Money Marketing
13 August 2003

  • 'Deals to buy failing IFAs setting a bad precedent'

    14 Aug 2003

    Leading IFA Hargreaves Lansdown is warning that deals to buy IFA firms which leave the Financial Services Compensation Scheme to foot the bill for any future compensation claims could open the floodgates to similar deals. Managing director Peter Hargreaves believes the deals struck by AMP in its purchase of Towry Law and by Lighthouse in its purchase of RJ Temple have set a precedent for more IFA players to buy the assets of failing IFA businesses while leaving the FSCS and the industry ...

  • 'Industry scandals pushing investors into Sipps'

    14 Aug 2003

    Recent scandals in the financial services industry have persuaded many investors to take out do-it-yourself pensions, according to Personal Pension Management. Research commissioned by PPML shows that investors are keen to exercise more control over their pension investments. It says predictions of 500,000 self-invested personal pension plans by 2010 may be understated. Executive chairman John Moret says the latest figures show the Sipp market has grown by nearly 40 per cent in ...

  • A bolt from the blue sky

    14 Aug 2003

    How appropriate for the FSA to be indulging in blue-sky thinking in the middle of a heatwave. It is thinking of adjusting how advisers are categorised perhaps based on the time of life of their clients or perhaps by speciality. The sighs of exasperation from those IFAs still in the country are almost audible. In this issue, a medium-sized IFA, Scott and Casey, is profiled by Money Marketing.It says its business has prospered partly because being a general practitioner gives ...

  • A consumer's view

    14 Aug 2003

    One of the big weaknesses of the IFA industry is that it produces little research on its clients and business trends. Instead, it relies on sales-orientated surveys from those who have a vested interest in talking the market up, in particular, product providers. One obvious example is IFAs' ostrich-like attitude to their business and the effect that the general economic climate will have on it. While the rest of the UK worries about levels of consumer debt and the impact of unemployment, ...

  • ABI to consult on lifestyle questions

    13 Aug 2003

    The ABI plans to launch a consultation looking at changing the way lifestyle questions are asked when individuals perceived to be at higher risk of contracting HIV apply for term insurance. Due by the end of the month, the ABI is currently talking with stakeholders including its members and gay charities to come up with the best way to revise its statement of best practice, which has remained unchanged since its creation in 1994.

  • Albert Goodwin EIS

    14 Aug 2003

    Type: Enterprise investment schemeAim: Growth by investing in a London-based art dealerMinimum investment: Lump sum £10,000Opening/closing date: July 7, 2003-September 30, 2003 Charges: NoneCommission: NoneTel: 020 7839 7551

  • AMP moves to calm demerger fears

    14 Aug 2003

    AMP has moved to reassure shareholders on the progress of its proposed demerger amid heightened speculation about its future following press reports criticising its asset management arm Henderson Global Investors and a downgrade from rating agency Moody's. Last week, Moody's downgraded the group's rating based on concern that the demerger of AMP's UK and Australian arms will result in reduced shareholder equity following asset writedowns and capital splitting between the ...

  • Appliance of science

    14 Aug 2003

    During a chat with a few IFAs after a recent seminar, I was a little taken aback by the lack of awareness of the true nature and likely future investment behaviour of with-profits and managed funds. There was general consensus (although, I have to say, not necessarily including myself) that with-profits funds have had their day but this consensus carried over to an enthusiasm for managed funds as a method of reducing client risk within a single fund. My attempts to insert some logic ...

  • Bank is fined over laundering rules

    14 Aug 2003

    The FSA has fined Northern Ireland-based Northern Bank £1.25m for breaching money-laundering rules. There is no evidence that any money was laundered through branches of the Nat-ional Australia Bank subsidiary but it failed in its requirement to ensure that clients were who they claimed to be. Between December 2001 and September 2002, it did not obtain "know your customer" information when opening new business accounts. There were examples of names only and not addresses ...

  • Bankhall 'whistleblower' claims unfair dismissal

    14 Aug 2003

    Bankhall Investment Associates is facing an employment tribunal brought by a former employee alleging unfair dismissal for whistleblowing. The hearing is scheduled to take place in Manchester for three days from November 12. The former employee, Ian Stephens, is believed to have been a finance director at the IFA support services group for a short period last year. As part of his original application, Stephens alleges breach of contract and unfair dismissal because of exercising ...

  • Boost for PI as US firm gets go-ahead

    13 Aug 2003

    The IFA professional indemnity insurance market received good news this week when it emerged US underwriter WR Berkley Insurance has been authorised by the FSA. While the firm will not specifically target IFAs, chief executive Stuart Wright says there are no barriers to offering cover to IFAs and he expects to do so to firms deemed to be a good risk.

  • Bradford & Bingley and Barclays in battle over buy-to-let

    14 Aug 2003

    Bradford & Bingley and Barclays are embroiled in a buy-to-let row after Barclays chief executive Matt Barrett launched a barrage against risky BTL lending. Barrett accused rivals of rushing into the BTL sector to increase their market share despite its risks. B&B is the biggest BTL lender in the UK through its Mortgage Express subsidiary and B&B chief executive Christopher Rodrigues hit back at Barrett's claims. He says the vast majority of BTL clients borrow ...

  • By the light of the moon

    14 Aug 2003

    Is it the constellation of the planets or the effects of the hot weather? The Diary can report more moon sightings by MM reporters on trips with life offices. One exhibitionist bared all to the crowds exiting the Robbie Williams' concert in Dublin last week. The same eagle-eyed hack who copped an eyeful at the Clerical balloon trip also spotted a Dubliner dropping his pants to the crowds. Norwich Union PR head James Evans, hosting the press trip, was stunned by the bare-faced ...

  • C&G introduces incentives for intermediaries

    15 Aug 2003

    Cheltenham &GLoucester is introducing a range of incentive payments to intermediaries selling its general insurance products such as building & contents and mortgage payment protection.

  • Cape feels the heat

    14 Aug 2003

    A safe return to Blighty from Chelsea Building Society's Matthew Cape, who will be straight to Boots to buy a barrel of after-sun cream. An ashen-faced Cape narrowly missed disaster when he and his family were within 40 yards of a two-mile-long 60ft-high wall of fire in the South of France. Grilled by an MM reporter, Cape regained his cool once back home, quipping: "I am delicately singed in parts and it's not from the sunbathing."

  • Clerical targeting OPPs with bulk buyout offer

    14 Aug 2003

    Clerical Medical is offering a bulk buyout plan aimed at occupational pension schemes which are winding up. The plan is part of a wider assault on the pension market that could see the company return to the group stakeholder market by the end of the year. Clerical says it expects a surge in demand for its bulk section 32 buyout plans which accept transfers from contracted-in and contracted-out money-purchase and final-salary schemes. Opra estimates there are currently 30,000 ...

  • Correspondents week

    14 Aug 2003

    My week starts on a Thursday, having returned from holiday. A warm sunny day beckons, better weather than in France, and once again I delight from the fact that my journey takes only 25 minutes by bicycle. Everything ran smoothly during my absence (thanks, Jemma, Daphne, Michelle, Mark, Debbie and Laurie). I could go away again but for the inevitable catch-up of hundreds of emails and a new client meeting. Clients come from many sources and this one is from our contact in Brussels ...

  • Countrywide Assured Sees Profits Fall

    15 Aug 2003

    Countrywide Assured estate agencies interim results show that turnover for the group fell to £282.3 million from £311.0 million in 2002. Pre tax profit fell to £21.9 million from £35.8 million and while the average house sale price rose 15 per cent the number of houses sold fell 16 per cent. However Countrywide says it had a record pipeline of £63 million of commission on sales awaiting exchange and expects activity to pick up for the rest of the year.

  • Davy's Terrier instinct

    14 Aug 2003

    Yorkshire sports magnate Ken Davy has extended his interest from the oval ball to the round ball game with a successful bid to take over Third Division side Huddersfield Town. Simply Biz founder Davy, who already owns the Giants, Huddersfield's rugby league side, now becomes head honcho at The Terriers. Fans will hope his networking capabilities will match those of Chelsea's Russian benefactor Roman Abramovich but Davy denies he can match that level of spending. It would ...

  • Dawn of wealth service at Aurora

    14 Aug 2003

    South-east IFA Aurora Financial Group is teaming up with private-client wealth manager Gerrard to offer a portfolio management service. The 40-RI group, formed from Jackson Batten IFA and Advisory & Planning Services in July 2002, is aiming at clients with a minimum of £125,000 to invest. Aurora aims to have 100 clients using the service and £50m in funds under management within 12 months. The service will offer an analysis of the client's aims and attitude ...

  • Discounts to get boost as fixes begin to rise

    14 Aug 2003

    A surge in the popularity of tracker and discount mortgages is predicted by lenders following a recent dramatic rise in the cost of borrowing on the money markets. Lenders say that with swap rates shooting up by 0.5 per cent and fixed-rate mortgages being repriced upwards, variable-rate mortgages will appear very attractive to consumers. Accord Mortgages has just launched a new range of discount products and managing director Linda Will says it has proved very popular, seeing £5m ...

  • Dunbar pushes life plan to IFAs

    14 Aug 2003

    Zurich is aggressively promoting its Allied Dunbar protection range to IFAs following the sale of its Zurich Life subsidiary last week. IFAs claim that since the sale they have been contacted by Allied Dunbar broker consultants pushing the Dunbar-branded High Cover plan. The plan is a combined life and critical-illness product with annually reviewable premiums that has been on the market for two months but was not previously promoted through the IFA channel. It is the first ...

  • Facing up to hard facts

    14 Aug 2003

    IFAs and hard men - do the two go together? Hargreaves Lansdown's Tom McPhail seems to think so after finishing the recent Hard Man Challenge in Staffordshire. McPhail joined the growing number of men who seek pleasure in mortification of the flesh through exercise and physical hardship. The six-mile cross-country chase followed by two circuits of an assault course and a lot of running through swamps proved too much for 400 racers who failed to cross the finishing line. But ...

  • Finance4Women moves to M2

    14 Aug 2003

    Leading all-female IFA firm Finance4Women has quit national and franchised IFA Millfield Partnership to join rival M2 Financial. The four F4W partners walked out of Millfield last week citing a difference in strategy and a need to expand as the reason for their departure. The Cambridge-based IFA will now act as a subsidiary of national firm M2 but will keep the Finance4Women brand. F4W's four RIs bring M2's total number of advisers to 22. F4W was originally set up as ...

  • First-time buyers face a growing housing shortage

    14 Aug 2003

    Halifax is warning that the shortage of new homes in the UK could be as high as 500,000 by 2021, bolstering house prices and making it harder for first-time buyers to get a foot on the property ladder. Halifax predicts that the cumulative shortage will reach 500,000 if the number of new houses, particularly in London and the South-east, does not increase beyond the 200,000 currently built each year. It says this shortage has fueled the housing boom over the past three years and ...

  • FSA hands over exam role to skills council

    14 Aug 2003

    The FSA is tearing the pages out of its handbook which list approved exams, leaving it to the Financial Services Skills Council to decide which exams are appropriate. The action comes with the publication of CP194, Amendments to the Training and Competence Sourcebook, and sees the regulator distance itself further from overseeing IFAs' competence. It is largely handing over responsibility for T&C to the skills council, fronted by former FSA exam guru David Jackman. It is ...

  • Future changing strategy as it loses fourth manager

    14 Aug 2003

    Future Mortgages has been hit by yet another senior management departure after communications manager Richard Hurst quit this week. The specialist lender has seen a total shake-up of its management structure over the past five months, with chief executive Mark Abbot leaving in March, sales & marketing director Brian Pitt in April and general manager in charge of sales Clive Willson in June. Its management structure will now be combined with that of fellow Citigroup subsidiary ...

  • Future moves into mainstream self-cert

    14 Aug 2003

    Future Mortgages is targeting the mainstream self-cert market for the first time with a new range of loans. The range includes a discounted self-cert mortgage at 4.69 per cent until January 31, 2007, when the rate reverts to 5.94 per cent. The loan is available up to 85 per cent loan to value. Early repayment charges are 5 per cent in the first year, 4 per cent in the second and 3 per cent in the third. It is also offering a buy-to-let loan at 5.4 per cent up to 80 per cent LTV, ...

  • Gainful strategies

    14 Aug 2003

    Having looked at ways of maximising income tax saving between married couples, I would like to turn to capital gains tax. A husband and wife are taxed independently on their own capital gains. Each has an annual exemption of £7,900. This could mean a tax saving for each of them of up to £3,160 in the tax year (40 per cent of £7,900). However, the losses of one spouse can only be set against the gains of that spouse and not the other. If an asset held jointly by ...

  • Gartmore in swoop for Insight Fof team

    14 Aug 2003

    Insight Investment has been rocked by the surprise defection of its fund of funds team to Gartmore less than a year after it acquired the multi-manager operation in a deal for Rothschild Asset Management. In a move marking the end of a year-long search for a Fof offering, Gartmore has recruited Bambos Hambi, head of Insight's wealth management services, his deputy Marcus Brookes and their investment team of three. They are expected to join within three months to set up the new service, ...

  • Glasgow offers triple Isa

    13 Aug 2003

    GLASGOW INVESTMENT MANAGERS GLASGOW ISA Type: Investment trust maxi Isa Aim: Income and growth by investing in choice of three Glasgow investment trusts Minimum investment: Lump sum £200 a trust, monthly £20 a trust Maximum investment: Lump sum £7,000, monthly £583 Catmarked: No Investment choice: Choice of shires income, shires smaller companies and Glasgow income trust Charges: Initial ...

  • Group 300 complies around the clock with Australia move

    14 Aug 2003

    IFA network and services provider Group 300 is moving into the Australian market with its compliance technology from November. The Cambridge-based company, is offering I-Comply and I-Talk in Australia as the first of a range that the company is planning to export. Group 300 plans to target big financial services salesforces and tied advisers and is already in negotiations with several Australian providers. One of the main advantages of the initiative for Group 300 will be maximising ...

  • Half of pensioners have had to cut spending - Prudential

    19 Aug 2003

    Half of Briton's 10m pensioners have been forced to cut back on their spending over the last three months according to research from the Prudential.

  • Henderson and Artemis back Inter-Alliance share issue

    14 Aug 2003

    Fund firms Artemis and Henderson have joined HBOS in heading a group of institutional investors placing £15m in a new share issue from national IFA Inter-Alliance. Henderson is placing £2.6m for a 14 per cent stake in the firm while HBOS and Artemis are both paying £1.5m for 8 per cent stakes, with the remaining £9.4m coming from a range of institutional investors. Chairman and chief executive Keith Carby is investing £125,000 and distribution director ...

  • How to rein in spurious claims

    14 Aug 2003

    Lorna Bourke is absolutely right to reiterate the earlier comments of Sir Howard Davies on consumer complaints (Money Marketing, July 31) that we are in danger of being overwhelmed by spurious claims. I have to say that, in recent times, my firm has received more than its fair share. Ms Bourke has said it is difficult to see how to discourage behaviour of this sort but it would actually be very easy. As you are probably aware, any complaint which is referred to the Financial Ombudsman ...

  • IFA firms failing to plan ahead

    14 Aug 2003

    Group 300 says the results of its latest IFA survey prove that practices using formal business planning procedures are more profitable. The network interviewed 250 IFA firms over five weeks in May and June about their attitudes to business planning. It says it found an "ostrich mentality", with many advisers waiting to see what would happen to their practices rather than being proactive and planning for the future. The results show that only 11 firms, less than 5 per cent of ...

  • IFA profile: Scott and Casey

    14 Aug 2003

    A few years ago, IFAs were famously told by one life insurance chief executive that only big players or niche players would survive. Scott and Casey Financial Management, an IFA based in Harlow and serving clients on the Essex and Hertfordshire borders, is medium-sized and generalist. But its directors, four of whom are gathered together in their Harlow office, do not appear to believe their demise is imminent. Indeed their attitude is remarkably upbeat. The firm displays all the ...

  • IFA warns drawdown reforms may alienate investors

    14 Aug 2003

    Inland Revenue proposals to limit the death benefit available from drawdown plans will further undermine confidence in pension saving, warns The Drawdown Bureau. The IFA claims that the reforms will benefit life companies to the detriment of investors. Under current rules, if a drawdown investor dies before age 75, the spouse can take the pension fund as a lump sum less a tax charge, continue in drawdown or buy an annuity. But the Revenue's proposals limit the amount that ...

  • IMA seeks reassurance over FOS rulings on risk ratings

    14 Aug 2003

    The IMA is seeking clarification from the Financial Ombudsman Service over rulings which some fund managers fear oblige them to categorise all equity funds as high risk. The IMA says it is concerned by suggestions from several of its members that recent rulings against them on risk ratings could have huge implications for all firms with equity funds. They believe the FOS is effectively forcing them to classify equity funds as high risk in marketing literature, whether or not they ...

  • Independent view

    14 Aug 2003

    Do you know it has taken me pretty much 17 years in this business to properly understand the true pecking order in the regulatory melee? I suspect I really knew all along but I now understand that it is purely a political process - nothing more, nothing less. There was me thinking that the previous "regulators" - Fimbra/Lautro/Imro/PIA - were top of the food chain. All along, I blamed them for a string of seemingly stupid manoeuvres. It seemed that financial services were being hauled ...

  • Investec Private Bank - Nova Alpha

    13 Aug 2003

    Type: Fund of hedge funds Aim: Growth by investing in a portfolio of 20 hedge funds Minimum investments: Lump sum $100,000 Place of registration: Bermuda Investment split: 27% equity hedge, 13% convertible arbitrage, 12% event driven, 10% macro, 10% relative value arbitrage, 7% distressed securities, 7% equity market neutral, 5% managed futures, 5% merger arbitrage, 4% emerging markets global Charges: Initial 2% Commission: None Tel: ...

  • Investec Private Bank - Nova Alpha Capital Protected Exposure

    13 Aug 2003

    Type: Capital-protected fund of hedge funds Minimum investment: Lump sum $100,000 Place of registration: Bermuda Term: Seven years Guarantee: Original capital returned in full regardless of the performace in the Nova Alpha fund Charges: Implicit Closing date: August 29, 2003 Commission: None Tel: 020 7597 4010

  • Investment analysis

    14 Aug 2003

    Mixed messages on the outlook for the US economy from the previous week continued to be the focus, with investors banking further profits from the major bourses. The benchmark FTSE World index fell 0.3 per cent over the five days. The UK market, which has lagged the others recently, bucked the downward trend, with the FTSE Allshare index gaining 1 per cent. In the US, economic data out early in the week confirmed an upturn in business spending as factory orders for June came in better ...

  • Investment view

    14 Aug 2003

    Judging whether the Bank of England's monetary policy committee was likely to vary UK interest rates last week was one of the easier calls to make. Reuters polled no fewer than 42 economists ahead of the announcement and, without exception, they expected the MPC to leave interest rates unchanged. But deciding when the next movement in interest rates will be - and whether it will be a rise or a fall - is more difficult. The more robust economic data that has been arriving on analysts' ...

  • Irish pension also fails to hit target despite 5% cap

    14 Aug 2003

    The much heralded Irish price-capped pension product is failing to hit its target market even though it allows a 5 per cent bid/offer spread on top of a 1 per cent annual charge. The state-sponsored personal retirement savings account, which has been put forward as an example for an alternative to the UK's stakeholder, is being spurned by the Irish public, with only 3,500 sold to its target audience of 400,000 workers without employer pensions since it was launched last March. All ...

  • Jersey and Isle of Man IFAs join IFAP

    19 Aug 2003

    IFAs based in Jersey and the Isle of Man will now be able to join IFA Promotion. IFAP is also planning to offer its services to advisers in Guernsey.

  • Job's worth

    14 Aug 2003

    Reading Professor Jackman's comments on education in your July 31 edition, one can only assume that he is no more in touch with reality in his new post than he was at the FSA. You can have all the degree courses you like but youngsters are not going to bother to sign up for them unless they have an idea that the resulting job will be remunerative and worthwhile. If you are going to have financial skills, why not just go into investment banking with a starting salary of at least ...

  • Julian Gibbs

    14 Aug 2003

    While so many UK all companies funds are really closet trackers, managing a smaller company fund is a true test of a fund manager's skill About half of the smaller company funds in the UK have outperformed their benchmarks over both five and 10 years and, while smaller company funds have higher volatility than UK all companies funds, it is not that much higher. When the world economies begin to recover, smaller companies will start to outperform as a lot of them are still on ...

  • Karen Ritchie

    14 Aug 2003

    I the pleasant surroundings of Cambridge in a region of Britain with the lowest proportion of female IFAs, a small firm of all-women advisers has been growing rapidly in clients and holdings - as well as repute. Karen Ritchie and her partners set up Finance4Women in 2002 with a view to providing advice for the women of East Anglia. The firm has quickly grown with a reputation of delivering solid financial advice with no jargon and no hard-sell to women of all ages and walks of life. But ...

  • Keep your life cover separate - Moneyfacts

    13 Aug 2003

    The message that separate life cover for couples can offer better value for money than a joint policy is still not getting through, according to the latest Investment Life & Pensions Moneyfacts survey.

  • Keydata and nvesta unlock income

    14 Aug 2003

    nvesta and Keydata have introduced income-generating guaranteed equity bonds for investors with different risk profiles.nvesta's selecta plan is linked to the FTSE 100 and S&P 500 indices. Under the cautious option, investors choose monthly income of 0.47 per cent, annual income of 6.1 per cent or 33 per cent growth after five years. The dynamic option offers higher income of 0.65 per cent a month, 8.1 per cent a year or 43 per cent growth at the end of the ...

  • L&G's High Income Trust awarded AA rating

    15 Aug 2003

    Legal & General's High Income Trust has been awarded an AA fund management rating by Standard & Poor's Fund Research.The award is based on several factors, designed to identify the overall excellence of a fund. The rating means all Legal & General's retail fixed interest products now have the same AA rating. The High Income Trust fund is managed by David North.

  • Make your marque

    14 Aug 2003

    Speculators seeking unusual ways of investing their money have poured cash into vintage wine, polished up their collections of art and antiques, played the market for collectable toys or just stuck with rare stamps. But for those looking to change up a gear and add a little va va voom to their portfolio, a classic car could perhaps be the perfect vehicle. Next month, at the Leisure and Alternative Investment Show 2003 in London, classic car dealers will be showing their wares to ...

  • Mismatch of the day

    14 Aug 2003

    Just when it looked like things might be quietening down for IFAs from a regulatory point of view, yet another FSA review of the structure of advice has appeared on the horizon. In a document seen by Money Marketing last week, vague plans were outlined to attempt - yet again - to match up consumer expectations and needs with the financial advice available. The FSA has described the document as "blue-sky thinking", which may explain why it is so difficult to pin down exactly what ...

  • More education is needed, not more products

    14 Aug 2003

    HM Treasury and the FSA have got busy again regarding "simplified investment products" (FSA term) and "Sandler stakeholder product specifications" (HMT term). They have given a precis of feedback statements from the industry and also their initial responses to that feedback. From Sofa's viewpoint, however, they both seem to be missing the point somewhat. Why do we need new products for those on low to medium incomes (the target market according to HMT)? These products will be expensive ...

  • Naked truth about hot-air balloon

    14 Aug 2003

    The Diary would like to warn its readers to beware what they do in the safety of their back yard as you just never know who might be watching from above. A hot-air balloon flight over Bristol last week organised by Clerical Medical showed a group of journalists some interesting West Country backyard behaviour. The lowlight of the trip was a cheekslapping mooner - a man with an eye for an opportunity who was intent on showing passers-by the Grand Canyon without them having to go ...

  • New guidelines from Opra on winding up schemes

    19 Aug 2003

    The Occupational Pensions Regulatory Authority has published a new update on winding up pension schemes aimed at advisers, trustees and insolvency practitioners.The update, available at www.opra.gov.uk, sets out Opra's views on the main issues that can cause delay to schemes that are winding up, including investment issues minimum funding valuations and cash equivalent transfers. Opra has powers to speed up the wind-up process.

  • New Star spotlights global financials fund

    15 Aug 2003

    New Star Investment Funds has made the New Star global financials fund available to retail investors and is promoting the fund alongside two others as part of its triple growth package. The global financials fund holds between 40 and 50 stocks and started life in December 2001 as an institutional fund, the WorldInvest global wealth management fund. WorldInvest was subsequently taken over by New Star and the fund was renamed. Former Jupiter manager Guy de Blonay runs the ...

  • New structured plan from Premier

    19 Aug 2003

    Premier Fund Managers is launching a new structured plan offering 7 per cent per annum, even if the markets stays flat.

  • Northern Rock issues fifth guaranteed bond

    18 Aug 2003

    Northern Rock is launching a guaranteed equity bond linked to the FTSE 100.The guaranteed equity bond issue 5 offers investors returns equivalent to 90 per cent of the percentage rise in the FTSE 100 over three years or 115 per cent over five years, depending on the option chosen.The minimum investment is £5,000 and the maximum is £2m. All deposits must be received by September 16.

  • Norwich Union - Monthly Fixed Income Plan

    18 Aug 2003

    Type: Guaranteed equity bond Aim: Income linked to the FTSE 100 index Minimum-maximum investment: £3,000-no maximum, Isa £3,000-£7,000 Term: Five years Guarantee: Original capital returned in full provided the FTSE 100 does not fall by more than 30% and returns to at least its starting level Return: 0.47% income a month, Isa 5.75% income a year, 31.28% rolled up income at end of term Closing date: September 15, 2003 ...

  • NU considers bank-style charges

    13 Aug 2003

    The life insurance industry must consider hitting policyholders with "bank-style" service charges in the future according to Norwich Union. Following newswire reports that life offices are planning extra charges for services such as access to calling centres and requesting additional statements, the ABI says it is not aware of any such plans. But an NU spokeswoman says: "The idea of charging for services over and above the standard levels of service is one that the industry needs to ...

  • NU ends stand-alone guarantee on critical cover

    14 Aug 2003

    Norwich Union has withdrawn its stand-alone guaranteed critical-illness offering, saying it will now review premiums every five years. NU says it will continue offering guarantees on CI when it is combined with other products such as term or mortgage life insurance but that stand-alone guarantees are becoming too expensive for many consumers to afford. IFAs say the move comes as no great surprise as most clients prefer combined life and critical-illness cover as the extra benefit ...

  • October to January is best time to buy stocks

    14 Aug 2003

    October through to January is the best period to invest in the stockmarket, according to research by Hargreaves Lansdown. HL has taken the total return of the FTSE All Share index in every month of each year from the start of 1970 - when Lipper began monitoring the index - to July 30, 2003. Each of the monthly returns has been added together over the whole investment period and then divided by the number of times that month has occurred. For instance, there are 34 Januarys between ...

  • Old Mutual loses bond star to M&G

    14 Aug 2003

    Old Mutual's top-performing corporate bond fund manager Richard Woolnough is quitting to join M&G's fixed income team in the new year. Woolnough, the leading corporate bond fund manager of the past three years, will run a new fund that M&G is launching in the first quarter of 2004. The fund, which Woolnough will help develop, will sit between M&G's investment-grade and high-yield funds, with the ability to invest across the whole market. Woolnough's ...

  • Our regulator is too incompetent to deal with PI

    14 Aug 2003

    Regarding CP193 - Professional Indemnity Insurance for Personal Investment Firms - where in these almost 200 pages of verbiage does one find the terms "provable negligence" or "actual physical financial loss"? The answer is nowhere. For all the words and for all the FSA's so-called efforts to resolve the PI problems, its lack of understanding of the basic fundamentals of insurance, let alone indemnity insurance, is manifest by the absence of these two phrases. When will Mr Kenmir ...

  • Out of context

    14 Aug 2003

    •"The only reason we didn't use them for protection is they didn't class cigar smokers as smokers, which many of our clients found quite useful." - John Joseph Financial Services director Steve "he's a dish" Petrie on an unnamed provider. •"It's about time Money Marketing had the blinkers removed." - FSA spokesman Rob McIvor engages in a little friendly banter •"I don't know how to lie, I'm in PR." - Scottish Equitable PR Lesley McPherson. •"I'm ...

  • Packager AToM announces application for principal status

    19 Aug 2003

    Distribution and packaging specialist All Types of Mortgages has announced that it will apply for principal status under mortgage regulation. It is also launching into lifetime mortgages. The company says it is different from the multitude of others who have announced they will take principal status because it is reinforcing that there is no need to enter into a contract with it just yet.

  • Paragon may cut £10m at Mortgage Trust

    14 Aug 2003

    Paragon is set to wield the axe in a bid to make around £10m in cost savings at its newly acquired subsidiary Mortgage Trust, formerly Britannic Money. An analyst's report produced by Teather & Greenwood after Mortgage Trust was acquired by Paragon says the firm indicated it should be able to cut £10m from Britannic Money's £24m 2002 operating costs. This is the latest in a series of upheavals for Mortgage Trust since its acquisition by Paragon in July, ...

  • Parents not saving for university costs - AITC

    15 Aug 2003

    The Association of Investment Trust Companies' latest research shows that 41 per cent of parents are not saving any money towards their children's university education.

  • Pensions Ombudsman overwhelmed by complaints

    15 Aug 2003

    The Pensions Ombudsman is struggling to cope with its workload as complaints soared by 32 per cent to 3,891 in the year to April 2003 from 2,946 the previous year.

  • PI is no longer protection but a danger to IFAs

    14 Aug 2003

    The FSA tells us that over the period between June and September, 72 per cent of intermediaries applying for professional indemnity insurance were able to get the cover they required. Great. So no problem then. I wonder what their reaction would be if over one in four of the FSA staff were told that they would have to find another job, not because they were bad at the job, not because there had been a reduction in the workload, but simply because the regulations required it. Sadly, ...

  • Pickering says public will realise Isas beat pensions

    14 Aug 2003

    Alan Pickering, the author of the Pickering review on pension simplification, has accused pensions minister Malcolm Wicks of living in cloud cuckoo land if he thinks consumer education is going to solve the pension crisis. Speaking exclusively to Money Marketing last week, Pickering attacked Government pension policy, claiming educated consumers would realise they are better off saving in an Isa rather than a pension. He says that soon as consumers' understanding of the UK personal ...

  • Pioneer Friendly Society - Pure Protection

    14 Aug 2003

    Type: Income Protection Minimum benefit/minimum premium: £78/£1.53 a month Minimum-maximum ages: 16-59 Deferred periods: 1 day, 1, 4, 8, 13, 26, 52 weeks Charges: None Definition of disability: Own occupation Commission: Initial 130% of Lautro, annual 2.5% Tel: 01225 752140

  • Pivotal adds consultancy for IFAs

    13 Aug 2003

    Pivotal, the multi-manager platform launched in March 2003, has announced the launch of its second phase, a business consultancy aimed at UK IFAs. The company which is backed by the National Australia Bank and headed up by former Scottish Amicable group sales director John Cowan, says the consultancy will aim to help IFAs looking to develop their businesses to keep pace with changes to UK distribution.

  • Precipice bonds face misselling claims

    14 Aug 2003

    The industry could face another raft of misselling claims when the next wave of structured products mature this month despite the rallying markets, City law firm Reynolds Porter Chamberlain has warned. RPC points out that Scottish Life International, Scottish Mutual and Pinnacle Insurance are all among those companies which have stockmarket-linked so-called precipice bonds maturing this month. According to investment IFA Chartwell Investment Management, investors in SLI's income ...

  • Product matters

    14 Aug 2003

    Future Mortgages has gone through enormous change in the last few months. I suspect its new range is an important part of the renaissance, which has seen revamps from top management right through to distribution strategy. Almost all its management and sales teams are new. The lender has shifted its focus to the packaging market. It seems that it has implemented cascade underwriting to create a one-stop shop now that its range includes near-prime rather than just sub-prime products. Its ...

  • Providers wary over offshore pension trust claims

    14 Aug 2003

    An offshore financial services firm is targeting IFAs with a pension trust vehicle that claims to avoid the need to buy an annuity, allows freedom to invest in residential property and chattels and permits loans from the scheme. Providers have referred details of FSL's Protected Pension Trust to the Inland Revenue's trust-busting team in Nottingham to determine whether the product is a pension liberation device or a rival to the Gibraltar-based Challenger open annuity. Marketing ...

  • Rathbone tops fund charts

    14 Aug 2003

    The Rathbone Income fund has topped the charts for the most consistent UK equity income fund, according to IFA Principal Investment's annual "white list" of top-performing income funds. Principal's 27th equity income study reveals the Rathbone fund, managed by Carl Stick, topped the "white list" of the 12 most consistent funds producing a net income over the five years to June 30 of £21.50, based on a £100 investment. This fund has been in the top spot since July ...

  • RBS and Old Mutual on lookout for acquisitions

    14 Aug 2003

    Despite the downbeat UK financial services market, two big players, South African insurer Old Mutual and the Royal Bank of Scotland, are on the hunt for acquisitions. OM investor relations director James Poole says that while the company is in no hurry, it is looking at asset management as well as life insurance for a potential purchase as it looks to increase the amount its UK subsidiaries contribute to its overall business from a tenth to a third. RBS is reportedly setting aside ...

  • Rising confidence in the housing market grinds to a halt

    18 Aug 2003

    Confidence in the housing marketing has come to a halt after three months of steady increases, according to Barclays mortgage arm The Woolwich.

  • Rodrigues bids to regain focus as profits slump

    14 Aug 2003

    Bradford & Bingley chief executive Christopher Rodrigues is taking a more hands-on role in its distribution business after half-year profits for its distribution channels plummeted to £1m. Rodrigues will take over running B&B's estate agencies after managing director of retail Peter Barrett resigned. Group commercial director Ian Darby is taking over Charcol and group operations director Robert Dickie will oversee The Marketplace. Profits for Charcol, The Marketplace ...

  • Scottish Widows - Corporate Bond Assurance/Pension Fund

    19 Aug 2003

    Type: Unit-linked fund Aim: Growth by investing in the Scottish Widows corporate bond fund Minimum investment: Lump sum £5,000 via life products, £20 via pension products Investment split: 100% in UK and European corporate bonds Charges: Annual 1% Commission: Subject to negotiation Tel: 0845 843 2222

  • Scottish Widows - High Income Bond Assurance/Pension Fund

    18 Aug 2003

    Type: Unit-linked fundAim: Growth by investing in the Scottish Widows high income bond fundMinimum investment: Lump sum £5,000 via life products, lump sum £2,000, £50 a month, £600 a year via pension productsInvestment split: 65% high-yield bonds, 35% Government bondsCharges: Annual 1.5%Commission: Subject to negotiationTel: 0131 6556000

  • Scottish Widows - Strategic Income Bond Assurance/Pension Fund

    19 Aug 2003

    Type: Unit-linked fundAim: Growth by investing in the Scottish Widows strategic income bond fundMinimum investment: Lump sum £5,000 via life products, £20 via pension productsInvestment split: 100% in UK and European corporate bondsCharges: Annual 1%Commission: Subject to negotiationTel: 0845 843 2222

  • Scottish Widows joins Mortgage Alliance panel

    18 Aug 2003

    Scottish Widows Bank is joining the Scottish Provident Mortgage Alliance’s panel of lenders increasing the choice to a total of 25.  

  • Simple truth about stakeholder suite

    14 Aug 2003

    There are not many occasions when you hear the FSA, the consumer panel and the practitioner panel agreeing in public on something but that is what Sir Howard Davies, Colin Brown and Donald Brydon did at the FSA's annual meeting last month. What brought about this rare display of solidarity was the Government's latest ideas for taking forward the Sandler report. The report contained a lot of good sense. It was right to point its finger at opaque and obscure financial products, ...

  • Skandia - Series Six Group Executive Pension - Single Price

    15 Aug 2003

    Type: Group executive pension Minimum premium: £200 a month per member, £15,000 a month per scheme Minimum-maximum ages: 18-73 Minimum group size: 10 Fund links: Choice of 317 funds from Aberdeen, Artemis, Alliance Berstein, Allianz Dresdner, Baring, BlackRock, Britannic, Credit Suisse, DWS, FirstState, Fidelity, Foreign & Colonial, Framlington, Gartmore, Goldman Sachs, Henderson, HSBC, Invesco Perpetual, Investec, Isis, Jupiter, JPMF, Lazard, ...

  • Skandia - Series Six Group Personal Pension - Single Price

    15 Aug 2003

    Type: Group personal pensionMinimum premium: £10 a month a scheme, £150 a month a memberMinimum group size: 10Minimum-maximum ages: Birth-72Fund links: Choice of 317 funds from Aberdeen, Artemis, Alliance Berstein, Allianz Dresdner, Baring, BlackRock, Britannic, Credit Suisse, DWS, FirstState, Fidelity, Foreign & Colonial, Framlington, Gartmore, Goldman Sachs, Henderson, HSBC, Invesco Perpetual, Investec, Isis, Jupiter, JPMF, Lazard, Liontrust, ...

  • Skandia brings fee-based pensions to group market

    13 Aug 2003

    Skandia has introduced a group personal pension and a group executive personal pension within its single price pension range that is designed for fee-based advisers. The series six group personal pension - single price and series six group executive personal pension - single price products have no initial charges and the annual management charge is constructed so that IFAs can separate the costs of the pension wrapper and the investment fund ...

  • Status symbol

    14 Aug 2003

    Stop a person in the street and ask them what image is conjured up by "certified" or "certificate". The chances are that they will tell you that certified brings to mind either a person who is less mentally well than they might be or, in the case of certificate, the piece of paper you might receive having done rather well at swimming. Now ask them their perception of "chartered". They will speak of highly qualified, professional people. I am afraid that Nick Cann of the IFP is ...

  • Stonebanks' barbed olive branch for Standard

    14 Aug 2003

    Standard Life carpetbagger David Stonebanks has extended a barbed-edged olive branch to the insurer, suggesting he will not force a special general meeting to vote on demutualisation until its AGM next April if it will approve his resolutions in advance. Stonebanks, whose first demutualisation vote attempt was thwarted last month, says he wants Standard to be involved in the resolution drafting this time around as it has to live with the outcome of the campaign. Stonebanks, who ...

  • SWIP appoints investment director UK retail equities

    15 Aug 2003

    Scottish Widows Investment Partnership has appointed Peter Cockburn as investment director of UK equities retail.

  • Talkback

    14 Aug 2003

    Would you consider paying up to £3,000 to be considered for PI by Magian Mutual? "No. I've had no problems getting cover in the past without having to pay." Graeme Nicholson, Graeme Nicholson Independent Financial Consultancy "No, I wouldn't be prepared to pay for that. Why would I pay £3,000 when I could just send off a request to an underwriter for free?" Dale Manson, Edison Consulting "No, when we've got PI already, why would we pay someone £3,000 ...

  • Tax consultants works with corporate IFAs

    15 Aug 2003

    Specialists consultants Tax Innovations has formed a new company Strategy Innovations to work in partnership with IFA's entering the corporate advice sector.

  • Taxing matters

    14 Aug 2003

    Financial Secretary to the Treasury Ruth Kelly is the keynote speaker at Taxbriefs' October conference on Tax, Savings & Pensions - the next round of reforms. Being held on October 16 at Stationers' Hall, London, the one-day event has been organised in conjunction with the Inland Revenue, with the objective of examining the latest policy proposals from both the Inland Revenue and the Department for Work and Pensions. Other speakers include leader of the Inland Revenue Pension ...

  • Tesp test for friendlies

    14 Aug 2003

    The Association of Friendly Societies is keeping a watching brief on the Sandler consultation, fearing it could damage friendlies. The original plans last summer included calls for the end of qualifying polic-ies, meaning friendly societies would no longer be able to sell tax-exempt savings policies which form their staple business. In the AFS 2003-2004 yearbook, House of Commons Treasury select committee chairman John McFall says he was "greatly concerned" that the future of many ...

  • The joy of stakes

    14 Aug 2003

    I set up a stakeholder pension scheme for my staff in April 2001. I do not make any employer contributions to the scheme and take-up has been extremely low so far. Can you offer me some guidance for encouraging more employees to join the pension? First, you are not alone in your situation. A large number of group stakeholder pensions contain few or even no members. There are a number of reasons for this and by understanding these reasons you may be able to improve the number of ...

  • The with-profits bonus strategy

    14 Aug 2003

    A recent report suggests that two-thirds of people receiving endowment shortfall letters are doing absolutely nothing. No surprise there - but what about the remaining one-third? Are some of these people being pushed in the wrong direction? These projections take no account of terminal bonuses, which could well come to the rescue as the shining knight doing battle with that nasty shortfall, leaving the policyholder with a modest surplus rather than a gaping hole. This got me ...

  • Threadneedle shakes up pan-European growth fund

    13 Aug 2003

    Threadneedle has announced that Dominic Baker will assume responsibility for its pan-European growth fund at the end of August replacing Susie Roberts who is leaving the fund manager to pursue a career in the sailing industry.

  • Underestimating endowment maturity figures

    14 Aug 2003

    I too am dissatisfied with the current system of projecting endowment maturities (Letters, MM, July 31). The innate futility of attempting to shoehorn a guarantee, accrued annual bonuses, and a potential terminal bonus into a level growth projection of 4, 6 and 8 per cent is obvious. This is compounded by companies such as Standard Life, Clerical Medical, Legal & General, Guardian and Scottish Equitable, which use the current surrender value as the basis for their projections. Perhaps ...

  • Unum Provident snaps up Swiss Life UK's group business

    15 Aug 2003

    Swiss Life UK has announced it is selling its group protection business to Unum Provident in a deal which will see Swiss Life withdraw from the UK market completely.

  • Willetts blasts Government for lack of solutions on pensions

    18 Aug 2003

    The Conservatives are calling for bolder initiatives from the Government to bring back confidence in pensions, after the Pensions Ombudsman announced record complaints.

  • With-profits stands the test of time

    14 Aug 2003

    The popularity of with-profits bonds throughout the 1990s is well documented but times have changed and the economic environment we are living in today is very different. Some IFAs and investors might question whether with-profits bonds are still a viable place to invest new money in 2003. The downturn in markets over the last few years has taken its toll on investor confidence and IFAs will find it hard to convince some people to move their money off deposit. After all, the investor ...

  • Workers miss £350m in tax breaks - IFAP

    13 Aug 2003

    UK workers are missing out on £350m in tax breaks by ignoring employee share plans IFAP has revealed.

  • Writing's on wall

    14 Aug 2003

    The FSA is reported as having said its research has revealed that much promotional material for structured products does not adequately explain the risks associated with investing in them. Fair enough. This is followed by assorted yet frustratingly unspecific platitudes about improving marketing literature. But the FSA does go so far as saying that if consumers are not getting personally tailored advice, then an adequate explanation of risk is particularly important as they will be ...

  • Zurich pledges UK commitment

    14 Aug 2003

    The Zurich Financial Services Group is stressing its commitment to the UK life industry after a deal which will see it close Zurich Life and sell it to Swiss Re for £285m. The deal includes £149m cash to be paid when the transaction is completed, expected to be by the end of the year, with the balance paid as dividends before completion. Zurich Life will close to new business on August 27. Zurich claims it is not getting out of the UK life business but is looking to ...

Poll

Should the MPC have increased QE this week?

Current Issue

Advanced search