Money Marketing
18 July 2001
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'Big downturn for networks'
19 Jul 2001
IFA network members saw business handling levels fall by as much as 39 per cent over the last year, according to the latest research by Henry Samuels Marketing Services. The overall drop averaged 14 per cent, with private medical insurance falling by an unprecedented 39 per cent and Isas and mortgage-related business both plummeting by 18 per cent. The report follows detailed interviews with 400 IFAs nationwide in April and March this year. The ...
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'IFAs face heaviest regulatory burden'
19 Jul 2001
IFAs shoulder a heavier burden of regulation than any other small business, claims the Institute of Directors as it publishes its quarterly regulation report. The IoD says not only do IFAs have to deal with the same regulations as other small businesses, such as administering Government initiatives, payroll tax and working tax credits for their own employees but they also face all the compliance issues of being regulated by the FSA. Deputy head ...
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'Industry faces the longest working week'
19 Jul 2001
Financial services employees work longer hours than any other sector, according to a pan-European survey. Research by business communications provider Nextra shows 54 per cent of employees in financial services work between 45 and 60 hours a week. Of these, 27 per cent claim they are suffering from mental strain or disorder as a result of their working practices. More than 82 per cent of respondents in financial services claim work encroaches ...
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60 per cent of people want Govt To bring in free LTC
19 Jul 2001
Research by national IFA RJ Temple shows nearly 60 per cent of people believe free long-term healthcare should be a top priority for the Government. The survey of 700 people carried out straight after the general election on June 7 asked which strategic objectives Chancellor Gordon Brown should focus on. Free LTC was the top answer, supported by 54 per cent of men and 66 per cent of women. Removing tuition fees for students was the second ...
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A CONSUMER's VIEW
19 Jul 2001
IFAs always stoutly maintain they are not influenced by commission. But if that were true, why do life companies vie with each other to pay more commission than their competitors? If IFAs were all totally objective, the amount of commission would have no effect on their recommendations. Clearly, this is not the case. Reports are circulating that several life offices are paying up-front commission of 40 to 55 per cent on individual stakeholder pensions. ...
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A staple diet from iShares
18 Jul 2001
iShares, which is part of Barclays Global Investors, has added to its stable of European sector based exchange traded funds with the introduction of iBloomberg European staples.
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ABI seeks deal on BMA fees
19 Jul 2001
The ABI is aiming for a compromise with the British Medical Association over a planned big increase in medical report fees which could see protection premiums rocket. It has been in discussions with the BMA since May. The BMA wanted to more than double the fee for a general practitioner's report from £30.10 to £66 and more than triple the medical examination report fee to £132 from £42.80. Discussions are continuing ...
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ABI's new leader pledges support for polarisation
19 Jul 2001
Newly appointed ABI chairman Mike Ross has promised the trade body's continuing support for polarisation in the next stage of the FSA review. Scottish Widows chief executive Ross says the status of IFAs is important and should be protected. He pledges that the ABI will continue to promote independence. He has also urged life offices to sign up for the ABI's Saltr initiative. Ross says the deluge of reviews facing the industry should not put ...
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Advice for retiring types
19 Jul 2001
This week, I want to look closer at an area of pensions which is certain to continue to attract an increasing amount of attention and provide endless interest and fees or commission for pension advisers not afraid of a little additional technical detail, regulatory attention and, consequently, danger. Retirement income planning, until seven or eight years ago, consisted of little more than a relatively simple assessment of the open-market option. True, ...
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Aegon adds two directors to management team
19 Jul 2001
Aegon UK has added to its executive team. Group IT director David Bradley, who is responsible for co-ordinating technology development throughout the group, is appointed to the Aegon UK executive for the first time. Former Scottish Amicable marketing director Gavin Stewart, who arrived at Aegon in February, joins the board as group development director with responsibility for evaluating and implementing new business opportunities. Stewart ...
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Aifa claims to be close to pact with GISC on dual rule
19 Jul 2001
Aifa claims it could soon reach a deal with the General Insurance Standards Council to end dual regulation of IFAs selling general insurance policies such as waiver of premium and unemployment cover. However, the GISC denies it is close to a compromise. Aifa believes product providers are standing in the way of the GISC blocking advisers regulated only by the PIA. Norwich Union Healthcare says it will pay the GISC membership fees for intermediaries ...
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Aon launches manager of managers fund
24 Jul 2001
Aon Consulting is launching a manager of managers investment fund for its pension scheme clients which will give access to multiple specialist managers and increase the transparency of its advice. The funds will be run through Dublin as Oeics. The active funds will invest in the UK, Europe, Japan and North America. Aon says its manager of managers service complies with recommendations made in the Myners report.
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Association to boost mortgage brokers
19 Jul 2001
A new trade association aimed at cleaning up the public image of mortgage advisers and helping them cope with regulation is to be launched next year. The National Association of Mortgage Brokers and Advisers, headed by former freelance compliance consultant Julian Jennings as chief executive, is aiming to recruit all 14,000 firms registered by the Mortgage Code Compliance Board by the time of its proposed launch next January. Namba wants to create ...
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Bank survey hammers home popularity of DIY
19 Jul 2001
A massive £17bn will be spent on home improvements this summer as growing numbers of property owners take up DIY, according to research by Alliance & Leicester. The bank's movingimproving survey of 4,000 homeowners found the average intended household spend on DIY for the next few months has risen by 23 per cent to £981 from £558 in the spring. This leap marks the third consecutive quarter that anticipated spending on home ...
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Be constructive
19 Jul 2001
The current media craze seems to be to bash with-profits at every possible opportunity. Never mind that (the better) with-profits funds have served investors very well for centuries or that they have been the cornerstone of life office mutuality. The Treasury and Consumers' Association have decided they do not like them so, rather than press for reform, with-profits funds are to be gutted like a fish and rendered unworkable. Okay, with-profits ...
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Beale Dobie guide to Tep pros and cons
19 Jul 2001
Traded endowment policy market-maker Beale Dobie has updated its IFA guide and produced a new consumer version which discusses the pros and cons of Teps. The new IFA guide aims to help advisers explain to their clients the tax implications of investing in Teps and their uses in retirement planning. The guides also list frequently asked questions, including what levels of investment are required in a Tep and how to buy a Tep jointly. The ...
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Bristol & West in tied deal with ZFS
18 Jul 2001
Bristol & West is establishing a tied arrangement with Zurich Financial Services. The new relationship will give B&W customers access to a range of Eagle Star products including investments, life insurance, critical illness insurance, Threadneedle funds and Allied Dunbar pensions.
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Britannia discounts for two years without penalty
19 Jul 2001
Britannia Building Society is rolling out a new discounted mortgage product offering a rate of 4.79 per cent for the first two years. The new rate applies to mortgages up to 75 per cent loan to value while loans up to 95 per cent LTV, a rate of 4.99 per cent applies. The product has a £295 arrangement fee and no early repayment fees. There is 12 months' free unemployment cover and free homebuyers cost protection insurance included with ...
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Broker Talkback
19 Jul 2001
Do you think protection products will become an increasingly important part of your business in the years to come? "Yes, because they are going to be more lucrative than other areas in future." Len Francis, Francis Jacobs "Yes, because of the commission reductions on the other types of products." Stuart Lawes, Millhaven Independent Advice "Yes. With Government cutbacks on spending and benefits, people are becoming more ...
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BWA launches IFA support service
23 Jul 2001
IFA network BWA has launched a new support service for IFAs directly regulated by the PIA, BWA Link.
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Colonial rebranding to be top 10 IFA firm
19 Jul 2001
Colonial First State Investments is to ditch the 100-year-old Colonial name from its UK brand in the first step of a multi-million-pound relaunch into the IFA market. The fund manager, which will rebrand as First State Investments, is also looking at the possibility of launching an online IFA platform based on technology from Australia. First State Investments chief executive Rob Adams criticises the UK fund management industry for not catering ...
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Comdirect expands Isa offering
20 Jul 2001
Online broker Comdirect is to expand its iPlan Isa offer, with the addition of four new iShares, exchange traded funds managed by Barclays Global Investors.
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Credit Suisse focuses on IFA market
19 Jul 2001
Credit Suisse Asset Management has introduced a portfolio management service that has four investment strategies to cater for different investment needs.The Credit Suisse private portfolio is designed purely for the IFA market as Credit Suisse believe that investors who have tried to make investments without seeking advice have found it more difficult than they first thought.The strategies are income, UK growth plus, income & growth and worldwide growth strategies, and ...
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Credit Suisse AM launches boutique fund of funds
24 Jul 2001
Credit Suisse Asset Management Funds UK is launching a fund of boutique-style funds directly marketed at IFAs and investors.
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Credit Suisse Asset Management - Private Portfolio Service
24 Jul 2001
Tuesday, 24 July 2001.
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Credit Suisse launches privilege portfolio services
18 Jul 2001
Credit Suisse Asset Management is launching its private portfolio service of nine funds of funds covering four investment strategies.
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Credit Suisse looks to the stars
24 Jul 2001
Credit Suisse Asset Management is heading for the stars with the introduction of the multi-manager constellation portfolio fund of funds.
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Davis to leave Nationwide
19 Jul 2001
Nationwide chief executive Brian Davis has announced he will retire in December at the age of 56 after seven years with the society.
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Death in zenith?
19 Jul 2001
The state of the market and, in particular, distribution were the subjects of a debate on the former Royal Yacht Britannia recently. The event, entitled Depol-arisation, the end of the IFA? was the first of a series o ganised for senior industry executives by IBM, as part of its Insurance Executive Impact programme, sponsored by Siebel. A panel of speakers made up of Momentum chief executive Paul Johnston, Scottish Widows head of marketing and sales ...
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Default lines cause tremors
19 Jul 2001
The latest glitch to hit providers' hopes of marketing stakeholder is the interpretation of rules on default options which has led some offices to feel disadvantaged. Some companies have designed their stakeholder with just one default fund while other players have registered multiple defaults. The move could leave firms with one default fund feeling the pressure to rethink to give themselves an equal chance of making employers' stakeholder short ...
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Depolarisation survey sends a warning to IFAs
19 Jul 2001
The IFA channel will dominate distribution in the early years of a depolarised environment but will lose market share to bancassurers and e-commerce over time, a new survey suggests. IFAs are the preferred advice channel for 41 per cent of higher-earning UK adults, with another 13 per cent saying they would approach a multi-tied adviser and 22 per cent saying they would consult their bank on its product range, according to the Mori survey for IBM. The ...
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Direct Marketing - Andrew Bedford
19 Jul 2001
Direct marketing is an area vastly underutilised by a lot of IFAs but a major potential source of new clients and revenue. Direct mail, telemarketing, inserts, fax broadcasting and electronic media are all effective methods of direct marketing though most companies use direct mail as their preferred method because of its price, cost-effectiveness, quality, accuracy and the fact that it is accountable and measurable. Recent figures ...
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Ducking the issue?
19 Jul 2001
Money Marketing readers who are directly authorised may recently have received a circular promoting a new CD training programme published by the FSA. The title of this CD is Compliance Essentials for Financial Advisers. Therefore, one might consider it prudent to ensure that you place your order for a total of £44.65 per disk without delay. What would it say to the regulator if you did not ask for one? I have three questions: 1: ...
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Duty of care
19 Jul 2001
At the age of 89, Mrs B had already been widowed for some years. After breaking her hip in a fall, she moved into residential care. While she recovered fully from the fall, she continued to suffer from short-term memory loss, diabetes and a heart problem. She sold her property for £93,500 when she moved into care. She had £7,000 in a fixed-term building society account and also had a portfolio of shares, passed to her on the death of her husband, ...
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Edinburgh crosses into Malta
19 Jul 2001
Edinburgh Fund Managers is to move into the Maltese investment market in a joint venture with Maltese insurance provider GasanMamo Insurance Agency. The firm, which last week announced its £20m acquisition of Portfolio Fund Managers, will provide the investment products for GasanMamo's newly launched fund management arm, GasanMamo Financial Services. EFM's managed growth portfolio will be the first investment product offered to the Maltese ...
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Egg narrows losses
24 Jul 2001
Online bank Egg has narrowed its losses to £63.4m for the first six months of this year, down from £80.7m for the same period last year.Egg says it gained 370,000 new customers in the last six months, bringing its customer base up to 1.7m, although it would not say how many customers had left over the period.Egg, owned by Prudential, predicts it will break even in the final quarter of this year.
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Equitable reserves extra £200m for pensions misselling
23 Jul 2001
Equitable Lifes troubles continue to deepen with news it has had to set aside £200m of reserves to cover compensation for possible pensions misselling. The contracts under question are income drawdown policies, of which there are around 15,000. Equitable has also had to bolster the reserve for its guaranteed annuity liabilities to £2.6bn from the estimated £1.5bn last year.
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Equitable slashes bonuses but MVA is halved to 7.5%
19 Jul 2001
Equitable Life is slashing with-profits pension funds by 16 per cent and life policies by 14 per cent by cutting terminal bonuses. A fund quoted at December 31, 2000 to have a value of £50,000 will fall to £42,000. If the guaranteed value of the fund is higher, that value will be paid. No reversionary bonus will be paid for the first six months of this year, after which reversionary bonuses will accrue for the next six months at 6 per ...
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Failure to find recruits may block promotion for Dunbar managers
19 Jul 2001
Dozens of senior Allied Dunbar managers face disciplinary action and even having their management contracts terminated if they fail to achieve half-yearly targets of attracting two recruits to the company. An industry insider believes up to 60 senior manager designates - a temporary position created for one year as a stepping stone to senior manager - may be forced to give up their positions for failing to come up to scratch by the June 30 deadline. Documents ...
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Field is thwarted In comeback bid
19 Jul 2001
Former welfare reform minister minister Frank Field has been blocked by the Govern-ment in his efforts to rejoin the powerful work and pensions select committee, which he once chaired. Field, Labour MP for Birk-enhead since 1979, was fired as minister in 1998. He is known for his outspoken views which often attack the Government. The committee will now include several first-time MPs as well as Liberal Democrat MP Archy Kirkwood. The membership ...
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Finance industry leads way with direct mail
19 Jul 2001
Research by the Royal Mail has revealed that direct marketers in the finance sector make more use of direct mail than other industries. The survey, An Insight into Direct Mail, covered 200 direct-marketing people in a range of sectors including manufacturing, business services and publishing. It found that 40 per cent of respondents in the finance sector spend over half if not all their time on direct mail rather than other direct marketing activities. The ...
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Fixed rate thriller from the Newcastle
24 Jul 2001
Newcastle Building Society has introduced a three year fixed rate mortgage that is available for loans of up to 90 per cent of valuation.
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Flexx sent to Coventry
20 Jul 2001
Coventry Building Society has unveiled a three year fixed rate flexible mortgage that has no early redemption penalties.
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Forsyth expands with global growth fund
18 Jul 2001
UK-based Forsyth Partners has increased its range of fund of funds to ten with the introduction of the Forsyth sterling global growth fund.
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FS Forum offers pick and mix of marketing agencies
19 Jul 2001
The Financial Services Forum for marketing professionals in the finance sector is setting up an agency selection service to help member firms find the best marketing consultancy. The agency selection service says it will offer FS Forum members a guarantee of confidentiality, a market-wide review and inside knowledge of agencies and financial services marketing communications firms. The FS Forum will also talk to other members who have used the shortlisted agencie
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FSA appoints chair to key regulatory committee
24 Jul 2001
The FSA has announced the appointment of former City law firm Slaughter and May partner Christopher FitzGerald as chairman of its new Regulatory Decisions Committee.
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FSA denies Equitable report is facing delay
19 Jul 2001
Confusion reigns over when the FSA's report into its handling of the Equitable Life debacle will be published. The Treasury says the report has yet to be completed but the regulator says it is on track and the Government will decide when to release it. The news comes as pressure on all parties involved with Equitable continues to escalate following this week's massive cut in pension fund values. Treasury economic secretary Ruth Kelly ...
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FSA gets lowdown as low-charging funds produce low returns
19 Jul 2001
The FSA's comparative tables have taken quite a pummelling over the past few weeks. Having previously decided to exclude past performance data as well as any measure of risk, the unit trust tables are now set to include little more than details of charges - a fact that the industry believes will render them useless and even misleading. The worry has been that tables which only compare funds in terms of costs will mislead investors into believing that ...
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FSA must come up with answers as Equitable axe falls
19 Jul 2001
The grim conclusion from the Equitable Life debacle seems to be that everyone who could have got out should have got out but it may now be too late. Equitable has proved to be a zero-sum game. The axe has fallen on Equitable policies with a drastic 16 per cent cut in pensions while life insurance plans face a 14 per cent cut through reductions to terminal bonuses. Thousands of investors will still find themselves in a Catch 22 situation about ...
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FSA sets the table
19 Jul 2001
The FSA has indicated that it is aiming to make its first comparative tables available in the autumn and that these will be for Isa UK growth unit trusts and Oeics. The tables will be put on the FSA's website so they will only be accessible to members of the public who use the internet. They are not guaranteed to include all product providers as there is no compulsion on providers to offer information. The FSA does not specify in detail what ...
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Gartmore sells passive funds to State Street
19 Jul 2001
Gartmore has sold its £18.1bn passive fund management business to the investment arm of US financial services giant State Street in a bid to concentrate on its active fund management operations. State Street Global Advisors, which paid an undisclosed sum, will assume management of £12.1bn of the assets. Gartmore will continue to manage £6bn, including its retail index-tracking products. IFAs and retail clients are unaffected and ...
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Golfers aim to putt aside £500k for handicapped
19 Jul 2001
Celebrities will join golfers from the financial services industry in a bid to raise £500,000 for the Variety Club of Great Britain in the fourth annual Financial Services Industry Sunshine Classic at Wentworth this week. Money generated by sponsorship, donations and an auction will be used to buy Sunshine Coaches for handicapped and underprivileged children. In each of the last two years, the tournament raised more than £50,000. If ...
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Government unleashing new pension ad campaign
19 Jul 2001
The Department of Work and Pensions plans to embark on a second pension ad drive before the end of the year. The DWP says it will be similar to the working dogs campaign which ran on national television and in cinemas in March this year. Stakeholder will be promoted alongside occupational and state pensions as one of the retirement options available to individuals. But the industry will be urging the Government to spend its multi-million-pound ...
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Govt puts pension advice on the web
19 Jul 2001
The Government is trying to provide a one-stop retirement advisory service with a pension link on its main public website. The Life Episode for Pensions and Retirement service appears on the ukonline.gov.UK website alongside inf-ormation on going on holiday, bereavement and having a baby. The advice is divided into four stages - planning for retirement, approaching retirement, reaching statutory retirement and being retired. It provides information ...
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Halifax merger with Bank of Scotland cleared
23 Jul 2001
The £30bn merger between Halifax and Bank of Scotland has been given the all-clear by trade and industry secretary Patricia Hewitt.In a move to create a rival to the big four British banks, Hewitt gave the go-ahead last week after expressing her satisfaction the deal does not present any competition concerns.She said the merger differed from the blocked Lloyds TSB bid for Abbey National as it could potentially bolster competitive pressures in the banking sector.
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Hitting a brick wall
19 Jul 2001
I returned from a short career break travelling around Cambodia and other parts of Indo-China in April and, being of the age that pension matters become important, I decided to tidy up my own pensions. I have had unbelievable problems trying to get information from Standard Life. All I have been asking for is a quotation to transfer a small PPP fund into my bigger plan with Standard and a TVA for some final-salary benefits. Standard Life repeatedly ...
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HSBC Bank goes FTSE crazy
24 Jul 2001
HSBC Bank is aiming its performance plus individual savings account (Isa) at investors who are looking to reinvest their maturing tax exempt special savings accounts (Tessas). The Isa is linked to the performance of the FTSE 100 index and returns the original capital at the end of the five year term.Investors also get up to 55 per cent of the average growth of the FTSE 100 during the term. To calculate this, the level of the index is recorded at the beginning ...
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IFA plans cyber network to combat depolarisation
19 Jul 2001
Roberts Clark Independent Financial Solutions has designed a website to use as a base to build a new style of independent network offering lead-generation and support services to members. Its needanadviser.com website combines 15 zones including stakeholdercafe.com, divorceadviser.com, pensionsadviser.com, willsadviser.com and savingsadviser.com. Roberts Clark says it wants to work with other IFAs to establish a network to defend themselves against ...
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IFA sales surge at Scottish Friendly
19 Jul 2001
Scottish Friendly Assurance has seen a 35 per cent surge in IFA business in the first half of this year to £739,000 from £547,000 for the same period last year. The friendly society bel-ieves increased trade marketing activity and a higher profile among IFAs are the reasons for this growth. Sales through direct marketing rose by 20 per cent to £7.1m from £5.9m. Isa sales totalled £3.1m, of which £1.4m was ...
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IFA updates Equitable guide
23 Jul 2001
IFA Dennehy, Weller & Co has updated its free guide for policyholders of beleaguered pension provider Equitable Life.The guide, last revised in January, highlights the main options policyholders have following Equitables recent decision to slash the value of its pension plans by 16 per cent across the board.The IFA suggests alternative pension providers in the guide after being inundated with Equitable customers pushing for a move away from the life office.
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IFAs boost business at Britannic by 23%
19 Jul 2001
Britannic Group's new business through IFAs has jumped by 23 per cent to £106m from £86m in the six months of this year compared with the same period last year. It says the growth in IFA business is due to the strong performance of subsidiaries Britannic Retirement Solutions and Britannic Money. Annuity specialist Brit-annic Retirement Solutions sold £55m-worth of new business, virtually all of it through IFAs, while 80 per cent ...
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Independent view - Tony Byrne
19 Jul 2001
" As judge and jury, I find you, IFA, guilty until proven innocent " This could easily be the summing up of a PIA ombudsman in a complaint against an IFA these days. Newspaper comment might go something like this: "The commission-hungry salesman took advantage of the hapless misselling victim" and so on. How tired are you hardworking, decent, honest IFAs of reading this codswallop in the national press? I was prompted to write something ...
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Industrial focus for iShares
23 Jul 2001
iShares has introduced the iBloomberg European industrials fund.
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Inora Life links with Assureweb
24 Jul 2001
Societe Generale subsidiary, Inora Life, has linked up with IFA portal Assurewebs offshore platform, to distribute its products into the UK IFA market. Inoras addition to the platform brings the total number of providers on Assurewebs offshore service to 14. The portal now has more than 15,000 registered users.
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Inscape - Inscape SIPP
23 Jul 2001
Monday, 23 July 2001. Type: Full Sipp. Minimum investment: Lump sum £2,000, monthly £250. Investment choice: UK bonds, UK equities, European equities excluding UK, Japanese equities, US equities, Pacific Basin excluding Japan. Charges: Annual up to £49,999 - 0.75 per cent, £50,000 and above - 0.25 per cent, minimum £50 maximum £500. Allocation rates: 100 per cent. Options: Income withdrawal, ...
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Inscape takes a Sipp
18 Jul 2001
Abbey National's wealth management business Inscape is launching a self-invested personal pension as part of plans to establish a new retirement planning service for clients. The Sipp is fully invested in a tailored Inscape Portfolio and carries all the standard benefits of Sipps including flexibility over where funds are invested and how retirement benefits are received.
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Inscape takes a sipp at the pension market
23 Jul 2001
Inscape, the investment management arm of Abbey National, has brought in the Inscape self invested person pension plan (Sipp).
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Inside EDGE - Anne McMeehan
19 Jul 2001
Even MPs at Westminster not renowned for their grasp of financial services (sadly, still the majority) have come to appreciate that one of the biggest issues confronting the Government is how to succeed in getting the message across to every man and woman in the country that they need to save for their retirement. Future Governments, no matter their political hue, face the same potential nightmare of insufficient funds to provide pensions for a bigger and longer ...
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Invesco Pensions appoints business development and client services manager
23 Jul 2001
Invesco Pensions has appointed John Griffiths as business development manager and Mark McDonnell as head of client services.Griffiths, formerly employee benefits manager at Scottish Mutual, assumes responsibility for managing new client relationships, while Griffiths, who joins from Scottish Mutual, will work with consultant actuaries and trustees in the Midlands and the North.
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Invesco Perpetual gets aggressive
18 Jul 2001
INVESCO Perpetual has introduced the UK aggressive fund.
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Investment Analysis
19 Jul 2001
Most of the world's major equity markets ended last week higher, with stocks in the US rallying on Thursday and Friday following stronger than expected results from Yahoo, Motorola and Microsoft. Technology stocks rallied, pushing the Nasdaq to its biggest one-day gain for nearly three months while the broader market also put in a strong performance. US economic data was mixed, with retail sales showing only a modest increase although those ...
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Investment view
19 Jul 2001
One of the questions which arose at the AITC Forum in Bristol related to how Gerrard came to be the company it is today. I tried to answer the question but lost count of the number of stockbroking firms that went to make up this grand company of ours. It made me realise how much the landscape has changed in stockbroking. The big firms when I started out in the City - James Capel, Hoare Govett, Grieveson Grant - are now part of major banking businesses, two ...
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Isa dilemma for client with two plans
19 Jul 2001
We were recently consulted by someone who had inadvertently subscribed to two Isa plans of the same category in the same year, which has thrown up something I do not think is widely known. The subscriber was paying £250 a month to company A as a Pep and, as performance was not brilliant, decided to change to another provider. A letter was sent to company A asking them not to proceed. However, what happened was that a payment of £250 went ...
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iShares - iBloomberg European Cyclicals
19 Jul 2001
Thursday, 19 July 2001.
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iShares - iBloomberg European Industrials
23 Jul 2001
Monday, 23 July 2001.
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iShares - iBloomberg European Resources
24 Jul 2001
Tuesday, 24 July 2001.
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iShares gets resourceful
20 Jul 2001
iShares has added to its range of funds with the iBloomberg European resources fund.
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Jersey conference calls for international co-operation to fight crime
20 Jul 2001
A conference organised by the Jersey Financial Services Commission has called for offshore and onshore financial centres to co-operate to ensure compliance with international standards and regulations.
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Jersey financial chief calls for tighter corruption controls
18 Jul 2001
The head of financial regulation in Jersey is calling for tougher measures to control corruption.
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Join the with-profits debate
19 Jul 2001
The with-profits debate will get a thorough airing at the hands of a number of industry big hitters at a conference organised by Infoline on September 19. The conference will look at whether with-profits are right for today's consumer, whether they can work in a stakeholder environment and how questions of transparency, clarity of communication and guarantees can be addressed. Speakers include FSA with-profits review project manager Dr Eleanor Linton, ...
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Jon maguire
19 Jul 2001
I f you are an IFA, Jon Maguire could be a man worth getting to know. As chief executive of Sway - or "chief chimp" as he prefers to call himself - a large part of his time is spent selecting the most important IFAs and sending them on all expenses paid trips to investment conferences in sunny climates. For the 100 or so IFAs who are lucky enough to have made it on to his hit list, visits to Monte Carlo and Malta are already on the cards for next year. ...
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Julian Gibbs
19 Jul 2001
With-profits bonds issued by leading life insurance companies with strong free-asset ratios or a big parent company have shown average returns over the past five years of around 60 per cent. This compares very favourably with most major unit trust sectors, where only the average North American, technology and UK equity income trusts have outperformed the average with-profits bond. All these sectors have fallen over the past year. With-profits ...
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Know where you stand under IR35
19 Jul 2001
Jonathan Friedman's letter (Money Marketing, July 14) is a welcome contribution to the IR35 debate. Discussion is urgently needed. The legislation dates from April 6, 2000. Those taking no action are 16 months behind the game. IR35 does not make criminals of UK taxpayers. That is the tax evasion legislation effective from January 1, 2001. Being caught by IR35 would usually mean the taxpayer had underpaid tax and NI. The current version of ...
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Let the games begin
19 Jul 2001
Will the stakeholder market degenerate into the bloody battle as analyst Ned Cazalet is predicting? Stammers: Yes. Even with my rudimentary grasp of mathematics, 10 or more providers each seeking 20 per cent market share is bound to lead to disappointment. And cost-controlled mass markets leave little scope for niche players. Possibly, continuing industry consolidation and the impact of all the industry reviews currently in progress may defer the battle ...
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Low margin, high volume
19 Jul 2001
For obvious reasons, the Government limits the amount that your clients can invest in tax-exempt investments. Unfortunately the levels set are always on the low side. The challenge to you, the IFA, is to make the link between other products and ideas to add real value to your clients' investments and to your own business. The new personal pension rules offer such an opportunity. Other commentators have outlined the general rules for contributing ...
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Lucky number seven from NDF
20 Jul 2001
NDF Administration has unveiled the seventh tranche of its extra income and growth plan, which is linked to the performance in the Eurostoxx 50 index.
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Majority of public aware of stakeholder
24 Jul 2001
A majority of the public now say that they are aware of stakeholder pensions, according to research undertaken by NOP for the ABI released this week.
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Marsden goes for the five-year fix
20 Jul 2001
Marsden Building Society has brought in the five-year fixed rate mortgage.
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Merrill Lynch HSBC - FTSE 100 Growth Protected Investment Product
18 Jul 2001
Wednesday, 18 July 2001.Type: High interest account.Minimum-maximum investment: £5,000-no maximum, Tessa Isa £9,000.Interest rates: Up to 35 per cent of growth in FTSE 100.Term: Three years.Offer period: Until September 6, 2001.Withdrawal penalties: No withdrawals permitted during term.Tel: 08456 030405.
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Merrill Lynch HSBC - Higher Interest Savings Account
19 Jul 2001
Thursday, 19 July 2001.Type: High interest account.Minimum-maximum investment: £10,000-none.Interest rates: £10,000 - 4.5 per cent gross a year, £10,001-£25,000 - 4.75 per cent gross a year, £25,001-£100,000 - 4.85 per cent, £100,001 and above - 5 per cent.Term: None.Offer period: Until further notice.Withdrawal penalties: None.Tel: 08456 030405.
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Merrill Lynch HSBC website comes top in survey
20 Jul 2001
Merrill Lynch HSBCs website has been ranked first for usability, by financial services research consultancy BlueSky International in its triennial survey of European online brokers.
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Misys profits up
19 Jul 2001
Misys announced its best ever results this morning, with profits up 11 per cent to £140m for the year to May 2001, compared to £126m for the previous year, although its chairman is expressing caution about the future.
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N&P signs up with Brain
19 Jul 2001
Norwich & Peterborough has become the first lender to sign up to electronic common trading platform Mortgage Brain since its acquisition by a consortium of major lenders. The move means N&P will now be able to accept mortgage applications electronically but says it has no plans to buy equity in the platform. Mortgage Brain is owned by rivals Halifax, Nationwide and Alliance & Leicester who joined forces to buy a majority share to establish an industry-standard ...
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National Savings rates change
20 Jul 2001
National Savings is increasing the rates available on many of its fixed rate products, including Pensioners Bonds, Fixed Rate Savings Bonds and Saving Certificates.
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Nationwide wins most coverage in mortgage war
19 Jul 2001
The growing popularity of remortgaging has taken the war between top lenders into a new phase and influenced national media coverage in June, claims media analyst PressWatch. Its monthly analysis found the high profile of mortgages helped Nationwide Building Society receive more mentions in the media than any other financial services company. Nationwide chief executive officer Brian Davis ended May by reiterating his commitment to honesty and ...
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Neville James adds funds in switch to Challenger name
19 Jul 2001
Tep specialist Neville James is to expand its investment operations with two new funds and a rebrand of its existing funds under the Challenger name. The move comes in preparation for the launch of parent company Challenger's UK life company, scheduled for the first quarter of next year. The Australian financial services group bought Neville James in April for £6.65m. The funds to launch in autumn are a corporate bond fund and a guaranteed equity-linked ...
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New Star nets £250m
24 Jul 2001
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Newbury bypasses flexibility with discount
19 Jul 2001
Newbury Building Society has introduced new deal homebuyer, a five-year discounted rate mortgage that calculates interest on a daily basis.
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Newcastle do the treble
24 Jul 2001
Newcastle Building Society has unveiled a Tessa only individual savings account(Isa) that is linked to three stockmarket indices.
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Newcastle performs balancing act
23 Jul 2001
Newcastle Building Society has unveiled the balanced guaranteed equity bond which combines a one-year fixed rate bond with a guaranteed equity bond.
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NM Rothschild to advise Positive Solutions
23 Jul 2001
IFA network Positive Solutions has appointed international investment bank NM Rothschild & Sons to advise on future corporate strategy.
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Norwich Union plans to take stakes in IFAs
19 Jul 2001
Norwich Union is planning to buy minority stakes in IFAs, with the M&E network thought to be one of the companies which is under consideration. It is believed to be talking to other product providers about them taking similar stakes. NU admits it is reviewing a number of options on its future distribution strategy and has sought the assistance of consultancies, including Cap Gemini Ernst & Young. It is known that the consultancy produced ...
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NU bolsters business benefits
20 Jul 2001
NORWICH UNIONBusiness Benefits @ Norwich UnionType: Cafeteria-style group protection product which includes group income protection, group life cover, group private medical insurance and accident, sickness and unemployment protection for customers with Norwich Union group pensions.GROUP INCOME PROTECTIONMinimum benefit/premium: 30 per cent of salary/£500 a year.Minimum-maximum ages: 16-64.Minimum group size: Three.Deferred periods: ...
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Ombudsman threat to FSA on endowments
18 Jul 2001
The Financial Ombudsman Service is threatening to replace FSA guidance on endowments with its own procedures if it is hit with too many complaints.The FOS says FSA guidance to take notional savings into account when assessing compensation could overcomplicate procedures and lead to a backlog.If this is the case it will streamline the guidance though it argues this will not significantly affect the process.
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Outside Edge - Robert Reid
19 Jul 2001
Earlier this week, I found myself playing golf at the prestigious Royal Blackheath Golf Club when a sudden downpour sent me scurrying towards my golf bag in search of my waterproofs. Forgetting that the last time I wore these was in 1990, I quickly put them on, only to convince my playing partner that at some time I must have worn them while appearing as a lounge singer in Las Vegas. Which only goes to prove that nothing stays the same and that to ...
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Paragon probe reveals nation of landlords
19 Jul 2001
Britain is turning into a nation of landlords, acc-ording to latest research by Paragon Mortgages. The Paragon Mortgages Property Investor Confidence Tracking Index says in the last five years about £6bn-£7bn have been lent to landlords against about 135,000 investment properties in the buy-to-let sector. The index, compiled in June, shows that over two-thirds of private landlords with mortgages have created small portfolios of property investments, ...
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Pension offices cause waiver waves for IFAs
19 Jul 2001
Some of the UK's biggest stakeholder providers are being criticised by IFAs who claim that their stance on waiver of premium is blocking business. Some life offices, including Norwich Union and Standard Life, are refusing to allow employers to contribute to waiver in the new tax regime, saying an entirely new policy should be set up outside of the pension contract. One IFA says: "The way that Scottish Equitable works, waiver of premium means neither ...
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Platform adds to adverse credit spread
20 Jul 2001
Adverse credit specialist Platform Home Loans has introduced the one-year fixed rate mortgage.
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Polarisation reform - don't panic
19 Jul 2001
In the media coverage of two recent major corporate deals, polarisation reform was cited as an influencing factor. Of course, those involved will have factored in the possible outcomes of polarisation reform, along with many other considerations. But should other IFAs be making decisions at this stage? This article summarises the width of regulatory options going for- ward and suggests that polarisation reform in itself should not lead to immediate action. The ...
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Premier zeros in
19 Jul 2001
On the subject of the investment strategy of the fund, Pack says: "Very sound with a strong mix of 30-40 holdings. I feel that the target redemption yield of 8 per cent is slightly high."
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Premier zeros in
19 Jul 2001
Premier Asset Management
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Product Matters
19 Jul 2001
The launch of the Gartmore stable growth fund, which will invest predominantly in zero-dividend preference shares, is of note for a couple of reasons. First, the new fund is being offered as the only rollover vehicle - other than cash - for investors in the Gartmore Scotland investment trust. This applies whatever class of share the investor holds. There are currently four classes of shareholder, if one includes the package units. So the group ...
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Public don't get a balanced view
19 Jul 2001
The real problem with the endowment review (IFAs slam "scaremonger" FSA over endowments, MM, July 5) is not what the FSA says in its factsheet but how the media interprets it. That is how most customers will get their opinions on the subject. Media comment is a real problem. Last week, a reporter on Today on Radio 4 said the fact that 70 per cent of policy-holders had not yet taken any action was very worrying and went on to suggest that, in a few years, ...
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Race for a piece of protection hots up
19 Jul 2001
With Standard Life's announcement that it wants a slice of the protection market, this is the hottest new business plan in town. Scottish Provident has enjoyed a strangehold on the protection market for the past few years but now it is having to contend with Scottish Equitable Protect and a bolstered offering from Skandia. Now Standard wants to jump on the bandwagon and is looking at integrating its existing protection range with its Healthcare ...
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RBS buys rest of Virgin One
24 Jul 2001
Royal Bank of Scotland has confirmed plans to buy the rest of mortgage lender Virgin One from joint owners Sir Richard Branson and Australian giant AMP for £100m.
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RBS in talks with Virgin One
18 Jul 2001
Royal Bank of Scotland is understood to be in talks with Sir Richard Branson to buy his remaining 25 per cent stake in Virgin One. RBS already owns 50 per cent of the lender but is keen to snap up Bransons share and that of Australian giant AMP, which owns the other 25 per cent. RBS has been looking to expand in the current account mortgage market and plans to offer a version of Virgins loan under its own brand.
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Record moves at fund firms
19 Jul 2001
Fund manager moves have soared to an all-time high, with almost a quarter of all unit and investment trusts witnessing a change in lead manager last year. A total of 470 unit trust managers moved in 2000, up by 78 per cent from the 1999 figure of 263. Of 374 investment trusts, 59 saw a change in manager. The figures, published in the UK Fund Industry Review 2001, mean only 6 per cent of all unit trusts now have a 10-year fund manager track record, down ...
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Recycling an income
19 Jul 2001
With the launch of the Government's website for silver surfers last week, we can expect those of retirement age to become increasingly well informed about their financial affairs. But tax planning concepts will probably need a little help from financial advisers for some time to come. Take the tax regime introduced with stakeholder in April. Who would have believed it would bring a radical new dimension to retirement planning? The simple fact that someone ...
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Reuters to expand online presence for Credit Suisse
19 Jul 2001
Credit Suisse has signed a three-year multi-million-pound deal with news and technology group Reuters to expand the bank's online private banking and wealth management business. Reuters says it will be working with Credit Suisse to develop a range of internet-based trading and investment products for private investors. The agreement includes Credit Suisse getting a licence for Reuters' order management and routing product, TIBMercury Online. This ...
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Royal London ordered to pay £15m and fined £400,000
24 Jul 2001
Royal London has been fined £400,000 by the PIA and ordered to pay £15m compensation to 65,000 customers for breaches relating to the sale of investment products.
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Sandler announcement next week
24 Jul 2001
The parameters of the Sandler report into retail financial services, are expected to be announced early next week.The Treasury commissioned report, dubbed 'Son of Myners', is expected to focus on with-profits products and commission levels.
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Sarasin's Jennings moves to Morley
23 Jul 2001
Institutional fund manager Morley has poached Sarasin EquiSar manager Michael Jennings to head up its new global thematic investment division.Jennings, who has been at Sarasin for 13 years, will take up his new position in two months.Sarasin chief investment officer Guy Monson will now assume control of the EquiSar fund.
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Schroders goes north
19 Jul 2001
Summing up, Coates says that he wouldn't use the fund as his firm looks at ethical products. Hooper says: "In this uncertain time, it should prove to have a place in the investment market."Stevens says: "They may or may not be correct to promote a new fund in these uncertain times. Investors are still hurting from the technology fall-out after strong buy messages. It may be wise for risk averse investors to buy into the fund monthly."
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Schroders goes north
19 Jul 2001
Stevens says: "They offer a managed volatility approach which may be just as well at this time. I hope this does not restrict performance too much."
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Schroders goes north
19 Jul 2001
Schroders
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ScotAm brand under review by Pru
19 Jul 2001
The future of the Scottish Amicable brand within the Prudential group is understood to be under review and could soon be ditched. Money Marketing understands talks are taking place on whether to carry on using the ScotAm name or whether all products should come under the Prudential brand. It already sells annuities and its Prudence bond through intermediaries under the Prudential brand and top-level management are believed to be questioning why ...
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Self Trade expands with supermarket
19 Jul 2001
Online share dealer Self Trade is the latest player to wade into the fund supermarket war with the launch of a new service for consumers. The service will enable users to buy Isas and unit trusts from a range of providers via a single point of contact. There are 270 funds available, with 80 of these discounted by 75 per cent or more. Self Trade says the service is aggregated so users can view and manage all their accounts and investments held within ...
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Skandia cuts CI rates on menu-based plan
19 Jul 2001
Skandia has cut critical-illness cover rates in its menu-based protection plan by up to a fifth. Skandia Protect was launched in January as a CI plan and expanded in May to include stand-alone life cover and long-term care options. The company says rates have been cut because sums assured are bigger than anticipated and because of the high quality of business. In April, Skandia cut charges on pension policies and at the end of May it made ...
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Southern Pacific looks at the adverse credit market
19 Jul 2001
Southern Pacific Mortgages has introduced the fixed rate adverse credit mortgage.
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Specialist lenders are winning broker business
19 Jul 2001
More than three-quarters of mortgage intermediaries deal with specialist as well as mainstream lenders, according to new research from UCB Home Loans. The Nationwide Building Society subsidiary which specialises in lending to self-employed people and other non-conformist borrowers says 78 per cent of mortgage brokers use specialist lenders. UCB says there are two major niches within the specialist market. Buy-to-let loans account for 30 per ...
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Staffordshire brings in 1.5% discount
24 Jul 2001
Staffordshire Building Society has introduced the three-year discounted mortgage.
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Staffordshire steps out with new mortgage
24 Jul 2001
Staffordshire Building Society is stepping out with the introduction of the two-year step discount mortgage.
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Stakeholder survey shows gender gap
19 Jul 2001
Men are considerably more aware of the introduction of stakeholder pensions than women, according to research by Barclays and Legal & General. The life office, which recently agreed a deal with the bank to provide its pensions products have found that more than half of men have heard of stakeholder pensions compared with just 41 per cent of women. But according to the survey it is not only gender which determines stakeholder awareness. Factors including ...
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Standard Bank Offshore - Balanced Fund
18 Jul 2001
Wednesday, 18 July 2001. Type: Fund of funds. Aim: Growth by investing in bonds and equities. Minimum investment: £10,000 or $15,000. Place of registration: Jersey. Investment split: Bonds 50 per cent, equities 50 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 cent. Tel: 01534 881281.
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Standard Bank Offshore - Conservative Fund
18 Jul 2001
Wednesday, 18 July 2001.Type: 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 cent.Tel: 01534 881281.
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Survey shows profit gap in wealth sector
19 Jul 2001
Half the clients of UK wealth management firms hold balances below the minimum stated size required by the service provider, says a report from the Boston Consulting Group. Regardless of the size of desired minimum balance, the management consultancy says it is likely that at least 50 per cent of the accounts considered to be in the wealth management bracket are undersized. The study, Richer Prospects in Wealth Management Global Wealth 2001, says many ...
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Sway is set to expand despite defections
19 Jul 2001
Sway is looking to move into the generalist IFA conference arena with an annual summit to rival Pims. It also plans to expand its Senate programme to two investment conferences a year in Monte Carlo in the summer and Malta in the winter. The news follows last week's decision by Aberdeen, M&G, Invesco Perpetual, Schroders and SG Asset Management to withdraw from next year's Sway conference after a dispute over the heavy itinerary and high numbers ...
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Taking stakeholder to market
19 Jul 2001
After being fea-red for so long and perceived as an assault on the sector, some IFAs are starting to whisper that stakeholder is actually good for business. Fountain Independent Financial Management business development Nikki James is not alone in saying that her firm uses stakeholder in the corporate market as a "Trojan horse". But those IFAs who do speak favourably about stakeholder also say that it has necessitated a rethinking of how they ...
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TD Waterhouse launches fund supermarket
24 Jul 2001
US financial services giant TD Waterhouse has launched an execution only fund supermarket, offering 380 funds from 19 providers.TD Waterhouse has also launched six new no-load funds, which will be distributed through the platform.The other providers include Fidelity, Gartmore, Invesco Perpetual, Schroders, M&G, Jupiter and Threadneedle.
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The Daley Update
19 Jul 2001
Aberdeen Asset Management continued its acquisition drive by buying Ivory & Sime Asset Management for £6.1m from Friends Ivory & Sime. On completion of the deal, Aberdeen will also pay the value of the net assets, estimated to be around £2.1m, as well as an extra £1m on the second anniversary if funds under management exceed those at completion. Isam manages £600m in assets, including the £405m British Empire Securities investment ...
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Torquil Clark urges appointed adviser for stakeholder
23 Jul 2001
Torquil Clark has written to new pensions minister Ian McCartney to urge him to ensure every stakeholder scheme has an appointed advisor.
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Treasury Select Committee names new chairman
18 Jul 2001
The parliamentary Treasury Select Committee has announced today its new chairman will be Labour MP John McFall who represents the Scottish consitutency of Dumbarton, near Glasgow.
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Value added tax
19 Jul 2001
If there is one message that comes through time and time again in this section of Money Marketing it is that tax planning can substantially improve the net return on investments and substantially improve the bottom line for investors. Tax planning and sound financial advice are inextricably linked. Arguably, giving financial advice, rather than merely facilitating the purchase of a financial product, cannot be effective if consideration is not given ...
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Website offers stakeholder admin for 50% commission
19 Jul 2001
Direct-offer stakeholder website pensionbusiness.com is offering IFAs access to its online designation, admin and customer services in return for 50/50 split of commission. The service allows intermediaries to outsource their stakeholder designation and scheme population. Pensionsbusiness.com is understood to be in talks with financial portals to boost distribution of the service through the IFA channel. The online service, which was established ...
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Widows goes forth
19 Jul 2001
Scottish Widows Investment Partnership is embarking on a series of IFA roadshows across the country. The Strength in Partnership series is led by head of retail funds Graham Campbell. The roadshows will focus on Swip's recent management changes and how they will affect investment performance. Campbell will speak on Swip's UK investment strategy and offer his views on the direction of the UK market in general. Head of global strategy Andrew ...
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Win a VIP weekend at the Ryder Cup
19 Jul 2001
Scottish Life's Fantasy Golf League is storming ahead with the first 5 tournaments already successfully under its belt. Over 680 teams have registered so far and the leaderboard is shaping up nicely. With five tournaments yet to take place, it is all still to play for. So if you have not registered yet, then it is not too late. Simply log on to www.scottishlife.co.UK/fantasygolf for details of how to enter and play and for all the terms and conditions. Th
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Winchester White appoints new chief exec
20 Jul 2001
Specialist financial services management consultancy Winchester White Management Consultants has appointed David Grey as chief executive.
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Windfall challenge begins in court
19 Jul 2001
The long awaited pension review windfall test case, which will also affect FSAVC and mortgage endowment compensation, finally started this week in the High Court in London. Over 43,000 pension review calculations could be slashed if professional indemnity insurer Collegiate succeeds in the case. This would represent about 9.6 per cent of cases outstanding, according to an FSA statement given to the court. The case is a challenge to PIA rules ...
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Winterthur abandons sale of Sipp arm
19 Jul 2001
Winterthur Life has taken its self-invested personal pension administrator, Personal Pension Management, off the market two months after putting it up for sale, saying the offers received were unsuitable. Credit Suisse-owned Winterthur says it decided in early May to explore the possibility of selling PPML to a third party following a review of the admin cent re to concentrate on its core business as a product provider. Winterthur says its priority ...
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Zurich appoints customer services director
23 Jul 2001
Zurich Financial Services is appointing Rodney Cook as customer solutions director for its UK life business.




