Money Marketing
17 April 2002

  • 'Govt doing U-turn on annuities'

    18 Apr 2002

    The Government appears to be backpedalling on its proposals for annuity reform, according to IFAs, who suggest it is moving away from allowing transfers between providers. The Treasury says following its consultative period, it will allow annuitants to change the terms with existing providers. But there is no mention of allowing annuities to move bet-ween providers, as was suggested in the Government's consultation exercise. The Government confirmed it will go ahead with the ...

  • 75th franchisee for Mortgageforce

    18 Apr 2002

    Broker franchise group Mortgageforce claims to have achieved a staggering first year with the recent appointment of its 75th franchisee. Mortgageforce says it has successfully established a place in the market on the philosophy that franchisees are in business for themselves but not by themselves as they get support from Mortgageforce. It says franchisees are helped every step of the way from setting up their firm and formulating a business plan to ensuring that advisers have correct ...

  • A budget about insurance: John Stones at the House of Commons

    18 Apr 2002

    It was a Budget all about insurance. National Insurance, that is. Chancellor Brown unambiguously ruled out private medical insurance and social insurance to pay for an improved health service, bunging a penny on National Insurance on employees and employers for an extra £8bn for the NHS. This route was - in Brown's unfortunate adjective - "equitable" -. To ensure the billions would be spent properly, there would be yearly NHS audits. Luckily, as the Chancellor ...

  • AbbeyNat offers free MPPI cover via registered IFAs

    18 Apr 2002

    IFAs registered with Abbey National can offer clients three months' free mortgage payment protection in a deal with Abbey National Insurance. The deal is available up to June 30 for brokers making applications for a Paymentcare accident, sickness or involuntary unemployment policy starting before December 31. The offer is open to borrowers, including those who already have a mortgage with Abbey or any other provider, who work at least 16 hours a week and source payment protection ...

  • Advisers must respond to CP121

    18 Apr 2002

    After reading through CP121, I am at a loss as to what the future holds for our profession. The FSA says in CP121 that the majority of consumers have restricted access to independent advice. It also mentions that consumers do not shop around between advisers and their choice of adviser is driven by trust and not status. The FSA goes on to say that regulators and the industry must make sense of this reality. The FSA then identifies five market failings - commission bias from ...

  • Alliance & Leicester says first time buyers driving housing market

    23 Apr 2002

  • Alpha approach

    18 Apr 2002

    The Lazard alpha Isa consists of two funds, Lazard UK alpha and Lazard European alpha. The Lazard UK alpha fund invests in a concentrated portfolio of between 40 and 50 UK stocks. The Lazard European alpha invests in 45 to 50 stocks. Looking at how the Isa fits into the market, Colsell says: "The Lazard Isa gives subscribers the opportunity to invest in a mixture of UK and European stocks within one Isa wrapper." Both thinks the Isa is confined to a specialised niche because it only ...

  • APMM elects new chairman

    23 Apr 2002

    The Association of Policy Market Makers has appointed Brian Goldstein as its chairman to succeed Paul Sands. Goldstein is managing director of Tep market making company Policy Portfolio. The APMM has also elected 1st Policy Company managing director as vice chairman, Policy Plus sales and marketing director David Carrington as honororary secretary and John Heller of Neville James as Treasurer.

  • At last, some good news for IFAs from the Chancellor

    18 Apr 2002

    It was a Budget about insurance. National Insurance, that is. Chancellor Gordon Brown unambiguously ruled out private medical insurance and social insurance to pay for an improved health service, bunging a penny on National Insurance to provide an extra £8bn for the NHS. To ensure the billions will be spent properly, there will be yearly NHS audits. Luckily, as Brown was giving his speech, beleaguered auditor Andersen announced it is shedding 30 per cent of its UK workforce - ...

  • Aussie Rules

    18 Apr 2002

    Anyone considering how the proposals in CP121 could affect the UK's financial services market should look to Australia. Having scrapped polarisation in the early 1990s, it already has 10 years' experience of a distribution structure similar to that put forward by the FSA in CP121. Up until the 1980s, advice was not regarded as particularly important in Australia and financial services products were mainly delivered through tied salesforces. This changed in the 1980s. One ...

  • B&W brings out five-year GEB Isa

    23 Apr 2002

    Bristol & West has brought out the latest issue of its five-year guaranteed equity bond cash Isa.

  • Baillie extends fund range

    18 Apr 2002

    Baillie Gifford is extending its range of retail funds to include the European smaller companies fund and the developed Asia Pacific fund. Both funds were previously only open to institutional investors. The European fund invests in continental Europe and Ireland and is managed by David Walton. It has a AAA rating from Standard & Poor's and has £67.54m under management. The Asia Pacific fund invests in economic sectors of any markets included in the FTSE All World ...

  • Balancing act

    18 Apr 2002

    Royal & Sun Alliance International Financial Services has established the R&SA European balanced yield bond fund. This is a mirror of an existing R&SA Luxemburg-based fund and will be split equally between investment-grade and high-yield corporate bonds within Europe, including the UK. The fund produces a yield of 8.5 per cent a year and occupies the middle ground between bond funds that focus exclusively on lower-risk investment-grade bonds with low yields and higher-risk ...

  • BDT Invest establishes trust

    19 Apr 2002

    BDT INVESTTHE ESTABLISHMENT INVESTMENT TRUSTType: Investment trustAim: Growth by investing in bonds, equities and cashMinimum investment: Subject to negotiation with stockbrokerMaximum investment: No maximumInvestment split: Cash 10%, bonds 40%, equities 30%, other 20%Types of share: OrdinaryIsa link: NoPep transfers: NoRedemption date: NoneCharges: Annual 1%Commission: NoneTel: 020 ...

  • BOS and Amber link with HLP for loan deals

    18 Apr 2002

    Bank of Scotland and Skipton's Building Society's sub-prime subsidiary Amber Home Loans have joined up with mortgage network HomeLoan Partnership to offer intermediaries special deals on products. Under the terms of the Bank of Scotland deal, members of HLP will get a procuration fee of 0.27 per cent of the overall loan size, with a minimum fee of £275. Amber is paying a procuration fee of 0.3 per cent on its buy-to-let and 100 per cent mortgages and a 0.8 per cent ...

  • Bradford & Bingley International - Income 180

    19 Apr 2002

    Friday, April 19 2002Type: High interest accountAim: IncomeMinimum investment: Lump sum £25,000Place of registration: Isle of ManCharges: NoneCommission: NoneTel: 01624 695020

  • Bristol & West - Balanced Guaranteed Equity Bond Cash Isa

    17 Apr 2002

    Wednesday, April 17, 2002 Type: Guaranteed equity bond Isa Aim: Growth linked to the FTSE 100, Dow Jones Eurostoxx 50 and Nikkei 225 indices Minimum-maximum investment: £500-£3,000 Investment choice: 100% linked to the FTSE 100, Dow Jones Eurostoxx 50 and Nikkei 225 indices Term: Six years Guarantee: Capital returned in full regardless of movement in indices Return: 80% of average growth in indices Catmarked: ...

  • Bristol & West - Guaranteed Equity Bond Cash Isa

    17 Apr 2002

    Wednesday, April 17, 2002 Type: Guaranteed equity bond Isa Aim: Growth linked to the FTSE 100, Dow Jones Eurostoxx 50 and Nikkei 225 indices Minimum-maximum investment: £500-£3,000 Investment choice: 100% linked to the FTSE 100, Dow Jones Eurostoxx 50 and Nikkei 225 Term: Five years Guarantee: Capital returned in full regardless of movement in indices Return: 70% of average growth in indices Catmarked: ...

  • Buoyant homes market encourages gazumping

    18 Apr 2002

    One in 10 homebuyers will resort to gazumping to ensure they get their dream home, according to a quarterly survey by Yorkshire Bank. With many properties selling within days of being put on the market, Yorkshire found that a significant proportion of the 2,000 homebuyers questioned in March were prepared to adopt underhand tactics in pursuit of the home they want. But the research has found it is in areas such as Cornwall, Devon and Yorkshire - and not London - where the most ...

  • Business taper relief

    18 Apr 2002

    BUSINESS ASSETS TAPER RELIEF AND OTHER CAPITAL GAINS TAX SIMPLIFICATION MEASURES The Chancellor confirmed one very significant change on capital gains tax business asset taper relief. He has also announced some important measures to simplify CGT taper relief and other rules. The annual CGT exemption has also been increased. The more significant changes are as follows:(1) Business Assets Taper Relief (a) Rates The Chancellor has ...

  • Cahoot bond looks to short term

    23 Apr 2002

    Abbey National's online bank Cahoot has released a guaranteed equity bond on to the market which guarantees the return of investors' original capital and minimum growth of 12 per cent.

  • Capital allowances

    18 Apr 2002

    There was one Revenue Budget Note (number 3) specifically directed at capital allowances. Following last year's introduction of 100% enhanced capital allowances for investments in energy-saving technologies, it was announced today that 100% enhanced (first year) allowances will also be available to all businesses on the following expenditure: New low emission cars for use in their business or by their employees Equipment (e.g storage tanks, compressors, pumps, gas ...

  • Capital Gains Tax Simplification

    18 Apr 2002

    Following consultation, the Government have announced a series of measures designed to simplify CGT. The main proposals are as follows:-(a) Business asset relief and incorporation When a self employed business incorporates, "incorporation" relief exists to prevent a CGT charge arising. Basically all existing capital gains of the business are rolled over into the shares of the company. However, this does mean that if the shares of the company are sold quite soon ...

  • Charcoal warns homeowners on IHT

    18 Apr 2002

    IFA Charcol is warning that many homeowners particularly in London and the South east could still be hit by inheritance tax, despite the Chancellor Gordon Brown raising the threshold to £250,000 from £242,000 in yesterdays budget.

  • Charities

    18 Apr 2002

    Three main changes have been proposed.1. Relief for gifts of Real Property Where an individual or company wishes to give land or buildings to charity, the Government proposes there will be an income or corporation tax relief for such donors. The relief will be available for gifts of freehold or leasehold property, which a charity agrees to accept. 2. Giving to Charity Through the Tax ReturnThe Chancellor has announced that, with effect from 2003/04 ...

  • Clamp down on stamp duty avoidance

    17 Apr 2002

    Gordon Brown has proposed a clamp down on stamp duty avoidance. He has also proposed to abolish stamp duty on all commercial properties in deprived areas, known as Enterprise Neighbourhoods. This is an extension of the previous abolition of stamp duty relief on commercial properties valued up to £150,000. He is also introducing a new community investment tax credit to encourage the likes of residential conversions and development of flats above shops in these areas. This ...

  • Clean record but I'm paying higher PI premiums

    18 Apr 2002

    Open letter to Aifa director general Paul Smee My company has a clean 15-year record, with no claims and virtually no pension review cases or endowments, etc. Despite this, my PI premium has just gone up at renewal from £8,000 to over £20,000. The excess per claim has climbed from £1,000 to £7,500, with £15,000 for many types of business. We are told that only four insurers in the whole market will now quote for IFAs and no one wants our business ...

  • Clerical picks Polhill

    18 Apr 2002

    Clerical Medical has picked London financial services PR agency Polhill Communications to handle its media relations. Polhill will be responsible for developing and expanding the life office's national profile and providing support and back-up for its in-house team. Clerical says the move follows a competitive pitch. It says it was convinced Polhill was the right agency based on its strong credentials, enthusiasm for new business and well thought out proposals. Polhill ...

  • CML fears Treasury and EC clash on loan rules

    18 Apr 2002

    The Treasury could be on a collision course with the European Commission over its mortgage regulation proposals, warns the Council of Mortgage Lenders. In its draft response to the Treasury's Regulating Mort-gages consultation paper, seen by Money Marketing, the CML says "the threats of regulatory uncertainty, duplication and cost extend beyond the UK to encompass Eur-opean developments through the proposed revisions to the consumer credit directive". Next month, the EC is set ...

  • Company cars and mileage rates

    18 Apr 2002

    COMPANY CARSIn order to protect the environment, changes have already been made to increase the tax charges on company cars. There are those that have applied since 6 April 1999 and those that will apply from 6 April 2002. These are explained in detail in the Appendix.In addition to these changes the Chancellor has proposed further changes to encourage a "greener" environment to take effect from 2003/04. These prospective changes are to the fuel scale and, like the ...

  • Compliance trailblazer

    18 Apr 2002

    It comes as no surprise that Consignia has had its recent difficulties when one considers the increasing role that email plays in our working lives. However, ease of access and flexibility make email something that is all too easy to treat like a phone call rather than hard copy communication. It should also be recognised that anything sent by email carries the same compliance burden as a more traditional item of mail. For anyone operating in a regulated environment, there is no doubt ...

  • Corporate planning opportunities: Gareth Marr, Advisory and Brokerage Services

    18 Apr 2002

    The corporate IFA will concentrate on the planning opportunities around National Insurance and corporation tax changes. With the new nil rate band on profits up to £10,000 there are now five different rates of corporation tax. ProfitsRate£0 - £10,0000£10,000 - £50,00022 per cent (estimate)£50,000 - £300,00019 ...

  • Corporation tax

    18 Apr 2002

    The Chancellor announced the following reduction in corporation tax rates effective from 1 April 2002 (i.e. retrospectively). The small companies' rate of corporation tax has been reduced from 20% to 19%, and applies where a company has profits of between £50,001 and £300,000. Where a company's profits do not exceed £10,000 there is a new starting zero rate - a dramatic reduction from the 10% rate applying previously. Any profit between £10,001 ...

  • Corporation tax breaks for large companies

    17 Apr 2002

    Chancellor Gordon Brown is promising to legislate for a 25 per cent corporation tax relief on volume for large companies, aiming to give them a £400m boost for research and development.

  • Death of Sue Connolly

    18 Apr 2002

    AMP NPI senior pension adviser Sue Connolly died recently at the age of 42. She worked for the company for almost 24 years, the last 14 years in its technical advisory service. Sue was well respected in the industry for her pension expertise and represented her company on various industry bodies. She was a Fellow of the Pensions Management Institute and a member of the Pensions Terminology Group. She wrote frequent articles on pension issues. IFAs will know Sue from presentations ...

  • Disappointment for first time buyers says L&H

    18 Apr 2002

    Chancellor Gordon Brown has disappointed thousands of first time home buyers by not raising the £60,000 starting threshold for Stamp Duty on residential properties says Leeds & Holbeck Building Society.

  • Dog's decision tree for ABN's pedigree portfolio

    18 Apr 2002

    ABN Amro is running an advertising campaign to promote how its discretionary managed portfolio service helps IFAs make investment decisions. The Premier Funds Service, launched in February, will use ads featuring a scruffy dog to show how the service can help IFAs make investment decisions. The ads feature a dog in a field making a choice between five trees. The fund service has five investment strategies - capital growth, balanced, conservative, international and ethical - ...

  • Duncan Smith attacks Chancellor for failure to act on pensions

    18 Apr 2002

    Iain Duncan Smith has accused the Chancellor of being opposed to savings and pensions, branding stakeholder a failure and criticising the Government for not tackling annuity reform.In a speech answering Gordon Brown's budget speech, Iain Duncan Smith said that the Government's flagship pension has failed to reach its target audience.The Government said it was concerned about the move from defined benefit to defined contribution pension schemes in the Budget notes. But Duncan ...

  • DWP gives firms breathing space on charge cap rules

    18 Apr 2002

    The Department for Work and Pensions has bowed to pressure from stakeholder providers and accountants by giving them some breathing space to comply with the regulations. Providers, accountants and trade bodies have been locked in negotiations with the DWP and Opra to get clarification on what falls within the 1 per cent charge cap, particularly on external fund links. The DWP concession follows the IMA sending out an urgent warning last month that tracker fund links on stakeholder ...

  • Eagle Star revamps drawdown plan

    19 Apr 2002

    Eagle Star Life has revamped its flexible drawdown plan by increasing the fund range and adding more commission options.

  • Employee share schemes

    18 Apr 2002

    EMPLOYEE SHARE SCHEMESFor a change, although it is hardly surprising given the activity that has taken place over the past few years, there have been no proposals in this years budget on employee share schemes. In the light of this relatively "settled period" for employee share schemes we thought you might value a "drawing of breath" and a summary of the existing schemes available. For this purpose we have broken the schemes down into - share option schemes ...

  • Employer NI liability increased by 1 per cent

    17 Apr 2002

    Employers face a 1 per cent increase across the board in their National Insurance liabilities in the next tax year. The increase means from next April employers will pay 12 per cent National Insurance contributions. 

  • Extranet service from Focus Solutions

    23 Apr 2002

    Software provider Focus Solutions is targeting product providers with its latest extranet service, allowing them to take new business electronically.

  • Families receive £2.5bn in working tax credits

    17 Apr 2002

    Chancellor Gordon Brown is promising £2.5bn extra support for families in the form of working tax credits.

  • Family tax credits

    18 Apr 2002

    The Chancellor has proposed that two new tax credits - the Child Tax Credit and the Working Tax Credit - will be introduced from April 2003.In summary Child Tax Credit will combine all income-related support for children and will be paid direct to the main carer, usually the mother, creating one system of support spanning welfare and work; The Working Tax Credit will provide a guaranteed income from full-time work for those aged 25 or over without children ...

  • Fiona Price & Partners suffers exodus of RIs

    18 Apr 2002

    Women-only IFA Fiona Price & Partners has been hit by a series of resignations that has cut its adviser numbers from 19 to eight. Among the latest resignations are senior staff members Victoria Amey and Margaret Hardy, who are both set to join Professional Partnerships after 12 years with the firm. They will reunite with Professional Partnerships principal Gill Cardy, another ex-Fiona Price & Partners adviser. In March, four RIs left Price to set up Finance 4 Women in ...

  • Framlington World Cup challenge

    18 Apr 2002

    Mark Timmons' Marked Card rose to first place after a couple of weeks occupying the second spot, with an overall rise of 9.19 per cent. Brian Rooney makes a return to the top three, having been in fifth place last week, now occupying second with a 9.13 per cent rise. Martin Cawley's ETID squeezes into third by the slimmest of margins - 0.06 per cent. With only one more week before the next monthly winner is announced, will Brian Rooney move to the top spot again and secure ...

  • Framlington World Cup challenge Beckham doubtful but Simeone's back

    18 Apr 2002

    As England rue the cost of major injury to David Beckham, the irony is that fortune appears to favour the opposition. While Beckham's chances of playing in the World Cup are extremely questionable, Argentina - who are World Cup favourites and England's chief threat in Group F - can celebrate the return to fitness of one of their keys players. Midfielder Diego Simeone sent a warning to World Cup rivals when he made his comeback for Lazio at the start of April after a six-month ...

  • Franklin joins Christows

    18 Apr 2002

    Fund manager Christows has recruited David Franklin from rival Quilter & Co to head its retail funds and raise the firm's profile in the intermediary market. Franklin will take over managing the range of sub-funds in its Oeic. He will also be responsible for developing Christows' retail products and multi-manager portfolio services. Christows is keen to boost its position in the intermediary market. As such, Franklin's brief will be working to accelerate its brand ...

  • Friends Provident cuts the cost of life cover

    22 Apr 2002

    Friends Provident is making reductions in its term assurance rates of up to 15 per cent on products it sells exclusively through IFAs.New rates will apply to level term, decreasing term assurance and life cover in its Select Protection Plan.This means, for example, a female aged 30 non-smoker with a 25 year £150,000 level term coverage will pay a monthly premium reduced to £7.96 from £9.39.

  • FSA approach is self-interested

    18 Apr 2002

    The CP121 proposals are counter-productive for the consumer, practitioners and market forces. The FSA approach is in the self-interest of the regulator's singular, task-oriented efficiencies. The only beneficiaries are the banks and major financial institutions looking for a short cut to market share. All the consumer can look forward to is confusion and erosion of choice as most advisers are forced into multi-tie or distributor status. Prohibition of the independent label ...

  • FSA probes pension projections

    18 Apr 2002

    The FSA is to examine contracting-out projection rates and the rules surrounding the state second pension in a consultation paper to be issued this month. The move follows the imm-inent changes being brought in by the Department for Work and Pensions to introduce new combined benefit statements for money-purchase pensions. The DWP is expected to issue its guidelines for the statements, which are being developed by the Faculty & Institute of Actuaries, next week. The combined ...

  • GE Life - High Income & Growth Plan 7

    18 Apr 2002

    Thursday, April 18, 2002 Type: Guaranteed equity bond Aim: Income and growth linked to European blue chip companies listed on the Dow Jones Eurostoxx 50 index Minimum-maximum investment: £7,000-£1m Term: Three years Guarantee: Capital returned in full provided the Dow Jones Eurostoxx 50 does not fall by more than 20% Return: Choice of 0.78% a month, 10% a year or 33% at end of term Closing date: May 17, ...

  • GE Life links to blue chips

    18 Apr 2002

    GE Life has unveiled the seventh tranche of its high income and growth plan, which is linked to 50 European blue chip companies through the Eurostoxx 50 over a three-year term.The plan is available as a direct investment and is also available as an Isa or Pep transfer option, making the returns tax-free. It provides investors with a choice of annual income of 10 per cent, monthly income of 0.78 per cent and a growth option of 33 per cent after three years.The Eurostoxx ...

  • GE Life setting up councils so IFAs can have their say

    18 Apr 2002

    GE Life is setting up IFA councils so it can listen to what they want and is even giving out home phone numbers of senior managers in case advisers want to talk. GE Life has now absorbed National Mutual and is aiming to become a heavyweight IFA provider in the over50s market. To keep in touch with IFA needs and issues, GE it is setting up the IFA councils and senior management panels to give advisers direct access to top-level management. Each member of the GE Life ...

  • General planning issues

    18 Apr 2002

    NIL-RATE BANDThe inheritance tax (IHT) nil-rate band has been increased from £242,000 to £250,000.The increased threshold will apply to chargeable transfers occurring on or after 6 April 2002. The threshold is being increased by £3,000 more than the statutory indexation but it is still estimated that 24,000 estates will be caught for inheritance tax in tax year 2002/03. GENERAL PLANNINGBecause this was the first Budget of a new term ...

  • Genesis Home Loans fixed two-year buy-to-let

    19 Apr 2002

    Genesis Home Loans fixed two-year buy-to-let

  • Genesis Home Loans two year fixed self-cert

    19 Apr 2002

    Genesis Home Loans two year fixed self-cert

  • Goodwill boost will help IFAs to sell their businesses

    18 Apr 2002

    IFAs claim Chancellor Gordon Brown's cuts to business tax could accelerate consolidation in the advice sector by making it more lucrative for them to sell their businesses.Reductions in capital gains tax and the abolition of stamp duty for goodwill on sales will make buying IFAs cheaper and selling them more lucrative.The tax changes in Brown's Budget could benefit both retiring IFAs offloading their businesses as well as those cashing in on the dash for distribution.In ...

  • Govt again fails to halt annuity reform bill

    18 Apr 2002

    The Government was unable to defeat Conservative backbencher David Curry's annuity reform bill last week for the third time, ensuring the proposed reforms have at least one more hearing before being quashed by the Government. Curry's Pensions Annuities Amendment Bill got crossparty support in the House of Commons to defeat the Government twice on amendments it raised. As Parliamentary time ran out before the report stage was completed, the bill will now have one more hearing ...

  • Growth forecast set between 2 and 2.5 per cent

    17 Apr 2002

    Chancellor of the Exchequer Gordon Brown confirmed this year's growth target will be 2 to 2.5 per cent. For 2003 the target will be 3-3.5 per cent and 2.5 to 3.0 per cent in 2004.

  • Halifax picked for new government savings initiative

    18 Apr 2002

    The Treasury has selected the Halifax to pilot its Savings Gateway initiative during a two and a half year trial period. The announcement, included in the documents accompanying the budget, means that from August, the high street bank will be the sole provider of one of the Treasury's key initiatives to motivate lower earners to save.Four sites have been selected to run the pilots these include Gorton near Manchester, Tower Hamlets in London, Cumbria and Cambridgeshire. They ...

  • I can see clearly now

    18 Apr 2002

    "Not another article on with-profits," I hear you groan. "I am bored with the issue and have not even met a client who is unhappy with his with-profits policy." I agree but, judging by current consumer comment, with-profits will probably enter the Oxford English Dictionary as a new swear word. Whether it is outrage at low bonus rates or the with-profits industry itself, support for with-profits appears to be at an all-time low. Is this fair? Well, at the risk of sounding like an ...

  • IHT threshold increased to £250,000

    17 Apr 2002

    Chancellor Gordon Brown has increased the threshold for the payment of inheritance tax from £242,000 to £250,000 in today's Budget. The change comes in with immediate effect. Brown says the change will mean 96 per cent of estates will now pay no inheritance tax. 

  • IMA offers savings guide

    18 Apr 2002

    The IMA is offering a factsheet to promote savings plans for people looking to build up a capital sum. The leaflet, Monthly Savings - A Guide to building up Capital in Investment Funds, sets out the ways in which savings plans can effectively offset the risks of stockmarket volatility. It points out that regular instalments mean than investors do not put all their money into the market at the wrong time. The IMA says saving £50 a month in a UK all companies fund with net ...

  • Incentive schemes

    18 Apr 2002

    Legal & General and Norwich Union are calling for a radical shake-up in the pension market but their approaches will prevent them from taking a unified stance. Both life offices believe an incentive system to encourage individuals and employers to start pension savings en masse is required but they clash on the level of advice needed. Legal & General pensions strategy director Adrian Boulding believes the Government needs to act quickly to have any chance of reducing the ...

  • Independent view

    18 Apr 2002

    When a friend of mine, a squadron leader in the Royal Air Force, called to tell me about a website called Friends Reunited which enables you to contact old school friends, I giggled quietly to myself and thought "what a nerdish idea". But paying the £5 joining fee was one of the best things that I have done in a long time. Why? For a start, I received my first Valentine's card in ages from someone other than my wife, online from the Friends Reunited website. But my initial ...

  • Inside Edge: Peter Hales

    18 Apr 2002

    It is hard to believe that the stakeholder pension is already more than a year old. I remember thinking last year that, by some coincidence, Post-It notes were also launched on to the market on April 6, 1980. They too are simple, cheap and innovative but if you do not push them hard enough then there is a danger that they might become unstuck. Our first-year analysis of stakeholder is that it has been a very positive start, with the product appealing to a wide range of people. However, ...

  • Internet search tool seeks more IFAs for referrals

    18 Apr 2002

    Internet search engine Moneysupermarket.com is looking for more intermediary partners to join its referral service. Moneysupermarket has signed deals with Yahoo and personal finance website Doshpoint to supply a mortgage service which it hopes will increase the number of leads to IFAs by 100 a day. It already provides a search tool to portals including the Daily Mail's thisismoney, ft.com, Freeserve and BTopenworld. Consumers can search the entire market for mortgages, personal ...

  • Introduction

    18 Apr 2002

    This year's pre-Budget speculation was focused mostly on how the Chancellor would pay for the expected increased expenditure on the National Health Service. National Insurance was a big favourite and those who "backed" this were proved substantially right. But it was not just National Insurance changes that the Chancellor told us about. What follows are the main changes proposed that we believe will be of greatest interest to financial advisers: Increases to ...

  • Investlife bond splits across 10 sectors

    17 Apr 2002

    Investlife Luxembourg has unveiled the higher income and growth bond, an offshore bond that is linked to the performance of 10 sectors across Europe, including the UK.

  • Investlife Luxemburg - Higher Income & Growth Bond

    18 Apr 2002

    Thursday, 18 April 2002Higher Income & Growth BondType: Guaranteed equity bondAim: Growth or income linked to the performance of 10 Dow Jones Europe Stoxx market sectorsMinimum investment: £10,000Place of registration: LuxemburgInvestment split: 100% linked to the performance of 10 Dow Jones Europe Stoxx market sectorsGuarantee: Capital returned in full providing none of the sectors fall by more than 35% and fail to recover ...

  • Investment analysis

    18 Apr 2002

    The continued violence in the Middle East and concerns about the financial health of some global heavyweights continued to unnerve investors and drove down stock indices last week. The representative FTSE World index ended the five days 1.4 per cent lower. In the US, General Electric kicked off the earnings' season with a disappointing report. IBM's profit warning weighed heavy on the technology sector and inquiries into the accounting practices of IBM, Xerox and Merrill Lynch ...

  • Investment trust Isa sales down by 32% last year

    18 Apr 2002

    Total purchases of investment trust Isas fell by 32 per cent to £155.8m last year from £228.4m in 2000. AITC figures show that sales were badly hit in the fourth quarter of 2001, with purchases of investment trust Isas dropping by 15 per cent from the third quarter to £14.9m from £17.6m. In a year-on-year comparison, this represents a fall of 59 per cent from £36.7m in the fourth quarter of 2000. However, sales of investment trust saving schemes ...

  • Investment view

    18 Apr 2002

    Where are you? I know you are out there somewhere. Call me superstitious if you will but I just know these things run in threes. Last week I bumped into two people I have not seen for what feels like a lifetime. It was a pleasurable experience. The third member of this trio must be out there somewhere. Just so long as it is not an ex-wife, I am content to leave it to fate to deliver whom it will to complete the numbers. Chance encounters were about the best part of last week. State ...

  • Investors ignored: Mark Dampier, Hargreaves Lansdown

    18 Apr 2002

    This budget was always likely to be centred on two items, the improvement of public services and the raising of tax to provide it and so it proved to be. From a pure investment/savings point of view, investors were ignored. Indeed the increases in the tax is hardly an encouragement to save, especially those with lower earnings. For those with large pockets the rules relating to takeovers and mergers of VCTs, which now means investors can keep their tax shelter, is excellent news. ...

  • Julian Gibbs

    18 Apr 2002

    The Enron, Energis, Railtrack and NTL affairs have made many investors ultra-cautious about investing in high-yield bonds. However, the default rate on some investment-grade bonds worldwide peaked at 10.7 per cent in January and fell to 10.5 per cent in February. Moody's, the rating agency, predicts that the default rate will decline to 7.4 per cent by the end of the year and to 6.6 per cent by February 2003. The market is still priced at a default rate of 16 per cent, not just ...

  • L&G rebate offer to expire

    22 Apr 2002

    Legal & General has warned that its offer to rebate all charges for investments in its tracker range will expire on April 30.Until the end of the month, L&G will refund the annual management fee and all other charges for tracker Isas paid by lump sum as long as the money remains in one of its Isas at the turn of the year.Investors can take advantage of the offer through IFAs or direct through www.legalandgeneral.com.

  • Lamensdorf rebrands IFA company

    18 Apr 2002

    Lamensdorf Group's adv-ice arm LM Financial is being rebranded Lamens-dorf IFA in a bid to simplify its identity in the run-up to the group's alternative investment market flotation. The firm is aiming to float in June or early July. Lamensdorf wants to create a distinction between the IFA division and the growing raft of non-investment companies now under the group umbrella. LM Financial was for-med 12 months ago from the merger between Lamensdorf & Company and Maddison ...

  • Landlords look North for buy-to-let

    18 Apr 2002

    High property prices in London and the South-East are encouraging potential buy-to-let landlords to look further North for properties, according to UCB Home Loans. It says landlords looking at rental income they can receive compared with current property prices are finding it difficult to break even. UCB says landlords can get returns of between 8 and 10 per cent in some parts of the country while in parts of London and the South-east a return of 5 per cent can be difficult to ...

  • Lawyer slams watchdog's cash awards for distress

    18 Apr 2002

    The Financial Ombudsman Service should not make awards because of mental distress caused by bad advice, says a solicitor who specialises in financial services. Bond Pearce assistant solicitor Gary Oldroyd points to repeated decisions in the courts ruling that distress has no role to play in financial contracts and says this should apply to the ombudsman. Oldroyd, who works at the Exeter office of the national law firm, says these awards are made as a matter of routine even if the ...

  • Legal & General gets fit with loan code toolkit

    18 Apr 2002

    Legal & General has added a new section covering training and competence requirements to its Mortgage Code Compliance Board toolkit to help companies meet fitness and properness standards. The toolkit was launched in November and is updated regularly. It is intended to help L&G business partners in understanding and meeting the requirements of the mortgage code. L&G says the new T&C section includes guidance on MCCB rules and how intermediaries should interpret ...

  • Lenders escape stealth tax

    18 Apr 2002

    The Chancellor's decision not to increase stamp duty on residential property has surprised commentators who believed a hike was in the offing to moderate the booming housing market and generate Government income. Overall the move has been welcomed and will relieve the Council of Mortgage Lenders which had accused the Government of using it as unfair 'stealth tax' on homebuyers.Market analyst John Wriglesworth says a big increase would have "killed the market" while a smaller ...

  • Life policyholder taxation

    18 Apr 2002

    Part assignments by way of giftOne of the changes made in Schedule 28 Finance Act 2001 was that an assignment of part of the rights under a policy by way of gift which takes place in a policy year which begins after 5 April 2001 will no longer be capable of giving rise to a chargeable event.But in the calculation of the chargeable event gain on the later assignment for consideration of the whole of the rights under a policy under which a previous assignment of part of ...

  • Lloyds TSB plans new wealth service as it axes Create

    18 Apr 2002

    Lloyds TSB is scrapping its Create wealth management brand after just six months but claims it is still targeting mass affluent clients and a new service is under development. The closure, blamed on market volatility, comes only weeks after the bank and its Scottish Widows subsidiary announced an investment of several million pounds in training 300 adv-isers to offer a specialist financial planning service. Lloyds TSB said at the time that Create, which targeted customers with ...

  • Mainland returns to running own PR firm

    18 Apr 2002

    Financial Dynamics partner Neil Mainland has left the company after two years to set up his own firm, Mainland PR. Mainland, who joined FD after spending 10 years running his own PR firm, is in talks with a number of potential partners and is seeking clients in sectors, including fund management, life and pensions. He plans to specialise in retail, institutional and business-to-business areas and expects to announce new business in the near future. Mainland says he enjoyed ...

  • Markets not affected by Budget says Aberdeen

    18 Apr 2002

    Markets won't be adversely affected by the tax hikes in yesterday's budget because they were tipped as to what was coming ahead of the budget says Aberdeen Asset Management.

  • Melville case implications

    18 Apr 2002

    CHANGING THE IMPLICATIONS OF THE MELVILLE CASE In the Summer of 2001, the Court of Appeal held that the terms "property", "interest" and "right" included a general power of appointment for inheritance tax (IHT) purposes. This meant that the use of a discretionary settlement reserving valuable rights for the settlor was confirmed as an effective mechanism for holding over gains on non-business assets which have a market value way in excess of the settlor's nil-rate band, without ...

  • Membership drive will raise funds for children's charity

    18 Apr 2002

    The Catholic Building Soc-iety is running a new marketing campaign to help it raise £130,000 for charities over the next four years and to increase its membership. The member get member initiative is designed to promote greater loyalty among its members, as well as provide financial support to the children's charity The Railway Children. CBS donated £18,000 to the international charity that works to help homeless, abandoned and orphaned children in 2000 and hopes ...

  • Merrill Lynch - FTSE 100 Stepped Growth & Income Investment

    17 Apr 2002

    Wednesday, April 17 2002Type: Capital protected bondAim: Income or growth linked to the FTSE 100 indexMinimum-maximum investment: £7,000-no maximumTerm: Seven yearsGuarantee: Capital returned in full provided the FTSE 100 does not fall by more than 39%Return: Up to 170% growth at end of term or 8% gross a year incomeCommission: Initial 3%Tel: 08457 405405

  • MGM and Pavilion in fund management deal

    19 Apr 2002

    MGM Assurance has penned a deal with Pavilion Asset Management which will see Pavilion managing MGM's £1.4bn in assets.

  • More than expected: Richard Leeson, Scottish Equitable

    18 Apr 2002

    IFAs have more to consider than expected from this year's budget. The incentives to small business owners in the form of reduced CGT will generate even more high-net-worth investors as those entrepeneurs sell businesses at or before retirement with consequent inheritance tax liabilities.The announcement of a review of the rules on residence and domicile is potentially far reaching and a welcome opportunity to recognise the mobility of individuals. A lot will depend on the detail ...

  • More thinking about private healthcare provision - survey

    23 Apr 2002

    Almost 70 per cent of people think they need to take more responsibility for their and their family's healthcare provision according to research from cash plan provider Health Sure.

  • Mortgage Express five-year fixed

    17 Apr 2002

    Mortgage Express five-year fixed

  • Mortgage Express three-year fixed

    17 Apr 2002

    Mortgage Express three-year fixed

  • MPC will be disappointed by budget says R&SAIM

    18 Apr 2002

    The Monetary Policy Committee will be disappointed by the Budget because it offers no help for interest rate expectations according to a former senior Bank of England economist.

  • Muzzle the watchdog

    18 Apr 2002

    The Financial Ombudsman Service, brought into being by the Financial Services and Markets Act 2000, is very much in its infancy. The service was heralded as the dawn of a new era of swift, inexpensive and impartial adjudication of complaints made against the financial services industry. But is it truly fulfilling its function and duty to act as an independent tribunal? In particular, is it fair to the financial services industry? I have my doubts. My personal perception is that ...

  • NAG anonymity fears in talks with Misys

    18 Apr 2002

    Negotiations between mega-network Misys and members of the Network Action Group have stalled over fears by members of the pressure group about breaking their anonymity. Misys wants to know who it is dealing with in the negotiations but NAG members are concerned that losing their anonymity would lead to disciplinary action and possible expulsion from Misys. NAG is threatening legal action over Misys's 30 per cent increase in fees, due to be enforced this month, saying it is in ...

  • Namba bids to bring in more IFAs

    18 Apr 2002

    The National Association of Mortgage Brokers and Advisers has appointed Charles Gooding as chairman of its steering committee in a bid to recruit more intermediaries. Gooding, managing director of national mortgage broking firm One Mortgage Solution, will oversee the creation of Namba's development group intended to represent the views of brokers and advisers. He says he is keen to differentiate Namba from other organisations in the market such as the Intermediary Mortgage Lenders' ...

  • National insurance

    18 Apr 2002

    2002/03For tax year 2002/2003 the rate of employer's Class 1 National Insurance contributions reduces from 11.9% to 11.8%. The employee's rate will be 10%.The threshold above which employers and employees pay contributions is at £89 per week and the threshold above which the self-employed pay Class 4 contributions is £4,615. Details of National Insurance contributions for tax year 2002/2003 are given in the Appendix to this report.2003/04Th

  • Needle in a stack

    18 Apr 2002

    Since the qualitative ratings service was brought out by Standard & Poor's Fund Research five years ago, it has quickly risen to become one of the most powerful institutions in the UK fund management industry. Today, many IFA firms - including, most notably, Chase de Vere - will not put a fund on their buy-list unless it is A, AA or AAA-rated, despite the fact that S&P makes it clear that its ratings should not be used as a trading statement. Hargreaves Lansdown head ...

  • New call centre for Virgin

    18 Apr 2002

    Current account mortgage lender Virgin One is creating 300 new jobs with the opening of a banking service centre in Horwich, Lancashire. The office will provide customer services for Virgin One's 82,000 account holders and provide back-up to the company's main operation in Norfolk. Virgin says it expects to recruit 40 people in a variety of jobs, including customer service staff, team leaders and senior managers, for the opening of the centre this summer. It expects to take ...

  • New exodus on way as Equitable cuts again

    18 Apr 2002

    IFAs believe Equitable Life's decision to slash terminal bonuses by 4 per cent will lead to a renewed exodus of policyholders despite the imposition of an increased market value adjuster of 14 per cent. They question Equitable's rationale for the new restrictions, as a letter sent to policyholders claims the company's position has improved. It says its lower stockmarket exposure was relatively good news and the outflow from its funds was down from £776.5m in October ...

  • New managing director for Sofa

    19 Apr 2002

    Former Sun Life Technical Services managing director Brian Lawless has been appointed as Sofa managing director.

  • New products on horizon as Clinicare granted status

    18 Apr 2002

    PMI insurer Clinicare has finally received authorisation from the FSA after fighting for two years to achieve independent subsidiary status from French parent company Assurances Mutuelles de France. The move means that the UK subsidiary will have much more freedom in the designing and pricing of products for the market instead of simply acting as an administrator for the French parent. Clinicare says there will not be any new products immediately, as it will take time to assemble ...

  • Newcastle bond tracks property market

    17 Apr 2002

    Newcastle Building Society has put a different slant on guaranteed bonds with its guaranteed property bond. The bond was designed to allow investors to benefit from a rising property market, rather than gamble with potential growth on volatile stockmarkets. It works in a similar way to guaranteed equity bonds, but is linked to the performance of the Halifax House Price Index rather than a stockmarket index. Investors can choose from two versions ...

  • NI contributions up 1 per cent

    17 Apr 2002

    Gordon Brown rejected alternative funding arrangements for health care costs such as private medical insurance, social insurance or charging.He said an NHS funded out of general taxation is still the most equitable way to give people the greater security they want.Brown announced that starting next tax year a 1 per cent increase in National Insurance contributions on all earnings across the board. The ceiling of £30,420 remains in place.

  • NI increase may reduce employers' pension contributions

    18 Apr 2002

    Norwich Union and Scottish Mutual are warning the Chancellor's decision to increase National Insurance contributions will turn employers away from pension provision.The NAPF has also attacked the Government for failing to do anything in its Budget to encourage companies to continue with final salary schemes.The Chancellor announced that as of next year, NI contributions will go up by 1 per cent across the board.Research by NU before the Budget found 27 per cent of employers ...

  • Nothing for savers in budget says RJ Temple

    18 Apr 2002

    The Government has done nothing to encourage saving in its budget and through its tax increases will discourage people from saving according to national IFA RJ Temple.

  • NS&I savings drops in February

    22 Apr 2002

    Sales of National Savings & Investments' products in February dropped to £850m from £1.02bn in January. Overall holdings in NS&I products were reduced by £3m as withdrawals for the month stood at £853m.Total investment now stands at £62.6bn.  

  • Other IFA Budget news in brief

    18 Apr 2002

    The Inland Revenue has moved to clarify rules regarding individuals with powers over trusts, stating they will not have to pay inheritance tax unless in exceptional circumstances. The decision follows a recent Court of Appeal case - Melville versus CIR - which threw into doubt the powers of individuals to amend trusts. From this week, individuals will only be subject to IHT if it can be proved they were using their powers to avoid paying tax.The Treasury has frozen the personal ...

  • Outside Edge: John Cowan

    18 Apr 2002

    Happy birthday, stakeholder pensions? A birthday card you won't be receiving from LloydsTSB wealth management service Create Another big idea that did not work despite all that capability/cash and customers. The missing C must have been credibility. Even the wealthiest customers hesitate to engage with this service from the UK's most successful bank. Think how much more freedom LTSB had compared with the tightly constrained world of stakeholder pensions - how much more worrying ...

  • Paradise lost

    18 Apr 2002

    My wife and I have been considering buying a holiday home but are unsure whether it is a sensible thing to do. What would your advice be about this and what are the alternatives? It is an ambition of many people to own their own home in paradise, where the sun always shines and the cost of living is low. But, in reality, it is not always as easy as it seems, nor is it always a wise investment. Idyllic holidays can often prompt people to consider buying a place of their own, ...

  • Pension planning

    18 Apr 2002

    The myth that the British are a nation of savers has been firmly laid to rest in a survey which shows that the culture of spend, spend, spend seems to be here to stay. A recent report suggests the "combined pension statement", which was designed by the Department for Work and Pensions and private providers to set out what more than 15 million people are due to receive at retirement age from both the state and their own private pension, may have little effect in encouraging a culture ...

  • Pensions

    18 Apr 2002

    Although pensions continue to be a prime focus of the Government, this year's Budget contains very little on pensions. This is not surprising in view of the significant changes introduced by the Government over the last year or so (eg. DC tax regime, stakeholder pensions and the State Second Pension). The Government is also consulting on many other issues, principally regarding the simplification of pensions, the modernisation of annuities, the introduction of a long-term funding standard ...

  • Point One expands into healthcare

    19 Apr 2002

    Bankhall owned support services provider Point One is expanding its range of services into healthcare covering PHI, PMI and group risk schemes.

  • Property investment hit: Mark Chilton, mortgage consultant

    18 Apr 2002

    The residential property market will be breathing a sigh of relief that the Chancellor has not hiked stamp duty. Although house price inflation remains strong, recent history has shown that the upper end of the housing market is impervious to marginal increases in this tax . I suspect the Chancellor realised that an increase would be seen as politically incorrect by the middle classes . So the only impact of the budget on the residential mortgage and property market is the effective 1 ...

  • Providers dismiss Brown stance on PMI

    18 Apr 2002

    Chancellor Gordon Brown has ruled out a role for private medical insurers in the provision of health care, saying the way forward for the NHS is by funding through general taxation.In his budget speech, Brown said the Government was committed to a free at point of use, publicly funded NHS rather than alternative funding arrangements. PMI insurers have rejected the Chancellor's claim, saying there is a need for wider debate on healthcare funding.Brown said: "We ...

  • Prudent approach

    18 Apr 2002

    Prudential International, the newly formed offshore branch of Prudential, has established a with-profits and unit-linked bond called the international prudence bond. The bond is marketed mainly as a withprofits bond but, in addition to two with-profit funds, it offers a range of 11 unit-linked funds from five external fund managers. One of the with-profits funds is sterling denominated and the other euro denominated. Both invest in the Prudential with-profits fund. The sterling ...

  • R&SA slices 20% from term rates

    18 Apr 2002

    Royal & Sun Alliance UK Life is cutting level term insurance rates by up to 20 per cent. The new rates apply to family, business and keyperson cover under its Lifewise plan. It hopes the rate cuts will consolidate its top-five position in the market and particularly benefit those with highnet-worth sums assured. A male non-smoker aged 30 next birthday requiring cover of £500,000 for 20 years will now pay a monthly premium of £22.93, down from £28.86. A female ...

  • Rates of tax

    18 Apr 2002

    ANNUAL EXEMPTION This is increased from £7,500 in 2001/2002 to £7,700 in 2002/2003 for individuals and personal representatives, and (in most cases) from £3,750 to £3,850 for trustees.RATES OF TAXNo change has been proposed regarding the rates of capital gains tax which are, of course, largely as for income tax. In brief terms, these will be subject to tax as if they were the top slice of income and be taxable at 10%, 20% (basic rate ...

  • S2P 'hits defined benefit schemes'

    18 Apr 2002

    Watson Wyatt is calling on the Government to abolish the state second tier pension, claiming it has contributed to the closure of defined-benefit schemes. In its submission to the Department for Work and Pensions' pension simplification review headed by Alan Pickering, the actuarial consul-tancy says the state should provide only a basic minimum pension for all. It believes the second-tier pension and the complex system of being able to contract out of it have distorted private ...

  • ScotLife slashes terminal bonuses

    18 Apr 2002

    Scottish Life has slashed terminal bonus rates only months after deciding not to pay additional reversionary payments from its demutualisation. The company says "the reduction continues the process of smoothing down payouts to reflect stockmarket falls over the past two years of so". ScotLife provoked criticism when it did not pay out the promised additional reversionary bonus to with-profits policyholders following its takeover by Royal London, which injected £980m into ...

  • Scott Dolfi

    18 Apr 2002

    Born: New York state Age: 39 Lives: Notting Hill with his wife and three children Education: BS Engineering and Management, Clarkson University, New York. MS Industrial and Management Engineering Rensselaer Polytechnic Institute Career: 1985-89 TRW Inc project manager on management associates programme. 1989-1997 GE Commercial Real Estate Financing & Services asset manager then managing director of quality. 1997-99 GE Financial Assurance, senior vice-president, partnership ...

  • Scottish Life International - Protected Term Deposit Series 1

    22 Apr 2002

    Monday, April 22, 2002 Type: Guaranteed equity bond Aim: Growth linked to the FTSE 100, S&P 500, and Eurostoxx 50 Minimum investment: Lump sum £15,000 Place of registration: Isle of Man Investment split: 100% linked to the FTSE 100, S&P 500 and Eurostoxx 50 Guarantee: Capital returned in full along with 10.2% at end of term regardless of movement in indices Isa link: No Charges: Implicit Commission

  • Scottish Life International goes for guarantee

    23 Apr 2002

    Scottish Life International has introduced an offshore guaranteed equity bond that returns a minimum level of growth plus the original capital whatever happens to the stockmarkets to which it is linked. The bond is only available to investors in Scottish life International's secure investment portfolio and protected investment management service. There are sterling denominated and US dollar versions of the bond, which offer slightly different returns over a term of five years ...

  • Scottish Widows goes for strategy

    23 Apr 2002

    Wilkins says: "A reasonable concept but no track record yet. It could be good based on the performance of the funds in the Scottish Widows range."

  • Scottish Widows goes for strategy

    23 Apr 2002

    Considering the investment strategy, Moseley says: "Very limited investment options. The investment strategy seems okay." Stather points out that investment grade bonds are now highly priced. He feels that prices might not fall, but such bonds unlikely to provide capital growth. He adds that there will be more opportunity for capital growth with high yield issues, but notes that these are riskier.

  • Scottish Widows goes for strategy

    23 Apr 2002

    Scottish Widows

  • Self-builders on the increase

    18 Apr 2002

    More people than ever are considering building the home of their dreams, according to the latest research by the Norwich & Peterborough Building Society. A survey by the self-build mortgage specialist reveals 85 per cent of people would consider having a home built to their own specifications. N&P says this is up from a figure of 70 per cent in last year's survey of customers' homebuilding aspirations. The research on several hundred N&P clients was carried ...

  • Shawlands fined £140k for compliance failures

    18 Apr 2002

    Shawlands Financial Services has been fined £140,000 by the FSA. The IFA firm, formerly Frizzell Life & Financial Planning, was disciplined for poor record-keeping and associated compliance breaches. This is the first such action the regulator has taken under its new powers adopted at N2 last November. The IFA, which ceased trading in January, will compensate 12,000 customers. The fine relates to compliance breaches surrounding back-to-back policies involving the ...

  • Skandia extending Cowes sponsorship

    18 Apr 2002

    Skandia is extending its sponsorship of Cowes Week through to 2005 and injecting £1.5m into the event. The annual yachting regatta has been sponsored by Skandia for the last eight years. Last year, a record number of 7,000 craft raced, making Skandia Life Cowes Week the second-biggest sporting event in the UK after the London marathon. The official charity for SLCW 2002 is the Cowes Inshore Lifeboat. The cash from Skandia will help to pay for improving the infrastructure ...

  • Skandia takes stake as Park Row relists

    18 Apr 2002

    Birchin International, the financial services investment firm which reversed into Park Row last month, is relisting as Park Row Group as Skandia Life takes a stake. The firm is also in discussion with other product providers about selling a further one or two stakes after Skandia took a 5 per cent share in the Aim-listed company. The deal gives Park Row the benefit of an Aim listing without the cost of flotation, making acquiring further IFAs easier. The group says it is in talks ...

  • Skipton Building Society - 5 Year Guaranteed Growth Bond

    23 Apr 2002

    Tuesday, April 23, 2002 Type: Guaranteed growth bond Minimum-maximum investment: £2,000-£50,000 Term: Five years Interest rate: 4.25% Charges: None Return: Up to 50% of growth in FTSE 100, S&P 500 and Eurostoxx 50 Guarantee: Capital returned in full at end of term along with 22% regardless of movement in indices Commission: None Tel: 0800 446776

  • Skipton growth bond back on menu

    22 Apr 2002

    Skipton Building Society has brought out another tranche of its five-year guaranteed growth bond which guarantees the return of investors' original capital and 22 per cent growth.

  • SLI guarantees growth on fund

    18 Apr 2002

    Scottish Life International is guaranteeing a return of at least 10.2 per cent over five years and two months on its protected term deposit - series 1 fund. SLI says the fund is lower risk than with-profits and offers the potential for further gains of up to 51 per cent dependent on the performance of the world's major stockmarkets. Its performance is linked to the FTSE 100, S&P 500 and Eurostoxx 50 indices to give exposure to the world's biggest companies. The fund ...

  • Split-cap blame lies elsewhere

    18 Apr 2002

    IFAs and their clients have been let down on split-caps. Zero-dividend preference shares were classified as low risk and income shares as low to medium risk. This classification is clearly written on key features documents approved by the regulator. We pay the regulator around £30m a year and we have every right to expect it to be accountable and to be able to trust its risk classifications. Accordingly, IFAs retailed these products to lower-risk investors. While ...

  • Stakeholder branded as a failure by Tories

    18 Apr 2002

    Tory leader Iain Duncan Smith has accused the Chancellor of being opposed to savings and pensions, branding stakeholder a failure and criticising the Government for not tackling annuity reform. Answering the Budget speech, Duncan Smith said stakeholder has failed to reach its target audience. He said: "Stakeholder is a failure, with only one in 10 of its target audience taking it out." The Government said in the Budget notes that it was concerned about the move from defined-benefit ...

  • Stamp duty

    18 Apr 2002

    The Chancellor has announced a number of measures affecting stamp duty as follows:-Stamp Duty ReformThe Government have released a consultative document which seeks views on the detail of a new modern tax regime. Legislation will be included in the Finance Bill 2003 to reform stamp duty. The reform will build on the 2002 measures to tackle avoidance, and will: support the Government's e-business agenda, in particular the introduction of paperless electronic ...

  • Survey will track consumers' financial strategies

    18 Apr 2002

    A new rolling survey tracking consumer attitudes towards pensions, wealth and other assets, based on a focus group of 13,000 people is to be run by leading thinktank Institute of Fiscal Studies. The survey, starting this month, is expected to reveal its first results in Q3 2003. It aims to track respondents until their deaths, following how they prepare for and enjoy their retirement through their pension, wealth, and housing provision. The project is being funded by the IFS, University ...

  • Talkback

    18 Apr 2002

    "Definitely, yes, to make sure people are giving genuine reasons for a transfer and are not taking full commission when a transfer is taking place." Jeremy Newbegin, The Ethical Partnership "I don't know. I don't see any reason why they should do." Alan Shackcloth,AG Shackcloth & Co "If, at the end of the day, it will help everyone, then I would welcome it. But I cannot see the grounds to do so. The transfer commission levels were sorted out and have not needed ...

  • Tax free and tax favoured savings

    18 Apr 2002

    ISAs and PEPsNo changes have been proposed to ISAs or PEPs.PARENTS AS INVESTORS Growth Collective InvestmentsWhen considering investments for children it also worth remembering that there are no anti-avoidance provisions with regard to the annual CGT exemption and parents could therefore invest on behalf of their children (through, for example, designated unit trusts and OEICs) so as to ensure that the child's CGT exemption is used. An easy ...

  • The Mortgage Business lifetime tracker

    17 Apr 2002

    The Mortgage Business lifetime tracker

  • The state of the nation's savings

    18 Apr 2002

    The body renowned for checking that the Chancellor gets his sums correct -the Institute for Fiscal Studies is to launch a huge rolling survey of the British public's levels of pensions,savings and home ownership. The survey every two years, which will cover 13,000 people, could well become a sort of national fact-find. With a meaningful benchmark for wealth, it may just be possible to give a sensible answer to the question where we stand at present and where we want to end up. Bringing ...

  • The university of life

    18 Apr 2002

    When children go to university life for their parents can work out to be extremely expensive. This is especially true if parents are having to pay the costs from taxed income. The costs usually include a contribution towards the normal living expenses of the children and currently, for most of the UK, also include tuition fees - although this may change. This article looks at a way in which the costs can be met in a possibly much more tax-efficient manner, if circumstances are ...

  • Threadneedle move widens access to its property fund

    18 Apr 2002

    Threadneedle Investments has moved its property fund offshore in a bid to make it available to a wider audience. Formerly the Sackville property unit trust, the fund is being relocated from the UK to Jersey. In its previous incarnation as an unauthorised exempt UK unit trust, only UK pensions and charities were able to invest in it. It will now be open to direct investors with a minimum investment of £250,000, which decreases to £25,000 for clients of recognised financial ...

  • Tiner sees future for 'new WP' but wants to see management improve

    18 Apr 2002

    Strong investment performance in the with-profits industry has camouflaged poor management by product providers in recent years and this issue must be addressed, says FSA managing director John Tiner. Speaking at City law firm Norton Rose sponsored conference The Changing Face of Life Assurance in London last week, Tiner challenged the industry to address the great imbalance of power between insurers and consumers over understanding of financial products. The aim of the meeting ...

  • Tony wickenden

    18 Apr 2002

    In weeks gone by, I have written (hopefully usefully) about some of the tax implications of the impending possible changes to the landscape of the distribution of financial services products and the giving of financial advice in the UK. Recent reports of potential conflict between the proposals (particularly that of the defined-payment system) in CP121 regarding the conditions as to the method of remuneration to be satisfied before the designation "independent" can be used and the ...

  • Trawling for gems: Leslie Gray, Scottish Mutual

    18 Apr 2002

    With major reviews from Sandler, Pickering and the Inland Revenue expected in the next couple of months and an annuity consultation just closed, it never looked likely that there would be much in the Budget on financial services at least as far as a direct effect on providers is concerned. On this occasion, the predictions turned out to be correct.There are some possible indirect effects. Public borrowing is set to increase which could increase the supply of gilts over time and ...

  • Treasury "backpedalling" on annuity reform

    18 Apr 2002

    The Government appears to be backpedalling on its proposals for annuity reform according to IFAs, who suggest they are moving away from allowing transfers between providers. In the documents accompanying the budget, the Treasury says following its consultative period it will allow annuitants to change the terms with their existing providers. There is no mention of allowing them to move between providers as was originally suggested in its consultation exercise prompting IFAs to ...

  • UK absent from talks on single regulator

    18 Apr 2002

    The EU is again looking at creating a single regulator following a meeting last weekend of European fin-ance ministers which the UK did not attend. Chancellor Gordon Brown and his German counterpart are understood to have written to the Spanish presidency to push for enhanced regulatory collaboration. However, they are also believed to oppose the European Central Bank's attempt to expand its role to take on more of a regulatory function. The EU meeting, to discuss a raft ...

  • UK and Europe fund MD MacLeod quits Investec

    18 Apr 2002

    Investec Asset Management UK and European funds business managing director Jamie MacLeod has stunned the firm by resigning after two years in the role. MacLeod joined Investec in late 1999 after nine years with Scottish Widows Fund Management and made an immediate impact by raising the firm's profile in the UK and streamlining its range. He was involved in the outsourcing deal which saw star manager Albert Morillo of Blackrock run Investec's European portfolio trust. MacLeod ...

  • UK loses to Europe on spending power

    18 Apr 2002

    British households work harder yet pay more tax and have less spending power than their European neighbours, according to a new study. The research, by The MarketPlace at Bradford & Bingley, shows UK households pay more income and wealth taxes than people in France, Germany, Spain and Italy but have less disposable income than households in all these countries. The total annual income per household in the UK stood at £35,917, of which 13 per cent went on income and wealth ...

  • UK PLCs stagnant, survey shows

    22 Apr 2002

    UK PLCs are facing increasing financial troubles, with 220 of the top 1,000 publicly quoted companies currently making a loss, compared to only 76 four years ago, according to research by Plimsoll Publishing.

  • Unfair treatment

    18 Apr 2002

    The proposed alteration of the rules governing the sale of financial products gives cause for concern. We do not feel it is fair, just or reasonable to suggest that independence of judgement/advice can only be achieved if paid for through fees. Qualification by examination, robust monitoring and regulations, together with indemnity insurance, capital adequacy requirements and continuing professional development and study are all existing necessities indicating advisers' professional ...

  • Utopia Inns - Utopia Inns

    23 Apr 2002

    Tuesday, 23 April 2002Type: Enterprise investment schemesAim: Growth by investing in leasehold bars and freehold pubs between Birmingham, Bristol and ReadingMinimum investment: Lump sum £5,000Opening-closing date: February 1, 2002-until further notice Charges: ImplicitCommission: Initial 2.5%Tel: 01543 454947

  • Utopia Inns back for more

    22 Apr 2002

    Utopia Inns is offering a second share subscription in its enterprise investment scheme (EIS). This EIS aims to provide capital growth by developing pubs initially around the M5 area between Birmingham and Bristol and the M25 area towards London.

  • VAT sinking feeling

    18 Apr 2002

    In weeks gone by, I have written (hopefully usefully) about some of the tax implications of the impending possible changes to the landscape of the distribution of financial services products and the giving of financial advice in the UK. Recent reports of potential conflict between the proposals (particularly that of the defined-payment system) in CP121 regarding the conditions as to the method of remuneration to be satisfied before the designation "independent" can be used and the ...

  • Verity's view

    18 Apr 2002

    When the Inland Revenue brought its consultation on annuities to a close, it left many IFAs and their clients disappointed. From the start, its refusal to review the compulsory purchase of annuities at the age of 75 looked dogmatic and inflexible, a throwback to the days when bureaucrats knew better than the average member of the public what they should do with their money. The Retirement Income Reform campaign, which wants that rule changed, did have a point. The former Labour ...

  • Waiting for Sandler: Paul Smee, Aifa

    18 Apr 2002

    As far as the IFA sector goes, the sub-title of this budget is "Waiting for Sandler". Nothing structural here. Remember the Savings Gap? The Chancellor didn't. Future of Isas? Not this year. Very,very delicately the Government confirms its intention to allow limited period annuities and to introduce more flexibility. But they are not unveiling much more than the careful reader of their consultation paper had already surmised.Of course, as with all budgets, there will be new opportunities ...

  • Warning lights flash for LTC bond funds

    18 Apr 2002

    Policyholders of two long-term care product providers will shortly be getting letters telling them the bonds used to fund for potential LTC coverage are underperforming and they may need to increase their premiums. Poor performing markets over the last couple of years, mean that Axa-owned PPP Lifetime Care and Scottish Amicable will be contacting policyholders about the shortfalls in the original projection levels. Both providers insist the reviews are not out of the ordinary as ...

  • Why the IMA is reviewing sectors

    18 Apr 2002

    I am writing in response to the article headlined, IFAs criticise IMA plan to scrap two equity sectors (Money Marketing, last week), in which your reporter quotes an IFA saying: "It was only a few years ago that the technology sector had only two funds in it." The technology and telecommunications sector has only been existence since May 2001 and was launched with 29 funds (currently 30). The principal remit of the IMA's performance category review committee is to enable consumers ...

  • Widows raises the cash stakes

    18 Apr 2002

    Scottish Widows is raising stakeholder commission levels for IFAs, bucking the trend in an effort to increase its market share. Rivals Standard Life and Norwich Union both recently slashed commission rates as a result of the squeeze on margins. Widows is offering 60 per cent of Lautro rates, up from 45 per cent, plus 1 per cent level commission on regular-premium business until the end of June. This puts Widows significantly above its rivals, which offer around 40-45 per cent ...

  • Yorkshire Building Society - Rollover TOISA

    22 Apr 2002

    Monday, April 22, 2002Type: Cash Tessa only IsaAim: GrowthMinimum investment: Lump sum £100Maximum investment: £9,000Catmarked: NoInvestment choice: CashInterest rate: 4.75% gross a yearCharges: NoneWithdrawal penalty: Withdrawals are not permitted during the termCommission: NoneTel: 0845 1200100

  • Yorkshire unveils new loan range

    18 Apr 2002

    Yorkshire Building Society is launching a range of flexible mortgages including fixed, discount and tracker products. Its new flexible tracker mortgage has a rate of 3.95 per cent - 0.05 per cent below the Bank of England rate - for two years. It is available up to a loan to value ration of 95 per cent. There is a fee of £295. For an LTV of 75 per cent, Yorkshire is offering a fixed rate of 4.99 per cent for two years, which increases to 5.49 per cent for LTVs of 95 per cent. ...

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