Money Marketing
17 October 2001

  • 'Advice essential to close savings gap'

    18 Oct 2001

    Financial advice is essential if the £27bn savings gap between what people need to save and what they are currently saving is to be closed, says a report from the ABI and consultants Oliver Wyman and Company. The report, called The Fut-ure Regulation of UK Savings and Investment, issued this week, says advice is necessary to encourage saving, especially among low to middle earners. It found that 46 per cent of households surveyed in the £9,500 to £13,500 income band ...

  • 'Collaborate on market research'

    18 Oct 2001

    Financial services companies should consider syndicated research, where competitors collaborate to produce market information of mutual benefit, easing budgetary pressures, according to Henry Samuels Marketing Services. Henry Samuels says there has always been a significant overlap in the subjects covered by individual research projects, including pensions, distribution and product development. He believes if more companies shared their market research resources, budgets would ...

  • 'Give employers role in preventing misselling'

    18 Oct 2001

    The pension misselling scandal could have been avoided if employers had been encouraged to give financial advice to their employees, says Conservative Shadow secretary of state for work and pensions David Willetts. As the Financial Services Act 1986 did not permit employers to advise staff about their occupational schemes, Willetts says a lot of them did not act when employees transferred to personal pension plans. He believes employers should be allowed to give advice, which would ...

  • 'Virtually final text' on FOS financing to be published

    18 Oct 2001

    The FSA is publishing the final version of its complainthandling rules together with the "virtually final" rules on funding the Financial Ombudsman Service. The joint FSA/FOS policy statement also incorporates feedback on arrangements for the funding of the FOS and the "virtually final text" of these rules. The regulator says there are special case fee rules required as part of the transitional funding arrangements during the post-N2 portion of the current financial year from December ...

  • 'Wafer-thin margins may squeeze out mortgage packagers'

    18 Oct 2001

    Mortgage packagers face a fight for survival in the mainstream market as lenders look for ways to cut costs in the low interest rate environment, claim brokers. They believe lenders will soon be forced to reassess their relationships with packaging firms as a result of wafer-thin margins and FSA mortgage regulations which require providers to monitor the product information given to borrowers. To comply with the FSA's new rules, brokers say that lenders will have to adopt technology ...

  • 39 per cent have no private pension provision says survey

    23 Oct 2001

    Only 10 per cent of adults expects to be able to live on the state pension alone, but 39 per cent have made no additional provision for their retirement, according to research from HSBC.

  • 450 IFA firms registered for Transact tools

    18 Oct 2001

    Portfolio consolidator Transact has passed the £100m sales mark just 11 months after its launch into the UK market. The trading platform, which earlier this year formed a strategic alliance with the AITC, now boasts more than 300 firms of advisers on board, with a further 150 registered to begin using the service in the near future. Business has been taken across 529 different unit trusts and 213 Oeics from 99 separate providers. A total of 359 different investment trust ...

  • A busy year ahead for the FSA

    18 Oct 2001

    As N2 approaches, the industry is wondering aloud what this monolithic creation it is paying for will do to keep itself busy once its birthday celebrations are over. After all, FSA spokespersons are constantly espousing the new attitude towards regulation they plan to adopt which will see fewer company visits and a less prescriptive approach to regulation. FSA staffers will no longer be running around preparing for the new regime - a spokesman says most of that work has already ...

  • A new state of affairs

    18 Oct 2001

    The debate on funding Britain's crumbling public services has not abated since the general election, with healthcare having a particularly high profile. After years of discussion and a royal commission, free nursing care for long-term care patients has finally been introduced in England, with the devolved assemblies expected to follow in April 2002. But while there is now some degree of certainty, the situation is far from simple. Confusion has hampered the industry, which has seen ...

  • A&L and L&G launch first joint product

    22 Oct 2001

    Alliance & Leicester is launching a balanced savings and investment plan from Legal & General on A&L’s website. The plan is an A&L fixed rate bond paying an enhanced rate of interest, together with an L&G investment bond. This is the first joint product to be made available since their partnership was announced earlier this year. L&G Isas will also be made available on A&L’s website.

  • AA may outsource business to IFAs if the demand grows

    18 Oct 2001

    AA IFA, the telephone-based advice service, is considering outsourcing face-to-face advice to regional IFAs if there is enough demand for the service after a test period. The phone service goes live this month with three IFAs during its pilot phase, which runs until the end of the year. During that time, consumers wanting face-to-face advice will be referred to IFA Promotion. AA IFA says if there is sufficient demand, it would look at various options, including employing its own ...

  • Aberdeen gets steamed up with Thomas the Tank Engine

    17 Oct 2001

    Aberdeen Unit Trust Managers is getting children onto the right investment track with the arrival of the Thomas & friends childrens investment plan. Introduced in co-operation with Gullane Entertainment, which owns the Thomas the Tank Engine copyright, the investment plan is a unit trust. The plan must be taken out in the name of a child at the start and then transferred to the child at the age of 18. The plan allows access to three Aberdeen funds, ...

  • Aberdeen teams up with Thomas for children's investment plan

    18 Oct 2001

    Aberdeen Unit Trust Managers has launched its Thomas & Friends children's investment plan in agreement with the owners of the Thomas the Tank Engine & Friends brand, Gullane Entertainment. Aberdeen says the plan is specifically designed for parents, godparents, family and friends wanting to make an investment gift for a child. The deal with Gullane means the plan will be widely available through promotional inserts with Tho-mas & Friends' products. Adults can invest ...

  • ABI issues ethical investment guidelines

    23 Oct 2001

    The ABI is issuing investment guidelines to encourage companies to disclose their approach to corporate social responsibility.

  • Accountants look to Bankhall for post-N2 services

    18 Oct 2001

    More than 1,000 chartered accountants are set to use Bankhall's compliance services or join up with its member firms after N2 to enable them to continue offering financial advice to clients. Bankhall has just completed roadshows for the Institute of Chartered Accountants in England and Wales after being chosen as the sole provider of compliance support for the body's new division, Chartered Accountants Independent Financial Services. It is also offering training and competence ...

  • Aegon takes direct route with new firm

    18 Oct 2001

    Aegon is setting up a company to offer personal inv-estment products, including Isas and unit trusts, direct to consumers. The 100-strong operation will be launched in the first half of next year in Stirling. Its brand name is still to be announced and products are still being developed but the operation is likely to focus on Isas and unit trusts. Aegon insists the venture is not in competition with IFAs but will attract a new customer base of individuals who would not visit IFAs ...

  • Aiming high

    18 Oct 2001

    Matrix Securities has joined forces with Unicorn Asset Management to unveil the Unicorn Aim venture capital trust. The VCT will follow a similar investment strategy to Unicorn's eaglet investment trust, which invests in a portfolio of quoted companies with a market capitalisation below £50m, but will focus on unquoted companies listed on the Aim. Matrix and Unicorn believe Aim offers good investment opportunities because it may contain undervalued stocks as the index has ...

  • Association of Friendy Societies appoints new president

    17 Oct 2001

    The association of Friendly Societies has elected Colin Paskell as president. Paskell, chief executive of the druids Sheffield Friendly Society replaces Family Assurance Friendly Society chief executive John Reeve.Paskell says: "I see a great future for the movement, particularly working with the Government in their aspirations to help people from all walks of life to save."

  • Automatic for the people

    18 Oct 2001

    If there was any doubt that the 1 per cent world is well and truly with us, it is confirmed by the news that Scottish Amicable has withdrawn indemnity commission from stakeholder products. This demonstrates all too clearly the harsh financial environment that IFAs are now facing. While regulators keep increasing the compliance burden, the Government is dictating margins for product pricing, making it impossible for providers to maintain historic commission rates. If IFAs are to ...

  • Avoid the advice trap

    18 Oct 2001

    Are employers in serious danger of giving employees illegal advice on stakeholder as the FSA re-issues 1994 guidance? Ritchie: In talks to local Chambers of Commerce and other employer groups, I have been warning about this for a couple of years. It is just common sense, if you think about it. When an employee asks the employer "do you think this is a good thing for me to do?", if the employer says either yes or no, he has fallen into the trap. The only safe answer is to say "you ...

  • Balancing act

    18 Oct 2001

    For many investors at, or near retirement, the words risk and income do not sit comfortably together. But with current low interest and annuity rates, many are looking for ways to improve their income. The recent increase in the number of investment products designed to provide income is the inevitable industry reaction to this consumer demand for ways of meeting their income needs. But at the same time, the current stockmarket volatility and global unrest has heightened concern ...

  • Big names missing from shelves as Selestia opens shop

    18 Oct 2001

    When fund supermarkets first opened their checkouts last summer, pundits were quick to prophesise a revolution in IFA distribution. Many predicted a proliferation of new platforms fighting to become the leading IFA distributor. The emphasis was expected to be on tools and customer service levels rather than differences in the selection of funds available. A year on, however, the picture fails to even vaguely resemble that scenario. Fidelity and Cofunds have quietly dominated the ...

  • BOE Life International - Trustee Investment Bond

    23 Oct 2001

    Tuesday, October 23, 2001. Type: Offshore bond. Aim: Income and growth by investing in collective investment schemes. Minimum investment: £100,000. Place of registration: Isle of Man. Investment choice: Choice of 80 external funds. Isa link: No. Charges: Initial 0.75-1.5 per cent, annual up to 1 per cent. Commission: Subject to negotiation. Tel: 01624 690800.

  • Brand on the run

    18 Oct 2001

    Why do brands matter in insurance? The successful entry of powerful non-financial brands into the insurance market, capitalising on their strong brand identities and deep customer relationships, is forcing traditional insurers to examine the worth of their own brands and the coherence of their brand strategies. To add to this pressure, rationalisation within the ind-ustry is creating a number of insurance groups with a variety of different brands each with different strengths in different ...

  • Brett Williams

    18 Oct 2001

    Lives: Tring, Hertfordshire Born: June 30, 1959 in Gillingham, Kent Age: 42 Education: BA (Hons) Economics, Aberystwyth Career to date: 1981-1993: Allied Dunbar - graduate trainer, broker consultant and branch manager, 1993-98: M&G Group - IFA sales director, 1998-99: sales and marketing director at wealth management start-up Independent Insurance, 1999-2000: J Rothschild Inter-national - sales and marketing director Career ambition: To make Selestia the leading fund ...

  • Britannic in £400k push

    18 Oct 2001

    Britannic Asset Management is aiming to give its brandbuilding exercise a boost with a £400,000 marketing campaign, including press, poster and online advertising and direct mail targeting IFAs. The initiative will run until December and will build on the profile-raising work that Britannic began in January. The campaign also promotes the Britannic corporate bond fund, while introducing its new strapline: "Our asset is our team." Britannic's direct-marketing drive ...

  • Business model lets clients choose the service they want

    18 Oct 2001

    Philip Thomas should check the definition of a bucketshop as one definition is an "unregistered firm of stockbrokers that engages in fraudulent speculation". This would suggest his comments about Hargreaves Lansdown are libellous (Money Marketing, October 11). Mr Thomas continues to display a total lack of understanding of the Hargreaves Lansdown business model. It is perfectly true that we have a direct discount broking side. This offers people who do not wish to have advice the best ...

  • Chelsea reduces SVR to 6.14 per cent

    19 Oct 2001

    Chelsea Building Society has reduced its standard variable rate to 6.14 per cent from 6.34 per cent in response to the recent Bank of England base rate cut. The new rate takes effect from October 29 and will apply to all Chelsea products linked to the rate including its cashback plus, cashback, buy to let, concept, prospect and flexiplan mortgages.

  • CHL mortgage tracker loans business up 28%

    18 Oct 2001

    Specialist lender Capital Home Loans has seen mortgage applications rocket by almost 30 per cent this year after interest rate cuts increased demand for its tracker loans. CHL, a subsidiary of Irish Life & Permanent, says it received 28 per cent more mortgage applications from January to September this year than it did in the same period in 2000. Its new business completions shot up by 23 per cent in the nine months to September, pushing the value of its mortgage book over the ...

  • Christows appointed to InterAlliance panel

    19 Oct 2001

    Independent stockbroker Christows has been appointed to the Inter Alliance advisory panel of discretionary portfolio managers.The move will make Christows Private Portfolio account available to investors through Inter Alliance.The account has a minimum investment of £50,000 and offers IFAs up to 3 per cent initial commission and 1 per cent trail.

  • Close to the hedge

    18 Oct 2001

    NIB International is adding to the hedge fund market with its optimum return fund. The fund is an Oeic based in the Isle of Man. It is aimed at two types of investor. The first is the experienced, sophisticated high-net-worth investor with at least $25,000 to invest and who is comfortable with a high-risk investment. The second is the institutional investor, such as pension fund trustees or banks. The Oeic is available to clients in both the UK and offshore. Optimum return is a ...

  • CML in legal warning to firms over monitoring

    18 Oct 2001

    FSA mortgage regulation which encourages lenders to outsource their monitoring requirements would be open to legal challenge at "each and every stage", claims the CML. In a letter to FSA head of mortgage regulation Sarah Wilson, CML director general and ex-barrister Mich-ael Coogan claims an outsourced body would face significant legal risks under enhanced human rights and competition legislation. He warns that any monitoring organisation charged with ensuring brokers comply with ...

  • Communications chief McMeehan quits Autif to set up consultancy

    18 Oct 2001

    Autif director of communications Anne McMeehan is to leave the trade body to set up a financial consultancy business. McMeehan is teaming up with Jain Castiau to launch the firm, Cauldron Consulting, in the new year. Castiau was formerly a managing director of UBS Warburg's European e-business services. The new company will offer communications and marketing consultancy services for a number of different financial services businesses, including fund management firms. McMeehan, ...

  • Confusion reigns as FSA brings out tables

    18 Oct 2001

    The FSA comparative tables were launched amid industry confusion and frustration last week, with several providers mysteriously missing from the platform and a string of fund managers furious over the tables' format. As Money Marketing went to press, the ABN Amro UK growth fund - one of this year's top-selling funds - was still missing from the tables despite the fund manager claiming to have fully co-operated with the regulator's demands. St James' Place unit trust ...

  • Conner: 'Note worthy'

    18 Oct 2001

    Abbey National, the UK's second-biggest mortgage lender, has signed an agreement to become the official bank in a regional version of the Monopoly board game. Abbey's logo is set to appear on the boards and banknotes used in 13 regional editions of Monopoly - based on towns, cities and regions across the UK - after securing the deal for an undisclosed sum. As part of the deal, Abbey will be supporting Monopoly events throughout the country including regional championship ...

  • Consumers turn to remote banking

    23 Oct 2001

    The number of consumers using internet and telephone banking has risen to 13.5 million, according to BACS, the UK's automated clearing house.

  • Consumers' Association accuses FSA of naivete over Equitable

    18 Oct 2001

    The Consumers' Association says the Baird Report shows the FSA has failed miserably in one of its first tests as a regulator in its handling of the Equitable debacle.

  • Credit Suisse First Boston - Global Titans Tessa Plan

    22 Oct 2001

    Monday, October 22, 2001. Type: Capital protected Tessa only Isa. Aim: Growth. Minimum-maximum investment: £5,000-£9,000. Investment choice: 100 per cent in shares listed on the Dow Jones Global Titans index. Term: Five years. Guarantee: Capital returned in full at end of term. Return: Up to 55 per cent at end of term. Catmarked: No. Closing date: January 31, 2002. Charges: None. Commission: ...

  • CSAM clinches SLC deal to add £11bn assets

    18 Oct 2001

    Credit Suisse Asset Management has confirmed it is to buy SLC Asset Management, the UK fund management arm of Sun Life Financial of Canada. CSAM says it will ditch the SLC brand and rename SLC's operations under its own brand early next year. The deal, which was revealed exclusively in Money Marketing last week, will add an extra £11bn of assets to CSAM's UK operations and give CSAM its first serious foothold in the UK institutional market. It will almost double ...

  • CSFB protects capital through Titans

    17 Oct 2001

    Investment bank Credit Suisse First Boston (CSFB) is aiming its capital protected Tessa-only Isa (Toisa) at investors with maturing Tessas and those who are unhappy with the variable rate accounts of their original Tessa providers.

  • Cutting costs of staff sickness

    18 Oct 2001

    Staff sickness absence is costing companies up to 16 per cent of their annual salary bill but half the costs could be avoided, according to research by income protection provider Unum. The report is the culmination of a year-long survey by the Institute of Employment Studies of a crosssection of UK businesses on behalf of Unum. It finds that despite concern at the expense of rising sickness absence, employers consistently underestimate the cost to their business and have few strategies ...

  • Davies vows to review Treasury loan decision

    18 Oct 2001

    FSA chairman Howard Davies has promised to conduct a rev-iew of the Treasury's decision not to regulate mortgage adv-ice very soon and could recommend regulating advice if the current set-up is not working. Davies' comments before the Parliamentary Treasury select committee this week mark a departure from previous FSA statements. The regulator has said in the past that the decision not to regulate advice was made by the Treasury without its input but it is now to take a more ...

  • DBS announces commission payment system

    18 Oct 2001

    The DBS is implementing a new centralised IT system for commission payment to meet N2 requirements

  • Deutsche goes for corporate bonds

    19 Oct 2001

    Deutsche Asset ManagementDeutsche Corporate Bond + FundAim: Income by investing in investment and non-investment grade bonds.Minimum investment: Lump sum £1,000 class A shares, £500,000 class B shares, monthly £25 class A shares.Investment split: Investment grade bonds 80 per cent, non-investment grade bonds 20 per cent.Yield: 5.85 per cent.Isa link: Yes.Pep transfers: Yes.Charges: Initial 4 per ...

  • Downturn blamed as wealth management service cuts jobs

    18 Oct 2001

    HSBC Merrill Lynch is axing an undisclosed number of jobs from its UK wealth management venture, blaming the downturn in the world economy. The HSBC Merrill Lynch Integrated Direct Investment and Banking Service, focusing on high-net-worth individuals, went live in April but is understood to have suffered badly after the US terrorist attacks of September 11. It employs 700 staff worldwide, with the majority located in UK, but will not say how many or what category of jobs will ...

  • Dual-pricing offers extra flexibility to IFAs

    18 Oct 2001

    Cofunds has introduced a dual pricing facility, giving IFAs the flexibility to offer different initial fund charges on Isa and Pep transfer business. Cofunds says it is the first to offer the new functionality, giving IFAs the chance of individually negotiated fund discounts when switching on the Cofunds platform. Cofunds has also announced that it is teaming up with IFA software provider First Software to provide electronic fund updates for its users. The move will speed up fund ...

  • Egg hoping to break even by New Year

    17 Oct 2001

    Internet bank Egg saw its operating loss fall in to £81.8m in the third quarter of 2001, down from £115.1m for the same period in 2000 and says it expects to break even before the end of the year.

  • Equitable says Baird report will help its own investigation

    18 Oct 2001

    Equitable Life says the Baird report will assist its own investigation into whether legal action can be taken against previous directors, advisors or regulators.

  • Exams aim to raise standards in call centres

    18 Oct 2001

    The Institute of Financial Services is offering a set of exams for staff in financial services contact centres. The Contact Centre Professional qualification will ensure staff are trained in customer relations as well as industry-specific topics. It consists of three modules - understanding the contact centre environment, understanding financial services from a customer perspective and personal development, including team management. The exams can be taken at Prometric centres, ...

  • Exeter doubles up with Oeic

    19 Oct 2001

    Exeter Fund Managers has introduced its second Oeic - the hidden value portfolio.The fund is a departure from the company's first Oeic, which invests in zero-dividend preference shares, as it invests in UK stocks. There will be a concentrated portfolio of between 30 and 40 stocks selected by using a blend of stockpicking techniques.The investment managers are Geoff Miller and Andrew Hobson, who both work on Exeter's equity income fund, financial investment trust ...

  • Field calls for new basic pension

    17 Oct 2001

    The Pensions Reform Group, led by former welfare minister Frank Field, has launched proposals to abolish pensioner poverty by creating a new basic state pension. The report proposes a new funded pension, the Universal Protected Pension, to be built up over 40 years and merged with the existing pay-as-you-go National Insurance based state pension. This would provide a pension set at just over 28 per cent of average earnings. 

  • Firms offered support in run up to N2

    18 Oct 2001

    Compliance communication specialist Easy i is offering a training and competence management service to ease the pressure on financial services companies leading up to N2. Easy i says it is offering the service to take the weight off the shoulders of compliance officers tasked with implementing the stringent employee training and competence requirements of the Financial Services and Markets Act 2000. It will allow companies to choose from a range of its services on a short-term ...

  • Flag is up to win Grand prizes

    18 Oct 2001

    Stephen Pettecrew Legg-Mason Investors' F1 team (Steve's Speed Freaks) held off the challenge of three other teams to win the penultimate race award in this season's thrilling IFA Fantasy F1 championship. Steve, who works in Manchester, relied heavily on Mika Hakkinen for his tally of 31 points. He was also helped by an excellent performance from Eddie Irvine and even managed to take the hit of Jacques Villeneuve to walk away with the laurels. A highly charged Mika Hakkinen ...

  • Framlington discounts UK Growth trust

    23 Oct 2001

    Framlington is offering a 1 per cent discount on its UK Growth trust until the end of October, after the fund was awarded a AA rating by Standard & Poor’s Fund Services. The £68m fund, managed by Chris Murphy, is top quartile in the UK All Companies sector over one, three and five years. The discount will reduce the initial charge to 4 per cent from 5 per cent. The fund’s annual management charge is 1.25 per cent. The minimum investment is £500.

  • FSA criticised for poor handling of Equitable debacle

    18 Oct 2001

    The FSA has been strongly criticised for its poor handling of the Equitable Life affair by the report looking at its role in the debacle.

  • FSA guidance on treating windfalls

    18 Oct 2001

    The FSA is issuing guidance on how windfalls should be treated in the pension review and when handling mortgage endowment complaints. The guidance follows a High Court ruling earlier this year in the case of Needler Financial Services and Taber, which said windfalls from life office demutualisations should not be taken into account when assessing compensation. This applies to all windfalls, whether received as shares, cash or additional sums added to policy values. Firms were ...

  • FSA has no power to cap IFAs' fees

    18 Oct 2001

    Apparently, the FSA's Michael Foulger is considering a cap on the fees IFAs can charge because "fees prevent people from getting advice". At what point did the FSA acquire powers to determine the pricing policy of independent businesses? I am pretty confident that they do not have such powers and this is another example of a senior regulatory figure opening his mouth before putting his brain in gear. The fee levels charged by an individual firm are for each firm to determine ...

  • FSA would not look favourably on Lorna's advice

    18 Oct 2001

    I am compelled to write to you after reading the latest piece of wisdom in the guise of the Lorna Bourke article (Money Marketing, October 11). The contents of the piece show an alarming lack of basic financial planning knowledge, risk management and basic arithmetic and will cause concern to all who read her comments. Ms Bourke appears to have hit on the wonderful idea of borrowing money to fund a pension contribution as a way of clawing back the losses made within individual pension ...

  • Fund supermart is first to take offshore focus

    18 Oct 2001

    TD Waterhouse and Banque Generale du Luxembourg are teaming up to launch an offshore fund supermarket offering more than 200 funds from nine providers. Claiming to be Europe's first comprehensive offshore supermarket, the Internaxx service carries offshore unit trusts and Oeics from prov-iders, including Fidelity, Schr-oders and Credit Suisse Asset Managers, as well as 40 in-house funds run by TD Asset Management and Fortis Inv-estment Management. Internaxx is aiming to market ...

  • Gartmore Investment - Gartmore Premier VCT

    22 Oct 2001

    Monday, October 22, 2001. Aim: Growth by investing initially in a portfolio of fixed interest securities, high-yielding smaller companies and Gartmore collective investment funds, then smaller companies listed on AiM, OFEX indices, unquoted companies and fixed interest securities. Minimum investment: Lump sum £3,000. Opening-closing date: October 8, 2001-April 3, 2002 tax year 2001/2002, April 30, 2002 tax year 2002/2003. Charges: ...

  • Gartmore takes AiM

    18 Oct 2001

    Gartmore Investment is moving into the venture capital trust (VCT) arena with the Gartmore premier VCT. The VCT's objective is long-term capital growth and income by investing mainly in developing companies listed on the alternative investment market (Aim). It may also invest in unquoted companies listed on Ofex and those that plan to be AiM-listed within 18 months. The money raised initially for this VCT will first go into a portfolio of fixed-interest securities, ...

  • Gerrard Investment Funds to merge with Old Mutual Asset Managers

    18 Oct 2001

    Old Mutual is to merge Gerrard Investment Funds with Old Mutual Asset Managers.

  • Gerrard Investment Funds to merge with Old Mutual Asset Managers

    19 Oct 2001

    Old Mutual is to merge Gerrard Investment Funds with Old Mutual Asset Managers.

  • Global growth to fall to 1.3 per cent in 2001

    17 Oct 2001

    Global growth will fall to 1.3 per cent in 2001 from 4 per cent in 2000, according to predictions from the Word Bank.The World Bank is forecasting that East Asian output will only grow by 4.6 per cent in 2001, down from 7.3 per cent in 2000, while the Japanese economy will shrink by 0.8 per cent in 2001. It believes the US and Asian slumps will extend the current world downturn by a further 9 months.

  • Gold: Protection

    18 Oct 2001

    TrustNet has produced a table of the 20 top-performing funds it identifies as safe havens in a tempestuous market. The firm says comparing its unit trust and Oeic league tables for October and July finds a completely different range of funds come out on top. It says lower-risk funds are remaining buoyant in current market conditions and fixed interest is a recurring theme. In July, high-income and smaller company funds dominated the tables. The Merrill Lynch gold & general fund, ...

  • Govt invites ideas for annuity reform

    18 Oct 2001

    The Government is giving its strongest indication yet that it is ready to reform the annuities regime as it holds meetings with leading industry representatives advocating relaxation of the rules. Specialist retirement adviser The Annuity Bureau and Dr Oonagh McDonald's Retirement Income Reform Campaign are among a number of industry and other representatives which have been invited to put forward their proposals for annuity reform. The Annuity Bureau is suggesting 10 key proposals ...

  • Grin and bear it

    18 Oct 2001

    It may seem hard to accept after the horror of what occurred in America but stockmarket collapses are not caused by events - they are simply helped along by what happens. At the bottom of any market, there are always events which cause fear and confusion. Some readers may remember when markets collapsed for what appeared to be no reason at all in 1987. Of course, after the event, everyone can tell you why it happened. I took an interest in stockmarkets and enrolled on a course ...

  • Hambros keeps an eye open for emerging companies

    18 Oct 2001

    The third of JO Hambro Capital Management’s quartet of new retail products is the UK emerging companies fund.

  • Has Severn called time on multi-ties?

    18 Oct 2001

    The FSA's perceived determination to introduce multi-ties and end polarisation appears to be softening. Despite the long-held belief within the industry that it is only a matter of time until polarisation is fundamentally altered, if not scrapped, delegates at the recent FSA open meeting walked away with a drastically different mindset. Not only did FSA head of conduct of business policy David Severn no longer appear to be favouring multi-ties but he seemed to be saying that a gap-filling ...

  • HBOS will merge brands in bid to be top-five player

    18 Oct 2001

    HBOS is pitching to become a top five player in the retail investment market with the launch of a new giant asset management arm in the fourth quarter of next year. The new firm will bring together the investment operations of Halifax, Clerical Medical and Equitable Life, and will begin with a series of fund mergers and launches to establish a comprehensive fund range. The firm will be branded under an entirely new name, with the Clerical Medical, Equitable and Halifax investment ...

  • Hopes rise over rethink of pensions price cap

    18 Oct 2001

    The Treasury is believed to be reconsidering the 1 per cent charge cap on stakeholder, according to senior industry sources. Money Marketing has been informed by industry insiders that the Government is rethinking the cap imposed on stakeholder and possibly Catmarked Isas and is planning to issue a consultation document or policy statement before the end of the year. Norwich Union director of pension development Jerry Barnfield also appears to have confirmed the move. Speaking ...

  • Howard claims savers could be hit by tax rises

    18 Oct 2001

    Government overspending will lead to tax hikes which are damaging to consumers trying to save for the future, claims new Conservative Shadow Chancellor Michael Howard. In his first speech since returning to the Shadow Cabinet, the former Home Secretary told the Conservative party conference in Blackpool last week that the Government is spending faster than the economy is growing, which will force it to raise taxes. Howard said more taxes will come in addition to measures the Government ...

  • HSBC bank tops mortgage rate table

    22 Oct 2001

  • HST abandons flotation to seek alternative financing

    18 Oct 2001

    HST Financial, comprising a national IFA firm and network, is seeking funding from product providers, other UK companies or overseas investors in a bid to survive in the long term. The financial distribution company, made up of the Sage FS network, the Host Partnership national IFA firm and non-regulated sales support service Host Protection, has cancelled its Aim flotation planned for later this month in light of economic uncertainty following the US terrorist attacks. HST Financial ...

  • IFA Pam Warren

    18 Oct 2001

    IFA Pam Warren was named Woman of the Year this week in recognition of her work in pushing for improvements in rail safety. Warren, who formerly ran her own pension advice company, received the award after suffering severe burns in the Paddington rail crash two years ago and undergoing 22 operations to her face. She said she accepted the award on behalf of the Paddington Survivors Group, the organisation she helped set up to fight for improvements in rail safety after the crash.

  • IFAP appoints marketing manager

    22 Oct 2001

    IFA Promotion has appointed Karen Barrett as marketing manager to co-ordinate its advertising, website and direct marketing campaigns highlighting the benefits of independent financial advice.Barrett joins from Abbey National where she spent 18 months working on integrated campaigns for the bank and Safeway. She implemented programmes for the Abbey National cash Isa and Safeway savings portfolio. 

  • IFAs call for centralised cover for armed forces

    18 Oct 2001

    Front-line soldiers in the Middle East will find out this week they have been refused life insurance by AIG, the Ministry of Defence's appointed prov-ider, prompting IFA calls for centralised underwriting. The news comes as Britain's leading life insurance companies confirmed they would not take new life business from troops already on a war footing in high-risk locations. Norwich Union says mortgage-related life cover will continue as before but new life cover applications ...

  • IFAs warn public may be misled as FSA issues tables

    18 Oct 2001

    IFAs have accused the FSA of encouraging investors to seek lower-charging investments despite industry warnings that cheaper charges do not equate to good performance. The publication last week of the FSA's unit trust and Oeic comparative tables initially for UK growth funds has led IFAs to accuse the FSA of contradicting its own mission statement of protecting consumers. The tables allow investors to sort prospective investments in terms of either cost or alphabetical order ...

  • Independent view

    18 Oct 2001

    If you had told me before Equitable's downfall that they would fall from grace as spectacularly as they have, I suspect I would have been somewhat sceptical. Of course, none of us operate with the benefit of hindsight, so it is not surprising that I could not have predicted recent events. A lot of our business is fee-based, so we could easily have recommended some of their products. But what was on offer did not shine as brightly as the likes of Standard Life, Scottish Widows and ...

  • Inside Edge

    18 Oct 2001

    What are the essential themes we need to present to the Sandler review? Essentially, the thrust of what the LIA is saying is that commentators are right to point to weak or patchy consumer influence in our business. What's new? The insurance and related industries have been tackling these issues for the best part of 200 years. Yes, it is true that many consumers do not want to address protecting themselves against future events such as their retirement or death. The insurance principle ...

  • Institute of Insurance Brokers launches regulatory council

    23 Oct 2001

    The Institute of Insurance Brokers has launched its regulatory division, the Institute of Insurance Brokers Regulatory Council, which gives consumers a guarantee that their adviser is an "independent professional."

  • Internet is the key to survival

    18 Oct 2001

    It is becoming increasingly obvious that many (though not all) IFAs are taking the ostrich attitude towards the internet and e-marketing. Contrary to what we often hear, only 12 per cent of internet users are the unemployed and students. Over 30 per cent of users are middle and senior management and professionals. The average user is of the "inheriting classes" looking to invest (often) substantial single premiums. Also contrary to popular opinion, the internet, especially ...

  • Investlife goes after eight

    22 Oct 2001

    Investlife Luxembourg, a sister company of Pinnacle Insurance, has introduced the premier income and growth bond that is linked to the performance of eight industry sectors across Europe including the UK.The premier income and growth bond tracks the performance of the largest stocks in the auto, energy, banks, insurance, food & beverages, media, chemicals and health sectors. These stocks are a breakdown of the largest 600 companies in Europe including the UK.Investors can ...

  • Investment analysis

    18 Oct 2001

    Stockmarkets around the world continued their recovery last week, with many recapturing their pre-September 11 levels. Technology stocks again led the way following better than expected results from Juniper Networks and Yahoo. In the US, the Nasdaq 100 jumped by 9.6 per cent while the UK's Techmark ended the week 9.1 per cent higher. Although stocks ended the week higher, news on the US economy was generally poor, with retail sales falling at their fastest rate for nine years ...

  • Investment view

    18 Oct 2001

    The way in which shares built on earlier gains last week was amazing. All the ground lost following the terrorist attacks of September 11 was recovered and, if anything, there was a scramble not to be left out of a recovering market. There were those who considered investors to be just a little too keen to jump aboard the bandwagon but at least it demonstrated how much money awaited investment. But indifferent news started to take over sentiment by the weekend. There was plenty of ...

  • J O Hambro Capital Management - JOHCM European Fund

    18 Oct 2001

    Thursday, 18 October 2001. Type: Oeic. Aim: Growth by investing in European and global equities. Minimum investment: £2,500. Place of registration: Dublin. Investment split: European equities 85 per cent, global equities 15 per cent. Isa link: Yes. Charges: Initial 5 per cent, annual 1.25 per cent. Commission: Initial up to 3 per cent. Tel: 020 7747 5646.    

  • J O Hambro Capital Management - JOHCM UK Emerging Companies Fund

    19 Oct 2001

    Friday, 19 October 2001. Type: Oeic. Aim: Growth by investing in UK equities. Minimum investment: £2,500. Place of registration: Dublin. Investment split: 100 per cent UK equities. Isa link: Yes. Charges: Initial 5 per cent, annual 1.25 per cent. Commission: Initial up to 3 per cent. Tel: 020 7747 5646.  

  • J O Hambro Capital Management - JOHCM UK Growth Fund

    18 Oct 2001

    Thursday, 18 October 2001. Type: Oeic. Aim: Growth by investing in UK equities. Minimum investment: £2,500. Place of registration: Dublin. Investment split: 100 per cent UK equities. Isa link: Yes. Charges: Initial 5 per cent, annual 1.25 per cent. Commission: Initial up to 3 per cent. Tel: 020 7747 5646.  

  • J O Hambro Capital Management - JOHCM UK Recovery Fund

    19 Oct 2001

    Friday, 19 October 2001. Type: Oeic. Aim: Growth by investing in UK equities. Minimum investment: £2,500. Place of registration: Dublin. Investment split: 100 per cent UK equities. Isa link: Yes. Charges: Initial 5 per cent, annual 1.25 per cent. Commission: Initial up to 3 per cent. Tel: 020 7747 5646.  

  • Julian Gibbs

    18 Oct 2001

    I have always been a keen fan of the Hambro family. With Hambro Life, they revolutionised the life insurance and investment profession in conjunction with Mark Weinberg. Now, James Hambro has managed to get together a brilliant team at JO Hambro Capital Management, which should prove to be a major competitor to New Star Asset Management, my favourite new group so far. Incidentally, chief executive Nichola Pease is sister of Richard Pease, New Star's top European manager, and is ...

  • Keeping a float

    18 Oct 2001

    IFAs watching their clients' stockmarket investments plunge over the last year might feel wary of subjecting themselves to the same rollercoaster ride. Lighthouse, Millfield, Kingsbridge and Inter Alliance are among IFAs who have already taken the plunge and are listed on the Aim. Cavanagh Group and Ber-keley Wodehouse are set to follow. DBS, Countrywide, IFA Network and Financial Options are present on the main exch-ange as subsidiaries of Misys, which has recently just drop-ped ...

  • L&G investment head to retire

    18 Oct 2001

    Legal & General director of investments David Rough is to resign after 10 years in the post.

  • Laura Edgecumbe

    18 Oct 2001

    The advantages of flotation can be huge to a financial adviser. The raising of capital is obviously a key aim and an essential one for a fast-growing company. However, there are other significant benefits conferred by flotation on a stockmarket although these must be tempered by the fact that flotation may not be suitable for all IFAs. Flotation can give a heightened public profile that can benefit the brand building of a company. Some of this derives from the kudos of being quoted ...

  • Law firm gives guidance on account aggregation

    18 Oct 2001

    Law firm Osborne Clarke is publishing a guide on account aggregation with the aim of addressing concerns about the new service. One of the issues raised in the question-and-answer format guide is whether an aggregator using screen scraping will be seen as hacking and if the accountholder will be implicated. Screen scraping is the use of special software to collect information from host websites for presentation in consolidated form on the aggregator's web page. Osborne Clarke ...

  • Lawyer seeking funds to contest mortgage ruling

    18 Oct 2001

    Paragon Group is claiming victory in a Court of Appeal test case which lenders feared would restrict their ability to set variable rates at random. However, London-based lawyer Joseph Aaron, who acted on behalf of the borrowers of Paragon subsidiary National Home Loans who took the lender to court, is disputing the victory and claims the judgement remains ambiguous. The borrowers took legal action after the lender refused to reduce the high variable rates they were paying, even ...

  • Learn pension legalities

    18 Oct 2001

    Practitioners wanting to polish up their knowledge of the legal framework of pensions can find out more at Practical Pensions: The Latest Legal Requirements, a conference in London next month. The conference will look at issues including the impact of the Equitable Life debacle and Myners report, pension sharing on divorce and stakeholder pensions versus group personal pensions. Speakers will include Watson Wyatt partner Kevin Stratford, Consignia group pensions strategy director Dermot ...

  • Life industry regulation needs drastic overhaul says FSA report

    17 Oct 2001

    The state of regulation of the life industry requires a drastic overhaul according to the FSA's report into its handling of the Equitable Life affair.

  • Lloyds TSB appoints UK banking chief

    23 Oct 2001

    Lloyds TSB is appointing Eric Daniels as executive director of UK banking, replacing Dennis Holt who resigned in August.Daniels joins from Zona Financiera, a privately-owned financial services portal. He was previously chairman of Citigroup's Travelers Life & Annuity business.   

  • Lloyds TSB threes up links

    19 Oct 2001

    Lloyds TSB has introduced a guaranteed equity bond that offers investors a minimum return of 20 per cent plus their original capital after five years. The London guaranteed equity savings account is only available over the phone. It is linked to the performance of three stockmarket indices, the FTSE 100, Eurostoxx 50 and Nikkei 225. To calculate the final return, the monthly average of each index is recorded then added together to produce a growth percentage. Investors get 100 ...

  • LTC to be fully regulated by FSA

    22 Oct 2001

    The Treasury has announced today long-term care insurance will be fully regulated by the FSA.Treasury Economic Secretary Ruth Kelly says it is important to give customers adequate protection at an early stage of the development of the LTC market. Kelly says: "By asking the FSA to regulate the sale and marketing of long-term care insurance, we hope to protect consumers and allow the market to develop within that regulatory environment."

  • Making the best choice

    18 Oct 2001

    Recent events have left some life companies ailing and IFAs struggling to work out which companies to place business with. Many IFAs recount a lack of confidence from clients and a general insecurity about the health of companies. They are also critical of the lack of information from the FSA. Richard Jacobs Pension & Trustee director Richard Jacobs says it is an impossible situation: "I am accountable for the advice I give and put my head on the block, which the regulator will ...

  • Man Utd 'risks brand damage'

    18 Oct 2001

    Manchester United risks damaging its brand by entering the financial services sector, according to research by Corporate Edge consultancy. The club recently launched its financial services division and Corporate Edge says this is an understandable move from a commercial viewpoint to get extra revenue from its 50 million fan base. But it warns that by making such a move the team risks diversifying too much and could compromise fans' goodwill or its strong brand image. The branding ...

  • Mass affluent branded 'meaningless jargon'

    18 Oct 2001

    The financial services industry has acted recklessly in trying to create the so-called "mass affluent" market, according to comdirect. The comments follow findings from an opinion poll commissioned by the German online stockbroker, which revealed more than one in two Britons have no idea what "mass affluent" really means. It argues the move by many financial service companies to launch wealth management services for the mass affluent, or those earning over £50,000 a year, ...

  • Massow rounds on ex-partner after he buys back his company

    18 Oct 2001

    Ivan Massow has launched an extraordinary attack on his former business partner after buying back his own company. Massow says Towry Law and venture capitalist Cata-lyst were also interested. Massow Rainbow went into receivership two weeks ago after an expected cash inj-ection from Catalyst failed to go ahead. The client list was bought from the receivers by Sarah Killick on behalf of Massow for an undisclosed sum and now trades as Felix Financial, an appointed representative of ...

  • McCartney publishes pension consultation document

    22 Oct 2001

    Following the announcement on 26 September of the review of private pension legislation, the Government is publishing its consultation document.

  • MediQuote signs deal with Misys IFA Services

    22 Oct 2001

    Private Medical Insurance portal MediQuote has signed a deal with Misys IFA Services to provide a direct online quotation service to the 1,300 Kestrel and Countrywide members.

  • Mercantile Building Society - Product 85i

    18 Oct 2001

    Thursday, 18 October 2001.

  • Morley Fund Management - European Focus Fund

    19 Oct 2001

    Friday, 19 October 2001. Type: Oeic. Aim: Growth by investing in 30 to 40 European stocks. Minimum investment: Lump sum £5,000. Investment split: 100 per cent in 30 to 40 European stocks. Isa link: No. Pep transfers: No. Charges: Initial 5 per cent, annual 1.5 per cent. Commission: Initial 3 per cent, renewal 0.5 per cent. Tel: 0800 5874563.  

  • Morley Fund Management - UK Focus Fund

    19 Oct 2001

    Friday, 19 October 2001.Type: Oeic.Aim: Growth by investing in a concentrated portfolio of between 30 and 40 UK stocks.Minimum investment: Lump sum £5,000.Investment split: 100 per cent in a concentrated portfolio of between 30 and 40 UK stocks.Isa link: No.Pep transfers: No.Charges: Initial 5 per cent, annual 1.5 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 0800 5874563.  

  • Multi-theme equity fund from Exeter

    18 Oct 2001

    Exeter Fund Managers is launching its first pure equities fund with a multi-thematic approach using individual stockpicking. The Hidden Value Portfolio is a sub-fund of the Exeter Oeic and will be managed by head of UK equities Geoff Miller and UK equities investment manager Andrew Hobson. The fund's objective is to provide both growth and income using a multi-thematic approach emphasising individual stock selection. Exeter believes a stockpicking fund has the ability to ...

  • Nat Mut explains demutualisation to policyholders

    23 Oct 2001

    National Mutual is writing to policyholders explaining its demutualisation and sale to GE Capital. Policyholders will be asked to attend an EGM on November 20 at Lords cricket ground in London to vote on the proposals. GE bought NatMut in June in a deal worth £570m. Members will receive £500 for loss of membership rights. A further £280m will be distributed over time to qualifying policyholders in bonuses.

  • Nationwide fills gap with Catmarked income fund

    17 Oct 2001

    Nationwide Building Society has filled a gap in its product portfolio with a Catmarked unit trust designed to generate high income.

  • Net firm and Exchange in stakeholder deal

    18 Oct 2001

    Stakeholder designation website www.pensionsbusiness.com has signed a deal with The Exchange for an undisclosed sum to provide users with sales, marketing and distribution rights for its service. The service enables IFAs to provide online group stakeholder transaction services via pensionsbusiness's online channel which effectively administers schemes from designation through to population. The launch will be supported by joint marketing and promotions to ensure the 16,000 registered ...

  • Newbury Mortgage Services - 5 Year Stepped Discount 90 Per Cent

    23 Oct 2001

    Tuesday, October 23, 2001. Discounted term: Five years. Discount: 0.75 per cent in year one, 0.25 in years two to five. Payable rate: 4.8 per cent in year one, 5.3 per cent in years two to five. Minimum loan: £25,500. Maximum loan: Up to 90 per cent of valuation subject to no maximum. Income multiples: 3.25 times principal income plus second or 2.5 times joint. Professionals - 3.75 times principal income plus second or ...

  • Newcastle Building Society appoints senior managers

    19 Oct 2001

    Newcastle Building Society has appointed Angus Macnaughton as corporate development manager and Tony Ibson as direct sales manager.

  • Norwich Union Healthcare - Health Cash Plan

    19 Oct 2001

    Friday, 19 October 2001. Type: Healthcare cash plan. Minimum premium: Annual £68.40, monthly £6. Minimum-maximum ages: 16-no maximum. Maximum benefit: Subject to negotiation. Deferred period: None. Commission: Initial 25 per cent, renewal 5 per cent. Tel: 0845 3000649.    

  • NU wraps up retirement products

    22 Oct 2001

    Norwich Union is packaging a range of products for the retirement market into one proposition to provide a comprehensive offering for people approaching retirement.

  • Online opportunities

    18 Oct 2001

    Where did it all go wrong for business-to-consumer financial websites? Only a year ago B2C personal finance websites were all the rage. Any self-respecting high-street bank, life insurance company or mortgage provider was building and launching a consumer-facing website. Many were investing millions of pounds launching entirely new brands to try to attract a younger, affluent and internet-savvy consumer to spend their money on financial products via the web. Some commentators predicted ...

  • Outside edge

    18 Oct 2001

    At the FSA's open meeting on polarisation, it was argued that regulation focusing on making the existing market work is missing the point. The greatest gains, it was claimed, will be achieved by raising the level of retirement savings and this should be one of the primary objectives of regulation. This is plausible but is it right and what should be done about it? I would like to take you back to the four fundamental reasons why people are not saving as much as the ABI and the Government ...

  • Pension adviser named Woman of the Year

    17 Oct 2001

  • PIFC on the buying trail to boost turnover

    18 Oct 2001

    Corporate IFA PIFC Benefits Consultants is on the acquisition trail in a drive to expand its turnover to £50m by 2005 from its current £10m a year. It has appointed KPMG as corporate adviser, PricewaterhouseCoopers as auditor and Cameron McKenna as its lawyer to consider a range of options on the future of the firm, which has 24 RIs and 100 staff. PIFC says it is in acquisition talks with four to five firms based in Leeds, Reading, Liverpool and London. It says ...

  • Portman purchase of Sun Bank gets OK from DTI

    19 Oct 2001

    Portman Building Society's £95m purchase of Sun Bank has been cleared by the Department of Trade and Industry.The deal announced in September, which sees Portman buying the specialist lender from parent company Sun Life Financial of Canada, adds almost £1bn to Portman's mortgage book.Sun Bank, with 75,000 customers and total assets of around £1.2bn, specialises in buy-to-let loans and is a leader player in the complex prime market.

  • Premier Fund Managers - Premier x-cel Portfolio

    23 Oct 2001

    Tuesday, October 23, 2001. Aim: Income and growth by investing in UK and overseas equities, unit trusts and investment trusts. Minimum investment: £150,000. Investment split: Choice of UK and overseas equities, unit trusts and investment trusts. Income facility: Monthly, quarterly, half-yearly, annually. Charges: Annual 0.75-1.25 per cent. Commission: Initial up to 3 per cent, renewal 0.5 per cent. Tel: 01483 306090.

  • Premier hopes to x-cel

    19 Oct 2001

    Premier Fund Managers has introduced the Premier x-cel portfolio.

  • Price is not right

    18 Oct 2001

    Would any reader accept a system that denied the point of his or her existence? This is not the FSA's intention but it is close to where it has ended up with the publication of its fund manager league tables based solely on price. Managers also fear that, with the inclusion of several price filters, investors are being "advised" to take a particular course. Price transparency should almost always be welcomed but fund managers should not have to accept a system that could undermine ...

  • Privately managed funds soar

    18 Oct 2001

    The value of funds in actively managed portfolios rose to £290bn in 2000 from £262bn in 1999 as investors looked to private asset managers for higher returns. The increase is even greater given the effect of negative equity market returns. The figures from PAM show that stockbrokers, private banks, fund managers and investment consulting firms are becoming more successful in targeting high-net-worth individuals. Consolidation in the sector continued through 2000, with the ...

  • Property matters

    18 Oct 2001

    BFS managed properties is a split-capital investment trust that aims for capital growth and a high level of income by investing in commercial property and other investment trusts. The panel compare it to the Collins Stewart property acquisition and management (PAM) trust and the Henderson TR property investment trust. Considering the market suitability of the BFS trust compared to the other products, Bottriell says: "The BFS plan is very similar to the PAM trust in that they are both ...

  • Protection profusion

    18 Oct 2001

    When Scottish Provident introduced its self assurance product in 1997 it was exactly what IFAs and clients had been waiting for, earning it an enviable market position it still holds. Four years later a ring of other menu-based protection products is flourishing around it, with several major providers already challenging its market share after a series of highprofile launches this year. The competition can only get more intense with Scottish Life, Norwich Union and Standard Life ...

  • Pru appoints new marketing director

    18 Oct 2001

    Prudential UK is appointing Roger Ramsden to the newly created role of marketing director, reporting directly to UK and Europe chief executive Mark Wood.Ramsden joins Prudential after 20 years in marketing and consultancy with Safeway, The Boston Consulting Group and Unilever.Ramsden says: "The life and pensions market is going through a period of immense change which presents opportunities to develop new and innovative ways to reach our customers."

  • Pru sees sales rise

    19 Oct 2001

    Prudential saw its sales increase by 54 per cent to £15.1bn during the first 9 months of 2001.

  • Quester goes for innovation

    17 Oct 2001

    Quester Capital Management is offering new shares in its Quester venture capital trust (VCT).This venture capital trust aims to produce income and growth by investing mainly in unquoted companies, although around 15 per cent will also go into quoted companies and fixed-interest securities.This VCT has a general focus that is spread across sectors including healthcare, technology, construction and leisure. The companies chosen for investment will be those that can add innovative ...

  • R&SA Eurolife appoints European sales head

    23 Oct 2001

    Royal & Sun Alliance Eurolife is appointing Nigel Watson as general sales manager, taking control of its pan-European business.

  • R&SA offers low-charge trustee plan

    18 Oct 2001

    Royal & Sun Alliance UK Life & Pensions is introducing a low-charging trustee investment plan in a bid to strengthen its position in the IFA corporate pensions market. The product is designed to follow the trend towards maximum 1 per cent charges across the market for trustee investment plans and executive pension plans. Flexible fund-based commission options available on the new product are designed to allow IFAs and their clients to tailor the charges and commission to their ...

  • R&SAIFS goes for growth

    22 Oct 2001

    Royal & SunAlliance International Financial Services’ (R&SAIFS) second collaboration with Collins Stewart Asset Management is the R&SAIFS Collins Stewart growth managed fund.

  • R&SAIFS teams up with Collins Stewart

    22 Oct 2001

    Royal & SunAlliance International Financial Services (R&SAIFS) has joined forces with Collins Stewart Asset Management for the introduction of the R&SAIFS Collins Stewart balanced managed fund.

  • RBSI launches stepped growth plan

    22 Oct 2001

    The Royal Bank of Scotland International is launching a stepped growth bond designed to offer security to investors during the current volatile period in the markets. The bond is the latest in a series of fixed term deposit accounts RBSI aimed at expatriates and foreign nationals in the UK and worldwide. Growth is based on the percentage growth of the FTSE 100 index and offers the potential to earn up to 25 per cent interest at maturity.

  • Recovering companies the key for Hambros

    18 Oct 2001

    JO Hambro Capital Management is keeping its eye on the stockmarkets critical list to spot recovering companies for its UK Recovery fund.

  • Regional Review: Surrey

    18 Oct 2001

    As one of the wealthiest counties in the UK, moving from London overspill to typical stockbroker belt, Surrey is classic IFA territory. From the suburbs to the South-west of London, out to its picturesque villages, the area is full of high-net-worth individuals. Epsom will be the location for the Money Marketing IFA UK exhibition and conference, which will be held at the Epsom Downs racecourse on October 25. Surrey's inhabitants are comfortable with finance issues and at 41 per ...

  • Report criticises quality of wealth management

    18 Oct 2001

    Many wealth management companies are failing to target the right customers, understand their needs or offer them the proper services, claims a report by IBM. The report, co-authored by Professor Merlin Stone and IBM, suggests that many wealth management firms are simply "window dressing" basic financial products. It claims firms are too often content to see wealth management as an opportunity to push more one-size-fits-all products rather than offering a tailored portfolio reflecting ...

  • Resolve Partnership launches decommissioning service

    17 Oct 2001

    Consultants and actuaries The Resolve Partnership, is launching a specialist decommissioning service this week to help pension providers and IFAs as they prepare to enter the final leg of their reviews into pensions misselling.

  • Revenger's £175m tragedy for industry

    18 Oct 2001

    George Chapman was born in 1559 and died in 1634. He was a playwright whose Jacobean tragedies graced the stage of his day. So what does Chapman have to do with the pension review? Well, the answer is a simple one, for Chapman first uttered the words which the 21st Century financial world has echoed in response to the recent High Court decision in the case of Needler Financial Services vs Taber. The words come from Act III of Chapman's Revenge for Honour (a blockbuster of its ...

  • Ritchie urges caution on compulsion

    18 Oct 2001

    Scottish Equitable is calling for a full industry debate on compulsory pensions, believing the current view favouring compulsion is a knee-jerk reaction to the perceived failure of stakeholder. In his latest Ritchie Paper, pensions development director Stewart Ritchie outlines three options. These include keeping the status quo, with limited compulsion for employers and employees through the state earnings-related pension scheme and its replacement state second pension, or increasing ...

  • RJ Temple profits rise

    17 Oct 2001

    National IFA RJ Temple revealed a pre-tax profit of £362,000 in its half yearly results to June 31, up from a loss of £36,000 for the same period last year. Its profit after tax is £257,000. Its turnover is up 44 per cent to £9.7m from £6.8m. It says one of the factors contributing to the turnaround to profit is the success of its corporate division launched in January which accounted for £345,000 of the total turnover. Annual productivity per RI ...

  • Rock and C&G are poised to buy Mortgage Brain stakes

    18 Oct 2001

    Northern Rock and Chelten-ham & Gloucester are poised to acquire stakes in Mortgage Brain in moves which would see the trading platform account for 80 per cent of the market. The two lenders admitted this week that they are on the brink of signing agreements with the four owner lenders - Nationwide, Halifax, Alliance & Leicester and RBS/NatWest - to buy equal 8.5 per cent slices of the company. The news comes just two weeks after RBS/NatWest announced it was becoming the first ...

  • RSA pursues pension trustees

    23 Oct 2001

    Royal & SunAlliance UK Life & Pensions has introduced a pension fund trustee plan for trustees of self-invested personal pensions (Sipps), small self-administered schemes (SSAS) and occupational pension schemes.The plan accepts single premiums only and aims to provide a range of investments to trustees that they would only otherwise be able to access through a Royal & SunAlliance pension. It will use pensions solutions, the web-based administration system that is also used for ...

  • Saltr quality mark for five brands

    18 Oct 2001

    The first five brands to apply for the ABI's Raising Standards accreditation were awarded the quality mark this week at a collective cost of up to £13m. Norwich Union, Scottish Equitable, Scottish Widows, CIS and Unum have been awarded the mark from the Pensions Protection Investments Accreditation Board. It means product literature and design across each brand's entire product range have passed the Saltr standard and can carry the quality mark, which is designed to ...

  • Schroder secures growth

    23 Oct 2001

    Schroder Unit Trusts has designed a capital protected fund that is linked to the Eurostoxx 50 index over a term of five years and two months.

  • ScotEq extends range

    18 Oct 2001

    Scottish Equitable Protect is adding income and unemployment products to its protection range to extend the scope of its menu-based protection suite. The income product, which ScotEq says has been designed specifically with IFAs in mind, is available through its mortgage, personal and business menus, while its unemployment cover can only be accessed through the mortgage menu. Under the income protection option on its personal and mortgage menus, clients receive up to 55 per cent ...

  • Scotland international Chris Paterson celebrates

    18 Oct 2001

    Scottish Mutual has teamed up with the Scottish Rugby Union in a six-figure deal to sponsor its autumn international tests. The sponsorship deal, which will run until 2004, includes pitch, scoreboard and ticket branding as well as VIP hospitality opportunities. The deal also includes a package to support grass-roots rugby whereby every child who attends a Scottish Mutual autumn test match will be invited to try rugby at their local club. The matches kick off next month with ...

  • Seasonal fall in mortgage lending

    19 Oct 2001

    Mortgage lending fell by 13 per cent to £14.3bn in September, from £16.5bn in August, but still up from £10.1bn in September 2000.

  • Secrets and eyes

    18 Oct 2001

    The FSA will assume its full regulatory powers at N2, bringing into force its new strategy for regulating Britain's financial sector. The FSA has four statutory objectives: to maintain market confidence, to protect consumers, to fight financial crime and to promote public understanding of the financial system. This is the first time any financial regulator has been given a specific objective in the area of consumer education. The FSA has publicly stated that it will "undertake ...

  • Sifa centres to target legal clients after N2

    18 Oct 2001

    Solicitors for Independent Financial Advice is opening three advice centres staffed by IFAs to provide a financial planning service to clients of local law firms after N2. The centres, run by Sifa's sister company, Solicitors Financial Centres, are based in Teesside, Thames Valley and Exeter. Sifa aims to launch 50 more centres over the next 18 months across the UK. The centres are staffed by IFAs who have experience of working in law firms. Solicitors can refer business to ...

  • Skandia to rebrand bond range

    22 Oct 2001

    Skandia is rebranding its bond range and offering enhanced additional life cover to bond investors.

  • Skipton Building Society - 1 Year Fixed Rate Bond

    23 Oct 2001

    Tuesday, October 23, 2001. Type: High interest account. Minimum-maximum investment: £3,000-£10,000. Interest rates: 4.85 per cent. Term: Until November 30, 2002. Offer period: Until further notice. Withdrawal penalties: No withdrawals permitted during term. Tel: 0800 446776.

  • Smarter investing

    18 Oct 2001

    By now, the Sandler review team at the Treasury will be sifting through the many responses they will have rec-eived to the consultation document sent out in July. This is a major and wide-ranging review and, as a result, several of the responses are very weighty. Here, I want to concentrate on just a single issue but one which should be central to the review - how do you raise the level of understanding inves-tors have of the factors which will affect the outcome of their investment? In ...

  • SSAS the way I like it

    18 Oct 2001

    I am a director and shareholder in a family business. Myself, my wife, my brother and his wife are members of a small self-administered pension scheme. We are all in our mid to late 50s. Consequently, retirement planning is high in our priorities. We have all been advised that it would be in our interests to switch to personal pension plans. The advantages of such a move have been explained to us. However, we wonder whether there is a neater way to achieve the same result. In particular, ...

  • Stakeholder for moderate and high earners says McCartney

    23 Oct 2001

    Stakeholder pensions are primarily intended for the those with moderate and higher earnings according to the Pensions Minister Ian McCartney.

  • Standard & Poor's Micropal Top 10's

    18 Oct 2001

    Only a handful of funds are boasting positive returns for the past 12 months. Among the equity fund sector no single fund kept out of the red during the three months to October, with the exception of Govett US bear, which aims to perform opposite to the S&P 500 index. The average unit trust is now down by -24.79 per cent for the last year while investment trusts have fared even worse, with an average return of -25.84 per cent.

  • Standard Bank Offshore takes conservative path

    19 Oct 2001

    STANDARD BANK OFFSHORECONSERVATIVE STRATEGIST FUNDType: Fund of funds.Aim: Growth by investing in bonds and equities.Minimum investment: £10,000/$15,000.Place of registration: Jersey.Investment split: Equities 30 per cent, bonds 50 per cent, cash/currency funds 20 per cent.Isa link: No.Charges: Initial up to 5.5 per cent, annual 1.5 per cent.Commission: Initial up to 4.5 per cent, renewal up to 0.5 per ...

  • Structures for defined returns

    18 Oct 2001

    We are in uncertain times. Equity markets are volatile and interest rates are falling, so where should nervous investors turn? Completely risk-averse investors will not be keen to commit any money to the stockmarkets and will look towards holding cash or gilts. These are, of course, very safe investments but offer fairly unexciting performance in return. But for those investors prepared to take some risk, structured products may be an attractive home for part of their portfolio. It ...

  • Summit sets long-term Aim

    18 Oct 2001

    IFA group Summit Financial Holdings is joining the Ofex share trading platform to raise £487,500 as a stepping stone to an Aim flotation. It is closing Summit Financial Solutions Limited - Berkeley Independent network's biggest member with 44 RIs - and moving the RIs to a new directly-regulated firm, Summit Financial Solutions. It has set up the new firm to avoid losing business while waiting for its PIA application to be approved. SFS Ltd will continue trading in the ...

  • Swiss Life bolsters critical-illness plan

    18 Oct 2001

    Swiss Life is improving its critical-illness cover by offering care planning to claimants in a bid to bring it in line with rival providers. The insurer is also adding seven new conditions to the plan, including aplastic anaemia, Aids through assault, bacterial meningitis, cardiomyopathy, liver failure, severe lung disease and progressive supranuclear palsy. It is linking up with advisory service Red Arc to provide care planning for claimants in addition to their cash benefit. Red ...

  • Tailor for women

    18 Oct 2001

    A recent Good Housekeeping survey revealed that a disturbing 90 per cent of women show distrust in financial institutions. Fifty-five per cent felt "these companies are run by men in suits who do not have women's best interests at heart". IFAs, product providers and their communication agencies are going wrong somewhere by not fully understanding one of the fastest growing business sectors in the UK. Women prefer different distribution channels to men and spread their business ...

  • Talkback

    18 Oct 2001

    Would you expect higher levels of commission in the event of multi-ties? "Yes. IFAs who multi-tie will expect more commission but we would not go multi-tied anyway."Sally Mynett,GB Financial Services "No. Commission is not the driving source for me, so I would not have a problem."David Savage, David Savage & Associates "Yes, probably. Providers will be fighting to sign up agreements with advisers and that battle will be won or lost on the level of commission they ...

  • Teather & Greenwood buys Escalon Holdings

    23 Oct 2001

    Teather & Greenwood is buying Escalon Investments from Rathbone Brothers in a deal that could be worth up to £2.4m.

  • The Daley Update

    18 Oct 2001

    JP Morgan Fleming Asset Management is introducing a capital-protected global growth fund which boasts 100 per cent capital protection over five years. Investors get 75 per cent of capital growth from a basket of six JPMF equity and fixed-interest funds. Minimum lump sum is £3,000 and the fund is valid for Isa and non-Isa investments. Commission is 3 per cent. Nationwide has launched a high-income fund managed by Merrill Lynch Investment Managers. It invests mainly in UK ...

  • The dividend of the affair

    18 Oct 2001

    In my last but one article on planning for the family company, I concentrated on the opportunities for (and constraints on) remuneration planning for the spouse and children of business owners. In that consideration, I mentioned the national minimum wage provisions. In making payments from a business to persons such as children and a spouse who otherwise have no taxable income, then the national minimum wage provisions are not usually relevant. This is because the object of the exercise ...

  • The income conundrum

    18 Oct 2001

    In constructing any portfolio, the provision of income may feature quite prominently. For higher-rate taxpayers, the provision of taxable income will require tax to be paid at 40 per cent in respect of savings income and 32.5 per cent in respect of dividend income. Is there a more tax-efficient way of achieving income objectives? The answer is to use wrapper arrangements such as insurance bonds and mutual funds to alter the tax status of the underlying investments. I am not seeking ...

  • The regulation industry scam

    18 Oct 2001

    As N2 gets ever closer, practitioners are regaled by offers from the compliance industry. I would have thought that there is very good case to be made for the regulator itself to regulate those seeking to make a "fast buck" on their back. The FSA's failure to recognise individual groups such as IFAs with regard to compliance requirements in the handbook has spawned numerous courses and publications to cater for this deficiency. On the face of it this is a valued service ...

  • UK growth the key for JO Hambro

    19 Oct 2001

    JO Hambro Capital Management is concentrating on home waters for the UK growth fund, the last of its quartet of new open-ended investment companies (Oeics).

  • Unilever and Merrill Lynch lock horns over pension fund

    17 Oct 2001

    Unilever started its £130m damages and negligence claim this week, brought against Merrill Lynch over the management of its pension fund. Unilever says Mercury Asset Management, subsequently bought by Merrill Lynch, followed a risky investment strategy even though it had been told to invest its pension fund more cautiously. Unilever says Mercury repeatedly failed to meet a downside return of 3 per cent below the FTSE all-share index. The case is set to run for six to eight weeks ...

  • Unilever and Merrill Lynch lock horns over pension fund

    17 Oct 2001

    Unilever started its £130m damages and negligence claim this week, brought against Merrill Lynch over the management of its pension fund. Unilever says Mercury Asset Management, subsequently bought by Merrill Lynch, followed a risky investment strategy even though it had been told to invest its pension fund more cautiously. Unilever says Mercury repeatedly failed to meet a downside return of 3 per cent below the FTSE all-share index. The case is set to run for six to eight weeks ...

  • VERITY'S VIEW

    18 Oct 2001

    The Government seems to have failed in its plan to get every company with more than four staff to assign a stakeholder pension provider. Last week, the ABI released figures showing that, by the end of August, little more than half of the 300,000 relevant companies (on its estimate) had assigned a provider. The ABI thinks the figure will have risen to around two-thirds by the end of September but the truth is that no one, not the Government nor the ABI nor the Occupational Pensions ...

  • Video shows value of advice

    18 Oct 2001

    Fidelity Investments has produced a CD-Rom starring TV comedians John Bird and John Fortune of Rory Bremner show fame to promote the value of advice. The CD-Rom is aimed at IFAs who could not attend Fidelity's recent annual investment forum roadshows for intermediaries around the UK. It is based on a video first screened at the roadshows where the two Johns play investors discussing their portfolios over a drink at their local golf club. One of the characters uses an adviser ...

  • Virgin wants lighter regulation for Catmarked products

    18 Oct 2001

    Virgin Direct is proposing a less stringent regulatory regime for Catmarked products as part of its response to the Sandler and FSA polarisation reviews. It is proposing that companies offering Cat-standard products should benefit from a lighter regulatory touch. It also argues for Catmarked products to be given tax breaks as a further carrot to the promotion of benchmarking. The provider says there are not enough IFAs to advise all consumers and that many lower earners will ...

  • Why the charge cap does not fit

    18 Oct 2001

    Is the end of the 1 per cent world nigh? There are signs of a Government rethink, so maybe. There are strong arguments that personal pension charges were too high in the past. Stakeholder has helped cure that com-plaint but the medicine risks finishing off the patient. The charge cap may be too low for the private sector to make a proper fist of selling stakeholder. It piles an unacceptable risk on providers' members, policyholders and shareholders, marrying high start-up costs ...

  • With this survivor's pension, I thee wed

    18 Oct 2001

    Over the last few weeks, I have been looking at the objective and subjective factors used in determining whether an individual with a preserved pension in a defined-benefit scheme should effect a transfer to a personal pension or pension buyout bond. The particular relevance of this series of articles at this point in time is that the flow of employers closing their final-salary schemes in favour of money-purchase alternatives is now developing into something of a flood. The reasons ...

  • Worst quarter in 10 years for unit trusts and Oeics

    18 Oct 2001

    UK unit trusts and Oeics recorded their worst quarter in more than a decade over the three months to September 30. The figures, part of Lipper's quarterly fund industry review, reveal the average open-ended fund fell by 15.38 per cent - the biggest decline since unit trusts fell by 18.99 per cent after the Iraqi invasion of Kuwait in the third quarter of 1990. The technology and telecoms sector produced the worst figures, falling by 38.01 per cent over the quarter, with one ...

  • Yes, minister

    18 Oct 2001

    I was particularly interested to read your report of Ruth Kelly's statement that independent advisers are crucial (Money Marketing, October 4). Isn't this what I, and many others, have been saying through the good offices of your paper over the past few years? Making independent advice available to anyone who needs it, regardless of their financial means, is exactly what IFAs do by using the commission route for their income. In fact, I have made this very point as my argument ...

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