new mortgages. You probably still live with your parents as there is no way you could afford to buy your own home in one of London's property hotspots. Into your office walks someone quite ...

  • West Brom axes self-cert for loans over £250,000

    13 Nov 2003

    West Bromwich Building Society is the first lender to take action over the self-certification controversy by withdrawing its self-cert facility for loans over £250,000. West Brom has sent an urgent email to brokers, saying: "Following much speculation in the media over the past week, please note that we are withdrawing the self-cert facility for loans in excess of £250,000 with immediate effect." Hamptons International Mortgages managing director Kevin Duffy ...

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