Money Marketing
15 August 2001

  • A consumer's view

    16 Aug 2001

    The Government's proposals to introduce child trust funds and the savings gateway will provide a welcome boost to IFAs who will, no doubt, find wealthier clients wanting advice on where to put this free handout from the Government. The irony is that, as always, those who will do well will be the wealthy rather than the poor. But that was ever the case. Autif has come up with some very sensible suggestions which, hopefully, the Government will take on board. First, and most important, ...

  • Add fees to product charges for commission comparison'

    16 Aug 2001

    Fees should be treated as product charges on key features documents to show their true impact versus commission to policyholders, according to Skandia research. The research comes ahead of the launch of FSA league tables which places charges as the main point of comparison for consumers and as Ron Sandler begins his review covering commission bias. Skandia says like-for-like comparisons on the impact of fees on an individual's investments are impossible under the current ...

  • AITC calls for improved personal finance education

    15 Aug 2001

    The AITC is calling on the Government to build more personal finance education into the national curriculum.

  • Are IFAs on shelf in L&G supermart?

    16 Aug 2001

    Legal & General is coming under pressure to clarify its plans to develop a fund supermarket, with fund managers claiming they have not been told of any IFA involvement. Money Marketing revealed the life office's plan to launch a fund supermarket in May when L&G said the platform would encompass both direct and IFA offerings. But fund managers which have been in talks with L&G say there has never been any mention of developing an IFA platform while major IFA firms say they have ...

  • Armed Forces opts for Scot Wids stakeholder

    15 Aug 2001

    Scottish Widows has been appointed as provider of stakeholder pensions for the Armed Services.Scottish Widows' Stakeholder Pension Plan will be made available to over 200,000 regular personnel and 50,000 reservists within the Armed Services, who will also be offered an AVC scheme.Armed Forces minister Adam Ingram says: "This important initiative will allow all members of the armed forces earning under £30,000, including the reserves, to bolster their pensions."

  • Autif rebate research could aid IFAs in Sandler defence

    16 Aug 2001

    Autif is to research the extent to which IFAs rebate commission in its response to the Sandler review, a move which could help IFAs defend themselves against accusations of commission bias. Autif chairman Alan Burton says the trade body is approaching product pro-viders to compile comprehensive evidence on the number of IFAs which discount some or all of their front-end commission. The move follows the suggestion, in Sandler's consultation paper, that there may be a need ...

  • Axa tops free asset ratio survey

    15 Aug 2001

    Axa Equity & Law, Clerical Medical and Standard Life have come out top in a free asset ratio survey from Nottingham University Business School.

  • Bonus of contention

    16 Aug 2001

    The recent bonus cuts from Equitable Life came as little surprise to most of the industry which has been well aware of the company's inflated payout policy which has left it with no reserves. Throughout Equitable's demise, there have been cries from other with-profits life offices about its unsustainable bonus rates. But when companies the size of Norwich Union, Scottish Widows and Abbey National-owned Scottish Mutual are slashing bonuses halfway through the year, ...

  • Boothman quits at Gerrard

    16 Aug 2001

    Gerrard chief executive Clive Boothman has quit the firm after just 11 months in the job. Boothman, who joined from Schroders last September, had been at the helm of the integration of Capel Cure Sharp and Greig Middleton since the two firms came together under the Gerrard brand last autumn. Gerrard would not comment on the reasons for Boothman's departure but sources close to the firm say he had been frustrated in the job for some time. He is understood to now be taking a holiday ...

  • Burns-Anderson axes Ultraviolet brand

    16 Aug 2001

    IFA network Burns-Anderson has dropped its Ultraviolet and UV brand names in the midst of a trademark battle with Goodfellow Group managing director Simon Burgess. Burgess, whose business interests include insurance broking and marketing, took out an action against Burns-Anderson last December, claiming it was infringing his Ultraviolet trademark. Burgess says he had registered Ultraviolet as part of plans to set up an online financial services company for children. Last month, ...

  • Business down at Aegon UK

    16 Aug 2001

    Aegon UK's investment and international business fell over the first six months of this year despite strong sales at Scottish Equitable. ScotEq sales rose by 31 per cent to £290m from £221m in equivalent premium income, including more than a 1,000 new stakeholder schemes. But Aegon Asset Management lump-sum investment sales fell by 13 per cent to £170m from £195m. Assets under management remained unchanged at £34bn on the same period last year. ScotEq ...

  • Clerical chief Walther set to retire

    16 Aug 2001

    Clerical Medical chief executive Robert Walther is retiring before the end of theyear. He will be replaced by managing director John Edwards. Walther has been overseeing the integration of Equitable Life with the Halifax group after Edwards was made MD in February. Walther, 57, has been with Clerical since 1965 and was made chief executive in 1995. Edwards, 45, joined Clerical in 1993 and has been a board member since 1998.

  • Clerical closes to GPPs in stakeholder admin crisis

    16 Aug 2001

    Clerical Medical could struggle to re-establish itself in the group pension market, according to leading pension IFAs, after its stakeholder strategy backfired, forcing its closure to new group business until the first quarter of next year. The company says it has been swamped by unprecedented levels of business after it ruled out cherrypicking of group schemes as part of a strategy to bring in high volumes. The move, which is estimated will cost the life office £63m, is ...

  • CML anger at 'absurd' monitoring proposals

    16 Aug 2001

    The Council of Mortgage Lenders has slammed the FSA for proposing "absurd" regulations forcing lenders to monitor the product information shown to borrowers. The CML, which recently sought clarification from the regulator over the matter, is angry that the FSA is pushing ahead with rules which it claims are impossible for lenders to enforce. The proposals, due to take effect at N3, give lenders responsibility for guaranteeing the accuracy of all pre-sale product information - including ...

  • CML policy chief's secret letter urges sub-prime probe

    16 Aug 2001

    The Council of Mortgage Lenders' senior policy adviser is secretly urging the FSA to closely monitor sub-prime brokers and the top 50 mortgage intermediaries in the UK. In a letter seen by Money Marketing, CML policy chief Kate Main presses FSA head of mortgage regulation Sarah Wilson to keep close tabs on brokers in the "highest-risk" areas of the mortgage market. Main marks out the sub-prime and non-conforming markets for particular attention as she is concerned the high commission ...

  • Contracting-out conundrum

    16 Aug 2001

    Government Actuary Chris Daykin was recently quoted as saying: "There is no doubt the contracting-out system has become extremely complex. We acknowledge that these rebates are not generous - they were not intended to be generous." The background to this statement is complex but it is very important to the way that IFAs advise employers and employees about future pension provision. It is also somewhat perplexing because, as far as I know, it remains Government policy that the ...

  • Court ruling may prompt retirement rules rethink

    16 Aug 2001

    Retirement rules could be redefined following a High Court judgment dealing with how the Inland Revenue treats retirees looking to draw their pension early. The ruling in Venables Hornby could mark a major shift in the Revenue's treatment of controller directors and non-executive directors who retain a reduced role in their company but want to start drawing on their occupational pension. The court found in favour of David Venables, a non-executive director who was semi-retired ...

  • Davy challenge starts portals' storm

    16 Aug 2001

    DBS chairman Ken Davy is throwing the gauntlet down to The Exchange by predicting Misys' acquisition of DBS will deliver the number one portal for IFAs. In an article in this week's issue of Money Marketing, Davy says: "I believe the Misys/DBS combination will deliver a portal of choice in the advice market. Many IFAs say they are hungry for something better than the existing offering which dominates the electronic quotation market." Davy, who says he is to stay ...

  • Direct mail still thriving

    16 Aug 2001

    Direct-mail volume and expenditure is still on the increase despite fears of an industry slowdown, according to the latest figures from the Direct Mail Information Service. Figures for the period from April to June show that the volume of direct mail rose by 4.5 per cent to 1.25bn items from 1.19bn in the second quarter of last year while expenditure increased by 7.5 per cent to £480m from £447m. DMIS says much of the increase in volume was driven by an increase in ...

  • Dividends to be included in lost property register

    15 Aug 2001

    The Unclaimed Assets Register which keeps data on owners of lost or forgotten life policies, pensions and unit trusts is being extended to include unclaimed dividends and related securities believed to be worth over £3bn.

  • Douglas Black

    16 Aug 2001

    Born: Bicester, Oxfordshire,June 8, 1957

  • Ease the charge cap or stakeholder will not stay the course

    16 Aug 2001

    Stakeholder may prove to be equally cursed and blessed. The first tentative ABI numbers show some 224,506 sales from April's launch, with 88,394 company designations. Sales include an unspecified number of converted pensions while the designations represent the creation of an infrastructure for compulsion or for future sales, not actual sales. In the same quarter in 2000, around 250,000 personal and occupational pensions were "sold". Stakeholder is working up to a point but ...

  • Eur out of this world

    17 Aug 2001

    NEW STAR ASSET MANAGEMENTEUROPEAN GROWTH FUNDType: Oeic.Aim: Growth by investing in European companies.Minimum investment: Lump sum £1,000, monthly £100.Investment split: 100 per cent in European equities excluding UK.Isa link: Yes.Pep transfers: Yes.Charges: Initial 5.25 per cent, annual 1.5 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 0845 6088702.Suitability to ...

  • Exclusive Connections ties to base rate

    21 Aug 2001

    Exclusive Connections is working with the Bank of England with the base rate tracker mortgage.

  • Exclusive Connections tracks base rate

    17 Aug 2001

    Exclusive Connections has unveiled a five-year fixed rate tracker mortgage that is available for loans of up to 95 per cent of valuation.

  • Fear of mass lender exodus from code

    16 Aug 2001

    The mortgage industry fears a mass exodus from the mortgage code after N3 as lender concerns over high costs and crippling compliance procedures continue to mount. The Council of Mortgage Lenders has sent a letter - obtained by Money Marketing - to its members asking whether they will sign up to the mortgage code once statutory regulation starts in August next year. If, as industry figures predict, many will not sign, those lenders will be forced out of membership of the CML as ...

  • Field returns with plan for compulsory second pension

    16 Aug 2001

    Football fans can go on a spending spree with a new football club affinity credit card, safe in the knowledge that every transaction will benefit the youth development programmes of their favourite club. The Bank of Scotland card, available at www.football card.co.UK, offers a card with the team logo of 22 clubs from Arsenal to Wolverhampton Wanders. Former Labour pensions minister Frank Field is set to relaunch his welfare reform campaign to create a compulsory funded second pension ...

  • Financial sites are pick of the click

    16 Aug 2001

    Financial websites are popular among UK consumers, according to a survey commissioned by The MarketPlace at Bradford & Bingley. The research by NOP shows that 58 per cent of the 1,000 respondents say they are comfortable using online financial service websites to research or buy products. The survey identified three different types of surfers. Pick 'n' click types include 20 per cent comfortable using the internet both to research and buy financial products such as mortgages. Pick ...

  • Firms warm to stakeholder

    16 Aug 2001

    New research from banking clearing house Bacs reveals that there has been as significant rise in the number of firms planning to introduce stakeholder pensions. The research, conducted among 350 businesses representing a range of sizes, found that almost a quarter or 23 per cent will definitely offer a stakeholder scheme compared with only 9 per cent of organisations interviewed last year. The study found that awareness of stakeholder stands at 76 per cent compared with 56 per ...

  • FSA consults on OMO for annuities and Teps

    21 Aug 2001

    The FSA is consulting the industry on proposals to regulate the disclosure of information of the open market option for annuities and endowment policies.

  • FSA signals reprieve for past performance

    16 Aug 2001

    The FSA has given its first indication that past performance data will not be banned in investment advertising as the industry had feared. In an interview with Radio 4's Inside Money programme last week, FSA consumer director Christine Farnish said it is unlikely the regulator will opt for an outright ban but indicated strongly that there will be tighter rules on the use of past performance statistics. The news may go some way towards consoling the fund management community ...

  • Fund managers set to fight for 'baby bond' default fund

    16 Aug 2001

    Fund managers could find themselves competing with each other to win the mandate to manage the default option for the Government's child trust funds. The Treasury, which first mooted the idea of child funds in the recent Savings & Assets for All paper, is looking to create a default investment option for parents who do not want to take responsibility as to where to invest their child's money. But while National Savings is the most likely candidate to run the default administration, ...

  • GE launches fourth income plan

    21 Aug 2001

    GE Life has launched a high income and growth plan, the fourth in a series.

  • General practitioner vs specialist

    16 Aug 2001

    For many years, there has been a debate about the relative merits of general practitioner v specialist. The GP will argue that he or she can provide a one-stop service offering holistic financial planning. The specialist will argue that it is necessary to specialise as it is becoming more difficult to keep up to date with the intricacies of legislation, product development and, to a certain extent, compliance requirements. The specialist will probably also tell you that specialisation ...

  • Goodfellows introduces insureyourincome.co.uk

    17 Aug 2001

    The mortgage payment protection market has seen a new entrant with the arrival of Goodfellows’ online subsidiary insureyourincome.co.uk.

  • Govett launches IFA marketing drive

    15 Aug 2001

    Govett Investments has launched an IFA marketing drive for its Govett US Opportunities Fund.

  • Heath and Owen take Impartial approach

    16 Aug 2001

    Former IFA stalwart Garry Heath is setting up a consultancy and media group targeting IFAs, life offices, lenders and investment groups with business services throughout the UK and Europe. Impartial is a joint venture between Heath and former IFA Portfolio managing director Mike Owen, with both investing around £20,000 in the firm. Heath is non-executive chairman and Owen bec-omes managing director. Impartial says it has about 350 clients on its books already and is aiming ...

  • Henderson High Income Trust sees six month rise

    17 Aug 2001

    Standard Life has secured new group AVC business from Consignia, formerly the Post Office, which it says could become its largest AVC account.

  • Hermes increases stake in EFM

    21 Aug 2001

    Post Office and British Telecom pension fund manager, Hermes, has increased its stake in Edinburgh Fund Managers to 29.3 per cent. Stockmarket rules stipulate that any shareholder with more than a 30 per cent holding must make a bid for the company, fuelling speculation that Hermes is building up for a takeover of the Scottish fund manager. 

  • Hong Kong regulator to be FSA enforcer

    16 Aug 2001

    The FSA is importing talent from Hong Kong to head its enforcement division responsible for disciplining authorised firms which fall foul of the regulator. Andrew Procter, 39, is currently responsible for financial intermediaries and investment products at the Hong Kong Securities & Futures Commission and is set to become FSA director of enforcement in November. He has been a commission member in Hong Kong since the start of 1998. His main areas of responsibility at the FSA will ...

  • IFA offers 3 year no charge stakeholder

    17 Aug 2001

    IFA the Independent Stakeholder Company is offering the Scottish Mutual and Scottish Equitable stakeholder scheme to employers with no charges for the first three years.

  • IMD guide aiming to help IFAs build up their A team

    16 Aug 2001

    The Insurance Marketing Department is issuing the latest in its series of marketing guides aimed at helping IFAs make the most of a mailshot campaign. The new guide follows three previous editions giving advice on advertising techniques, organising seminars and making presentations. It provides hints to IFAs on how they can expand their existing client base through professional mailing. It also advises IFAs on how to raise the number of their regular clients who provide them with ...

  • Independent view

    16 Aug 2001

    More than 10 years ago, the market started to consolidate in the independent sector when networks and big IFA firms started to emerge. Independent sole traders and small partnerships happy trading on their own saw the networks as a way of benefiting from the economies of scale so they were happy to join without losing their identity. Networks continued to exp-and as the tied sector shrank. The providers were the primary supporters of those new companies as they paid higher commission ...

  • Inscape Sipp

    20 Aug 2001

    Inscape SippType: Full Sipp.Minimum investment: Lump sum £2,000, monthly £250.Investment choice: UK bonds, UK equities, European equities excluding UK, Japanese equities, US equities, Pacific Basin excluding Japan.Charges: Annual up to £49,999 - 0.75 per cent, £50,000 and above - 0.25 per cent, minimum £50 maximum £500.Allocation rates: 100 per cent.Options: Income withdrawal, annuity purchase.Commission: ...

  • Inside Edge - Tony Kempster

    16 Aug 2001

    I'll brain the next person who says to me: "What's it like to be back at the Pru?" It is six years since I last worked for Prudential. In the meantime, it has changed beyond all recognition. Just over 10 years ago, in 1991, there were 9,500 direct salespeople and IFAs accounted for a bit less than 5 per cent of the business. Today there is no direct salesforce and IFAs provide around 62 per cent of UK new business. The focus has indeed changed. And of course I have changed ...

  • Insureyourincome.co.uk - Insureyourincome.co.uk

    17 Aug 2001

    Friday, 17 August 2001.

  • Investment view

    16 Aug 2001

    If there is one word I used when writing about the market last week which I feel has turned out to be appropriate, it is "possibly". A week ago the market had bounced, interest rates were down, God was in his heaven. Last week, it all gently fell apart again. Heaven alone knows what treats the rest of the summer has in store for us. We benefited from a surfeit of information last week. Two central banks published two weighty tomes. The Federal Reserve Bank of the US published its Beige ...

  • Jupiter expands its hedge fund range

    15 Aug 2001

    Jupiter International Group is hedging its bets with the introduction of the Jupiter fund of hedge funds.

  • Legal & General mortgage business up 57 per cent

    20 Aug 2001

    Legal & General’s mortgage business rocketed by 57 per cent in the first half of 2001. Applications for mortgages arranged through intermediaries shot up to £7.4bn in the six months to June, up from £4.7bn in the same period last year. Loans arranged through L&G’s mortgage club accounted for £5.7bn of this figure, up from £3.3bn in the first half of 2000.

  • LIA says just 50 per cent of firms have sold group stakeholder

    16 Aug 2001

    Only 50 per cent of LIA members claim to have sold group stakeholder while more than half have conducted individual stakeholder business, according to a new survey. The survey found that while 57 per cent of LIA members have sold stakeholder to individuals since its launch in April, just half have sold company or affinity group stakeholder schemes for their clients. The trade body says this unexpected finding from its online survey of 700 members is an indication that group personal ...

  • Life offices call for cash pool to support IFA firms

    16 Aug 2001

    Clerical Medical and Aegon are calling on rival providers to look at clubbing together to provide cash injections to ensure the survival of IFA firms. They believe IFAs are in urgent need of capital support and providers could set up holding companies to support firms, allowing them to remain independent businesses. The move could be seen as a way of preventing IFA firms falling into the hands of rival companies in light of the recent acquisitions of Towry Law by AMP and Willis ...

  • Manchester brings in permanent discount

    17 Aug 2001

    Manchester Building Society is looking to the future with the introduction of the permanent discount mortgage.

  • Manchester Building Society - 4 Year Discount 1.2 Per Cent

    16 Aug 2001

    Thursday, 16 August 2001.

  • Manchester Building Society - 4 Year Discount 1.4 Per Cent

    16 Aug 2001

    Thursday, 16 August 2001.

  • Merchant expands fund range

    21 Aug 2001

    Merchant Investors is expanding its existing multimanager range to offer a wider range of funds from specialist fund managers.

  • Millfield recruits five to management team

    15 Aug 2001

    National IFA Millfield has recruited five new members to it management team as development directors.

  • Mortgage lending by mutuals dips

    21 Aug 2001

    Mortgage lending by mutuals fell slightly last month due to borrower fears of a recession, according to the Building Societies Association. Gross advances fell to £2.12bn in July from £2.28bn in June, while net advances slid to £272m from £589m. Mortgage approvals dropped to £2.26bn from £2.31bn over the same period.

  • Mortgage protection on the modular menu

    16 Aug 2001

    A new menu-based mortgage protection product is on offer from Norwich Union to meet the demand for protection created by the boom in repayment mortgages. NU's mortgage life insurance plan offers life insurance and critical-illness cover, sickness and disability protection as repayment loans do not have in-built protection. The plan has an introductory discount of 3 per cent on life and integrated critical-illness cover premiums. It has a modular structure so the cost of ...

  • Mortgageforce links with Norwich Union

    17 Aug 2001

    Broker franchise operation Mortgageforce has appointed Norwich Union as a financial services provider. The deal will see Mortgageforce’s 43 franchisees offering NU’s non-regulated life products through branches around the country. Mortgageforce, which opened for business in February, hopes to have 80 franchisees by the end of the year.

  • N&P hears the call of Spanish mortgage market

    16 Aug 2001

    Norwich & Peterborough is flying south with the introduction of a new addition to its range of Spanish mortgages.

  • National Australia Bank appoints former Scot Am chief exec

    15 Aug 2001

    National Australia Bank has appointed former Scottish Amicable chief executive Roy Nicolson to the board of its European wealth management business.

  • Nationwide cuts mortgage rates

    20 Aug 2001

    Nationwide Building Society is launching a new fixed rate mortgage product and is reducing the rates on some of its existing loans.

  • Nationwide sets up remortgage 'takeaway' deal

    16 Aug 2001

    Nationwide Building Society is offering a remortgage service designed to make the process easier for borrowers looking for a better deal. The "takeaway" remortgage service has been set up after recent research involving over 1,000 people and following Council of Mortgage Lenders data showing borrowers are annoyed about new customers getting better deals. The Nationwide research found that 83 per cent of borrowers and 81 per cent of first- time buyers think it is unfair for new ...

  • NDF Administration - NDF Income Plan

    15 Aug 2001

    Wednesday, 15 August 2001. Type: Guaranteed Income Bond. Minimum-maximum investment: Lump sum £10,000-£1m. Term: Six years and two months. Return: 6 per cent income in first year, thereafter income is linked to the dividends paid by the FTSE 100. Guarantee: 100 per cent capital return. Commission: Initial 3 per cent. Tel: 01727 734315.

  • New income protection site launches

    15 Aug 2001

    A new website for income protection launches today at the website insureyourincome.co.uk. The service offers universal rates regardless of age, gender or employment status. It is underwritten by Lloyds syndicate by Compass Underwriting.

  • Newcastle Building Society - Balanced Equity Bond (Issue 002)

    21 Aug 2001

    Tuesday, 21 August 2001.

  • Newcastle Building Society launches balanced equity bond

    16 Aug 2001

    Newcastle Building Society is launching a second issue of its balanced equity bond.

  • Newcastle builds balanced equity bond

    17 Aug 2001

    Newcastle Building Society has introduced the second issue of its balanced equity bond.This bond marries the fifth series of Newcastle Building Society's global guaranteed equity bond with a fixed rate savings account. Investors must place half their investment into each element.Interest on the savings account element is fixed at 7.5 per cent gross until March 28, 2002 and no withdrawals can be made before that date. The global guaranteed equity bond ...

  • Newcastle launches balanced equity bond

    17 Aug 2001

    Newcastle Building Society is launching a second issue of its balanced equity bond.

  • No Initial Fee on Premier Fund

    17 Aug 2001

    Premier Portfolio Managers is offering its European growth fund without an initial charge until October 1, 2001.

  • Northern Rock walks the tightrope

    20 Aug 2001

    Northern Rock and Legal & General have linked up for the second time to create the second edition of balance-choices. Balance-choices combines an instant access savings account from Northern Rock with Legal & General's with-profits income bond. Investors must place at least half of their investment, but no more than 80 per cent, in the Legal & General with-profits bond. The rest goes into the savings account element, which pays interest at 8 per cent gross a year until ...

  • Norwich and Peterborough offers cash back

    21 Aug 2001

    Norwich and Peterborough is introducing a new mortgage scheme which offers customers up to £12,000 cashback to help towards associated costs such as moving home, buying furniture or making home improvements.

  • NU launches flexible mortgage protection products

    20 Aug 2001

    Norwich Union is launching a flexible menu-based protection policy in response to increasing demand for protection from repayment mortgage borrowers.According to the Council of Mortgage Lenders, around 68 per cent of new mortgages are on a repayment basis, which is fuelling protection demand.NU's Mortgage Life product will offer life insurance and critical illness plus sickness and disability cover.

  • NU new stakeholder ads aim to reach individuals

    16 Aug 2001

    Norwich Union is running the second stage of its stakeholder advertising campaign with a £3m spend on poster and press ads. This brings NU's spending on stakeholder advertising this year to £10m, including a television campaign which ran in May. The poster ads carry the same theme as the TV campaign and will appear on billboards, bus shelters and in the national press. The ads will appear from the end of August. NU remains one of a handful of players advertising ...

  • Number six from GE Life

    21 Aug 2001

    GE Life has created the sixth issue of its high income and growth plan with the over-50's in mind.

  • OFT appoints chief economist

    20 Aug 2001

    The OFT has appointed Dr. Amelia Fletcher as its new chief economist to be responsible for economic analysis for both competition and consumer protection cases.Fletcher, who is currently a manager with consultancy Frontier Economics where she specialises in competition policy and previously worked for now defunct consultancy London Economics.She will head a new branch in the OFT's new Market and Policy Initiatives Division.

  • Omo move could hit annuity rates

    16 Aug 2001

    FSA plans to force life offices to highlight the open market option on annuities may see normal annuity rates fall, according to Institute of Actuaries president Peter Clark. The forecast follows FSA plans to compel insurance companies to clearly promote policyholders' rights to shop around for the best annuity rate ahead of making their buying decision. It also follows the ABI's recently issued statement of best practice on the same subject. The move is expected to increase ...

  • Outside edge - David Ferguson

    16 Aug 2001

    Regardless of what Ron Sandler concludes or recommends, the hysterical over-reaction to his consultation paper has highlighted many of the structural problems within our industry. We have seen much self-interested ranting but little constructive debate. Why is there such fear of external intrusion and deliberation? Does it reflect an underlying unease that perhaps all is not well or is it just that everyone is too busy and cannot be bothered with any upheaval - even if such an upheaval ...

  • Pavilion Asset Management - Pavilion Geared Recovery Trust

    15 Aug 2001

    Wednesday, 15 August 2001.

  • PIA expels defaulted IFA firm

    21 Aug 2001

    The FSA is consulting the industry on proposals to regulate the disclosure of information of the open market option for annuities and endowment policies.

  • Pink Home Loans ties it up

    15 Aug 2001

    Pink Home Loans has introduced a two-year fixed rate mortgage that has an extended tie-in for three years.The mortgage is open to all borrowers for loans of up to 95 per cent of valuation. It is fixed at 4.75 per cent for two years and borrowers who pay off the mortgage during the first three years must pay an early redemption penalty. This decreases from 5 per cent of the amount repaid in the first two years to 4 per cent in years three and four, then 3 per cent in year five.Some ...

  • Pink looks at self-cert market

    17 Aug 2001

    Pink Home Loans has introduced the exclusive self-cert discount mortgage, which is aimed at the self-employed.

  • Pinnacle launches portable MPPI online policy

    20 Aug 2001

    Pinnacle Insurance is launching a new portable mortgage payment protection insurance policy online. Available at www.helpupay.co.uk, borrowers can view the policy’s terms and conditions, get a quote, apply and receive an immediate acceptance through the website. The policy provides cover for unemployment, accident and sickness and can be transferred to any mortgage or remortgage.

  • PMI provider appoints new boss

    20 Aug 2001

    PMI provider Healthcare 4 Life has announced the appointment of Wendy Young as its new chief executive. Young has been with the company since March 2001, previously working as a consultant.Healthcare 4 Life has also added two new benefits, home nursing care and parent accommodation, to its Ɗ in 1' group policy.

  • Portman gets the low down

    21 Aug 2001

    Portman Building Society has introduced a two-year fixed rate mortgage which is fixed at 5.19 per cent until October 1, 2003.

  • Portman jumps for discount

    20 Aug 2001

    Portman Building Society has unveiled a two-year discounted rate mortgage that has no early redemption penalty at all.

  • PPML predicts massive growth in Sipp market

    20 Aug 2001

    Self-invested personal pension administrator PPML is forecasting a ten-fold increase in the Sipp market over the next ten years.

  • Premier Asset Management - C-Lect Cautious Portfolio

    20 Aug 2001

    Type: Oeic.Aim: Growth by investing in zero-dividend preference shares.Minimum investment: £1,000.Investment split: 100 per cent in zero-dividend preference shares.Isa link: Yes.Pep transfers: Yes.Charges: Initial 5 per cent, annual 1.25 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 01483 306090.Suitability to market 7.3Investment strategy 7.3Past performance 7.0Company's ...

  • Premier Portfolio Managers drops charge on Euro growth fund

    17 Aug 2001

    Premier Portfolio Managers is offering its European growth fund without an initial charge until October 1, 2001.

  • Principality mortgage has more than meets the eye

    21 Aug 2001

    Cardiff-based Principality Mortgages’ new three-year fixed rate mortgage is available to all borrowers.

  • Product Matters

    16 Aug 2001

    Following many mainstream lenders, Skipton has entered the non-standard lending market with its rebranded specialist, subsidiary Amber Homeloans. For those with mildly adverse credit, Amber has rates fixed until October 31, 2003 at 6.75 per cent (full status), or 7.25 per cent (self-certification). However, both feature a one-year ext- ended lock-in and other lenders, such as Bristol & West, can offer sligh-tly higher rates without extended tie-ins. It is worth remembering ...

  • Proportion of upheld pensions complaints down

    17 Aug 2001

    The Pensions Ombudsman Dr Julian Farrand today publishes his report for the year ending 31 March 2001, the last of his seven year tenure ending on 31 August 2001.

  • Rates of change

    16 Aug 2001

    This week, I want to look at the real nature and effect of interest rate risk. On commencing a drawdown contract, the maximum withdrawals for the next three years are restricted according to tables drawn up by the Government Actuary's Department. The interest rate used is the redemption yield on long-dated Government bonds and the limit thereby expressed within the tables is the maximum withdrawal per £1,000 of fund at the start of the three-year period. At the end of this ...

  • Recession stifles entrepreneurs

    21 Aug 2001

    The economic downturn will deter potential entrepreneurs from starting up their own business, according to Abbey National. Its business banking report shows that one in six people in the UK has seriously considered establishing their own firm over the last two years but were put off by the fear of running into financial difficulties. Abbey says only one in 50 people has actually gone self-employed over the past year.

  • Report is no panacea to Govt's stakes and pains

    16 Aug 2001

    The impact of the recent Institute for Public Policy Research paper criticising Government pension policy has been considerable. That a traditionally left-leaning thinktank, at one time seen as the Government's favourite thinktank, should publish such a harsh criticism of the Government's efforts to reform the pension arena has won a great deal of applause. Many of the comments made in the interim report, Incremental and Fundamental Options for Second Term Thinking in Pensions ...

  • Scepticism over stakeholder sales

    16 Aug 2001

    The first figures for stakeholder sales have been greeted with scepticism, with the industry claiming they tell very little about the true picture of whether the scheme is a success and meeting Government expectations. ABI data shows that 224,506 stakeholder plans have been sold between April and June while only 22 per cent, or 88,394, of the 400,000 companies with five or more employees have made stakeholder schemes available. Somewhat surprisingly, Building & Civil Engineering ...

  • Scot Wids wins Armed Forces stakeholder business

    17 Aug 2001

    Scottish Widows has won the contract to provide stakeholder pensions and additional voluntary contribution schemes to 200,000 members of the armed forces and approximately another 50,000 reservists. 

  • Scottish Amicable to ditch initial commission

    16 Aug 2001

    Scottish Amicable is ditching initial commisssion on all new regular premium pensions business saying the practice is no longer sustainable.

  • Scottish Legal Life in Friends Prov marketing deal

    17 Aug 2001

    Friendly society Scottish Legal Life has signed a deal with Friends Provident to market the life office's stakeholder pension. It plans to offer Friends Prov's 'New Generation' stakeholder pension scheme to existing members and use the strength of Friends' name to attract new business. It says it will target businesses with five to 50 employees. 

  • Self-service stations

    16 Aug 2001

    As someone who spends much of his time identifying ways that technology can help IFAs, it is worrying to see some advisers not taking best advantage of the opportunities that new media can offer. This was brought home to me when reading the research from Assureweb on the future requirements by users of its IFA Window service. It did bear out a demand for important consumer innovations such as online portfolios and the ability to offer clients up-to-date valuations online. Comparative ...

  • Skipton Building Society - Share Tracker Bond Issue 2

    17 Aug 2001

    Friday, 17 August 2001. Type: Guaranteed growth bond. Minimum-maximum investment: Lump sum £2,000-£10,000. Term: Two years until October, 2 2003. Interest rate: 5.25 per cent until October 1, 2001. Return: Up to 30 per cent linked to the performance of Tesco, BSkyB, Shell, GlaxoSmithKline and Vodafone shares. Guarantee: 100 per cent capital return. Commission: None. Tel: 0800 4467766.

  • Skipton Guernsey - 5 Year Guaranteed Growth Bond

    16 Aug 2001

    Thursday, 16 August 2001. Type: Offshore guaranteed growth bond. Aim: Growth linked to FTSE 100 index. Minimum investment: Lump sum £5,000. Place of registration: Guernsey. Investment split: 100 per cent in growth bond. Guarantee: Capital returned in full at end of term along with 26 per cent growth regardless of movement in index. Isa link: No. Charges: None. Commission: None. Tel: 01481 727374.  

  • Special treatment

    16 Aug 2001

    "A specialist is someone who does everything else worse," acc-ording to American violinist Ruggiero Ricci. However, many IFAs are questioning the idea of a generalist practice and an increasing amount are occupying niches. Niche can be construed in two ways. There are IFAs who specialise by serving a particular sector of the population. Then there are those whose specialism relates to the particular kind of products that they advise on. Sometimes, of course, these arbitrary distinctions ...

  • Standard & Poor's Micropal Top 10s

    16 Aug 2001

    A good week for Rathbone saw two of its unit trusts enter the top 10 performers. Rathbone income has returned 13.81 per cent over the past 12 months while special situations is up by 13.23 per cent. Govett US bear returned to the top of the table with a return of 29.92 per cent over the last year. Artemis UK special situations, which topped the table at the start of August, has dropped out of the top 10, with almost 20 per cent having been cut off its annual return over just a couple ...

  • Standard wins Consignia AVC business

    17 Aug 2001

    Standard Life has secured new group AVC business from Consignia, formerly the Post Office, which it says could become its largest AVC account.

  • Talkback

    16 Aug 2001

    Should lenders be forced to highlight rivals' rates as part of FSA planned pre-application documents? "No. As a broker, I do it for my clients. I quote four or five companies and give them illustrations. I can't see why lenders should have to do it as well." Peter Rodgers,Peter Rodgers Financial Services "Of course no. It's not commercial to do so." - Anthony Lewis,Embassy Financial Planning. "No. It's a load of tosh. It's just barmy. Why should ...

  • Teacher's ties in fixed rate

    20 Aug 2001

    Teacher's Building Society has introduced a three-year fixed rate mortgage for loans of 95 per cent of valuation.

  • Term sales increase as IFAs take a 36% share

    16 Aug 2001

    Term insurance sales in the UK rose by 8 per cent between 1999 and 2000 and IFAs accounted for over a third of sales, according to GE Frankona Re research. The findings, which cover providers of stand-alone term insurance in the UK, reveals that although more people are buying policies online, IFAs are still the most popular channel. Total standalone term insurance sales were 1,054,703 last year compared with 973,436 in 1999 and one in four of the population has term insurance, ...

  • The cost of fees

    16 Aug 2001

    The introduction of Cat-standard Isas and stakeholder pensions has effectively anchored charges and commission in a large part of the UK retail investment market. Yet the debate surrounding advice, charges, commission and fees is as heated as it has ever been. The Sandler review now appears ready to jump on the "commission is bad" bandwagon. Although this is rolling at an ever increasing pace, it is a less stable ride than many would have us believe. The Government and consumerist ...

  • The Daley Update

    16 Aug 2001

    Skandia is to offer a white-labelling facility for its multifund, multiPep and multiIsa supermarket. The service, launched next month, will allow IFAs to brand the Skandia platform under their own name and customise it to their own preferences. IFA clients can also enter the platform to monitor their portfolio and make fund switches. Aberdeen, Invesco Perpetual, M&G and Schroders are starting their joint autumn roadshows in Glasgow on October 11, finishing in Gatwick and ...

  • The Exchange - Easi Protect Plan

    20 Aug 2001

    Monday, 20 August 2001. Type: ASU mortgage protection plan. Maximum benefit: £1,500. Benefit payment term: 12 months. Deferred period: 30 days. Premium: £4.99 per £100 monthly benefit. Commission: 100 per cent of first two premiums thereafter 15 per cent of premium. Tel: 01932 586343.  

  • The Exchange - Easi Protect Plus Plan

    20 Aug 2001

    Monday, 20 August 2001.

  • The long and the short of it

    16 Aug 2001

    South African investment banking group BoE International has introduced a fund of hedge funds that will initially invest in 12 hedge funds. The BoE International market neutral fund is an open-ended investment company based in the Isle of Man. It aims to provide high-net-worth investors with high returns and low volatility by investing in funds that use a long and short hedging strategy. Long and short selling is the most popular hedging technique. The fund manager buys ...

  • Tools of the marketing trade

    16 Aug 2001

    Mailshots are one of the traditional marketing tools and have been with us long enough for evidence of what works to be quantified on a scientific basis. Henry Stewart Conference Studies is holding a one-day practice briefing on ensuring a more predictable outcome from your direct-mail strategy. It will be chaired by Bristol & West head of marketing Harry Partington and the there will be a number of industry experts speaking on all aspects of direct-mail campaigns. The event ...

  • Towry's 'dowry' In bid to boost RIs

    16 Aug 2001

    Towry Law is embarking upon a drive to recruit 800 IFAs within the next four years, boosting its ranks to 1,000 RIs. Chief executive Douglas Black also claims he believes the £30m bailout by the ICS after the £48m Advizas' pension misselling represents a good deal for the industry and could have saved it £20m by preventing the firm going into liquidation. Towry has 200 RIs but aims for 1,000 within three to four years on the back of the support and long-term ...

  • Two front-runners......

    16 Aug 2001

    Two front-runners have emerged as potential buyers for personal finance digital TV station the Money Channel which went into administration in May, according to administrators Pricewaterhousecoopers. Pwc says the companies are in advanced discussions to buy the assets of the Money Channel, including technical content and intellectual property, but it says it cannot disclose any more details.

  • Watchdog says go to an IFA for free review

    16 Aug 2001

    The Financial Ombudsman Service has taken the unusual step of recommending a complainant to seek a commission-based IFA to review their case despite knowing the adviser is unlikely to be paid. The move comes as commission is under scrutiny from the Treasury and regulator. The case involves a mortgage endowment policyholder who disagreed with compensation offered by Friends Provident and complained to the FOS. The ombudsman agreed with Friends' offer but, when the policyholder ...

  • Western Provident Association - Self-Pay Protect

    16 Aug 2001

    Thursday, 16 August 2001. Type: Healthcare cash plan. Minimum premium: Annual £30. Minimum-maximum ages: 18-69. Maximum benefits: £50,000. Deferred period: 90 days. Commission: Initial 50 per cent, renewal 5 per cent until end of 2001 thereafter initial 25 per cent, renewal 5 per cent. Tel: 0800 7830784.

  • What does the client want, Mr Sandler?

    16 Aug 2001

    I am always amazed how inquiries are always chaired by someone who has a very big vested interest in one part of the industry or, better still, knows absolutely nothing about the industry whatsoever. I was always astounded that Mr Weinberg was asked to report on the savings industry when he was only interested in hard-sell direct sales, especially in one of his own hard-sell companies. More recently, Mr Myners was asked to report again on the savings industry. I have no argument ...

  • Who can beat the returns on with-profits?

    16 Aug 2001

    If Ron Sandler, former chief executive of Lloyd's of London, knows so much about investments, perhaps he can tell us how Lloyd's of London have fared over the last 50 years with investing people's money? What sort of returns have you made for your investors, Mr Sandler? And if Greig Middleton, a fund manager, is so critical of with-profits funds, perhaps they would be pleased to publish reports of how they have fared over the last 10, 15 and 25 years by way of returns ...

  • Why DBS deal will benefit all IFAs

    16 Aug 2001

    From the press coverage in recent weeks, you'd have thought that DBS and Misys had been cast in a David and Goliath battle, portrayed as the mighty network giants intent on domination of the financial advice market. In reality, I believe that we are playing David in a market that's witnessing a frenzy of mergers involving some of the biggest providers in the world. In the 18 years since founding DBS, I have never known a more competitive time. Overseas providers, such as ...

  • WPA designs self-pay plan

    15 Aug 2001

    Western Provident Association has designed self pay protect, a healthcare cash plan designed to help with the cost of hospital treatment for short-term illness or injury.The plan is concerned only with in-patient or day case private hospital treatment and follow-up out-patient treatment for 90 days after the patient has left hospital. It has three levels of cover and a 90-day deferred period. Under level one cover, patients are reimbursed 30 per cent of the cost of their ...

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