Money Marketing
16 June 2004

  • ཤ per cent could get enhanced annuity'

    16 Jun 2004

    GE Life estimates that nearly 40 per cent of individuals currently purchasing annuities are eligible for an enhanced rate annuity as sufferers of diabetes. Diabetes sufferers, who make up 6 per cent of the UK population over the age of 55 according to the Office of National Statistics, could benefit by nearly £2,000 a year by shopping around for an annuity, says GE Life Underwriting.

  • 'Financial services is losing out with Eurosceptic stance'

    17 Jun 2004

    The UK financial services industry should opt for the euro and the European Union Constitution to strengthen its position in global markets says a leading IFA. Norwest Consultants principal Harry Katz has launched a stinging attack on a Eurosceptic stance from the UK industry. He believes the UK needs to take advantage of its position as the most developed financial services market quickly to monopolise sales in other countries. He says the range of products ...

  • 'Government torpedoeing Isa flagship'

    17 Jun 2004

    The Government has turned investors off saving by cutting the Isa allowance and abolishing tax credits on the account dividends, says Isis Asset Management. Its research reveals that 30 per cent of savers now feel less inclined to invest in Isas as a result of the plans to abolish tax credits on dividends and reduce the annual allowance from £7,000 to £5,000. The allowance for cash Isas will also be cut from £3,000 to £1,000 in April 2006. The ...

  • 'Suite is simply not worthwhile selling'

    17 Jun 2004

    The Financial Ombudsman's refusal to give the Sandler suite immunity from misselling means distributing them is not worthwhile, says Royal London chief executive Mike Yardley. Yardley says there is no margin in distributing Sandler products through a direct salesforce even if the price cap is raised. Last week, Royal London shut its DSF to become an almost exclusively IFA-distributed product provider. Yardley says: "There is a distinction between simple products ...

  • £1m stealth rise in lifetime pension limit

    17 Jun 2004

    The controversial lifetime pension fund has been silently raised from £1.5m to nearly £2.5m after criticism that the new pension regime favours final salary over money purchase. The increase in the limit - by up to £1m depending on the circumstances of the individual - stems from the Inland Revenue responding to criticism that defined-contribution members should have access to the same £75,000 annual income as those in defined benefit schemes. The ...

  • 370 complete Advanced Financial Planning Certificate

    22 Jun 2004

    370 candidates have completed the exam requirement for the Advanced Financial Planning Certificate, the Chartered Insurance Institute has announced. 67 qualified as associates (ASFA) and 16 as fellows (FSFA).Qualifications director Lucy Courtenay says: "This is excellent news and shows that advisers want to be seen as professionals by demonstrating levels of commitment above the regulatory minimum standard."

  • 950 jobs to go as NU restructures life arm

    17 Jun 2004

    Norwich Union is restructuring its life business service division which will lead to the loss of 700 jobs and 250 contract worker positions. The restructure, to be completed by the end of 2005, will affect IT, facilities management and business systems. Work undertaken by these teams, predominantly software development and application support, will be transferred to IT outsourcing companies with global operations and locations in the UK, Europe, America and India. The ...

  • A consumer's view

    17 Jun 2004

    Transparency is the current buzzword in the industry but however much the regulators and the Government talk about it, there seems to be precious little of it around. The new consumer credit regulations, designed to protect borrowers from unscrupulous lenders, is a typical example of the Government pussyfooting around. The high-street banks, which are the major issuers of credit cards, seem to have intimidated the Government and got away with murder. The optimistic message ...

  • A simple request can turn into a paper mountain

    17 Jun 2004

    Fulfilling a client's simple request for a mortgage protection policy, it seems I have to send him at least four pages of illustration, 12 pages of key features and 20 pages of application form, these latter two items covering every protection product in the insurance company's armoury. Not only is this a waste of paper, my printing ink and postage but, more importantly, it is extremely confusing to the client. Eight per cent of the wording on the KFDs and 60 per ...

  • Abbey in warning over NI rebates for personal pensions

    17 Jun 2004

    An anomaly between the effect of National Insurance contributions on personal and occupational schemes could jeopardise enhanced protection status for personal plans, says Abbey for intermediaries. The company's interpretation of the rules shows that where an NI rebate is paid into a personal pension scheme after A-Day, enhanced protection is invalidated. Abbey is calling for the rule - which does not apply to occupational schemes - to be changed. It says ...

  • ABI says rise not generous enough

    17 Jun 2004

    The ABI says the Government has not been generous enough in raising the price cap to 1.5 per cent though it describes the move as a step in the right direction.ABI director general Mary Francis says: "The decision is a step in the right direction. The Government has recognised that the one per cent price cap on stakeholder pensions was hindering saving, not helping it."But the new price cap is certainly not generous, and the test of today's announcements is whether they ...

  • Actuaries tap into projection odds

    17 Jun 2004

    Projection rates could be presented in the form of odds which would mean more to the UK public, suggests The Actuarial Profession's input into the FSA review of projections. TAP says simple percentages appear to cause confusion in the minds of a big number of consumers, arguing that succinctness, clarity and relevance in the computation of projected values before and after costs should be the key element of any projected figures. It says a possible way of illustrating ...

  • Adding up the bill

    17 Jun 2004

    In my last article, I considered the severe challenges facing the UK in funding pensions for today's and future pensioners. In this article, I assess the actions that the Government is pressing for and take a view on whether these measures will stimulate the growth of pension savings. Simple tax legislation The Treasury published proposals last December to simplify the taxation of pensions radically. Following wide concern about the proposed lifetime allowance of £1.4m, ...

  • Aegon AM appoints IFA relationship manager

    22 Jun 2004

    Aegon Asset Management has appointed Lynsey MacDonald as business development manager for its retail team.MacDonald will develop relationships with intermediaries in the South West of England, reporting to head of retail sales Steve Kenny. She joins from Merrill Lynch Investment Managers, where she was assistant vice president.Kenny says: "Lynsey proved her credentials in a highly successful period with Merrill Lynch and I have no doubt she will do the same at Aegon."

  • Aifa says menu has become complex

    16 Jun 2004

    Aifa has criticised the FSA's proposed menu saying it has become overly complex and is in danger of losing its key message in its response to CP04/3: Reforming Polarisation: a menu for being open with consumers. Aifa says an overly complex menu will not be read by consumers, also criticising it for having a disproportionate focus on cost, saying it should be about the value of advice.

  • AIFAs view

    17 Jun 2004

    So, farewell then, FSA projection rates. An FSA discussion document will shortly canvass the idea of scrapping the projection regime. I have never understood why the regulator should oblige firms to offer figures which may well turn out to be spurious in the light of events to consumers who are unlikely to understand the economic variables. But will their absence create a vacuum for advisers? I suggest that this may be a further driver in the direction of good follow-up ...

  • Alliance & Leicester to close 46 branches

    17 Jun 2004

    Alliance & Leicester is closing one in seven of its bank branches, resulting in the loss of 310 staff.The bank says some redundancies are inevitable although it will look to redeploy as many staff as possible.A&L says the move reflects the increasing use of telephone and internet banking by its customers.

  • Amex wrap deal with Thinc

    17 Jun 2004

    American Express Financial Services Europe is primed to enter a strategic partnership with multi-distribution platform Thinc in a move marking the second stage of Amex's wrap account rollout. The companies have signed a letter of intent for an agreement that will initially see Thinc integrate its business with the wrap, which launched in March this year with five high-end IFAs cherrypicked by American Express. The deal will eventually extend to Amex and Thinc developing ...

  • Axa chief rules out a bid for 'failed' Standard

    17 Jun 2004

    Standard Life has been branded a failure by the global boss of rival insurer Axa who claims that Standard will be limited in the future over what it can do to remain competitive. Axa group chief executive Henri de Castries has denied that the company would be interested in buying Standard Life, shooting down rumours that surfaced in January when Standard's troubles first emerged. In a series of blistering remarks that mark a rare departure for life office senior executives ...

  • B&W announces simplified buy to let criteria

    22 Jun 2004

    Bristol & West has announced simplified buy-to-let criteria including for first time or more experienced landlords looking to expand their portfolio.The rental cover is now calculated on 125 per cent of the loan repayment using B&W's nominal rate or the payable rate for fixed rate products of three years or more.Clients can borrow for up to 10 properties and up to £1.5m. Individual loans are available up to £350,000 up to 85 per cent loan to value.Loans ...

  • Balance is urged to boost savings

    17 Jun 2004

    A report about consumer debt sends out a warning that unless banks and insurance companies put consumers first, there could be catastrophic consequences for financial providers and consumers. Datamonitor says the current "spend spend spend culture" is dangerous and urges the financial services industry and the Government to join forces and take a balanced approach to saving and spending. The reports says consumers are storing up future trouble by racking up debt and ...

  • Bristol & West - Balanced FTSE GEB Issue 12 - & yr

    18 Jun 2004

    Type: Guaranteed equity bond and high-interest accountGUARANTEED EQUITY BONDAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £2,500-£1mTerm: Seven YearsGuarantee: Original capital returned in full regardless of performance of indexReturn: Up to 90% growth in index at end of termClosing date: July 31, 2004HIGH IN TEREST ACCOUNTMinimum-maximum ...

  • Brown is driving us all batty

    17 Jun 2004

    It may seem like a strange description to apply to Gordon Brown but he has been behaving like a coquettish debutante at her first ball over the 1 per cent cap. The Treasury has always been reluctant to concede that between it and the then Department of Social Security it blundered at setting the cap at 1 per cent. A good three years into the great 1 per cent experiment, the Government finds itself faced with a product providers'strike where they do not sell stakeholder ...

  • Brown rebuffs King's warning

    19 Jun 2004

    Chancellor Gordon Brown has moved to counter Bank of England Governor Mervyn King's warning of increased falls in the housing market. In an interview with GMTV Brown underlined the importance of keeping stability in the housing market and the wider economy. The interview followed a speech used by the Chancellor's chief economic adviser to Ed Balls to play down the prospect of falls in the housing market. Political pundits see a crash in the housing market as one of the biggest ...

  • Burns Anderson makes a profit for first time in six years

    17 Jun 2004

    Bristol-based IFA network Burns Anderson has recorded a pre-tax profit for the first time in six years. The firm's results show pre-tax profits of £285, 241 at December 31, 2003 following a £194,957 loss at the end of 2002. Although group turnover fell by 3.4 per cent to £29.8m from £30.8m, group gross profit is up by 4.6 per cent to £3.8m from £3.7m. The results show a turn-round for a business that had a "going concern uncertainty" ...

  • CA and TUC unite to warn Brown not to raise cap

    16 Jun 2004

    The TUC and the Consumers' Association have united to urge the Government not to raise the cap to 1.5 per cent. The groups have written to Chancellor of the Exchequer Gordon Brown to warn him that raising the cap and making stakeholder pensions more expensive will not help solve the pensions crisis. TUC general secretary Brendan Barber says an increase of one half of one per cent in charges would force a consumer would have to increase their monthly contributions by 11 per ...

  • CA is awarded formal super-complaint status

    18 Jun 2004

    The Consumers' Association has officially been granted formal super-complaint status by the department of trade and industry. This will allow the CA to make formal complaints to a number of government regulators including the Office of Fair Trading. Over the past two years, the CA has made two super-complaints in its informal capacity. The first was in January 2002 on the issue of access to dental services and the second was in December 2003 on the care homes market.CA ...

  • Cap increase needed to incentivise providers - Smith

    17 Jun 2004

    The Government's price-capped medium term investment product and pension product will both carry a maximum annual management charge of 1.5 per cent for the first 10 years that the product is held and 1 per cent thereafter.A statement from Department for Work and Pensions secretary of state Andrew Smith says the increase in the charge is needed to incentivise providers to market products to the public.Smith says: "The new structure will incentivise providers to market ...

  • Carnaby Motion Pictures - Love FM

    22 Jun 2004

    Type: Enterprise investment schemeAim: Growth by investing in the production of an English romantic comedyMinimum investment: Lump sum £2,000Closing date: July 31, 2004Charges: ImplicitCommission: Initial 3%Tel: 08704 586281

  • Cash deposit account at 1 per cent above the base rate

    17 Jun 2004

    The Government has announced the charge caps for its cash deposit accounts. The rate of interest payable has been set at 1 per cent within the base rate. This is a reduction from the currnet 2 per cent margin for cash ISAs.

  • Charcol in £25k deal to keep top salespeople at company

    17 Jun 2004

    Charcol is understood to be offering its top-perfor-ming salespeople up to £25,000 over two years if they agree to stay with the business as parent comp-any Bradford & Bingley looks to sell it off. Money Marketing has learnt that Charcol plans to offer its top 20-30 performers - thought to be those bringing in around £170,000 a year - £12,500 up front and another £12,500 in a year if they remain with the broker. B&B is widely seen by the City ...

  • Chattel Drive

    17 Jun 2004

    On December 11, 2003, the Inland Revenue published a consultation document entitled, Tax Treatment of Pre-Owned Assets, in which it outlined how an annual income tax charge will be levied from April 6, 2005 on the benefit that people enjoy when they have arranged free continuing use of major capital assets that they once owned. The intention is to crack down on certain inheritance tax planning arrangements that are designed to enable a person to give away a major capital asset ...

  • Cheltenham & Gloucester - 4 Year Capped Rate Mortgage

    16 Jun 2004

    Type: Capped-rate mortgageCapped term: Until July 31, 2008 Capped rate: Up to 95% of valuation - 6.24% house purchase, 6.49% remortgages, up to 90% of valuation - 5.99% house purchase, 6.24% remortgagesMinimum loan: £25,000Maximum loan: Up to 95% of valuation subject to no maximumIncome multiples: Up to three times principal income plus second or 2.75 times jointConditions: Arrangement ...

  • Chilton team starts from scratch

    17 Jun 2004

    Mark Chilton has assembled a team of advisers new to mortgages to be at the forefront of his new national broker business Purely Mortgages. Chilton says he carefully selected people who have a cultural fit to learn from scratch how to sell mortgages rather than adopt the hard-sell practices of many mortgage brokers. The 23 consultants all have a financial services background and will go through an intensive seven-week Cemap programme in July and August. Chilton hopes ...

  • Close offers reversion plan to help reduce IHT

    17 Jun 2004

    Close Brothers Investment is offering a whole-of-life homereversion policy in conjunction with Isle of Man Assurance which can help reduce inheritance tax. The property wealth manager product enters into a home-reversion transaction once the consumer is aged 65 or over. The proceeds are invested in the life insurance home-reversion fund which acquires the property. The number of units allocated to the client in the fund correspond to the value of the property, which ...

  • Commission wish

    17 Jun 2004

    I have had a dismal year so far. I have paid an architect £6,000 in fees for plans for a job which he estimated would cost me £50,000. The best builder's quote so far has been £158,000 plus VAT. I pay my accountant a monthly service fee. He has ignored my last two emails (six weeks and two weeks ago). I recently instructed a lawyer to seek a quote for counsel's opinion on a complex tax planning matter. Counsel misunderstood and gave a full opinion, ...

  • Comply with me

    17 Jun 2004

    The Diary has found a task for its readers - to come up with the ideal hold music for our friends at Canary Wharf. Our man at the FSA has expressed a willingness to listen to any suggestions. So whether you think it should be that old Rolling Stones number Under My Thumb or perhaps Sympathy for the Devil - or maybe something more classical along the lines of Wagner's Ride of the Valkyries - the Diary is confident the ideal song is out there. Please send any ...

  • Consumers' Association warns of flawed and dangerous strategy

    17 Jun 2004

    The Consumers' Association warns that the FSA proposal to reduce consumer protection will invite mis-selling and destroy consumer confidence in saving for the future.CA warns that selling stakeholder products through a basic advice process is a flawed and dangerous strategy. CA principal policy advisor Mick McAteer says: "The FSA seems to have chosen to address the long-term savings crisis with an approach that rewards an inefficient industry by stripping it of any responsibility ...

  • Correspondent's View

    17 Jun 2004

    It is Monday and I am in chaos. This is my first day after an idyllic week on a Wiltshire farm watching pigs snuffle in a trough. Not much change there, then. My vow to attend the gym fails as I opt instead to sit on the sunny patio and read the papers. I then spend a frantic 15 minutes tearing around the house, throwing aside papers, cushions, clothes and furniture as I try to locate my watch, mobile phone, wallet and car keys. Eventually, I arrive at our Derry Street ...

  • Cover Story

    17 Jun 2004

    Watching the market from a distance to understanding the dyn-amics better, it seems obvious that there should be improved cover for certain classes of business. If we look at the current market, it is important to understand what the drivers are. Premiums are on the increase and cover is becoming scarcer and in many cases not obtained. Networks and support service companies seem to have been able to buy bulk policies which allow independent firms to get cover, albeit ...

  • Critical points on CA criticism

    17 Jun 2004

    The article on Lifesearch's response to the Consumers' Association report on poor critical illness advice was accurate (Money Marketing, June 10) but the headline was somewhat dramatised. Lifesearch did not "slam" the Consumers' Association report. In fact, we praised more than we criticised but we did ask them to stop slandering all financial advisers when they have found fault with only one specific type of adviser. The CA's press release about the report ...

  • David Collett

    17 Jun 2004

    One of the fastest consolidators in the industry is run by a man who started out in life selling motor oil. However, David Collett was not to be found behind a petrol pump or in a spare parts store. His first job after university was as a sales manager for American manufacturer Wynn's, where he quickly realised that understanding people's needs was the key to a successful business. A pragmatic approach to consolidation also seems to have played a part. Many in the industry ...

  • Deutsche revamps investment trust arm

    16 Jun 2004

    Deutsche Investment Trust Managers is rebranding to DWS Investment Trust Managers as part of its drive to attract a broader range of investors. Parent group DWS Investments says the move - which heralds a more proactive promotion of its investment trust business - will enable it to integrate its sales and marketing activities "behind a strong customer focus".

  • Don't tar us all with same brush

    17 Jun 2004

    Dear Financial Services Consumer panel Consumer confidence is being eroded on a daily basis by commentators who tar the entire industry with the same brush. The real culprits are Gordon Brown with his tax on pension funds, MPs in the Treasury select committee who are out to make a name for themselves, so-called consumer bodies who also provide financial "advice" that is found to be lacking,the press with sensationalist reporting in an unbalanced manner, the FSA with their ...

  • Exchange revamps website builder

    17 Jun 2004

    The Exchange is offering an updated version of its website building tool and a comparative quote service which IFAs can plug in to their own websites. The service will allow advisers to design their own company website, including a comparative quotations service which they will be able to show to clients. The quote services are customised versions of The Exchange's comparative quotation services and cover term insurance, critical-illness cover, mortgage protection, ...

  • Ex-Charcol boss Scott plans to buy back firm

    17 Jun 2004

    Former Charcol chief executive Keith Scott is believed to be looking to table a bid to buy the mortgage broker from Bradford & Bingley. Money Marketing understands that Scott has been asking questions in the City about raising capital to invest in Charcol which is up for sale after B&B announced its new strategy last month. It will mark a return to financial services for Scott who left the industry four years ago when B&B took Charcol off his hands. Scott ...

  • Exclusive Connections - 1.07% 3 Year Discount

    21 Jun 2004

    Type: Discounted-rate mortgageDiscounted term: Three yearsDiscount: 1.07%Payable rate: 4.59%Minimum loan: £15.001Maximum loan: Up to 95% of valuation subject to a maximum of £999,999Income multiples: Up to 3.5 times principal income plus second or 2.75 times jointArrangement fee: NoneRedemption fee: 3% of amount repaid in first three yearsIntroducer's fee: Subject ...

  • Fears over accuracy of early redemption charges

    17 Jun 2004

    Concerns have been raised by sourcing systems about the accuracy of early redemption charges included in key features illustrations. Tolerance is not permitted in relation to calculations of early repayment charges which the FSA expects to be penny-perfect. Lenders have been acc-used by the FSA of being "self-defeatist" for not providing detailed technical information enabling accurate KFIs to be produced. This means sourcing systems will not be able to offer accurate ...

  • Financial issues MEPS back in Brussels

    16 Jun 2004

    Three key MEPs working on financial services issues in the European Parliament have regained their seats in the European elections. Conservative MEP Theresa Villiers took 27 per cent of the vote for the London region. Labour MEP Peter Skinner took 14 per cent and Liberal Democrat MEP and Chris Huhne gained 15 per cent both in the South East region.

  • FOS will cover Sandler suite consumer complaints

    17 Jun 2004

    Advice given on the Sandler suite of products will have to be suitable to the consumer to whom they are sold. Sandler consumers will be able to take unresolved complaints to the Ombudsman. The FOS will look at the specific rules on suitability for simplified selling rather than those that apply in the case of full advice.

  • Four new lenders join Mortgage 2000 mortgage club

    16 Jun 2004

    The Mortgage 2000 mortgage club announced yesterday that four new lenders have joined its now 50 strong lender panel. The four new lenders are Scottish Widows Bank, Manchester Building Society, Norwich and Peterborough Building Society and Lloyds TSB Scotland.m2-mortgage club national sales manager Allan Collinson believes that the five new lenders will bring with them competitive fee offerings and the promise of keenly-priced exclusive products which he says will give brokers ...

  • Friends foundation looks at giving for charity

    17 Jun 2004

    Friends Provident is to use £20m in unclaimed shares from its demutualisation to set up a foundation aimed at promoting charity work and philanthropy. The Friends Provident Foundation launches on July 14 with a debate and publication entitled, The Right Use of Money in 21st Century Britain, suggesting approaches that governments, private bodies, voluntary organisations and individuals might take to direct money to philanthropic purposes. The publication, with 15 ...

  • Friends Prov optimises ethical stance

    17 Jun 2004

    Friends Provident has established the stewardship safeguard optimiser fund, a unit-linked ethical fund that offers some protection to investors in Friends Provident's investment portfolio bond.The fund is aimed at cautious investors with ethical investment principles. The aim of the fund is provide smoothed investment returns similar to with-profits by investing in an ethical portfolio - the Isis stewardship growth fund. Up to 70 per cent is invested in the underlying stewardship ...

  • FSA picks probe team for BBB

    17 Jun 2004

    The FSA has appointed investigators to scrutinise the liquidation of Berry Birch & Noble Financial Services following its decision to block Berkeley Berry Birch's bid to dump the national IFA shell's potential liabilities. The regulator halted the transfer of BBNFS' business to BBN Financial Planning in April as "a precautionary measure" pending its review of transactions that occurred before the liquidation. It has now appointed investigators to probe the ...

  • FSA suggests companies review promotions every three months

    17 Jun 2004

    Firms should review their financial promotions every three months to ensure they remain compliant, the FSA has suggested. Speaking at a conference in London last week, director of the retail themes division Anna Bradley told delegates that they should be reviewing their financial promotions every quarter. Bradley said a new financial promotions department would be stepping up contact with the industry using a range of regulatory tools, including enforcement, which will ...

  • FSA zeroes in on Hargreaves Lansdown with split-cap fine

    17 Jun 2004

    Hargreaves Lansdown has been fined £300,000 and has set aside £1.7m for compensation for failings concerning a split-capital product. The company has been fined by the FSA for the way it described the risks of zeroes held in its secure growth portfolio - a specialist portfolio of zero-dividend preference shares. The rule breaches also relate to the way that the composition of the portfolio changed after 2000 by moving away from what the FSA calls traditional ...

  • Genesis Home Loans - Minerals: Galena

    16 Jun 2004

    Type: Discounted rate adverse credit mortgageDiscounted term: Until November 30, 2005Discount: 1.75%Payable rate: 6.5%Minimum loan: £25,001Maximum loan: Up to 95% of valuation subject to a maximum of £300,000Income multiples: Up to 3.5 times principal income plus second or three times jointConditions: House purchase only, maximum £3,000 in CCJs or two months' arrears in last ...

  • Genesis nourishes homeowners

    21 Jun 2004

    GENESIS HOME LOANSMINERALS: DOLOMITEType: Discounted-rate adverse credit mortgageDiscounted term: Until November 30, 2005Discount: 2%Payable rate: Full statues 5.5%, self-cert 6%Minimum loan: £25,001Maximum loan: Up to 80% of valuation subject to a maximum of £1m full status, £500,000 self-certIncome multiples: Up to 3.5 times principal income plus second or three times jointConditions

  • GMAC-RFC launches new non-conforming mortgage range

    22 Jun 2004

    GMAC-RFC has announced new rates for non-conforming mortgages, starting at 5.24 per cent.The range of discounted and fixed rates are available on a status or self cert basis and were designed after research found that borrowers have a wide range of varying levels of adverse credit.GMAC-RFC head of marketing services Jeff Knight says: "One thing we found in our research was that the majority of non-conforming borrowers had just minor levels of adverse credit. These new rates ...

  • Gooding to step down as AMI chairman

    22 Jun 2004

    Association of Mortgage Intermediaries chairman Charles Gooding has anounced he will not seek re-election this year.Gooding - who was the AMI's first chairman - will step down in July when a new chairman has been voted in.Gooding says: " AMI's success over the last twelve months has been staggering, not just in terms of the number of new members, but the impact and influence that has been apparent with the onset of regulation. I am grateful for the support shown to ...

  • HBOS welcomes price cap

    17 Jun 2004

    HBOS has welcomed the Treasury's announcement about a long-term savings regime for the UK.HBOS says the 1.5 per cent annual charge is realistic and will increase the level of competition within the savings industry. An HBOS spokesperson says more transparency and competition is good news for customers and that it will give a greater number of consumers access to advice and products.HBOS introduced a range of "Sandler-style" products two years ago. These products, ...

  • Home truths

    17 Jun 2004

    As I have written before in this column, it is an indisputable phenomenon that the value of residential property deeply influences the financial planning of individuals in this country. On the day I was writing this piece, I read that Nationwide has reported the biggest annual rise in house prices for a year. The average rise is almost 20 per cent. This means the proportion of the wealth of UK individuals represented by residential property is likely to be increasing ...

  • House prices fall

    21 Jun 2004

    Asking prices fell in the first week of June, according to Rightmove, with London and the South-East leading the slowdown.Average asking prices across the country fell by 0.4 per cent or £683 in the first full week of June (6th to 12th), having continued their strong surge for the first four weeks of the five week period covered by this month's Rightmove index.Rightmove commercial director Miles Shipside says: "Over the month, prices are up again, but close analysis ...

  • HSA tailors super modules for PMI

    17 Jun 2004

    HSA is offering a private medical insurance package which allows firms to choose from a range of modules to create their own flexible, tailor-made cover for company and employee needs. The personal medical plans are a set of simple and adaptable modules that can be mixed and matched to fit in with an individual's lifestyle and healthcare requirements. They concentrate on getting employees back to work as soon as possible by ensuring that unlimited consultations and ...

  • Huge splits' bill heading our way

    17 Jun 2004

    Recent news reports indicate that the attempts by the FSA to pull together a satisfactory compensation fund from the 21 firms involved in the split-capital investment trust debacle have failed and as a result, "in the months ahead, the FSA may find itself embroiled in several legal battles concerning splits, including the upcoming tribunal of David Thomas, formerly of Brewer Dolphin". As is well known, legal battles are notoriously and often hugely costly affairs, particularly ...

  • IFAs say property price levels are unsustainable

    17 Jun 2004

    Over half of IFAs believe the present levels of house prices are not sustainable, according to the One Account/Money Marketing State of the IFA Nation poll. Fifty-four per cent say current prices are unsustainable while 45 per cent believe they are sustainable. But 59 per cent of IFAs believe remortgaging and home-reversion plans will remain strong over the next 12 months while 39 per cent are negative. The poll respondents are pessimistic that the present state of the ...

  • IHT warning from Canada Life

    18 Jun 2004

    Increases in property prices means this year 33,000 estates will pay an average inheritance tax bill of £85,000, according to figures from Canada Life.Canada Life technical support manager Jeremy Pearson says: "Many IFAs will have clients who are unaware of the threat that IHT poses to their family wealth. These statistics underline the necessity of estate planning. By taking independent financial advice people can identify their potential inheritance tax liability and identify ...

  • IMA slams Treasury over price cap

    17 Jun 2004

    The IMA has slammed the Treasury's decision to raise the price cap to 1.5 per cent, saying it will make the products expensive and likely to harm investors.Chief executive Richard Saunders says: "This proposal does not seem to us to have been thought through. Charging 1.5% to some retail investors and 1% to others would add considerably to the complexity of the product and consequently increase administrative costs. Tracking individual investments and withdrawals for the purpose ...

  • Increase should be passed on to IFAs - Burns Anderson

    17 Jun 2004

    Burns Anderson chief executive Ian Parsons welcomes the cap increase as 'a step in the right direction' but says it remains to be seen if this increase is passed on to IFA professionals, therefore making the product more attractive to sell.He says: "If the increase was passed on it would stand to reason that we would see a steady rise in the popularity of stakeholder, achieving the Government's overall aim of encouraging the public to fund their retirement."

  • Independent view - Harry Katz

    17 Jun 2004

    Tony Byrne voiced what is probably the view of the majority in his criticism of Europe. I am pleased to have been given the opportunity to put a contrary view. It is not so much that life outside the EU would be that much worse but inside it we have the chance to be so much better. If you do not like something it can only effectively be changed from within. Compared with our immediate European neighbours,we work longer hours, have fewer holidays and on average live in ...

  • Insurance is answer to ailing system

    17 Jun 2004

    Paying for healthcare in the UK obliquely through taxation does not provide a sufficient inc-entive to make consumers act responsibly. I applaud the Government's efforts to improve the NHS but we also support the Doctors For Reform for challenging the notion that NHS improvement simply requires bigger doses of the same medicine. It may be a worthwhile aspiration but free healthcare is not a fundamental right. It is apparent that the emphasis on trying to make healthcare ...

  • Insurance products dropped from EU gender directive

    17 Jun 2004

    A European Commission plan to ban underwriting of insurance products on grounds of gender has been blocked its a majority of member states voted against the proposal. At a recent Council of Ministers social affairs committee meeting, 17 out of 25 representatives voted for insurance products to be removed from the EU gender discrimination directive which outlaws sex discrimination in the provision of goods and services. The directive would have made annuities cheaper ...

  • Intelligence is accused of panic over free deal

    17 Jun 2004

    Mortgage Intelligence is offering mortgage intermediaries free membership to its network, prompting claims that it is a panic move. The offer applies until October 31 and applies both to its Spirit solution for appointed representatives and Vantage for directly authorised intermediaries. Mortgage Intelligence believes that intermediaries are delaying making a decision about which network to join for financial reasons and are keen to manage demand for its proposition to ...

  • Interest rise could send loan PI up

    17 Jun 2004

    A rise in mortgage-related misselling claims is set to send PI premiums soaring for mortgage brokers, according to PI broker Collegiate. Head of claims Martin Archer believes rising interest rates and higher unemployment will mean a number of borrowers feel over-committed on their mortgages and may go to the ombudsman. Archer says until now affordability has only been lim-ited by what the provider will lend but, with statutory regulation, mortgage brokers will consider ...

  • Investment view

    17 Jun 2004

    The sigh of relief as the FTSE 100 crept back over 4,500 last week was audible, even in Suffolk where my recovery continues on track. The better underlying tone that has been developing has been particularly welcome. The fact that share prices slipped below this landmark almost immediately afterwards hardly seemed relevant as attention was focused on the deliberations of the monetary policy committee. It seems most consumers still view the current cost of money as a bonus, not ...

  • Isis off the mark with property trust 2

    21 Jun 2004

    Isis Asset Management has created a second Isis property trust, a Guernsey-based closed-ended fund which aims for income and growth by investing in a portfolio of UK commercial property.The fund will initially invest in a portfolio of 38 freehold and leasehold properties that Isis has managed for the last three years and has a target yield of 6.75 per cent a yearThe properties within the portfolio are span the retail, office, industrial & warehousing sectors, covering areas ...

  • Jardine Lloyd setting up pension advice service

    17 Jun 2004

    Employee benefits specialist Jardine Lloyd Thompson Financial Consultants is setting up a service aimed at giving individual advice on pension simplification to senior executives, partners and directors. The service offers an audit of benefits and a report on whether action is necessary and when it should be taken. The basic audit is available online for a fixed fee of £750 to £1,000. A report is then produced which will provide a full valuation of all benefits ...

  • Julian Gibbs

    17 Jun 2004

    Nigel Thomas, who manages the Framlington UK select opportunities fund, has possibly the best long-term record in the industry. He has been a top performer for more than 20 years with Hill Samuel, Carrington Pembroke - subsequently ABN Amro - and now with Framlington. His fund is up by over 50 per cent this year against the average UK all companies unit trust performance of 26 per cent and the 18.3 per cent rise in the FTSE 100. Between 1996 and 2001, the Solus special ...

  • Just what doctor ordered

    17 Jun 2004

    Public expectations cannot be met by the NHS and we should be looking to adopt a different funding system such as social insurance. But first we would need to change perceptions about medical insurance. "We believe the time has come to consider a new way to deliver healthcare in Britain." This was not a medical insurer speaking, not even a medical insurance intermediary but Doctors for Reform - a group of 500 doctors who all work in the NHS and are, in their own words "committed ...

  • Kirwan quitting Abbey for Widows

    17 Jun 2004

    Nick Kirwan has resigned as head of marketing and product development at Abbey for Intermediaries after nine years and is set to join Scottish Widows. Kirwan, who is well known for his work with Scottish Provident and ABI working parties, is joining Widows in the early autumn as its marketing director, protection, as part of the group's restructuring and growth strategy. Kirwan will be replaced by Sue Wilkinson, a key relationship manager at Abbey with over 10 years' ...

  • Kleinwort Benson actively manages structured product

    22 Jun 2004

    Kleinwort Benson Private Bank is offering IFAs a capital-protected fund linked to a basket of 16 actively managed funds chosen through its fund selection service, elite.Elite rotator provides a choice of 100 per cent or 80 per cent capital protection. Protecting 100 per cent of capital will provide 100 per cent of the growth in the underlying funds, while 80 per cent protection offers a geared return of 110 per cent.Kleinwort Benson has allocated 50 per cent of the underlying ...

  • Kreis raises funding for three more Tomahawk pubs

    21 Jun 2004

    Kreis Consulting's second round of funding for Tomahawk Pubs will enable it, with gearing, to buy and refurbish another three pubs.Kreis says this brings to at least five the number of Tomahawk Pubs.

  • Landlords positive on tenant demand

    17 Jun 2004

    Landlords are confident that tenant demand is stable or rising, according to Paragon Mortgages' landlord survey. Fifty-five per cent of landlords say tenant demand is steady while 26 per cent report a growth in demand. The average landlord in the quarterly survey owns 11.3 residential properties worth £789,000 and is hoping this will rise to 12 properties worth £829,000 over the next 12 months. The average portfolio is up by 4.1 per cent since the last ...

  • Laying my cards on a reshuffle

    17 Jun 2004

    I am going to take my life in my hands and make some political predictions. I believe we are less than a year away from a general election. Time for some reflection on a likely summer reshuffle, perhaps? Following last week's local and European elections, it is highly likely that the Prime Minister will look to shuffle the pack and freshen up the Government team for the coming electoral test. It is also highly likely that the opposition parties will use the summer period to ...

  • Lending down by £1bn in May

    18 Jun 2004

    Mortgage lending was £1bn lower in May than in April, according to the Council of Mortgage Lenders.Gross lending amounted to £23.8bn in May, down from £24.8bn in April but still nearly 9 per cent higher than in May last year.The number of house purchase loans fell to 103,000 in May from 118,000 in April. 31 per cent of these loans were to first-time buyers, compared with 28 per cent in April

  • Loan network gets VAT exemption on charges

    17 Jun 2004

    A mortgage network has been given VAT exemption on member charges as it says it can prove that its services are integral to the adviser client relationship. In an email seen by Money Marketing, Customs and Excise has granted Classic Network Solutions exemption from VAT following assessment. The 15-RI group set itself up as a packager last year and launched its network proposition on June 1. AMI director Chris Cummings says the move bodes well for the sector and ...

  • Look to the private sector

    17 Jun 2004

    The idea of compulsory insurance aired by the Doctors for Reform group as a solution for the ailing NHS was castigated but a partnership between the private and public sectors would be a positive step. The NHS should consider compulsory insurance. Some of the comments made by Doctors for Reform will, to many, seem extreme and certainly too radical in the current political climate for any government to consider. This was borne out by the dismissal by Labour politicians. It ...

  • Make the introductions

    17 Jun 2004

    By electing to be introducers, mortgage advisers can lighten the pressures of multi-tasking and dealing with regulatory hurdles while boosting income as well. Of the 60,000 Cemap/ Maq-qualified mortgage advisers registered with the MCCB to provide advice (including support staff), 20,000 are in the category of firms with one to five consultants. Around 11,000 practices will be tied or independent financial advisers - multi-skilled, multi-tasking and probably running ...

  • Mark Chilton on mortgages

    17 Jun 2004

    Recent events have seen a sea-change in the political and economic environment, both of which have a bearing on the mortgage industry. I am talking about the decision to shift interest rates again by 0.25 per cent within one month and the overall political uncertainty caused by the Local and European elections. Sustained house price inflation has led to the growth and continued strength of consumer spending. For the average person, the value of house price inflation in the UK ...

  • Matrix wraps up hedge fund

    17 Jun 2004

    MATRIX MONEY MANAGEMENTMATRIX ASCENSION PLANType: Capital-protected hedge fund Aim: Growth linked to the performance of the Winton Trading Strategies Fund Minimum investment: Lump sum £5,000 Investment split: 100% in futuresPlace of registration: Bermuda Term: Seven years Return: 100% growth in the performance of the Winton Trading Strategies Fund Guarantee: 96% of original capital ...

  • Medicinal purposes

    17 Jun 2004

    The experience of other countries where healthcare is delivered via a mix of public and private systems is that not only do patients enjoy better outcomes and have more choice but the systems are also fair for all. We support a fair and comprehensive healthcare system for everyone. We agree that money alone, whether from taxes or other means, will not improve the healthcare system in this country. More fundamental reform is required. Productivity, innovation and organisational ...

  • Misys says performance is in line with expectations

    18 Jun 2004

    Misys says its performance is in line with expectations ahead of its full year results.In a trading statement issued today, executive chairman Kevin Lomax says overall group revenues are expected to be down 10 per cent on last year.He says: "Misys' performance as a group is in line with expectations. In Sesame there are signs that the environment may be improving, but we are also investing in the delivery of new market offerings ahead of the various regulatory changes expected ...

  • MLP launches training centre for graduates

    18 Jun 2004

    MLP Private Finance plc, part of MLP Group is launching an IFA training academy on July 19 aiming to get more graduates into the sector.In addition, MLP Private Finance has introduced an enhanced Continuous Professional Development programme in which all staff throughout the UK will participate.MLP managing director Frank Mesterharm says: "There is an urgent need to bring a new generation of well qualified IFAs to the industry. The Academy will set new standards of ...

  • Morrtgage edge: Tim Dawson

    17 Jun 2004

    The advent of Mortgage Day - as well as the Government's recent decision to regulate home-reversion plans - has stimulated debate about other areas that might ostensibly come under FSA control. The regulation of buy to let is one topical example - and one that is failing to find a consensus among mortgage lenders. Clearly, buy-to-let mortgages are different from residential mortgages. Normally, a borrower wants to buy a property and takes out a mortgage to ...

  • Mortgage and finance broker in breach of consumer advertising regulation

    21 Jun 2004

    Mortgage and finance broker First Choice Finance has been forced to change its credit advertising following action by the OFT.First Choice Finance was considered to have breached the consumer credit advertisement regulations in its advert in the Scottish Daily Mirror on January 27.The OFT considered the advertisement to have breached rules as it displayed a low rate of interest at 4.25 per cent but did not state the more representative APR of 6.3 per cent more prominently ...

  • Mortgage edge: Richard Coulson

    17 Jun 2004

    The Treasury's confirmed position is that buy-to-let mortgages will not be included within the scope of direct regulation because it believes the letting of residential properties is a business activity and associated mortgages are therefore commercial loans. The FSA had to draw the line somewhere, but it does seem to have excluded a market area that should be included. Zurich believes it is a serious oversight not to include buy to let in the impending mortgage regulation. ...

  • Mortgage Express chief rejects BTL practice code

    17 Jun 2004

    Mortgage Express managing director Tim Dawson has hit out at AMI calls for buy to let to come under a code of practice, saying the comments are "misplaced". The AMI says introducing a code of practice would bolster confidence in the BTL sector, a view backed by Zurich Mortgage Network which wants a code similar to the Mortgage Code Compliance Board to become the industry norm for BTL. Dawson argues that BTL is a commercial transaction without the consequence of the borrower ...

  • Mortgage firms hit back as King crashes in

    17 Jun 2004

    The mortgage industry has hit back at Bank of England governor Mervyn King's warning that house prices could fall, arguing that it could spark a crash when there was little danger of one before. Lenders and brokers say King does not need to "scare the living daylights out of people" by firing a warning to buyers and sellers, arguing that the recent slowdown has mitigated the threat of a fall in prices. Housing expert John Wriglesworth fears King's comments could ...

  • Mortgage regulation wins support

    17 Jun 2004

    The vast majority of IFAs are confident they can continue as independent mortgage advisers after M-Day, with 82 per cent saying they intend to do so. Forty-seven per cent of IFAs say they will take the network route while 40 per cent say they prefer to be directly authorised. Seventy-five per cent want buy-to-let mortgages to be regulated and 58 per cent believe that mortgage regulation in general will be of benefit to consumers. Ninety-one per cent support the regulation ...

  • MPs told that shock rise in rates is needed to stop property spiral

    17 Jun 2004

    Leading economist Roger Bootle has told MPs that the Bank of England monetary policy committee needs to shock housebuyers by raising interest rates. Speaking at the Treasury select committee meeting last week, three of the UK's leading housing market economists expressed concerns about the impact on the economy of a collapse in the housing market. Independent economic consultancy Capital Economics managing director Roger Bootle is critical of the MPC's decision ...

  • Nationwide announces new rates

    17 Jun 2004

    The Nationwide has announced new fixed rate mortgages after the increase in the Bank of England base rate last week.A two-year fixed rate is now available from 5.39 per cent, three years at 5.69 per cent and a five year fix is available from 5.79 per cent.

  • New Lighthouse division to target corporate pensions

    17 Jun 2004

    Lighthouse Group is bringing its 50 most expert pension advisers into a new division which will target the corporate pension market. Lighthouse Corporate Benefits will target small and medium-sized firms with a range of employee benefits solutions. Fifty of the firm's advisers - either G60 qualified or with an AFPC qualification - will be jointly registered with the new operation. Lighthouse already manages group personal pension schemes with up to 800 ...

  • New Star tech fund chief leaves firm over ill health

    17 Jun 2004

    John Pullar-Strecker has left his post as manager of New Star's technology fund after a long period of ill health. Pullar-Strecker has not been involved in managing the £325m fund since the start of the year, with deputy Neil Campling taking over control. New Star would not comment on whether the decision to part company was reached by mutual consent. Campling will run the fund under the supervision of deputy chief investment officer Mark Beale. New ...

  • Newcastle launches 10-year fix

    22 Jun 2004

    Newcastle Building Society has launched a 10-year fixed rate mortgage at 5.99 per cent, with an annual penalty-free option to redeem.The long term fixed rate aims to provide borrowers with security against potential rate rises while giving the option to move should circumstances change.Customers can redeem for free in December 2005 and then in December every year until 2014.Newcastle chief executive Robert Hollinshead says: "Although there is much speculation at ...

  • Noble & Company - Enterprise VCT

    17 Jun 2004

    Type: Venture capital trustAim: Growth by investing in unquoted companies and those listed on the Alternative investment marketMinimum investment: Lump sum £2,000Closing date: October 27, 2004Charges: Initial 5.25%, annual 2%Commission:Initial 3.5% until August 31, 2004, 3% thereafterTel: 020 7763 2200

  • NU Healthcare launches employee assistance programme

    22 Jun 2004

    Norwich Union has launched an employee assistance programme for all new and existing corporate private medical insurance policyholders.The EAP is set to be launched on July 1 and is available for employers with fifty or more members. The programme offers advice for employees on areas such as legal issues, emotional issues and tax and financial problems and is available 24 hours a day. Employees can discuss their problems with trained helpline advisers over the phone or even face-to-face.In

  • Nvesta out of step with the rest

    16 Jun 2004

    NVESTASAFETY NET INCOME PLANType: Capital-protected bond Aim: Income linked to the performance of the FTSE 100 index Minimum-maximum investment: £5,000-no maximum, £7,000 Isa Term:Five years Return: 6.25% gross income a year Guarantee: Original capital returned in full provided index does not fall by more than 50% and returns to at least its starting value Closing date: July 14, 2004 ...

  • O&M launches software to illustrate existing pensions

    22 Jun 2004

    O& M Systems has developed a piece of software designed to help IFAs review old style personal pensions. The switch of with profits funds from equities to fixed interest stocks means providers feel the returns of their funds are likely to fall below the standard rates. 0 & M has come up with the new software which acts as a switching system. It allows IFAs to produce a report with like with like comparison illustrating the new plan at a rate of growth to match the non-standard rate ...

  • Out of context

    17 Jun 2004

    •"Rescue Stuart? That is a grenade I am unwilling to throw myself upon." - Bright Grey's Mark Locke refusing to save a colleague from an over-talkative IFA. •"I think the Greeks have got it right where women are concerned. The men laze around while the women do all the hard work." - Bright Grey's Stuart Johnson admires the Greek work ethic on a trip to Rhodes. •"I had a bit of a panic when I looked at the drinks menu and the first thing I saw was ...

  • Panel confusion concern on FSA's double meaning

    17 Jun 2004

    The FSA's decision to allow different meanings of the term independent for insurance and investment intermediaries has been slam-med by the Financial Services Consumer Panel. As things stand, investment advisers who call themselves independent must offer whole-of-market propositions whereas the FSA will allow unrestricted use of the term independent in the general insurance market as long as it complies with the clear fair and not misleading rule. Chairwoman Ann Foster ...

  • Pension admin costs will soar due to Euro directive

    17 Jun 2004

    The cost of running company pension schemes looks likely to rise sharply after the implementation of the insurance mediation directive in January, says the Society of Pension Consultants. Financial services committee chairman Mike Young says the IMD will bring a number of activities provided by third-party pension administrators under FSA regulation. He fears the move will have huge cost implications for many pension administrators. He thinks few firms which provide ...

  • Pink offers free membership until M-day

    16 Jun 2004

    Pink Home Loans is dropping charges for members until October 31 when mortgage regulation commences.Intermediaries joining Pink's appointed representative network can do so under their own MCCB number and will only have to pay an application fee. Pink IT and compliance director Elliott Stoneham says: "The only cost will be the initial application fee, which they will have to pay regardless of when they join. In effect they are able to prepare fully for Mortgage Day and ...

  • Poll reveals fears over self-cert lending abuse

    17 Jun 2004

    The majority of IFAs believe self-certification is being abused by advisers and lenders. A total of 59 per cent of respondents say self-cert is being misused to lend unsustainable amounts to consumers The FSA has said it believes lender controls are broadly sufficient although it has stressed that mortgage lenders must check that information is plausible and consistent and not take anything at face value. Mortgage Force mortgage consultant Stuart Brice says: "Self-certification ...

  • Premier Diva sings popular theme

    22 Jun 2004

    PREMIER FUND MANAGERSPremier Diva Growth Plan - Limited Editions 19Type: Capital-protected fund of hedge fundsAim: Growth linked to the performance of the Barclays Global Investors Diversified Alpha Fund 1Minimum investment: £25,000Investment split: 100% linked to the performance of the Barclays Global Investors Diversified Alpha Fund 1Term: Five yearsReturn: Up to 70% growth in the Barclays Global ...

  • Premier Fund Managers- Premier Diva Growth Plan: Limited Editions 19

    17 Jun 2004

    Type: Capital-protected fund of hedge fundsAim: Growth linked to the performance of the Barclays Global Investors Diversified Alpha Fund 1Minimum investment: £25,000Investment split: 100% linked to the performance of the Barclays Global InvestorsDiversified Alpha Fund 1Term: Five yearsReturn: Up to 70% growth in the Barclays Global Investors Diversified Alpha Fund 1Guarantee: Original capital returned ...

  • Price cap increase can 'only be a good thing' for IFAs - Tenet

    17 Jun 2004

    Raising the cap can only be 'good news' for IFAs and networks says Tenet Group chief executive Simon Hudson. Hudson says the move goes some way towards recognition that advisers have to be paid sufficiently for the advice they give.He says: " If the Government want to encourage more people to start saving then they will have to provide a suitable cap."

  • Probe aims to fight financial fraudsters

    17 Jun 2004

    RSM Robson Rhodes is teaming with the Fraud Advisory Panel, the Home Office and the police for a comprehensive study into the impact of economic crime on the financial services sector. Financial institutions are being asked to participate in the study on ways to curb economic crime which is estimated to cost financial services £10bn per year. The research hopes to provide insights into the impact of economic crime, its cost to the industry and preventative measures. ...

  • Product Matters

    17 Jun 2004

    Pinder, Fry & Benjamin specialises in the structuring of property partnerships and the purchase of properties by those partnerships. Its next purchase is Becket House, a building next to Waterloo Bridge occupied by Ernst & Young. Its Gold Nine Property Limited Partnership is an interesting and different form of investment that may appeal to those who have a fairly high-risk profile. The Limited Partnership will buy the property for £73.1m, of which 80.5 ...

  • Projection rejection?

    17 Jun 2004

    The future of projection rates is hanging in the balance as the FSA considers whether it is the role of the regulator to set rates and in some cases whether they should be set at all. After a report on long-term market conditions and projection rates by PricewaterhouseCoopers last June concluded that a more sophisticated approach to setting rates could be helpful in improving consu-mers' appreciation of investment risks, the FSA said it would be reviewing the use of projection ...

  • Pru plea for employers to boost financial planning

    17 Jun 2004

    Almost three-quarters of retired people did not seek help with their financial planning before to their retirement according to a survey from Prudential. The survey of 268 adults aged 45 or over who planned to retire in May found that 72 per cent did not seek financial advice. Pru is calling upon employers to offer more personal finance assistance to employeers and urges employers to encourage their staff to plan ahead and review their finances regularly. It allows its ...

  • RBS chief Goodwin is knighted

    16 Jun 2004

    The Queen's birthday honours list saw Royal Bank of Scotland group chief executive Fred Goodwin receive a knighthood. A CBE was awarded to Britannia Building Society ex-group chief executive Graham Stow while former FSA managing director Carol Sergeant was awarded a CBE and director Oliver Page an OBE, both for services to financial regulation.

  • Review could mean costs being passed on to IFAs

    17 Jun 2004

    A review of the way that IFA networks pay VAT could see network services separated for VAT and extra charges passed on to advisers. Tax experts believe some areas of marketing and promotional services, commission services and IT and compliance services could be viewed as ancillary and separate to the client adviser relationship and therefore subject to VAT. Customs and Excise officers will have to look case by case at whether network services are being treated as a composite ...

  • Royal London scrapping direct sales in IFA switch

    17 Jun 2004

    Royal London is closing its direct salesforce to focus on product manufacture, dist-ributing almost exclusively through IFAs. The company says the expense that regulation puts on the sales process makes it uneconomic to carry on distributing its products through a face-to-face sales operation. Group chief executive Mike Yardley says closure of the direct salesforce was inevitable, even if the 1 per cent price cap is raised by the Treasury next week. Direct sales rep-resented ...

  • Sales interviews for stakeholder products will be pre-scripted

    17 Jun 2004

    Sales inteviews for selling the stakeholder products will be pre-scripted by the firm, and the sales person will have clear limits on the issues the can advise on. Firms will have to be FSA authorised but sales advisers providing basic advice will not be required to have any financial qualifications.

  • Savings product will not work at 1.5 per cent- Standard

    17 Jun 2004

    Standard Life does not believe the suite will work and says the Sandler savings product is very unlikely to be successful with the new price cap. Standard Life Simon Douglas marketing managing director says: " The charging structure is a poor deal for consumers. For lower savings levels it does not address the fundamental problems with the old cap. For higher savings levels we can offer better products below the level of the price cap. We will remain in the single-charge pensions ...

  • ScotProv aids IFAs with protection ads

    17 Jun 2004

    Scottish Provident is starting an ad campaign telling advisers what to do in the run-up to regulation of the protection industry. The aim of the campaign is to provide support to advisers whose business will change after regulation starts in January 2005 and what they must do to be compliant. The first ad encourages intermediaries to consider the service they want to offer under regulation. The campaign will be rolled out over three months, with each ad focusing ...

  • Service strategies

    17 Jun 2004

    The IFA community, on the whole, cannot go to the levels of a big corporate company with staff training but it can make and deliver a customer service promise to clients. Here are some specific thoughts you can consider to achieve trust. 1. Use the glad, sure, sorry formula. Complaints and criticism are real gold - treasure them. Whether the customer is disappointed or furious, you have a crisis of trust on your hands. Get off on the right foot with a positive ...

  • Sesame RI numbers continue to fall says Misys

    18 Jun 2004

    Sesame's regulated RIs have continued to plunge down to 5,000 as of May, 2004 from the 6,450 advisers it had a year previously. In a trading statement issued today, parent company Misys reported that while IFA numbers continue to fall, unregulated advisers joining its mortgage and general insurance propositions in advance of regulation are strong up to 1,300 in May from 650 in May, 2003.It predicts revenues in Sesame will be down 18 per cent from last year, citing reduced numbers ...

  • SG Asset Management - SG UK Specialist 350 Fund

    18 Jun 2004

    Type: OeicAim: Growth by investing in UK companies listed on the FTSE 350 indexMinimum investment: Lump sum £1,000, monthly £50Investment split: 100% in UK companies listed on the FTSE 350 indexIsa link: YesPep transfers: YesCharges: Initial 5.25%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0808 100 4432

  • SG Asset Management - SG UK Smaller Companies

    21 Jun 2004

    Type: OeicAim: Growth by investing in quoted smaller companies in the UKMinimum investment: Lump sum £1,000, monthly £50Investment split: 100% in quoted UK smaller companiesIsa link: YesPep transfers:YesCharges:Initial 5.25%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0808 100 4432

  • Sizing up employee benefits

    17 Jun 2004

    Can smaller IFAs - even protection specialists - compete in the employee benefits market or is it one for the big firms and consultants? Distribution within the market has often been dictated by matters of scale including the size of the client workforce and of the IFA and resources available to it. Consultants have inevitably taken the lion's share of the bigger workforces but the potential is there for smaller firms to advise small to medium-sized companies. Certain ...

  • Stakeholder cap increase is "modest" says Scot Eq

    17 Jun 2004

    Scottish Equitable head of business development Steven Cameron welcomes the principle of the price cap rise in theory. However, Scot Eq's initial figures suggest "the increase is modest" and is unlikely to lead to a greater interest in these products amongst modest earners. Cameron went on to suggest that it would be unlikely to encourage providers' interest in this area of the market.

  • Stakeholder charge raised to 1.5 per cent for first 10 years, 1 per cent thereafter

    17 Jun 2004

    The stakeholder price cap for pensions is to be raised to 1.5 per cent for the first 10 years of the life of a product and reverting to 1 per cent thereafter, Money Marketing can exclusively reveal.The Government is expected to announce the increase in the price cap in Parliament this afternoon.Life offices had been calling for a combination of a front-end charge of 3 per cent or 5 per cent and an annual management charge, but the Treasury favours keeping a monocharge model.

  • Standard fears Revenue tax move will hit offset loans

    17 Jun 2004

    Standard Life is warning that a tax crackdown by the Inland Revenue may mean that borrowers with an offset mortgage will have to register their loan with the Revenue. Tax specialist Simon Burke says although there is no evidence that offset mortgages are being targeted, they do fall within the scope of regulation published two weeks ago. The rules require big acc-ountancy firms to notify the Revenue in advance of any tax avoidance scheme they are about to implement. Burke ...

  • Standard's Hylands moves sideways

    21 Jun 2004

    Standard Life group finance director John Hylands has been shifted sideways taking the reigns of the insurer's demutualisation project.Hylands is to continue as an executive director and will maintain his responsibilities as finance director until a permanent replacement is found. Standard has also announced its team of advisers to help the company through the demutualisation process. Merrill Lynch and UBS are to act as financial advisers, Watson Wyatt will provide actuarial ...

  • Sting in retail for investment trusts

    17 Jun 2004

    The investment trust sector is going through a transition period that could determine its future for years to come. But few experts believe the retail market will hold closed-end vehicles in any higher regard once the flurry of activity comes to an end. Being subject to the laws of natural selection, investment trusts are constantly in a state of flux. If demand for a sector falls, the discounts of trusts within it will often widen, exposing them to the risk of attack from aggressive ...

  • Talkback

    17 Jun 2004

    "Projection rates have caused problems as they have to be based on information that is current and just look at the endowment problems. But I am unsure whether they should be scrapped." Stewart Brooke,Brooke Christian & Co "The FSA should certainly do away with it. Projection rates are incredibly confusing and misleading. The 9 per cent projection rate is wishful thinking." David Maclean,D Maclean & Co "Without knowing what the alternative is, it is hard to comment." Colin ...

  • The lion's share

    17 Jun 2004

    W ill life providers with electronic application systems such as Legal & General and Friends Provident take the lion's share of the term market and what will this mean for the rest of the market? Carr: L&G already writes more term protection business than anyone else and, along with Norwich Union, Friends Provident are not too far behind. However, this is not purely related to their e-commerce systems. Product, price, service and claims' history are more important ...

  • The test of time

    17 Jun 2004

    Time spent with clients generates revenue and secures long-term relationships, both of which add capital value to a business. This is pure commercial common sense. The impact of regulation and the general inefficiency of the industry have forced many advisers to spend the majority of their time on non-income-generating tasks. It has reached the stage where this is the accepted working practice of many financial advice firms and unless there is a change, many adviser firms will ...

  • Third of workers want IFA help over benefits

    17 Jun 2004

    A third of UK workers want employee benefits communicated to them by IFAs, according to a survey by Origen. The research shows that 18 per cent of staff would prefer to have benefits explained in group presentations by advisers and a further 17 per cent want face-to-face meetings with IFAs on their own. Pension specialist Mark Stopard says that compared with the fraction of the UK workforce getting independent advice, these figures show that demand for IFAs in the workplace ...

  • Torys reshuffle policy role

    16 Jun 2004

    An Opposition reshuffle this week sees David Willetts lose his role as policy co-ordinator for the Conservatives, focusing solely on his responsibilities as Shadow Work and Pensions Secretary. David Cameron is the new head of policy co-ordination.

  • Treasury says move strikes balance between the market and consumers

    17 Jun 2004

    Treasury financial secretary Ruth Kelly says the Government's decision to set the price cap at 1.5 per cent strikes a balance between market economics and the interests of consumers.She says that, to inform its decision, the Government commissioned research by Deloitte on the market impact of a range of price caps.She says: "The 1.5 per cent cap for the first 10 years will allow the cost of basic advice to be incorporated within the product charges while maintaining ...

  • Treasury set for retreat on 1% cap

    17 Jun 2004

    The Treasury is set to concede the 1 per cent argument, pushing up the price cap to 1.5 per cent for its suite of Sandler products. The much anticipated ann-ouncement regarding the price cap is due this week, with a major policy reversal coming from the Treasury. With industry big hitters such as Norwich Union, Standard Life and Scottish Widows saying they won't play at 1 per cent, the Government appears not to want to see its new savings products fail as its flagship ...

  • Unum backs MPs on mental illness move

    17 Jun 2004

    Disability insurer Unum Provident has backed calls from a committee of MPs for further clarification of mental illness as a disability. Unum wants to see mental illness included in the legal definition of disability to make it easier for employers to process the increasing number of claims made by staff. Corporate services director Joanne Hindle says the inclusion of mental illnesses would be recognition that they have become the chief cause of absence from work through ...

  • Volatile substance

    17 Jun 2004

    In my last article, I examined investment risk, the difference between average rates of return and volatility and, last, risk and reward. In this, my second of three articles on planning a portfolio, I will look specifically at standard deviations, including the use of more than one standard deviation, preferred investment strategy and devising investment strategies. Standard deviations give an indication of just how far away from an average rate of return an investment ...

  • Wagstaff steps down as M&G restructures

    17 Jun 2004

    Phil Wagstaff is stepping down from his role as M&G managing director (UK retail) as part of a wider restructure of the firm's sales and marketing operation. Wagstaff is understood to be taking a break after seven years at M&G and 20 years in the industry. Under the restructure, John Goddard will now head both UK and international retail while Steve Brear maintains responsibility for IFA and partnership sales. Both will report to chief executive (UK retail) ...

  • West Bromwich Building Society - Introducer Exclusive Remortgage: 1.7% Discount for Two Years

    22 Jun 2004

    Type: Discounted-rate remortgage productDiscounted term: Two yearsDiscount: 1.7%Payable rate: 4.6%Minimum loan: £25,001Maximum loan: Up to 75% of valuation subject to a maximum of £500,000Income multiples: Up to 3.75 times principal income plus second or three times jointConditions: Free legal fees, free valuation subject to £350 maximum, free MigArrangement fee: £395Redempti

  • Win a holiday to Morocco in Friends' fantasy fund competition

    17 Jun 2004

    Friends Provident and Isis Asset Management are celebrating the 20th anniversary of the launch of the first retail ethical investment funds in the UK - the Stewardship funds - by joining forces with Money Marketing to offer IFAs the opportunity to win a fantastic holiday for two to Morocco and £500 for the charity of their choice. Two runners-up will receive a digital camera, a hamper of organic produce and £250 for a charity of their choice. Each month, a hamper of ...

  • Women of the world

    17 Jun 2004

    My partner and I want to ensure our financial arrangements are in order so we can travel the world in later years. As we are both female, I am aware that we need to be more organised than other couples, especially should anything happen to either of us. What advice can you give us? In the Civil Partnerships Bill published on March 31, 2004, the Government accepts that for a same-sex couple, the denial of the opportunity to have their relationship recognised provides a number of ...

  • Your commission: should you choose to accept it?

    17 Jun 2004

    I feel the need to rebuke Best Invest's Mr Spiers' comments in the Money Marketing issue of June10. He says that despite the honesty of an IFA, the IFA will "favour products with the highest commission". I wish to know who he thinks he is, taking it upon himself to decide the business ethics of advisers, most of which he does not know, has not met and never will meet. As IFAs predominantly investing in portfolio management, we undertake around 25-30 hours ...

  • Zurich bond offers double scoop

    16 Jun 2004

    Zurich Financial Services is offering investors the chance to invest in a capital-protected bond that is linked to the FTSE 100 and Halifax House Price indices for five years and six months.The select guaranteed account is available to those with between £2,500 and £250,000. Investors decide whether they want their investment linked to the FTSE 100, Halifax House Prices index or a combination of the two. If they choose a combination of indices they decide how much ...

  • Zurich IFA links with Technical Connection

    17 Jun 2004

    Zurich IFA Group has made an alliance with Technical Connection, the technical support provider, giving IFAs access to the Know-How Partnership, an online service for advisers. The Know-How Partnership provides members of the Zurich IFA Group with a wide range of products. IFAs will have access to online technical research, news and analysis as well as exclusive entry to online lectures and seminars. Members will be able to get case-related support from technical specialists in ...

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