Money Marketing
18 September 2002

  • 'Index-tracking higher risk than public realise'

    19 Sep 2002

    Index-tracking funds can be higher-risk investments than people looking to avoid sector or stock-specific risk realise, according to the latest survey by Standard & Poor's. The rating agency says it is concerned that trackers are still regarded as the cheapest, easiest and lowest-risk option for investors who only worry about their fund underperforming the index. Director Guy Boden says this view fails to take into account that the top 15 UK stocks account for almost two-thirds ...

  • 'London BTL yields are lowest in the country'

    19 Sep 2002

    Investors are getting lower returns from buy-to-let properties in London than anywhere else across the country, according to the Association of Residential Letting Agents. Its new quarterly survey of the market conducted during the summer months covered 500 letting agents and reveals that the average rate of return in central London was 5.6 per cent compared with 6.1 per cent in the rest of the South-east and 7 per cent across the rest of the country. It found oversupply is a more ...

  • 'Revenue aiming to axe tax-free pension cash'

    19 Sep 2002

    Inland Revenue senior civil servant Paula Diggle is looking at ways to phase out tax-free cash on pensions, according to Retirement Income Reform Campaign director Oonagh McDonald. Diggle is part of a Revenue team working on a report on pension taxation which will generate ideas for a Green Paper expected in November Speaking at the Pens-ions in Crisis Conference in London this week, McDonald warned that abolition of the 25 per cent tax-free lump sum on retirement would remove ...

  • 'Top five firms to take 70% of life and pensions'

    19 Sep 2002

    The top five players in the life and pension market will increase their market share over the next five years to 70 per cent from the present 50 per cent, according to consultancy Oliver Wyman& Company. The top five providers are likely to change from the current composition because of accelerated consolidation in the marketplace, says Wyman in a series of predictions published this week. The consultancy says providers which aspire to join this exclusive club will have to resort ...

  • £9m deal gives IFAs further fee and FSCS subsidy

    19 Sep 2002

    IFAs will continue to see their compensation scheme costs and regulatory fees subsidised by product providers in a deal worth £9m next year, which was announced by the ABI and Aifa this week. The three-year agreement marks a continuation of the 85 per cent subsidy by providers of the fees paid by IFAs to the Financial Services Compensation Scheme and a 20 per cent contribution towards IFAs' regulatory fees. Both subsidies existed under the PIA and both were expected to ...

  • Abbey review to cut cost base

    19 Sep 2002

    Abbey National is conducting a no-holds barred cost review amid industry speculation that it plans to cut 3,000 jobs and outsource its admin and processing overseas. An industry source says Abbey is going to outsource big parts of its back-office functions offshore because of the increasing cost constraints of the UK market and to take advantage of reduced labour costs overseas. India and South Africa app-ear to be the favoured options. Reports in the national press estimate ...

  • Added frequency for Standard declarations

    19 Sep 2002

    Standard Life may introduce more frequent bonus declarations on its conventional with-profits products amid continuing controversy surrounding its bonus policy. It says criticism of its payouts does not take account of the variety of with-profits it has on its books. The bonus rates on stakeholder with-profits and with-profits bonds are altered daily and these have been reduced to reflect market conditions. But its conventional and some unitised with-profits, which account ...

  • Aifa believes commission charging advisers can remain IFA

    18 Sep 2002

  • And so to ed

    19 Sep 2002

    It is only human nature not to like exams. On the other hand, most people in the industry probably now accept them as a necessary evil. Financial advisers want to be recognised as professionals and have their services treated as valuable by their clients. Consequently, it should not really be too much to ask that advisers are qualified and participate in suitable continuous development programmes to ensure their ongoing competency. Achieving and maintaining a suitable level of ...

  • Are laundry rules a waste of time?

    19 Sep 2002

    Not only are different companies interpreting the money-laundering rules in different ways but we also have a whole new swathe of paperwork to deal with.No doubt, the extra costs which we have to bear will be amply covered out of the generous 1 per cent annual charges. Not to mention the time cost which will further detract from the advice process.It would be interesting to get some feedback on money-laundering statistics. Has any IFA money-laundering activity led to the ...

  • Baillie Gifford sees opportunities for value on both sides of Atlantic

    19 Sep 2002

    Recent weaknesses in the US stockmarket have created increasingly attractive investment opportunities in selected sectors and stocks, according to fund manager Baillie Gifford. It points to the performance of the S&P 500 companies, which showed increased profits this quarter year on year for the first time in six quarters, although it says that some companies are lowering their expectations for profit growth in the second half. Baillie Gifford is also predicting positive returns ...

  • Brain and 2000 link to offer a single platform

    19 Sep 2002

    Mortgage Brain and Mortgage 2000 are joining forces to create a common trading platform that they say will let intermediaries do business electronically with 70 per cent of lenders in the market. The two companies and their sourcing systems will remain separate. The merged platform, the Mortgage Trading Exchange, is set to be operating by the end of the year. But brokers are concerned that choice will be restricted and are calling for reassurance the platform will be available ...

  • Britannial International - Easy Access Equity Bond

    18 Sep 2002

    Wednesday, 18 September, 2002Type: Offshore guaranteed equity bondAim: Growth linked to performance of FTSE 100 indexMinimum investment: Lump sum £10,000Place of registration: Isle of ManInvestment split: 100% linked to performance of FTSE 100 indexGuarantee: Original capital returned in full regardless of performance of indexYield: 80% of growth in index at end of five-year termIsa link: NoCharges: NoneCommission: ...

  • Britannic / Axa white-label deal scrapped

    19 Sep 2002

    A deal which would have seen Britannic white-label with-profits for Axa has been called off at the last minute. The move would have seen Axa selling Britannic's with-profits products branded as its own through its distribution channels. Britannic says the deal was called off despite discussions between the two firms going as far as setting up a pilot. Axa said in its half-year results that it would no longer be writing new with-profits bond business. It said it was simply ...

  • Brokers value service above headline rate

    19 Sep 2002

    Headline rates rank third in importance for brokers behind service and individual underwriting, according to a quarterly survey by Future Mortgages. Its Future 500 research asked intermediaries to rank the factors most important to them when dealing with a lender. Top of the list came service with 48 per cent, individual underwriting was second with 30 per cent while headline mortgages rates came third with 19 per cent. Online applications came last with 3 per cent. The research ...

  • C&G launches new mortgage

    20 Sep 2002

    Cheltenham & Gloucester are set to launch a new Premium Fixed Rate Mortgage on Monday.The home loan is fixed at 3.99 per cent until November 30 2004 and is available for borrowing of £100,000 or more for LTVs up to 90 per cent.The early repayment charge will be restricted to the length of the fixed rate period and an administration charge of £399 will apply.

  • Changing course is a risky business

    19 Sep 2002

    As equity markets continue to struggle, the flight to bonds as an alternative asset class has a distinct smell of short-term sheep mentality. To an extent, this is understandable. Clients are bound to be nervous of investing new money this week to see it worth less the next, while pension funds are concerned to try to keep fund assets aligned as closely as possible to liabilities. However, I cannot help but think that far too many advisers have suddenly changed tack when what they ...

  • Charge conundrum for Mom and Fof

    19 Sep 2002

    Bates Investment Services has decided to place the bulk of its business with Axa Investment Managers as its preferred multi-manager provider in a bid to reduce charges for clients, arguing that funds of funds' charges are unclear. With the investment industry experiencing spiralling numbers of moves by star fund managers, Bates believes the multi-manager approach could offer better returns than fund-of-funds providers because total charges are often lower. The IFA says the current ...

  • Charging a fee Would have lost us four clients

    19 Sep 2002

    I refer to Money Marketing's survey in the September 12 edition on whether the public are prepared to pay fees and would like to point out a practical example that I have come across recently. Four new clients were referred to me for financial appraisal from Professional Connections and, without exception, each asked me how much I would charge them for the interview. My reply was that the interview was free of charge so as to collate personal details and to see if we could help. All ...

  • Chelsea Building Society - Step Rate Bond

    23 Sep 2002

    Monday, 23 September 2002Type: High interest accountMinimum-maximum investment: £1,000-£500,000Interest rate: 3.95% gross a year until November 10, 2003, 4.1% gross a year until November 10, 2004, 5% gross a year until November 10, 2005Term: Until November 10, 2005Offer period: Until further noticeWithdrawal penalties: 60 days' loss of interest on amount withdrawnTel: 01242 283593

  • Chelsea launches new step rate bond

    20 Sep 2002

    Chelsea Building Society is launching a step rate bond on September 23 with the offer of three fixed rate periods from one to three years.The fist fixed rate period offers a bond with an interest rate of 3.95 per cent until November 2003.The second fixed rate period offers a bond with an interest rate of 4.10 per cent fixed until November 2004.And the third has a rate of 5 per cent fixed until November 2004. 

  • Child's play

    19 Sep 2002

    When planning to provide for the financial future of children, once we move beyond the tax-free environment offered by tax-exempt friendly society plans and Isas, we move into the world of collective or non-exempt insurance wrappers. Regardless of whether the investments are offered by UK or non-UK companies, the choice for long-term saving for the benefit of children is as uncomplicated as when one is saving up for any purpose. Suitability will revolve around the same factors as are at ...

  • DBS members face PI threat 'to the grave'

    19 Sep 2002

    DBS members are enraged after the network withdrew professional indemnity run-off cover for ex-members, saying the advice they give now will "follow them to the grave". Although DBS' new PI policy started on August 1, members of the Misys network were not told that run-off cover had been withdrawn until five weeks later in a group email. Many members question how successful the network will be in contacting retired members and whether retired members who have moved home or who ...

  • Defining moments

    19 Sep 2002

    Critical-illness cover has been available in the UK since the late 1980s. The product seems to most satisfy the need for protection in the mortgage market. Clients can see the need to protect probably the biggest single item of expenditure they are likely to make in a lifetime. So why has the ABI introduced new definitions and how can you explain these to your clients given that you are not doctors? The changes to the definitions for cancer and heart attack in the updated ABI statement ...

  • Demand for Govt action in regional housing hotspots

    19 Sep 2002

    The TUC is urging the Government to extend its efforts beyond London and the South-east to help key public-sector workers get on the housing ladder. The unions passed a motion at their annual conference demanding that the Government recognise there are housing hotspots in other parts of the UK and calling on it to take efforts to help key public sector workers in those areas. In July, the Government announced it was spending £250m to build large tracts of new homes in the ...

  • Dobell moves in as Pegrum leaves M&G

    19 Sep 2002

    M&G has appointed Tom Dobell as manager of its British opportunities fund, replacing Neil Pegrum who quit to join Insight Investment at HBOS last week. Following the departure of the high-profile Pegrum to Insight, where he becomes director of UK equities, M&G immediately filled the position internally with Dobell, the manager of its recovery fund. M&G says it is disappointed about the disruption caused for intermediaries by Pegrum leaving the firm after 16 years, having ...

  • DWS looks to buy RAM to gain multi-manager service

    19 Sep 2002

    DWS Investments has emerged as the early front-runner to buy Rothschild Asset Management after admitting it is interested in acquiring RAM's multi-manager service. Managing director Michael Warren says DWS intends to take a close look buying the fund of funds business because it needs a multi-manager service to help it become a top 10 asset manager in the UK. With around £1bn of assets under management, Warren says the multi-manager represents "good critical mass" for ...

  • Euro rules threaten flexi loans

    19 Sep 2002

    "Paternalistic" European Commission proposals pose a death threat to flexible mortgages, warns the Council of Mortgage Lenders. At the CML Scotland annual conference, director general Michael Coogan said the EU's proposal for a new consumer credit directive places such onerous restrictions on flexible mortgages that lenders would either be forced to stop offering them or they would become too expensive for UK borrowers. The directive, published last week, would prevent consumers ...

  • Exchange deal with trio to look at multi-tie hub

    19 Sep 2002

    The Exchange has signed a deal with three product providers to look at extending its offering to incorporate a multi-tie technology hub. In its interim results published last week, The Exchange parent Marlborough Stirling said it was in the initial phase of a project to extend the portal's capabilities with AMP, Axa Sun Life and Standard Life. The project, called Sapphire, involves The Exchange and the three life firms looking at ways of facilitating new business transactions ...

  • Fidelity launch UK Superstars

    23 Sep 2002

    FundsNetwork, Fidelity's online fund superstore, has launched a new package called UK Superstars.The package give investors access to top fund managers Anthony Bolton, John Dodd and Neil Woodford, who all have a strong track record and bias towards small and medium sized companies.UK Superstars is available within an ISA or for PEP transfers at an initial charge of 1.17 per cent and requires an minimum investment of £1000.

  • FIS appoints head of fixed interest

    23 Sep 2002

    Friends Ivory Sime has appointed Andrew Tunks as head of fixed interest of the new Isis brand that follows the integration of Royal & Sun Alliance Investments into FIS.FIS chief executive Robert Talbut says: "I'm delighted to be able to announce Andrew's appointment, not just because it signals the end of an intensive restructuring process for us, but because he is yet another name which carries a great deal of weight in his chosen market."

  • Folger says public should take on more annuity risk

    19 Sep 2002

    The FSA is recommending that annuity providers should pass on more investment risk to consumers and take care not to overexpose themselves to guarantees they cannot afford. Speaking at the Pensions in Crisis conference in London, director (conduct of business standards) Michael Folger urged decumulation product providers to pass on some of the risk in annuity products to individuals. Folger warned that increased longevity and uncertain equity returns mean annuity providers should ...

  • Football clubs net £30k from the Skipton

    19 Sep 2002

    Skipton Building Society has given more than £30,000 to Blackburn Rovers and Plymouth Argyle football clubs as part of its affinity schemes. The money has built up over the past 12 months on investment accounts set up by the building society for club supporters. Blackburn Rovers were presented with a cheque (pictured left) for £17,123 at their recent game against Liverpool while Plymouth Argyle received a cheque for £13,500. Over 500 Blackburn supporters and ...

  • Franklin Templeton goes for style pot pourri

    20 Sep 2002

    Franklin Templeton Investments has added the Franklin Templeton dynamic growth and value fund to the funds in its Luxemburg-based Sicav.

  • Franklin Templeton Investments - Franklin Templeton Dynamic Growth and Value Fund

    23 Sep 2002

    Monday, September 23, 2002Type: SicavAim: Growth by investing in global equitiesMinimum investment: Lump sum £3,000Place of registration: LuxemburgInvestment split: 100% in global equitiesIsa link: YesCharges: Initial up to 5%, annual 1.5%Commission: Initial 3.5%, renewal 0.5%Tel: 0800 305306 

  • FSA bond probe pointing at IFAs

    19 Sep 2002

    The FSA is asking life companies to volunteer information about past sales of structured products because it fears a "fallout" when the indexlinked bonds mature. It has sent a letter asking insurers to help it prepare for problems that may arise from policies maturing this year and reassuring them that any direct impact could be minimal as "most bonds were sold by IFAs". Some IFAs are believed to have already had exploratory FSA visits. The letter, which is thought to have ...

  • FSA could replace DPS with menu

    19 Sep 2002

    The FSA is giving serious consideration to a menu system alternative to the defined-payment system after asking Aifa and a working party of providers develop the idea. The report put forward proposals allowing consumers to make comparisons of the cost of advice between different IFAs and between different distribution channels. This is in response to the FSA asking how the menu option, first set out in Aifa's CP121 response, could apply across all kinds of advice, including tied ...

  • FSA plans to rework DPS would make switch to multi-tie a choice, not a necessity - providers

    19 Sep 2002

    Product providers say the FSA's announcement that it wants to rework the defined payment system is good news for IFAs.

  • FSA says two million could make switch to stakeholder

    19 Sep 2002

    The FSA estimates that two million people with personal pensions should consider transferring to stakeholder. Its paper, To switch or not to switch, that is the question, published last week, sets out the issues that consumers face when considering switching from a personal pension to a stakeholder. The paper also says that those considering switching should seek advice, comments welcomed by IFAs. IFAs say the paper underlines the complexities of changing schemes. The paper ...

  • FSA scraps authorised adviser proposal and defined payment set to be replaced

    18 Sep 2002

    The FSA is set to amend the defined payment system to one which is more acceptable to the majority of IFAs, allowing more to retain their independence and scrapping authorised adviser status, according to head of the polarisation review David Severn.

  • Garage is top to add house value

    19 Sep 2002

    Building a garage is now the best way to increase the value of your home, outstripping kitchen and bathroom refits, according to research from Virgin One. The survey conducted by valuers for the lender found that interior refits are no longer the most valuable home improvement as Britain's 23 million car-owners see off-road parking and garages as far more desirable. Virgin One says an increasing number of borrowers are freeing up funds to pay for property makeovers instead of ...

  • GE Life offers growth options on FTSE plan

    19 Sep 2002

    GE Life is offering a five-year structured growth plan linked to the FTSE 100 with a choice of level of capital protection. The growth option plan offers either a full return of the initial investment or 80 per cent capital protection. Option one returns the original investment at maturity and gives 80 per cent of growth in the FTSE 100 over five years. Option two protects 80 per cent of capital while giving 100 per cent of FTSE growth. Minimum investment is £7,000 and ...

  • Glad to be Bright Grey

    19 Sep 2002

    The protection market is increasing. More policies are being sold. People expect their insurance to be uninspired and laboured because that means it is safe, reliable and trustworthy - right? Not according to consumers. Despite the growth, there is still a protection gap in the UK. The vast majority of the UK's population do not have adequate or even nearly adequate protection cover. Fifty-one per cent still do not have any form of protection cover. Why is that and how can providers ...

  • GMAC-RFC fixing loan for two years at 3.99%

    19 Sep 2002

    GMAC-RFC is offering a 3.99 per cent two-year fixed rate loan and revamping other mortgages in its range. The new loan offers 3.99 per cent up to 75 per cent loan to value and 4.19 per cent up to 95 per cent. There is a procuration fee of 0.35 per cent of the loan. The firm has revamped its Star discount product which now offers a discount of 1.5 per cent up to an LTV of 75 per cent and a 1 per cent discount on an LTV up to 85 per cent off its standard variable rate which is ...

  • Heartland offers RIs chance to buy stake in the company

    19 Sep 2002

    This week marks the 10th anniversary of Black Wednesday, the day on which Britain crashed out of the European exchange rate mechanism. The £ was suspended from the ERM on September 16, 1992 after just two years following its failure to remain within the currency band and under pressure from Germany, who wanted it devalued. National IFA Heartland Independent has embarked on a capital-raising exercise by offering its 180 RIs the opportunity to buy a stake in the company. The ...

  • IFAs warn drawdown clients are sleepwalking into disaster

    19 Sep 2002

    Income-drawdown customers who are not getting regular independent advice are sleepwalking into disaster, warn IFAs. Advisers argue that many of the people who went into income drawdown when it was introduced seven years ago are now in their early 70s but some are not getting annual reviews. IFAs are concerned that unserviced drawdown customers risk missing out on buying good-value annuities and at worst could find themselves locked into a poor-quality annuity with their drawdown ...

  • IFAs warn they could drop A&L loan over procuration

    19 Sep 2002

    Mortgage intermediaries are warning that they will either have to charge a fee or stop selling Alliance & Leicester's newest discount loan because the procuration fee is too low to make it profitable. On A&L's two-year discount product fixed at 3.7 per cent, the brokers' fee is £150 for arranging a £250,000 loan compared with the £1,000 they would get if the payment was calculated as it is on other lenders' products. National broker Park Row ...

  • IFP welcomes FSA comment on AFA

    18 Sep 2002

    The Institute of Financial Planning has welcomed the comments from the FSA's David Severn that the regulator would be happy to see the back of the AFA tier.

  • igroup managing director resigns

    18 Sep 2002

    Sub-prime lender igroup has lost its managing director David Johnson, according to industry sources. It is understood that Johnson resigned last Wednesday but the lender says it will not comment on market speculation or rumour. Sources say Johnson's leaving is likely to be part of an agreement made at the time igroup was acquired by GE Capital in May 2001. The latest departure follows on from igroup chief executive Joseph Dlutowski being replaced by Colin Sanders, who was previously ...

  • Independent view

    19 Sep 2002

    Do you remember the rather silly Tory "demon eyes" campaign against Tony Blair during the run-up to the 1997 general election? Well, at the time, I must say I thought it was a bit ridiculous, even desperate, of the Tories to have such a campaign but, having experienced five years of the Government as an IFA, Blair's threat is far worse than even I ever imagined it could be. I recently attended a Sofa seminar on the Sandler and Pickering reviews at the CII in London. There were ...

  • Inside Edge

    19 Sep 2002

    The editor has asked me to write what I would do about pensions if I were the head of the Inland Revenue tax division. We have far too many tax regimes applying to the various types of pensions that we have convinced ourselves we need. It should be obvious that we have no need for any more than one pension tax regime. Two would be far too many. To have eight as we do now is farcical. That we have to have one tax regime is unfortunate but necessary. We get caught up in the Inland ...

  • Insurers may choke on this PI

    19 Sep 2002

    There is no better evidence for just how deep the PI crisis has become than when IFAs are warned not to get in touch with those most in need of their advice. It has emerged that PI insurers are telling IFAs not to write to clients they fear face an endowment shortfall in case it leads to a claim, although they can advise those who get in touch with them. There are echoes of the pension review but in many ways this is much worse because, under the pension review, doing nothing was ...

  • Internet-based network for IFAs

    19 Sep 2002

    Virtual Net (Europe), a new internet-based IFA network, is to launch this month with 50 registered individuals. The network aims to capitalise on growing discontent among IFAs by offering members a choice of charging structures, loan facilities to ease the handover period and the opportunity for equity ownership. Members can choose between pay as you go, flat rate and commission-based charging and have access to a loan facility of £30,000 to ease the exit from their current ...

  • Invesco - Invesco Absolute Return Fund

    20 Sep 2002

    Friday, 20 September 2002 Type: OeicAim: Income by investing in large-cap US equities, S&P 500 stock index futures and US Treasury bond futuresMinimum investment: Lump sum euro 125,000Place of registration: DublinInvestment split: 100% in large-cap US equities, S&P 500 stock index futures and US Treasury bond futuresIsa link: NoCharges: Initial up to 3% A shares, annual 1.5% A shares, 1% C sharesCommission: Subject to negotiationTel: ...

  • Investment

    19 Sep 2002

    Apprehension about a US attack on Iraq seemed to dictate the direction of trading and left global markets immersed in a sea of uncertainty last week with most ending lower. Thin trading was experienced throughout a volatile week in the US. The Dow enjoyed two positive days early on but ended with three successive down sessions following the anniversary of September 11, losing 1.4 per cent over the week. Honeywell led losses on the Dow on Friday with a near 17 per cent fall after conceding ...

  • Investment view

    19 Sep 2002

    One anniversary is now out of the way. We have another this week. It was 10 years ago that sterling was forced out of the Exchange Rate Mechanism, netting hedge fund manager George Soros a profit greater than some countries' national debt. It is an anniversary worth remembering, if only to reflect on how things have changed. Norman Lamont was the hapless Chancellor who found that market forces could not be turned aside by Government intervention. At the time, it seemed as though ...

  • Is the promise falling short?

    19 Sep 2002

    Samuel Johnson described a promise as the soul of an advertisement. Perhaps this was in the minds of Norwich Union, Standard Life and AMP Pearl when, as the mortgage endowment controversy broke, they promised to make good shortfalls. But now this promise is being questioned after NU mailed of its mortgage endowment policyholders, warning those who have less than five years to go to maturity that they should make arrangements to meet shortfalls. The promise from NU came with a proviso ...

  • Julian Gibbs

    19 Sep 2002

    Rarely in over 40 years in financial services have I met a fund manager so dedicated as Stuart Sharp of BWD. His BWD smaller companies fund, in which he has a substantial investment himself, is the top performer of all smaller company funds over 10 years and is in the top six over three and five years. The fund is up by over 400 per cent in the past 10 years - beating all but two of the funds in the much bigger UK all companies sector. At least 80 per cent of the portfolio is invested ...

  • Jupiter not surprised by move away from AFA

    18 Sep 2002

    Jupiter says it is not surprised the FSA appears to be having a change of heart over its Authorised Financial Adviser proposals, saying it allows IFAs to make a decision over the future in the cold light of day.

  • Just the ticket...

    19 Sep 2002

    Scottish Life is entering the second year of its exclusive sponsorship of SKY's pay-per-view Premiership football channel Premiership Plus. To build on the partnership, Scottish Life has teamed up with Money Marketing to offer IFAs some fantastic prizes in our fantasy football game: 1st Prize - A top-of-the-range home-entertainment system, including 36" widescreen TV, DVD and video player plus a pair of season tickets to your favourite Premiership Club for the 2003/04 season. Mont

  • Keydata now on WIG website

    23 Sep 2002

    The Fund Selector, a fund information service from Keydata, is now available on the Women's IFA Group website.Members of WIG, numbering almost 600, can now access fund factsheets and comparative performance data and can prepare client specific illustrations online.The Keydata Fund Selector provides online content from the CD-Rom prepared on a monthly basis which is used by almost 60 per cent of IFAs throughout the country.

  • L&G tops pension fund manager table

    20 Sep 2002

    Legal & General is the largest manager of UK pension funds, according to the latest survey of investment managers by Hymans Robertson.

  • Land of our advisers

    19 Sep 2002

    The judges for the IFA Woman of the Year award have deliberated, cogitated and digested and finally whittled down their list to five "superwomen". These nominees are among the most qualified, successful women in the industry and there is a pattern emerging. The list shows some of the best financial advice in the UK is clearly coming from south Wales, where three of the candidates are based. This is the first year of the award and the judges have been bowled over by the standard ...

  • Leeds & Holbeck offers free conveyancing on base rate tracker

    23 Sep 2002

    Leeds & Holbeck is offering a free in-house legal services to borrowers taking out its new base rate tracker mortgage.

  • Life and soul of the party conference

    19 Sep 2002

    The party conference season is upon us. Tony Blair has recently been to Blackpool to vanquish the TUC, telling them in no uncertain terms why they should back him on Iraq and what their role is in 21st Century society. He will be going back to Blackpool soon to tell his own party the same thing. Blair is likely to emerge relatively unscathed from the conference season. But what about the hapless Money Marketing reader? More and more financial services companies are attending party ...

  • Manduca back from break to head UBS small cap team

    19 Sep 2002

    Former Gartmore star manager Frank Manduca has joined UBS Global Asset Management as head of its UK small cap team after taking a six-month break from the industry. Manduca, who resigned from his role as UK smaller companies manager at Gartmore in March after a period of underperformance, will take charge of the small cap team in advance of its push into the UK retail market this month. UBS will offer a UK small cap fund to accompany the move but says it cannot confirm whether ...

  • Matrix Money Management - Cornerstone VCT

    24 Sep 2002

    Tuesday, 24 September 2002Aim: Income by investing initially in gilts, fixed interest securities and cash then small income-generating companiesMinimum investment: Lump sum £2,500Opening-closing date: September 17, 2002-May 30, 2003Charges: Initial 5.5%, annual 2%Commission: Initial 2.25%, annual 0.375%Tel: 020 7292 0825

  • Matrix offers VCT to beat competition

    23 Sep 2002

    Matrix Money Management is aiming to get ahead of its competitors by introducing a venture capital trust (VCT) that aims to produce a growing income for investors.

  • Moore's code

    19 Sep 2002

    I am always rather suspicious when talk of "morality" surfaces in the City of London. The London Stock Exchange crest may still be emblazoned with "My word is my bond" but the old world of gentlemanly capitalism died years ago, if it ever really existed. But it is "morality" or lack of it, that is a word that financial institutions are repeatedly using when talking about the activities of people who engage in that nefarious low-down practice of short selling, in other words, turning ...

  • Mortgage broker Gardner Goldman launches internet tracking system

    24 Sep 2002

  • Mortgage Next launches new Bristol & West funded product

    23 Sep 2002

  • Move to cities makes it tough for first-timers

    19 Sep 2002

    People moving to cities in the UK are finding it increasingly difficult to get on to the first rung of the housing market ladder, according to the Economic and Social Research Council. The research found that the combined effect of the rapid growth in homeownership over the last 20 years and more people moving to urban areas for employment make it increasingly difficult for first-time buyers to get a foot on the property ladder. The research conducted in London, Birmingham, Manchester, ...

  • Northern manager appointed to Baillie Gifford

    18 Sep 2002

    Fund manager Baillie Gifford has announced the appointment of a Melville Bucher as regional sales manager responsible for the North of England, the Midlands and the Isle of Man. Bucher will take control for developing and maintaining IFA relationships in those areas and will report to sales and marketing director Ken Edwards. He joins from Scottish Widows Investment Partnership where he was unit trust sales development manager covering Scotland, Northern Ireland and the North of England.

  • NU in £500,000 cash rescue of Burns-Anderson

    19 Sep 2002

    Norwich Union provided a £0.5m bail-out to IFA network Burns-Anderson last month after it had failed to meet FSA capital adequacy requirements for at least four months, Money Marketing can reveal. It had been operating without adequate capital since at least the end of March and it was not until August that NU provided the cash. The network's accounts reveal that at the end of March it failed to satisfy the regulator's capital adequacy requirements, while chairman Steve ...

  • Only the giants will survive stakeholder

    19 Sep 2002

    The arguments seem to be mounting yet further as to whether or not IFAs can survive in the era of Cat-standard and therefore nil or low-commission-paying stakeholder schemes. A number of the bigger players will enter this market willingly but, to date, Scottish Life and Skandia have announced that they will not produce stakeholder plans. Surely, in order to put a commercial reality into the consultation process, other life offices who are as yet sitting on the fence should be encouraged ...

  • Opas calls for rethink on MFR

    19 Sep 2002

    The Pensions Advisory Service is calling for the replacement of the minimum funding requirement, arguing that it fails to cover members' liabilities and equal protection to members when schemes are wound up. Speaking at the Pensions in Crisis conference in London this week, Opas chief executive Malcolm McLean said the increasing number of closures of funds that satisfy the MFR is leaving many members short-changed at wind-up although a tighter regime would cost far more to provide. He ...

  • Outside Edge

    19 Sep 2002

    Rumour has it that one of the key areas of consideration in the Inland Revenue review of pensions is to impose tax on lump sums at retirement. We have, of course, heard this before. The introduction of the earnings' cap meant an ultimate ceiling on the amount of tax free cash from occupational pension schemes for some members. But the tinkering was no big deal. Taxing lump sums at retirement is, however, a big deal. This Government already has a record of introducing taxation on ...

  • Overpayment top reason for picking flexible loan

    19 Sep 2002

    Chelsea Building Society says the main reason that customers choose a flexible mortgage is to make overpayments. Its research gauging the attitudes of 2,150 customers with flexible mortgages to coincide with the launch of its flexiplan discount loan found that 28 per cent of people wanted flexibility while 26 per cent wanted to make overpayments. Twenty-nine per cent have made overpayments, 57 per cent intend to make overpayments in the future and 22 per cent have already made ...

  • PI firms warn IFAs over endowment clients

    19 Sep 2002

    Professional indemnity insurers are warning IFAs not to proactively contact clients about endowment mortgage shortfalls amid concerns that they could fall foul of their PI cover. However, IFAs claim the advice is short-sighted as it would be better to advise clients to take action now on potential shortfalls rather than wait until endowments mature, when a complaint is more likely. They also say PI insurers are preventing conscientious IFAs from doing their job. IFAs have seen ...

  • Platinum links up with Washington

    18 Sep 2002

    Platinum Capital Management has introduced a hedge fund that invests in US equities using long and short strategies.

  • Primal instinct

    19 Sep 2002

    In one of the more unlikely encounters, the Diary has heard about how new business development man at National Australia Bank John Cowan recently took tea and cakes with fellow Glas-wegian and enfant terrible of the pop world Bobbie Gillespie - lead singer of the IFA's favourite band Primal Scream - because John's mother used to have wee Bobbie round to tea when he was a lad. On a recent visit home, he found Bobbie round at the house just like in the old days. The Diary wishes ...

  • Product matters

    19 Sep 2002

    Pru does drawdown, just like it does everything else, by the numbers. It probably read a book about it and thought it would give it a go. The Prudential drawdown plan makes all the right moves and may prove popular. Certainly, it is likely to be more popular than the complicated flexible annuity which Pru launched a year or so ago. The drawdown plan has simple, clear charges which are directly linked to the commission terms. Maximum payment to introducing IFAs is 3 per cent, with ...

  • Raising retirement age a vote loser says Clerical survey

    24 Sep 2002

    Political parties could lose millions of votes by pushing for an extension of the retirement age to 70, according to a poll by Clerical Medical.

  • Regulation is really needed in the reversion market

    19 Sep 2002

    I refer to the article headlined, Regulation Reunited in Mortgage Brief (Money Marketing, August 29). Regulation of lenders and mortgage advisers is long overdue and it is some comfort to know that consumers should have protection from mid-2004. However, it would be interesting to see if banks, building societies and spec-ialist lenders which become authorised actually comply with the regulations, for it is quite clear in other areas of financial services that many of these institutions ...

  • Retirement dreams are shattered

    19 Sep 2002

    People's dreams of early retirement are fading fast with 10 per cent less expecting to retire before 60 than two years ago, according to research by Virgin Money. It says the prospect of people retiring early in their 50s is diminishing as awareness of the cost dawns on many who are now putting back retirement plans to continue working into their 60s. Virgin's research found that just 27 per cent of respondents now plan to retire before 60 compared with 34 per cent in 2001 ...

  • Royal Bank of Scotland International - Bonus Builder Account

    23 Sep 2002

    Monday, 23 September, 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100, S&P 500 and Dow Jones Eurostoxx 50 indicesMinimum investment: £5,000, $10,000, euros 10,000Place of registration: Isle of ManInvestment split: 100% linked to the FTSE 100, S&P 500 and Dow Jones Eurostoxx 50 indicesGuarantee: Capital returned in full regardless of performance of indicesYield: Sterling - 9-25% gross ...

  • Sandler strikes a happier note

    19 Sep 2002

    For those of you wondering where Ron Sandler has gone since his blockbuster report, we hear that he recently surfaced somewhere in the Home Counties at a stately home for an evening of harpsichord music. Hosted by his able assistants on the research, Booz Allen Hamilton, it seems that Ron was relaxing to harpsichord heroes Bach, Scarlatti and Purcell. The perfect antidote after nearly a year of rowing with actuaries, IFAs, regulators and politicians. The Diary will offer a CD of ...

  • Sandy Scott

    19 Sep 2002

    Chartered Insurance Institute director general Dr Sandy Scott spent 10 years as an army cardiologist, including time in Northern Ireland and the Falklands, yet he still rates his years in financial services as more exciting. He is currently trying to implement more stringent exams for IFAs while fighting on a number of other fronts. Next week, Scott will meet with John Tiner, Alan Pickering and Ron Sandler while chairing a conference for 600 financial services experts in Birmingham. Although ...

  • Scottish Mutual - Income and Growth Plan 4

    19 Sep 2002

    Thursday, 19 September 2002Type: Guaranteed equity bondAim: Income or growth linked to the performance of the Dow Jones Eurostoxx 50 indexMinimum-maximum investment: £7,000-£500,000Term: Three years Guarantee: Capital returned in full at end of term provided the index does not fall by more than 25%Return: Balanced income and growth option - choice of 8% gross income a year, 1.9% gross income a quarter or 25% growth ...

  • Scottish Mutual expands options for fourth bond issue

    24 Sep 2002

    Scottish Mutual has introduced the fourth issue of its income and growth plan, a guaranteed equity bond that is linked to the Eurostoxx 50 index through a Dublin-based company called Quaich Investments 8.

  • Scottish Widows - Guaranteed Investment Combination

    20 Sep 2002

    Friday, 20 September, 2002 Type: Guaranteed equity bond and high interest accountGUARANTEED EQUITY BONDAim: Growth linked to the performance of the FTSE 100 IndexMinimum investment: £3,500Term: Six yearsGuarantee: Capital returned in full at end of term regardless of performance in indexReturn: Up to 96% growth at end of termClosing date: November 3, 2002HIGH INTEREST ACCOUNTMinimum-maximum investment: ...

  • Scottish Widows & Northern Rock offer combination bonds

    19 Sep 2002

    Scottish Widows and Northern Rock are both offering combination products which consist of a guaranteed equity bond and a high interest account.The Scottish Widows guaranteed investment combination consists of a six-year guaranteed investment bond, which is linked to the FTSE 100 index and a high interest account called the term deposit account. This has an interest rate of 7 per cent gross over 12 months.Issue 12 of Northern Rock's fifty:fifty product consists of a five-year ...

  • Seamless strategies

    19 Sep 2002

    Let us examine the problem areas of the age 75 rule for annuity purchase in chronological order of investment, income during life and inheritance on death. It is estimated that four out of five men now aged 60 will live beyond 75. If investment was important prior to retirement, it will be equally important during retirement. Many will draw their pensions for longer than they saved for them so it would help if a long-term strategy could be adopted and followed through retirement. For ...

  • Security is more important than returns, says poll

    19 Sep 2002

    Only 9 per cent of consumers consider taking advice to be the most important factor when taking out an investment, according to a survey by Alliance and Leicester. The survey of 2,000 people throughout the UK shows that in Scotland 14 per cent of people consider advice to be important while the figure is nil in East Anglia Over half of investors claim security is their main priority when choosing investment products, with 49 per cent of men and 57 per cent of women. The Welsh ...

  • Sellers' packs overtaken, claims CML

    19 Sep 2002

    The Council of Mortgage Lenders believes improvements to the housebuying process implemented in the last four years by lenders could render the Government's proposals for sellers' packs out of date. Its figures show that the average time taken to make a mortgage offer has been cut from 22 days in 1998 to 15 now. The CML's research attributes this improvement, which has taken place in the four years since the Government put forward plans for sellers' packs, to better ...

  • Spouse building

    19 Sep 2002

    Last time I looked at how to use the new transfer regulations, income drawdown in payment transfers and a review of concurrency. I would like to end this series by looking at three other opportunities - pensions for children, pensions for spouses and even pensions for pensioners. Pensions for children - giving them a headstart in life The opportunity to sell pensions to individuals with no earned income is very attractive. One such market is pensions for children. This is ...

  • St James's Place in 31st edition of popular tax guide

    19 Sep 2002

    St James's Place Capital has published its latest tax guide, which is available as a hardback from most bookshops. This is the 31st edition of the guide, which describes all aspects of commercial and personal taxation, their main implications and explanations of how the system works. Updates relating to the Finance Bill 2002 are included alongside chapters on life insurance, pensions, tax on foreign income and inheritance tax. There is a preface by St James's Place Capital ...

  • Stakeholder 'failing to plug pension gap'

    19 Sep 2002

    The average monthly contribution to an employer-sponsored stakeholder scheme is just £44, which is £250 less than someone needs to save each month to produce a pension of half their salary, according to the Trades Unions Congress. Research released by the TUC at its annual conference in Blackpool last week analysed Inland Revenue statistics revealing the number of employer-sponsored schemes and total contributions made. According to the Revenue, there are 440,000 employer-sponsored .

  • Standard Life flexes its group muscle

    23 Sep 2002

    Standard Life - Group Personal Pension FlexType: Group personal pension Minimum premium: £6,000 a year a scheme Minimum group size: 5 Minimum-maximum ages: 1 - 75 Fund links: Sterling one, fixed interest one, index linked one, property one, protection one, structured one, managed one, ethical one, stock exchange one, international one, European one, Japanese one, North American one, Pacific Basin one, UK equity one, FTSE tracker one, Far ...

  • Strikers win rethink by Caparo on pensions

    19 Sep 2002

    The first UK workers to strike after their final-salary scheme was threatened have won their battle to keep their pension intact, with their employers reinstating the scheme. Steelworkers at the Welsh Caparo Steel Group, owned by Labour peer Lord Paul, started a series of one-day strikes after the company threatened to downgrade its finalsalary scheme. The strikes by members of the ISTC union mean the finalsalary scheme, which was closed to all members in June, will be reopened ...

  • SVM launches UK Oeic

    24 Sep 2002

    SVM Asset Management is allowing investors to access three of its mainstream funds through the launch of its first UK Oeic from September 30.

  • Swiss Life UK up for sale

    19 Sep 2002

    Swiss Life UK is on the block following a new corporate strategy review announced by its parent company in Zurich this week.

  • Talkback

    19 Sep 2002

    "No. We would end up paying for other people's mistakes." Jill Rickson, Daniel Marshall Associates "No. You would be back to a Lloyd's-type situation. Any mutual type arrangement would leave you with an open-ended liability." Christopher Mason, Mason & Ball Services "Yes, as long as people have the option to get PI insurance direct." Jonathan Kelly, Flemmings Financial Services "Yes because hopefully our premiums will work out a lot cheaper than they are now." Eamon ...

  • The Mortgage Operation adds three new lenders

    18 Sep 2002

    Mortgage network and packager The Mortgage Operation has added three new lenders, Intelligent Finance, Norwich & Peterborough and Cheltenham & Gloucester to its panel. This brings the total number of lenders offering products to TMO member brokers through the panel to 16.

  • The retiring types

    19 Sep 2002

    Wentworth Rose was founded by Philip Rose and Roy Peyre in 1989 and has gone from strength to strength. In June, Aegon took a 50 per cent stake in the company, enabling Wentworth Rose to put into action its plan of steady growth and expansion. In today's era of regulatory chaos, reform reviews and uncertain economic climate, Wentworth Rose chief executive Philip Rose is excited about the company's prospects and confident of its success. Rose and Peyre first started giving ...

  • Threadneedle Investments - Defensive Bond Fund

    20 Sep 2002

    Friday, 20 September, 2002Type: Unit trustAim: Income by investing in Threadneedle fundsMinimum investment: Lump sum £2,000Investment split: 100% invested in fixed interest fundsYield: 2.99%Isa link: YesPep transfers: YesCharges: Initial 3.75%, annual 0.25%Commission: Initial 3%, renewal 0.5 %Tel: 0800 06840005

  • Threadneedle Investments - Defensive Equity & Bond Fund

    19 Sep 2002

    Thursday, 19 September, 2002Type: Unit trustAim: Growth and income by investing in Threadneedle fundsMinimum investment: Lump sum £2,000Investment split: Bonds 75%, equities 25%Yield: 4.27%Isa link: YesPep transfers: YesCharges: Initial 3.75%, annual 0.25%Commission: Initial 3%, renewal 0.5%Tel: 0800 06840005

  • Threadneedle sets up defensive Fofs

    19 Sep 2002

    Threadneedle is offering two defensive funds of funds in a move which will see the firm's existing managed funds renamed to reflect their higher risk. The defensive equity & bond fund will invest 25 per cent in equities and 75 per cent in bonds while the defensive bond fund will invest entirely in fixed interest. Both funds will be managed by head of bond strategy Laurence Mutkin. Initial charges on both funds are 3.75 per cent. Annual charges on both are 0.25 per cent in ...

  • Throwing light on the real Leahy

    19 Sep 2002

    Has Standard Life's dulcet-toned marketing director Micheal Leahy somehow undergone a Damascene conversion? What are we to make of strike threats and Leahy's strident statement: "Make no mistake, if not addressed urgently by this Government, pensions could do for them what the poll tax did to the Tories." And now the union-bartered agreement for steel group Caparo to restore its final-salary schemes is being welcomed by Leahy. A call to Standard Life assures us that Leahy ...

  • Treasury review mandarin Oppenheimer joining Gartmore on secondment to develop distribution

    19 Sep 2002

    Daniel Oppenheimer, one of the key thinkers behind the Myners and Sandler reviews, has joined fund manager Gartmore on a two-year secondment to help develop its distribution strategy. Treasury civil servant Oppenheimer joined Gartmore last week and will report to head of distribution Mike Smith for up to the next two years. Oppenheimer was head of the project teams for the Myners review into institutional investment and the Sandler retail savings review, meaning he was effectively ...

  • Unifi criticises offshore trend

    19 Sep 2002

    Product providers are not justified in using the excuse of tighter margins to think about moving non-core operations offshore, says financial services union Unifi. While accepting that life and pension providers are seeing margins squeezed because of the 1 per cent world introduced by stakeholder, the union, which represents 150,000 financial services workers, has rejected this as a valid reason for looking to move administration and call centres offshore. Speaking to Money Marketing ...

  • Vital need for a PI shake-up

    19 Sep 2002

    I occasionally get asked by conference organisers what piece of music I would like played as I walk on to speak. Over the last year, it has been tempting to ask for Always Look On The Bright Side Of Life from Monty Python's Life of Brian. But there are one or two signs that we may be on the upswing, especially if press rumour proves justified that the FSA is about to make a policy shift on how independence should be defined in a post-CP121 world. The constraints of the defined-payment ...

  • Widow of opportunity

    19 Sep 2002

    Mrs Williamson is 58. She was widowed 18 months ago and is continuing to receive an income from her late husband's Equitable Life drawdown personal pension. She needs some, but not all, of the income and is extremely concerned about the future of Equitable Life. What should she do with her pension? Mr Williamson sold his business and retired when he was 54. Having settled the family's mortgage and other liabilities, he and his wife lived comfortably off the sale proceeds ...

  • Yorkshire savers help hundreds of charities

    19 Sep 2002

    Yorkshire Building Society claims its Small Change, Big Difference scheme has attracted over 200,000 members and raised over £100,000 since its launch two years ago. Savers volunteer to donate small amounts of interest they accrue on their accounts to the society's charitable foundation, which distributes funds to local charities. Over £75,000 was donated to charities as a result of two community days, when members of the public were invited to go into any branch ...

  • Young families living without life assurance, survey shows

    18 Sep 2002

    A fifth of people with young families have no life assurance other than policies attached to their mortgage according to research from national IFA RJ Temple. More than half of over 65s have no life assurance, while across all age groups almost a third are not protected and nearly a quarter do not know whether they are or not. Just 2 per cent of people surveyed have cover equivalent to more than 15 years' earnings and 9 per cent rely on company pension schemes. 

  • Zurich life

    19 Sep 2002

    The headline highlighting the Zurich results, Zurich shifts to general insurance (Money Marketing, September 12) is incorrect. Instead, as the article went on to state, Zurich Financial Services has taken steps to refocus its efforts on core business activities - life and general insurance. Our commitment to the life market remains stronger than ever and 2003 holds great promise for us. There are winners and losers in the financial services market but overall Zurich's life business ...

  • Zurich takes over NU's life link with Newcastle

    19 Sep 2002

    Zurich has replaced Norwich Union as strategic partner of Newcastle Building Society for life products, its third direct distribution tie-up of the year. The deal sees NU's 13-year relationship with Newcastle end as Zurich offers a deal that sees the salesforce stop being NU introducers and become Newcastle appointed representatives, tied to Zurich. Newcastle has 51 branches and 450,000 members. Initially, the project will lead to the employment of 40 in-house Newcastle sales ...

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