Money Marketing
13 October 2004

  • 'Advisers in the dark on tax credits'

    14 Oct 2004

    Advisers do not understand the current pension tax credits system, says Pension Commission chairman Adair Turner. Publishing his report into UK pensions, Turner said IFAs are as in the dark as consumers about tax credits which has led to a false belief that the highest earners are the best incentivised to save. Turner says: "When you look at tax credits, those who are eligible can have very high incentives to save but the problem is almost none of them and almost no IFAs ...

  • 'Advisers not using tech systems to full capacity'

    14 Oct 2004

    The majority of advisers are processing new business electronically but most are not using the services to their full capacity, according to The Exchange. Its report shows that 81 per cent of the 500 IFAs surveyed through IFA portal Exweb are processing new business electronically but 92 per cent are not using the technology to its full potential. Advisers submitting business electronically are still collecting data on traditional paper application forms and re-entering it at ...

  • 'Clients have lost faith in traditional equities'

    14 Oct 2004

    Half of IFAs buying hedge funds are recommending them because clients have lost faith in traditional equities, research from independent pollsters reveals. New research conducted by polling firm NMG Research shows that 54 per cent of IFAs recommending hedge funds are doing so because clients do not believe other funds can offer absolute returns. The data, which was commissioned by Close Fund Management, shows that one in 10 IFAs has advised on hedge funds and 70 per cent ...

  • 'I can see why phoenixes happen,' admits Bamford

    14 Oct 2004

    Sofa chairman and Informed Choice managing director Nick Bamford was advised to wind up his firm and transfer out its assets but decided against it for moral reasons. Bamford recently received professional advice about the future of Informed Choice, which has seen 14-fold increases in professional indemnity insurance premiums. Part of the advice was that he should wind up the business and start again. But Bamford says he did not feel comfortable following this advice ...

  • 'Multi-ties will offer most sales efficiency'

    14 Oct 2004

    Advisers will take four main approaches to the market after depolarisation, according to research by H2B. The research company surveyed 11 IFA businesses last month in association with Money Marketing and advertising agency Teamspirit. The results suggest the multi-tied route could lead to more efficiency of sales, a lower cost base and better provider support. A commission-based IFA model will ideally have strong central management controls backed with processes, ...

  • £130m for St James property fund

    13 Oct 2004

    St James's Place's commercial property fund has taken in £130m in the six months since its launch. The fund, which is managed by Duncan Owen of Insight Investment Management, invests in a mix of retail, office and industrial properties.

  • 79% of Wig firms say trail does not cover cost

    14 Oct 2004

    Women's IFA Group research shows that 79 per cent of member advisers feel trail commission does not cover the cost of serving existing clients. The data shows 93 per cent of Wig respondents have never received negative feedback from a client concerning ren-ewal or trail commission and 91 per cent believe their clients would not prefer a one-off up-front fee with no trail instead of current arrangements. The research, which looks at issues raised in a recent Treasury ...

  • 95% of IFAs say means testing is a disincentive

    14 Oct 2004

    A total of 95 per cent of IFAs say that means-testing benefits in the UK acts as a disincentive to pension savings. A poll on the BeeHive website run by Scottish Life pension guru Steve Bee revealed that only 5 per cent of 1,029 advisers surveyed thought pension credit was working. The poll supports the long-held view in the IFA community that pension credit is inappropriate for the UK and comes after the House of Commons' work and pensions committee pledged to hold ...

  • A different class from Close

    15 Oct 2004

    CLOSE FINSBURY ASSET MANAGEMENTMultiAsset PortfolioType: Oeic multi-manager fund of funds Aim: Growth by investing in equity funds, bond funds and alternative investments including commercial property and hedge funds Minimum investment: Lump sum £25,000Investment split: 36% UK equities, 12% fixed interest, 10% US, 10% commercial property, 8% structured investments, 8% hedge funds, 6% Europe, 5% Japan, 3% natural resources, 2% ...

  • A matter of principals

    14 Oct 2004

    Alliance & Leicester's admission that it will restrict the number of principals it deals with after M-Day has prompted concerns as to whether it and other lenders are ready for October 31 and beyond. A&L says that while it has a serious commitment to both lenders and brokers, its top priority is to be compliant. Head of mortgage intermediaries Mehrdad Yousefi says: "We are not in a position to trade with every principal from day one. It would be irresponsible ...

  • A&L is aiming to ensure it's business as usual

    14 Oct 2004

    With regard to the article published in Money Marketing last week, headlined A&L will cut principal numbers after M-Day, I feel it misrepresented Alliance & Leicester and our work with intermediaries. We are working extremely hard as we approach M-Day to ensure that it will be business as usual for Alliance & Leicester but there are a number of networks still yet to receive their approval from the FSA and this has meant that there may be a delay in some instances before ...

  • ABI guides insurers over HIV questions

    14 Oct 2004

    The ABI has published a statement of best practice on HIV and insurance to help insurers accurately assess applications for long-term insurance where HIV may be an issue. It hopes the statement will help insurers avoid intrusive or inappropriate questioning. The statement sets out the questions it is reasonable for insurers to ask to assess the risk of HIV which the ABI says identifies behaviour that increases the risk of HIV without asking about sexuality. Five ...

  • Accord offers US Libor tracker loan

    13 Oct 2004

    Accord Mortgages is launching a five-year US Libor tracker mortgage. The London inter-bank offered rate is the rate of interest at which banks borrow funds for US dollar deposits. The rate charged is set on March 31, June30, September 30 and December 31, plus the tracker rate of 1.99 per cent. Maximum LTV is 95 per cent. Accord Mortgages managing director Linda Will says the mortgage is open to the whole of market.

  • AIFA's VIEW

    14 Oct 2004

    That nice Paul Rich from the FSA (and I mean that most sincerely, I really do) has invited us to come up with ideas for alternatives to the Financial Services Compensation Scheme. Certainly, the sudden change in attitude by some providers towards the cross-subsidy, with the welcome exception of Clerical Medical, requires us to go in for some urgent rethinking. I am not a great fan of cross-subsidies but I do believe that the FSCS arrangements could continue to be justified into ...

  • Amber sells £65m mortgage portfolio

    19 Oct 2004

    Amber Homeloans has announced the salel of a mortgage portfolio with a value of £65m to Future Mortgages, part of Citigroup.The portfolio was made up of self-certification and light adverse assets. This is the second transaction between Amber and Future.Amber was advised by Pinsents and Future by Allen Overy LLP.Amber managing director Gordon Jolly says: "The sale of residential mortgage assets is an integral part of Amber's strategy and will continue to ...

  • AMI issues checklists for firms in run-up to regulation

    14 Oct 2004

    The Association of Mortgage Intermediaries is issuing checklists for mortgage intermediaries to use as they get ready for M-Day on October 31. The checklists identify the steps that mortgage intermediaries should take to ensure they are ready for the onset of regulation. They support additional information available from the AMI designed to address key areas such as handling compliant business, training and competency and dealing fairly with complaints. The AMI ...

  • Arlington secures its place

    18 Oct 2004

    ARLINGTON PROPERTY INVESTORSArlington UK Balanced Property FundType: Oeic Aim: Income and growth by investing in UK commercial property Minimum investment: Lump sum £90,000 Investment split: 26% offices, 23% retail shops, 24% industrial, 27% leisure Place of registration: Dublin Charges: Initial up to 2%, annual 1.25% Commission: Subject to negotiation Tel: 0141 306 7600 The ...

  • Around 80% of proxy votes in favour of LIA/Sofa merger

    14 Oct 2004

    Early indications are positive for a merger between Sofa and the LIA, with proxy votes understood to be overwhelmingly in favour of the proposal. It is believed that as many as 80 per cent of proxy votes so far received by the LIA are in favour of the merger. The proxy votes are sent by those members unable to attend the extraordinary general meetings of the two bodies. The LIA is holding an EGM for its members on Wednesday, October 13, with Sofa following two ...

  • Ashley Law withdraws ads in row over franchise terms

    14 Oct 2004

    Ashley Law has withdrawn two ads after a complaint from an IFA over the status of membership was upheld by the Advertising Standards Authority. Ned Naylor, of IFA Ned Naylor & Co, objected to ads from Ashley Law which promised "guaranteed client ownership" for IFAs. Naylor says client ownership at Ashley Law is not guaranteed as, when advisers decide to leave the com-pany or have their franchise agreement termin-ated, they lose all their accrued income and are unable ...

  • B&B disposes of property services

    18 Oct 2004

    Bradford & Bingley has completed the disposal of its property services businesses, Bradford & Bingley Estate Agents and SecureMove Property Services Ltd, to Countrywide for £44.3m in cash. B&B says the sale proceeds are expected to be used in the normal course of business.Group chief executive Steven Crawshaw says: "The announcement of these disposals continues the refocus of the group towards our core businesses of specialist lending and branch based retail ...

  • Bad times for good firms

    14 Oct 2004

    It is in this spirit that I write this as an open letter to ask you to consider an important and pressing issue currently facing all independent financial advisers regardless of their size. I refer to the ever increasing burden of the Financial Services Compensation Scheme levy. "No taxation without representation" has been both a rallying cry and a recognition of injustice since the Boston Tea Party yet, not for the first time, all IFA firms have recently been faced with dramatic ...

  • Baillie Gifford and AITC in stakeholder CTFs plea

    14 Oct 2004

    Baillie Gifford and the AITC have issued an eleventh-hour plea to the FSA for investment trusts to be made eligible for inclusion in stakeholder child trust funds. Baillie Gifford chief executive Chris Fletcher wrote to the FSA urging it to allow investment trusts to be inclu-ded in the CTF stakeholder option on the basis that many trusts are significantly chea-per than funds eligible for stakeholder CTFs. Fletcher argues that many global generalist trusts such as the ...

  • Baillie Gifford makes Sipp debut with low-cost plan

    14 Oct 2004

    Baillie Gifford has entered the Sipp market with a low-cost product centred on its investment trust and fixed-interest fund ranges. The Baillie Gifford select pension, administered by Alliance Trust Savings, has no initial or annual fees and charges are only made for transactions. These charges include £7.50 for a weekly dealing facility or £15 for a daily dealing facility plus 0.2 per cent dealing commission. The dealing commission is rebated for purchases ...

  • Bankhall to debut Axa's new range

    14 Oct 2004

    Axa is unveiling a major initiative which will make Bankhall a key partner for the launch of its protection proposition in November. The IFA services provider will be a major distributor of products from Axa's new range, which will encompass a menu-based proposition. Members will be able to take advantage of Axa products and services. Axa's strategy is to launch its protection proposition initially through a number of key intermediaries and roll out to more intermediaries ...

  • Bates suspended in businesses probe

    14 Oct 2004

    Bates Investment Services founder and chairman Graham Bates has been suspended pending an investigation into his business dealings days after telling the firm he wanted to quit. Bates and his sister, managing director Helen Peace, were both suspended for "internal management issues" last week just days after Bates tendered his resignation. The probe is being headed by The Money Portal managing director Richard Craven, who bought Bates Investment Services in 2003. Craven ...

  • Be wary of network promises - PMN

    19 Oct 2004

    The Professional Mortgage Network is warning intermediaries who are still considering joining a mortgage network to avoid aligning themselves with organisations promising fast-track authorisation and guarantees of authorisation being granted.Managing director Dale Knight says: "At best, it is irresponsible on the part of the network to paint a picture to a potential member that suggests their AR application is going to be given preferential treatment by the FSA. At worst, it's ...

  • Blair fails to address policy

    14 Oct 2004

    Prime Minister Tony Blair disappointed pension experts by shying away from a significant announcement on third-term pension policy this week. Blair's Opportunity Society speech in London on Monday - the day before Adair Turner's pension report - had been billed as a significant pointer to Labour pension policy going into the next general election. But Blair's failure to deliver any new policy details has been interpreted as evidence of the paralysis in Whitehall ...

  • Brace yourself for nasty surprises

    14 Oct 2004

    At least a debate has started about alter-natives to the Financial Services Compen-sation Scheme. The FSA appears to be willing to listen and is even making some suggestions. The LIA and Ken Davy are now backing a product levy, with Davy adding ruefully that he advocated the idea a decade ago before it was rejected. What most agree on is that the current system is unsatisfactory. It threatens to bring down good firms along with the bad, the up until now lucky along with the unlucky. ...

  • Britannia staff move to Axa in sales tie-up

    14 Oct 2004

    Britannia Building Society is transferring its sales team to Axa Sun Life and signing a deal to distribute Axa's life, pension, protection and investment products. The partnership, which will run from January 2005, coincides with the new FSA rules on the sale of regulated products. Britannia members will be able to buy Axa mortgages and life protection, investments, pensions, annuities, unit trusts and ISAs through Britannia branches and a dedicated telesales team. The ...

  • Buy-to-let is long term investment

    15 Oct 2004

    Property investors should consider buy-to-let as a long term investment based upon capital growth rather than an opportunity to make a quick buck, says investment property mortgage broker Mortgages for Business.Managing director David Whittaker says: "Like all investment opportunities, investors should be cautious of schemes offering to make millionaires with little or no outlay or effort. The foundations of the buy-to-let market remain extremely solid as long as investors ...

  • Call for EU-wide compensation fund

    14 Oct 2004

    The Financial Services Consumer Panel has called for a centralised European compensation fund to be set up. Speaking at a Treasury select committee meeting on the EU single market in financial services, FSCP chairwoman Ann Foster complained that the EU's Financial Services Action Plan actively excludes consumers. Foster wants to see more measures put in place to protect UK consumers buying in mainland Europe but did not suggest ways of funding a scheme. She ...

  • Chris Cummings

    14 Oct 2004

    I the fourth book of Douglas Adams' Hitchhiker's Guide to the Galaxy, the main protagonist Arthur Dent is told "flying is easy. Just throw yourself at the ground and miss" - evasive instruction that is akin to the way some people describe how to lobby the financial services regulator and the Government. The difficulty of successfully executing the task itself is only slightly less of a conundrum than actually trying to work out how to approach the task in the first place. But ...

  • Correspondent's week

    14 Oct 2004

    Corey boles London is a different place at 5am. It is definitely quieter, certainly darker and generally more peaceful. I know this because working at Dow Jones I have to rouse my weary self from bed at 5am most days to ensure my arrival in the office by 6.45am so I can string together some words about any market announcements made by the companies I cover. For those who knew me in what I am starting to refer to as my previous life, it is understandable why they may find their ...

  • Crunch time on LIA merger

    14 Oct 2004

    Well, it's now crunch time on the LIA/Sofa merger. All the hot air has been expended and we will shortly know the result. If the vote is yes, then for those, like myself, who have been unequivocally opposed, it would seem we have no other proper course but to resign. But what if it is no? Will those representatives in the committees and boards who promoted the idea resign? What is their honourable course? The LIA executives are not to blame, they merely voice the views of the ...

  • Cutting edge of Scots art

    14 Oct 2004

    Invitees to Standard Life Investment's private view at a contemporary Scottish art exhibition last week were left choking on their canapés, the Diary learns. The Braveart exhibition, at the SLI-owned Whiteley's Shopping Centre, featured a video of an artist mutilating herself with razorblades. How this caused such consternation is a surprise to the Diary, who understands that such activity has been all the range among fund managers after years of mundane performance.

  • Davy resurrects idea of product levy to ease FSCS burden

    14 Oct 2004

    DBS and SimplyBiz founder Ken Davy is calling on the FSA to introduce a product levy to combat the huge increases IFAs are seeing in their FSCS bills. Davy has written to FSA chairman Callum McCarthy about the increasing burden IFAs are facing in their levies to the Financial Services Compensation Scheme and asking him to investigate introducing a product levy. Davy points out that the principle of a levy is already accepted in general insurance. He adds that ...

  • Depolarisation starts December 1st - FSA

    19 Oct 2004

    Depolarisation will start on December 1st this year with a six month transitional period, says the FSA.The regulator will be publishing final rules on depolarisation on December 1st, the date when the regime is also scheduled to begin.Firms will have six months - until June 1st - to implement depolarisation.Money Marketing revealed earlier this month that depolarisation is likely to take place in December, a month earlier than the market has been expecting.FSA ...

  • Deposit accounts ahead of inflation

    14 Oct 2004

    Wealthy taxpayers can beat inflation with more than half of all deposit accounts currently available despite not being able to with any last year. Survey results from Bates Investment Services show that higher-rate taxpayers can get a positive real rate of return with 51 per cent of all deposit accounts. The same survey last October showed that this could not be achieved with any account out of 762 on the market. It also showed that 93 per cent of basic-rate taxpayers ...

  • Destini acquires three more IFAs

    14 Oct 2004

    Destini has bought three more businesses, adding £1.5m to its turnover and a further 15 advisers to the group. The new acquisitions are Bournemouth-based Swift IFA, Adams Tingle Financial Services of Kettering in Northamptonshire and Vivienne Shepherd & Co from near Newcastle. Adams Tingle managing director Gary Keyes says he wanted his firm to be bought to fulfil the human and capital costs of growing a successful business and allow the company to concentrate ...

  • Ewing set to leave Fundsdirect

    13 Oct 2004

    Fundsdirect chief executive officer Sean Ewing is understood to be leaving the company. Company founder Ewing is thought to have tended his resignation in August but will be leaving the group in the next few days.

  • Extinction claim at odds with reality

    14 Oct 2004

    Contrary to Peter McGahan's assertions in Money Marketing that supermarkets are exp-ensive and double charge, true fund supermarket platforms have been successful in the UK precisely because they do not layer double-charging on underlying funds. A further factor that has ensured that fund super-markets have enjoyed a rate of adoption by IFAs quite unprecedented in the UK funds industry is the inclusion, on the major supermarket platforms, of a widely representative range of ...

  • Farrow's view

    14 Oct 2004

    It is unlikely to outsell Harry Potter or get nominated for the Booker prize but Andrew Adams, a lecturer at Edinburgh University, is extremely proud of his new book The Split Capital Investment Trust Crisis. Not the sexiest of titles admittedly, but I suspect that lawyers may have had intervened if the words "magic circle", "corruption" or "collusion" had been used. The timing of the book may raise a few eyebrows, particularly among the 50,000 investors who have lost ...

  • Fidelity focuses on China

    15 Oct 2004

    Fidelity Investments has established a Luxemburg-domiciled Sicav that invests mainly in companies based in mainland China and Hong Kong or those deriving most of their income from this region.Unlike greater China funds which invest in the surrounding areas such as Taiwan, this fund is 90 per cent invested in China itself. In keeping with its name, the Fidelity china focus fund will contain no more than 50 holdings. A concentrated portfolio is intended to maximise exposure to the ...

  • Fidelity funds target India and China

    13 Oct 2004

    Fidelity Investments has opened its Luxembourg-domiciled India and China focus funds to UK investors with the launch of sterling share classes for the two portfolios.China focus is managed out of Hong Kong by Patrick Lo and India focus is headed up by Michael Gordon.Both will be eligible for Pep and Isa investors and will carry a minimum investment of £1,000.

  • Fidelity Investments - Fidelity Funds China Focus Fund

    15 Oct 2004

    Type: SicavAim: Growth by investing in companies in mainland China and Hong KongMinimum investment: Lump sum £1,000, monthly £50Investment split: 100% in mainland China and Hong KongPlace of registration: LuxemburgCharges: Initial 3.5%,annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0800 414124

  • Fidelity Investments - Fidelity Funds India Focus Fund

    14 Oct 2004

    Type: SicavAim: Growth by investing in Indian companies and companies deriving their income from IndiaMinimum investment: Lump sum £1,000, monthly £50Investment split: 100% in Indian companies and companies deriving their income from IndiaPlace of registration: LuxemburgCharges: Initial 3.5%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0800 414124

  • Fidelity offers taste of Indian spice

    18 Oct 2004

    Fidelity Investments has added a sterling share class to a Sicav fund that invests in India.The Fidelity India focus fund invests mainly in shares listed in India but also holds companies deriving most of their income from the region. Factors affecting growth in the region are different to other emerging markets and this is why Fidelity is offering UK investors a pure Indian fund. The fund will invest in 60 to 80 stocks and will have a bias towards small and mid caps.The ...

  • First State eyes up Asia

    13 Oct 2004

    First State will offer UK investors access to three Irish variable capital company funds through a new sterling share class in the First State global umbrella fund.Changes in the definition of 'offshore fund' were introduced by the UK Finance Act in July this year, which allows individual sub-funds of umbrella funds and share classes to be granted UK distributor status in their own right. Previously, UK distributor status could be granted only on the umbrella fund, which ...

  • First State Investments - First State Asian Growth Fund

    15 Oct 2004

    Type: UcitsAim: Growth by investing in Asia excluding Japan and AustralasiaMinimum investment: Lump sum $1,500Investment split: 25.8% Hong Kong, 21.7% Korea, 12.4%Taiwan,11.6% China, 10.1% Singapore, 7.7% Malaysia, 4.5% India, 2.8% Thailand, 0.9% Phillipines, 2.5% cashPlace of registration: DublinCharges: Initial 5%, annual 1.5%Commission: Initial up to 5%, renewal 0.5%Tel: 0800 917 1717

  • First State Investments - First State China Growth Fund

    18 Oct 2004

    Type: UcitsAim: Growth by investing in companies based in or which derive their income from the People's Republic of ChinaMinimum investment: Lump sum $1,500Investment split: 44.3% industrials, 24.9% consumer discretionary, 8.7% financials, 5.8% energy, 5% healthcare, 3.5% consumer staples, 2.9% utilities, 2.1% materials, 1.4% information technology, 1.4% cashPlace of registration: DublinCharges: Initial up to 5%, annual ...

  • First State Investments - First State Greater China Growth Fund

    18 Oct 2004

    Type: UcitsAim: Growth by investing in companies based in or which derive their income from the People's Republic of China, Hong Kong and TaiwanMinimum investment: Lump sum $1,500Investment split: Hong Kong 45.1%, Taiwan 26.5%, other 28.2%, cash 0.2%Place of registration: DublinCharges: Initial 5%, annual 1.5%Commission: Initial up to 5%%, renewal 0.5%Tel: 0800 917 1717

  • First State looks great in China

    19 Oct 2004

    First State Investments has established a sterling share class in the First State Greater China growth fund, making it available to UK investors for the first time.The fund invests a range of companies in the People's Republic of China, Hong Kong, Taiwan and Macau. It will be managed by Martin Lau, who joined First State in 2002. Lau started his career in 1995 with the risk management team at BZW and then spent six years as a fund manager with Invesco, where he was responsible ...

  • FSA 'could ban people behind phoenix firms'

    14 Oct 2004

    Phoenix firms could find that the individuals responsible for dumping liabilities on the Financial Services Compensation Scheme are banned from the industry. Aifa director general Paul Smee warns that the FSA will be looking closely at whether those individuals responsible for instigating a phoenix are fit and proper, and whether they should be allowed to continue in the industry. Although phoenixing is permitted by company law and cannot be banned by the regulator, the ...

  • FSA and Treasury respond to savings report

    14 Oct 2004

    The FSA and the Treasury have responded to select committee recommendations to improve confidence in savings.The Government has joined the select committee's called for an industry led forum designed to tackle to the problems of consumer confidence.And it has welcomed the commitment of the FSA and of product providers to come up with some workable solution to producing risk ratings for investments.The reponses come after the Treasury select committee produced its report ...

  • FSA puts secret conditions on merger

    14 Oct 2004

    The FSA has placed secret conditions on the merger of Inter-Alliance and Millfield. In a deal with the FSA, the firms had to agree to a series of restrictions - which the regulator refuses to make public - before a merger was approved. Both firms were issued with a warning notice and a decision notice on September 29 relating to the proposed merger. The next day, they were told a set of restrictions had been applied. The regulator has taken the same approach ...

  • FSA says trail commission cannot always be accounted for.

    14 Oct 2004

    Regulators have told the Treasury select committee that trail commission cannot always be accounted for.In its response the committee's report the FSA said that small amounts of trail could not always be recorded.It also emphasised its commitment to cutting down on commission when no advice has been given.

  • FSA small firms unit on the road

    13 Oct 2004

    The FSA's Small Businesses Division will be visiting Portsmouth and the surrounding area for its second visit to the regions following a trip to Gloucestershire in June. The regulator will be visiting firms in the area and is offering surgery slots to local small firms to raise any issues and concerns they have. The FSA will also be visiting Northern Ireland, Leeds and Edinburgh later this year.

  • FSCS declares 33 firms in default

    14 Oct 2004

    The Financial Services Compensation Scheme has declared 33 firms in default, opening the way to consumers who may have lost money to make a claim. The firms are: Norvic Insurance Brokers (latterly Norvic Insurance Services) of Norwich. Peregrine Overseas of Woodbridge. Philip John Howells, formerly trading as Willis Howells Financial Services, of Newmarket. Residential & Commercial Mortgage Services, trading as The Mortgage & Pension ...

  • Fundsdirect sets up talks on wrap deal

    14 Oct 2004

    Fundsdirect will give IFAs a glimpse of what its wrap prod-uct will look like in a series of workshops in November. The wrap platform provider has been marketing its proposed product for six months and sales director Rikos Leong-Son admits that intermediaries have become impatient with the promise of the wrap. Fundsdirect is still developing the sources and systems for what it believes will be the first complete product wrapper. It is expected to include funds, Peps, ...

  • GAM reopens funds of hedge funds

    14 Oct 2004

    The multi-manager concept is not new but has taken on a fresh lease of life in the UK. Unlike some investment themes that have caught the imagination for short periods, however, I believe this approach to managing money is backed by sound business fundamentals and will therefore have longevity. Key strengths can be identified. From a regulatory point of view, there is the role as a filter to underlying quality investment funds and the constant monitoring of these funds. Time management ...

  • Gartmore funds back Cazenove's star stockpicker

    14 Oct 2004

    Gartmore's new multi-manager range is heavily backing the recently launched Cazenove fund run by Neil Pegrum. Four Gartmore funds of funds - UK high alpha strategy, global high alpha strategy, active strategy and balanced strategy - have taken strong positions in the Cazenove UK dynamic fund based on Pegrum's stockpicking credentials. Behind the selection is a belief that stockpickers will be the fund managers most likely to outperform the market. The cautious ...

  • Government must demonstrate the benefit of saving

    14 Oct 2004

    I have just read Andy Cherkas' article headlined, The trouble with stakeholder (Money Marketing last week). He identifies two things that suitability problems centre on: •60 per cent maximum equity content. •Lifestyling of pension funds. If these are truly problems, can I suggest a simple way of avoiding them - use providers and funds that do not have these restrictions. May I further suggest a fundamental reason why stakeholder ...

  • Halifax identifies long-term cooling of house market

    14 Oct 2004

    House price inflation is slowing, according to Halifax, which recorded a rise of just 1.4 per cent in September. This was an increase on the 0.5 per cent fall in prices in August. However, Halifax says the increase in the last three months was just 2.7 per cent, less than half the 6.1 per cent gain in the second quarter, which it says is evidence of a slowdown in price inflation. Halifax says the North/South divide is narrowing rapidly, with the average price in the South ...

  • Harris on Mortgages

    14 Oct 2004

    The Council of Mortgage Len-ders estimates that gross mortgage lending could reach £300 billion for 2004. This figure cannot be accurate. I base my assumptions on the various claims of clubs and brokers alike on the level of mortgage business they are arranging. £1bn here, £5bn there and another £15 bn somewhere else. A quick totting up suggests the market for 2004 could reach £1tn. Of course, the CML prediction is the accurate one but in a time when ...

  • Help stamp out market timing, managers told

    14 Oct 2004

    Fund managers have been told they have an obligation to take steps to discourage market timing traders. The Investment Management Association has spelt out to fund managers that as part of their role of looking after customers they are expected to help stop market timing. Investment firms have been told that the potentially harmful impact of market timing needed to be understood by all managers. Market timing is not a precisely defined term but generally refers ...

  • Hindsight for sore IFAs

    14 Oct 2004

    Ron Sandler, for once, is absolutely right when he says the FSA's refusal to provide a clear definition of misselling will lead to more scandals which will damage the industry. Whatever are we paying the FSA for? You can bet your bottom dollar - to which an increasing number of practitioners are getting perilously close - the FSA will have no such reluctance when the opportunity presents itself for another hindsight review. In fact, Clive Briault all but admits this ...

  • HNW adviser in link with Hampton Intl Mortgages

    14 Oct 2004

    Former Charcol IFA Jane Robinson is setting up a wealth management firm that will receive referrals from Hamptons International Mortgages. Square Mile Wealth will focus on top-tier high-net-worth advice, with a focus on pensions, divorce and inheritance tax planning. It will get around 30 leads a week from Hamptons, which also holds a stake in the IFA. Robinson takes the role of managing director of Square Mile Wealth, joined by three other advisers from Millfield, Charcol ...

  • IFAs condemn much marketing material as a waste of resources

    14 Oct 2004

    Advisers have criticised both business-to-business and business-to-consumer marketing although they particularly want to see a change in marketing directed at themselves. IFA managers would like to see more customer relationship management rather than broadcast marketing, according to qualitative research from H2B. They complain about lack of proper consultation on product development and believe much print material is a waste of resources, often off-message and allowing ...

  • IFAs fear clash of cultures

    15 Oct 2004

    IFAs are keen to see what a merged Sofa and LIA will mean for them but fear a clash of cultures between the two organisations.Pearson Jones director Nick Conyers says: "I want to see what the brave new world of the Personal Finance Society will mean for us. There is potential for a clash of cultures but we are all pulling in the same direction and I hope the PFS will enable us to be seen as a profession rather than in the tarnished light we are viewed at the moment."Jamieson ...

  • IFP chooses new president

    13 Oct 2004

    Institute of Financial Planning vice president Ian Shipway is replacing Campbell Edgar as president of the IFP while Jane Wheeler is to be the IFP's new vice president. John Porteous and Barry Horner are joining the IFP's board.

  • In Pru Health

    19 Oct 2004

    PRUDENTIALPruHealthType: Individual and group private medical insuranceMinimum-maximum ages: 18-70Minimum group size: TwoMinimum premium: No minimumMaximum benefits: No overall maximum but limits will apply to some benefitsCover provided: Comprehensive plan - unlimited inpatient benefits except psychiatric treatment up to 45 days a year, outpatient benefit - unlimited benefits except chiropractic/ osteopathy ...

  • Independent view

    14 Oct 2004

    Did you know that in the US you have to be an accredited investor to invest in a number of higher risk investments? These investments include: •private placements; •real estate syndication and limited partnerships; •pre-initial public offerings (IPOs); •sub-prime financing; •mergers and acquisitions; •loans for start-ups; •hedge funds. Under the Securities Act of 1933, an accredited investor is accepted as someone ...

  • Interactive buys Moneywise magazine

    13 Oct 2004

    Investment website Interactive Investor has bought consumer finance magazine Moneywise. Capital Accumulation, which owns Interactive Investor, bought the publication from the UK operation of Reader's Digest Association for an undisclosed fee. The integration of Moneywise into CA is expected to be achieved by the end of the year.

  • Investment view

    14 Oct 2004

    In the mid-1980s, when the FSA was barely a gleam in the legislator's eye, I was seconded to Allied Dunbar as a consequence of a joint business venture with my employers. I know it was styled Allied Crowbar by others but it presented well and was successful in its selling techniques. It also trained some excellent salesmen. One in particular that crossed my path was John Rose, one one of many high-flying Allied Dunbar salesmen that left to join J. Rothschild, now St. James ...

  • Is Japan blossoming at last?

    14 Oct 2004

    There is a perception that, having shown signs of life earlier in the year, the Japanese equity market has disappointed once again. However, the reality is somewhat different. The Tokyo Stock Exchange First Section index (Topix) has risen by 5.7 per cent in sterling terms since the start of January - significantly ahead of the Morgan Stanley Capital International World index, which has returned 3.3 per cent, and rather more than the 5.3 per cent delivered by the FTSE All Share ...

  • Jelf set to float on Aim

    13 Oct 2004

    Corporate intermediary Jelf Group has announced its intention to float on AIM and is seeking to raise approximately £2.5m at the placing price through a placing of 3,086,420 placing shares. Jelf Group has applied to the London Stock Exchange for admission to AIM and expects that dealing will commence on October 21.

  • Joy of the Rovers

    14 Oct 2004

    As a Bristol Rovers fan, can I just say how entertained I was by the front-page article detailing the spat between two of Bristol City's supporters, Steve Lansdown and Jon Maguire (Money Marketing, September 30). You really should ask them to tell you the endearing term that Rovers fans use to describe our neighbouring team's supporters. Long may City continue to fall out among themselves. Nick Bamford Managing director,Informed Choice,Cranleigh, Surrey

  • JP Morgan giving free rein to Euro managers

    14 Oct 2004

    JP Morgan Fleming Asset Management is tapping into European markets with a UK-domiciled Oeic. The Europe dynamic (excluding UK) fund is jointly managed by James Elliot and Ajay Gambhir, who will focus on absolute rather than relative returns. The managers will have unconstrained stock selection and no index-weighting limitations. The fund, which is available for Isas and Pep transfers, is expected to hold about 50 to 100 stocks. It has an annual charge of 1.5 per cent ...

  • Julian Gibbs

    14 Oct 2004

    Patrick Evershed, who in June 2002 moved to New Star after a highly successful career with Rathbones, has been equally successful with his New Star select opportunities fund. Since its launch in June 2002, it is fourth in the UK all companies sector out of 286 funds with a rise of over 30 per cent. Over the past year or so, IFAs have been discouraged from investing in this fund as Evershed did not see too many investment opportunities, so a large inflow of money could have affected ...

  • Just Retirement joins the Exchange annuity service

    15 Oct 2004

    IFA portal the Exchange has re-designed its annuity service and specialist enhanced annuities provider Just Retirement, has joined the service. The total number of providers available through the portal is now 16.

  • Keydata unlocks income generator

    14 Oct 2004

    Keydata Investments has brought out issue 12 of the extra income plan, an income-producing capital-protected bond that is linked to the performance of the FTSE 100 over a five-year term.Investors can choose from annual income at 6 per cent gross, quarterly income of 1.41 per cent gross or rolled-up income at 35 per cent gross. The bond will also provide a full capital return provided the index does not fall by more than 30 per cent without recovering to at least its initial value. ...

  • Kleinwort offers hedge fund range in joint deal

    14 Oct 2004

    Kleinwort Benson Private Bank is setting up a range of onshore funds tracking major hedge fund indices in association with boutique Bespoke Financial Consulting. The products, including the FTSE broad hedge fund and S&P broad hedge fund index-tracking portfolios, will be launched by Bespoke, with Kleinwort acting as investment manager. They will be in an onshore Oeic structure with fortnightly dealing. The groups are jointly marketing a commodity index tracker which ...

  • L&G attacks FSA over £1.1m misselling fine

    14 Oct 2004

    Legal & General director of compliance Diana Miller has attacked the FSA for failing to grill any intermediaries during an investigation into endowment misselling. Miller told a financial services and markets tribunal that the regulator had no und-erstanding of L&G's sales processes because it had failed to speak to any advisers. L&G is appealing against a £1.1m fine for selling mortgage endowments to unsuitable people between 1997 and 1999. The ...

  • LIA votes yes to merger with Sofa

    13 Oct 2004

    The LIA's extraordinary general meeting today on the proposed merger with Sofa came back with a resounding yes vote.Two thousand six hundred and sixty four votes (87 per cent) were in favour of the merger with just 414 against.Three thousand and seventy eight votes were cast.Sofa's EGM is on Friday.

  • Life office in Fundsdirect deal

    13 Oct 2004

    A life office is understood to be in the closing stages of a deal with Fundsdirect. Prudential is rumoured to be a leading partner alongside Egg and Fundsdirect. The deal would allow sharing of investment costs, risk and offer marketing support.

  • Lincoln experiments with unit classes on two funds

    14 Oct 2004

    Lincoln Unit Trust Managers is set to offer a range of unit classes on its high-profile Far East and emerging markets funds under the Ucits 3 regime. Rather than convert its unit trusts to Oeics, Lincoln will offer retail and institutional unit classes on two funds from the new year. Institutional investors currently have to invest in the retail portfolios and Lincoln has to manually process any annual management charge rebates. The unit classes will initially ...

  • Making contact

    14 Oct 2004

    The Training & Development Programme The new recruit needs to be introduced into the business and start the programme of learning and development. This will be partly through formal training and education, for example, for the FPC examination. It will also be through business-based learning as a result of undertaking administration and paraplanning work. This work also means that the graduate trainees should soon make a significant economic contribution to the financial success ...

  • Matrix Money Management - Foresight 2 VCT

    13 Oct 2004

    Type: Venture capital trustAim: Growth by investing in unquoted technology companies in the UKMinimum investment: Lump sum £2,500Closing date: April 5, 2005Charges: Initial up to 5.5%, annual 2%Commission: Initial 2.25%, renewal 0.375%Tel: 020 7292 0825

  • Merger gets go ahead from Sofa members

    15 Oct 2004

    Sofa members voted today for the proposed merger with the LIA to go ahead.LIA members also voted overwhelmingly in support of the merger on Wednesday this week, giving it the green light to go ahead.The 25,000 existing members of both bodies will be transferred into the Personal Finance Society by January 2005. Sofa managing director Bob Bullivant says: "We are extremely excited that the Personal Finance Society is going ahead. We are absolutely convinced that it ...

  • Millfield sells Lifetime stake

    14 Oct 2004

    Millfield has sold 20 per cent of its stake in Lifetime despite earlier pledges from chief executive Paul Tebbutt that it would "not consider selling a chunk" of the operation. The IFA group, which is repaying loans of £15m from product providers for its merger with Inter-Alliance, has received £824,400 from Norwich Union for 20.1 per cent of the wrap provider. While Tebbutt previously said he did not want to dilute Millfield's stake, he did admit he was ...

  • Mitchell appointed caretaker of F&C funds

    19 Oct 2004

    Derek Mitchell has been appointed in caretaker manager role for F&C Asset Management,UK Prime and UK Equity funds The appointment follows the resignation of previous manager Mike Felton.

  • MLIM encouraged by stocks

    13 Oct 2004

    The chief investment oficer at Merrill Lynch Investment Managers has been encouraged by the recent stock market movements.MLIM CIO and president Bob Doll says that conditions are not in pace for a bear market despite the drag on equities from oil prices and economic uncertainty.He believes that interest rates are likely to stay low and economic news would be likely to improve in the new year.

  • Mortgage Trust - Fixed Rate Buy-to-Let

    14 Oct 2004

    Type: Fixed-rate buy-to-let mortgageFixed term: Until December 31, 2005Fixed rate: 5.95%Minimum loan: £30,000Maximum loan: Full status - Up to 85% of valuation subject to a maximum of £250,000, up to 80% of valuation subject to a maximum of £500,000, up to 75% of valuation subject to a maximum of £1m, up to 70% of valuation subject to a maximum of £5m. Expatriates - Up to 70% of valuation subject ...

  • Moving away from the herd

    14 Oct 2004

    How can you compensate for the risk you expose your clients to by fund managers that do not follow the risk profile of their fund mandates? The simple answer is that you can't. It is almost a truism that fund managers have a tendency to spend most of their time trying to beat the competition in the short term rather than concentrating on the long-term performance of their fund. Thus they often leave their funds overly invested in high-risk shares or equities. This, ...

  • Multi-tie edge

    14 Oct 2004

    Park Row has been mentioned as perhaps providing a new yardstick by which to measure a multi-tie. This may sound like we are jumping the gun - we will not see the first official multi-ties until early 2005. However, we don't think multi-ties are a one size fits all solution. Having spent six mon-ths trying to make them fit, we have decided that the way the multi-tie market is developing, it is impossible. I am not, though, saying that multi-ties are fundamentally flawed. Where, ...

  • NDF Administration - Growth Plan October 2004

    19 Oct 2004

    Type: Capital-protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment:£10,000-£1m, Isa £3,000-£7,000Term: Six yearsReturn: 8 per cent of original investment at end of year one if index is at or above initial value, 16 per cent at end of year two, 24% at end of year three, 32% at end of year four, 40% at end of year five respectively, otherwise 100% of rise in index ...

  • Negative equity?

    14 Oct 2004

    Ominous coincidence of the week? Jennifer Blackwood of Intelligent Finance was having a perfectly pleasant day at a Council of Mortgage Lenders seminar just outside Dorking. As one of the speakers plunged into a speech on the implication of Basel II on mortgage lenders, the heavens opened and a huge thunderstorm raged overhead. Someone up above may not be impressed with the state of the mortgage market down here. The Diary wonders how much seraphims pay for their own clouds up ...

  • NU seeking to fund 50% growth in market share

    14 Oct 2004

    Norwich Union is looking to raise £1.7bn through the securitisation of its equity release and protection books to fund a growth in market share of over 50 per cent. Speaking at an analyst's conference, NU chief executive Gary Withers said he expects the UK life and pension industry to grow by 25 per cent by 2007 and believes NU will exceed this by growing new business by 31 per cent over the same period. Expansion is expected to come predominantly in 2006 and ...

  • Out of context

    14 Oct 2004

    •"We do not employ boffins here, we're all PR and spin at the ABI." - ABI head of raising standards Martin Shaw. •"There have been a few changes here so we are working quite hard for once." - Bell Pottinger PR Paddy Blewer. •"David has got a personality, unlike most compliance officers." - Mortgage 2000 managing director Sean Hornsby on compliance director David Payne. •"There are quite a lot of big egos in the mortgage industry." - Alexander ...

  • Plane speaking

    14 Oct 2004

    The treatment and assessment of investment risk is fundamental in determining the suitability of investment products for specific clients and, perhaps as importantly, the outcome of client complaints. The FSA, Financial Omb-udsman and the FSCS appear to consider that a low-risk inv-estment is one where the scale of potential losses is limited. While they would not necessarily agree, their actions generally show that it is such a definition that holds weight in their thinking and ...

  • Platform boosts range of non-conform deals

    14 Oct 2004

    Britannia Building Society subsidiary Platform has enhanced its non-conforming product range. Platform has added a fast-track product at 75 per cent to its existing range at Libor plus 3.50 per cent and has also extended its bonus discount, offering an extra 0.25 per cent discount to one year, 18-month and two-year discounts on all cases received by January 31 2005. Margins on medium adv-erse, fast-track and right-to-buy products have been reduced by up to 0.75 per cent ...

  • Platforms 'a better solution for IFAs than multi-ties'

    14 Oct 2004

    Legal & General chief executive David Prosser believes investment platforms are the way forward and will surpass multi-ties as the industry standard. He says platforms and multi-ties effectively have similar aims but the former are a much more efficient solution for the adviser market, providing a more practical and lower-cost investment solution. L&G has signed an agreement with fund supermarket Cofunds to provide life and pension wrappers for the platform from ...

  • PPF chief Churchill points to 'valuable US lessons'

    14 Oct 2004

    Pension Protection Fund chairman elect Lawrence Churchill says the Government has learned valuable lessons from the US about the design of the PPF. Speaking at last week's PMI autumn conference, Churchill said the PPF will give greater importance to the risk-based levy than its US counterpart, meaning that the schemes most likely to claim will contribute the most. He also stressed the importance of the PPF's status as a non-departmental public body at arms length from the ...

  • Premier may cut panel over KFIs

    14 Oct 2004

    Premier Mortgage Management managing director Mark Mountney is set to drastically reduce its panel of lenders due to worries over their key features illustrations. Premier has been assessing its panel of two dozen lenders and their capability to produce compliant KFIs. Mountney says so far only Birmingham Midshires is ready. He says any lender not proven to be fully prepared will not receive any applications from Premier from next week. The main issues the mortgage ...

  • Product Matters

    14 Oct 2004

    With income tax relief increased from 20 to 40 per cent, venture capital trusts are the talk of the town while enterprise investment schemes are largely forgotten. However, while EISs qualify for only 20 per cent income tax relief, they are demonstrably more tax-efficient than VCTs. EISs offer capital gains deferral relief for gains crystallised in the last 36 months or in the next 12 months. They also offer loss relief. If a company that forms part of the underlying assets ...

  • Pru and S African firm in health deal

    14 Oct 2004

    Prudential has teamed up with South African private medical insurance provider Discovery to launch PruHealth, the UK's first product to link the cost of premiums to the actions that policyholders make to keep fit and healthy. The new model has seen considerable success in South Africa and the US, where Discovery has partnered with Guardian and Tufts, selling exclusively through IFAs in both countries. Under the terms of the policy, policyholders can dec-rease their ...

  • Prudential - PruHealth

    13 Oct 2004

    Type: Individual and group private medical insuranceMinimum-maximum ages: 18-70Minimum group size: TwoMinimum premium: No minimumMaximum benefits: No overall maximum but limits will apply to some benefitsCover provided: Comprehensive plan - unlimited inpatient benefits except psychiatric treatment up to 45 days a year, outpatient benefit - unlimited benefits except chiropractic/osteopathy up to £800 a year, additional ...

  • Putting down new routes

    14 Oct 2004

    There is no right and wrong way to buy a property but you must involve all your professional advisers in the debate. The route that offers the greatest freedom and flexibility - that of owning it yourself - unfortunately brings with it the most tax disadvantages. You will have to finance the property out of net income and pay taxes on rental receipts and future capital gains. In the past, businesses built up their assets by buying property. The fallacy of this was realised ...

  • Radical reform of pension system required - Which?

    13 Oct 2004

    Responding to yseterday's Pensions Commission report, Which? principal policy adviser Mick McAteer says: "If the government is to restore trust - our research shows less than one in three trust financial institutions to run their pensions - and remove the risk associated with taking out a pension, it must embark on a truly radical reform of the entire system, including a simplified and improved state pension system. Only then will today's consumers know what choices face them, ...

  • Regulation reminders

    14 Oct 2004

    I was delighted that the ombudsman was misquoted as saying it expected 20,000 mortgage complaints in the year ahead. I understand the Mortgage Code Arbitration Scheme received 98 complaints last year and a total of 46 were upheld. I was staggered to think that the level of dissatisfaction could increase by a factor of, well, lots! However, I do believe in being prepared. Have you checked that your complaints procedure meets the requirements? The FSA has a particular definition ...

  • Richard Verdin on protection

    14 Oct 2004

    The way consumers buy things is changing for ever and, like other distribution outlets, if we choose to ignore the realities of consumer trends and buying habits, then we do so at our peril. Every day, more and more people are buying, or at least committing to buy, things online but for businesses, simply having a presence online in itself is not an answer. Online propositions have to be, and are expected to be, different from those in the high street. To encourage customers ...

  • Royal Liver Assurance - Progress

    19 Oct 2004

    Type: Menu based protection plan providing income protection and term assurance with optional critical illness and unemployment coverINCOME PROTECTIONMinimum benefit/minimum premium: None/£7.50 a month, £75 a yearMinimum-maximum ages: 16-59, 18-59 for unemployment coverDeferred period: Choice of 4, 8, 13, 26 or 52 weeksDefinition of disability: Own occupationOptions: Guaranteed premium rates, reviewable premium ...

  • Royal Liver launches Progress

    18 Oct 2004

    Royal Liver launches Progress, the e-only protection service to a limited number of IFA distribution partners.Mortgage protection menu products can be placed on risk through the Exchange or via the extranet.Royal Liver director Mike Warr says: "We're delighted to now be at the stage where our distribution partners are giving IFAs the details they need to access our adviser extranet."

  • Schroders joined by Sutton

    14 Oct 2004

    Julian Sutton has joined Schroders' multi-manager team as a senior fund manager from Credit Suisse Asset Management. His appointment comes just one month after the launch of Schroders' multi-manager funds and brings the multi-manager team to six. Sutton will be responsible for analysing and monitoring investment funds, including Schroders' S&P strategic balanced and S&P high alpha portfolios. He will report to head of multi-manager Andrew Yeadon. Schroders ...

  • Sesame accused of encouraging churning by stopping commission

    14 Oct 2004

    Sesame's decision to stop paying renewal commission on general insurance products to former members could lead to churning, says a rival network. Whitechurch Network managing director Ian McIver believes Sesame's move could push former members to rebroke policies to replace lost income. A letter sent to all former Sesame members states that from January 15, the network will stop paying commission on general insurance business to former members still in the industry ...

  • Sesame aid to depolarisation

    14 Oct 2004

    Sesame has published a guide to depolarisation to help IFAs understand the impact of the changes on their businesses. According to a recent Ses-ame survey, 40 per cent of advisers have concerns about depolarisation and the firm says this identifies a need for clearer guidance to help advisers understand their options and the impact of the FSA's proposals. A New Age of Choice is a step by step guide through the background to depolarisation, examining the new disclosure ...

  • Sesame puts a block on life offices' TVAS reports

    14 Oct 2004

    Sesame is stopping advisers using life office transfer value analysis service reports, saying there is a risk that they are not accurate enough. The network giant wants members to use reports from TVAS provider O&M Systems instead of life office-generated reports because of its concerns over compliance. Members will be able to use life offices for feasibility reports but independent reports will be needed to recommend a transfer. Sesame members will now have to pay ...

  • Sesame says companies with right business mix will be targeted for multi-tie

    14 Oct 2004

    Sesame will not allow members to multi-tie unless they can prove their businesses are up to scratch. The mega-network says it will be targeting firms for multi-tie that it believes have the app-ropriate mix of business and client bank but it will turn away firms if it does not feel their business model delivers what the IFA or the consumer needs. Sesame believes firms which have high percentages of transactional-type business are most suited to a multi-tie model as they ...

  • Sesame sets up equity-release deal

    14 Oct 2004

    Sesame has launched a specialist equity-release unit where its members can refer business. The unit is based in Manchester and is currently manned by two advisers. Sesame will look to expand the unit if demand for its services increase. It was set up so that Sesame members which do not want to take on the extra requirements of equity-rel-ease regulation as well as mortgage regulation can refer clients. Head of mortgages Andy Young says the procuration fee will ...

  • Squeeze on profitability is seen as major threat

    14 Oct 2004

    Advisers believe the key factors which will enable them to weather the current environment are financial backing and profitability. They say there are four major changes which businesses must cope with. The first is the squeeze on profitability although they also identify depolarisation and what they perceive as a stronger compliance regime as potential threats to their businesses. They also believe that providers are under financial duress with stretched financial resources, ...

  • Stakeholder or bust?

    14 Oct 2004

    Stakeholder pensions look set to be relegated to life offices' basic advice proposition with the bulk of major providers set to launch non-charge cap products early next year. Norwich Union's decision to cut commission on stakeholder products and launch a price-busting pension in early 2005 has prompted several life offices to show their hands and confirm similar moves in the coming months. Standard Life, Legal & General and Clerical Medical all say they will ...

  • Standard Life goes back on endowment promise

    14 Oct 2004

    Standard Life has suspended its mortgage endowment promise, potentially hitting 600,000 policyholders who suffer a shortfall. The promise was conditional on Standard increasing its free capital from its level in September 2000. However, the firm says poor investment conditions over the last four years mean it cannot justify making further provisions towards the cost of the scheme. The promise was introduced in September 2000 with the aim of providing support to customers ...

  • Standard Sipp boasts tax-efficient dripfeed

    14 Oct 2004

    Standard Life is offering a new self-invested personal pension for clients looking for greater control of their pension fund. It offers immediate basic-rate tax relief on contributions to maximise investment opportunities and is available as a single-charge version for customers invested entirely in its Sigma range of funds. The Sipp will provide access to direct equity investments and commercial property as well as all eligible pooled funds from every investment manager ...

  • Steer clear of smaller companies funds, says Merrill chief

    14 Oct 2004

    Merrill Lynch fund manager Richard Plackett has told IFAs to steer clear of 80 per cent of smaller companies funds after branding their performance unacceptable. UK smaller companies chief Plackett says only 12 of the 62 funds in his sector have an acceptable performance level. He believes that advisers should not put up with investment performance that fails to beat the performance of cash. His own fund has returned 60 per cent over the last five years. Plackett, ...

  • Step forward in time

    14 Oct 2004

    How effective can an averaging down strategy be for long-term high-risk investments? Goodwin: As effective as the investor's belief in the share and the relationship with a market-maker. At what point does the investor stop supporting a sinking ship and decide to sell? It is not something that an IFA like ourselves would get involved in but something I would expect certain active Oeic fund managers would do as you need shed loads of money and a serious belief in the share price ...

  • Talkback

    14 Oct 2004

    "Yes. I would expect equity investments to still be the best bet. Cash just wouldn't have the same returns." John Horricks, Compass Assurance Services "Yes. I still believe equity investments will beat cash, especially in the medium term. It is very difficult to guess which way the market is going to go and which assets to be in at what times. If you're not careful, you can come unstuck." Sam Dolphin, Dolphin Associates "Yes. I think that the market has ...

  • Testing times for KFI systems

    14 Oct 2004

    AMI director Chris Cummings "In September, the AMI challenged all lenders to publish their KFI test systems. Failing this, we said that they should have them ready by the start of October so that their customers (that is the intermediary market, in case anyone forgets), could test them out. It would seem odd, after all, that a new IT system was developed for a customer who was not allowed to test it until it went live. Finally, some lenders are now publishing their systems. Are the ...

  • The quiet Americans

    14 Oct 2004

    Nothing heats up debate like a US election, especially in a year when there is such a firm split between the wishes of the American voting public and the rest of the world. War in Iraq, a burgeoning deficit and cries of Republican arrogance have raised a distinct difference in opinion, with almost the entire world backing Democratic candidate Senator John Kerry while Americans tend to favour George W Bush. But while many US elections in the past drew considerable debate over what ...

  • The right blend

    14 Oct 2004

    1985 was a year that had a dramatic effect on the way we now live our lives. It was the year mobile phones first appeared the UK with the launch of Racal Vodafone and Cellnet and Microsoft also launched the first version of its Windows operating system that November. While mobile phones were for some years considered executive toys and Windows did not really take off until the launch of version 3 in 1990, both now dominate our working lives. Today, mobile phones and computer ...

  • Thinc throws lifeline to Network 300 members

    14 Oct 2004

    Network 300 has been placed into administration, with multi-distribution platform Thinc acquiring the business for an undisclosed sum. Network 300 members attended a stormy meeting at London Heathrow's Marriott Hotel this week, where they were offered a lifeline deal from Thinc. Thinc told advisers it would pay 30 per cent on pipeline business on top of anything paid by the administrators - speculatively quoted at 40 per cent - leaving intermediaries 30 per cent short. Thinc ...

  • This little piggy had roast beef

    14 Oct 2004

    Last week, I ended in Michael Caine mode. No, you weren't supposed to blow the bl*@!y doors off. But you were made aware that there is a proposal (on which consultation was sought) to align the tax treatment of capital gains under bare trusts, established for the benefit of minor unmarried children by their parents, with the tax treatment of income in excess of £100 gross in a tax year under such trusts. Not a lot of people know that. Okay, a tenuous link to the Cockney ...

  • Tough measures needed to close the pension gap, warns Turner

    14 Oct 2004

    A combination of higher taxes and National Insurance contributions, raised retirement ages and increased personal savings is needed to fill the pension gap, says pensions tsar Adair Turner. His interim report published this week, Pensions: Challenges and Choices, says any one of these measures will be insufficient to address the problem and a combination of all four is needed. The Pension Commission chairman says policy recommendations will not be made until after the ...

  • Unfitting behaviour

    14 Oct 2004

    Splashed all over the national newspapers, radio and TV last week was the launch of PruHealth, a private medical insurance company that will reduce policyholders' premiums as a reward for becoming more healthy. By attending gyms or having annual check-ups, policyholders can see their premiums plummet while increasing their life expectancy. The Diary attended the company's launch in Johannesburg and Cape Town - a three-day fest of booze, rich food, smoking and very ...

  • Unisex underwriting 'is a straight banana'

    14 Oct 2004

    The European Council of Ministers is expected to vote through a directive on unisex underwriting of insurance products in December that observers describe as a five-year fudge. The UK will be given a five-year opt-out of a ban on gender underwriting. In five years, the EC will report on whether gender underwriting should be allowed to continue and any permission to continue the opt-out will be subject to the findings. Standard Life senior technical manager John Lawson ...

  • US equities at the centre of Isis and F&C's new firm

    14 Oct 2004

    The US equities desk is to form the heart of the investment business of newly merged F&C and Isis. The team has been thrust to the core of the merged firm, F&C Asset Management, which came into being on Monday. A global equities team of 13 is headed by Foreign & Colonial investment trust manager Jeremy Tigue. He is supported by head of US small cap Robert Siddles and head of US large cap Rupert Della-Porta. Della-Porta has taken charge of a team of ...

  • What's the word on standards?

    14 Oct 2004

    Is it me or has the standard of punctuation by mortgage companies gone to the dogs? We have been trying, since September to get Woolwich to put an apostrophe into applicant's (as in the applicant's existing mortgage) in their offer letter to a client for a remortgage. You would not believe the palaver this has caused (or the resulting surge in blood pressure readings by my client account manager and myself). All they have to do is put the apostrophe in ...

  • Wrap wrangle

    14 Oct 2004

    IFAs and providers are locked in a battle over what clients really need from the current flood of wrap products. Intermediaries are currently being bombarded with marketing from wraps and fund supermarket providers claiming they have the proposition that will definitely save time and money. But according to Fin-ancial Technology Research Centre director Ian McKenna, most IFAs do not know what they really need for the clients while prov-iders are battling it out to bring ...

Poll

Should the MPC have increased QE this week?

Current Issue

Advanced search