Money Marketing
19 March 2003

  • པ,000 firms breaking the law over pensions'

    20 Mar 2003

    Nearly 24,000 UK firms with up to 1.28 million employees are breaking the law by not providing access to a pension scheme, according to research by Axa. The survey found that 16 per cent of the UK's 147,000 biggest companies, those with an annual turnover of at least £1m, are failing to meet their statutory requirements of providing employee access to a scheme. Under current law, any firm with more than five staff must provide access to a scheme. The survey of 147,000 ...

  • 'Flat-rate second pension to close gap'

    20 Mar 2003

    The ABI is calling for urgent reform to the state pension by introducing a flat-rate second pension that it claims would lift state provision above the minimum income guarantee. It warns that without fundamental change, the gap between basic state pension and the pension credit will increase, leaving up to 82 per cent of pensioners on means-tested benefits. As part of its response to the Pensions Green Paper, the ABI says the target of spending 5 per cent of GDP on pensions could ...

  • 'Half of European banks have no budget for Basel II'

    20 Mar 2003

    Half of all European banks, building societies and lenders have no budget set aside to meet the capital requirements of Basel II which are set to be compulsory from 2007. This warning comes from credit risk management consultantcy Scorex following its survey of 55 heads of retail credit with some of Europe's biggest lenders, including 11 in the UK, which predicts that medium or smaller banks will struggle to meet the deadline. Scorex says it will cost a medium-sized UK lender ...

  • 'Political concerns driving waivers'

    20 Mar 2003

    Analyst Ned Cazalet has criticised FSA solvency waivers for allowing weak companies to continue writing new business and for being driven by political rather than regulatory concerns. Last week, the FSA again sent letters to with-profits offices to offer waivers. In the letter, it says it is using special powers to override its statutory duties to consult because of concerns about the potential for consumer detriment if it does not act quickly. But Cazalet asks if, in five years ...

  • 'Savers have not learned lessons of tech collapse'

    20 Mar 2003

    Investors are still following fads and do not understand the basics of asset allocation, says Isis. The bursting of the dot.com bubble means that investors have become more concerned about risk in general but Isis believes that they do not understand the risk of chasing performance. The fund firm says that understanding of asset allocation is so low that investors need extensive education or should hand their investments to fund of fund managers. Isis considers that investors ...

  • 'Shutting down final-salary schemes doesn't worry staff'

    20 Mar 2003

    A tidal wave of companies closing final-salary schemes to new members will gather force as firms realise that staff retention is not affected, the Pensions Policy Institute conference was told last week. Legal & General pensions strategy director Adrian Boulding said employers would find that he savings made by closing defined-benefit schemes to new members would not be outweighed by increased costs from increased staff turnover. Boulding said pensions were less important to ...

  • 1st Software offers client profiler to cut down risk

    20 Mar 2003

    The risk of IFAs misadvising clients could be substantially reduced with a new psychometric profiler from technology provider 1st Software which aims to accurately assess clients' attitudes to risk. The investment risk profiling tool will go live for the 8,500 advisers using 1st Software's Adviser Office technology across 900 IFA businesses in the coming weeks. Developed in partnership with behavioural consultancy specialist Silent Partner, the system asks a client 35 questions ...

  • 78% believe price cap will be raised

    20 Mar 2003

    Most IFAs believe the Government will concede to industry demands and lift the 1 per cent price cap on stakeholder pensions, according to the Money Marketing/One Account State of the IFA Nation poll. The annual poll found that 78 per cent of respondents - 167 of the 215 IFAs who took part - are confident the price cap will be increased. Only 20 per cent think the price cap will be maintained, while 2 per cent could not say what they expect to happen. IFAs are also optimistic ...

  • Abbey bond provides refuge for investors

    20 Mar 2003

    Abbey National has unveiled a guaranteed equity bond that is linked to the FTSE 100 index for five years and six months.Issue 11 of Abbey National's safety plus growth bond offers investors the return of their original capital plus growth of 17.5 per cent regardless of the performance of the index. It also has maximum growth potential of 45.1 per cent.To calculate the returns the level of the FTSE 100 index on May 14, 2003 is recorded and is measured every six months ...

  • Abbot quits at Future Mortgages

    20 Mar 2003

    Specialist lender Future Mortgages chief executive officer Mark Abbott has quit the company. The company was taken over by American financial giant Citigroup in July 2000. Future, a specialist non-conforming lender, has confirmed that Abbott resigned but will not discuss the reasons why and will only say discussions between both parties have been amicable. No replacement has been named and Abbott will remain with the firm for an unspecified period of transition. Industry ...

  • ABI calls for wider review of rulings on transsexuals

    20 Mar 2003

    The ABI is calling for industry views on a wider Government consultation on legislation to recognise transsexuals in their changed gender. The proposals would give transsexuals the right to be treated in their new gender for all financial services products. The Government wants to legislate on the issue after the European Court of Human Rights ruled that people who have made a decisive and permanent change of sex should be treated in that gender consistently. Under current ...

  • AITC backs call to retain Isa tax credit

    25 Mar 2003

    The AITC has joined forces with five other financial organisations to urge the Chancellor to retain the equity ISA tax credit.

  • AITC hardship fund raises only £1m of £10m target

    20 Mar 2003

    The Association of Investment Trust Companies' hardship fund, set up to provide financial support to victims of collapsed split-capital investment trusts, has attracted only a 10th of its target in the six weeks since launch. Director general Daniel Godfrey is seeking to reassure fund groups that donations to the fund are not an admission of culpability after revealing that it has raised just £1m - the amount that had already been secured when the fund was announced. In ...

  • Axa calls for pension tax breaks for the young

    24 Mar 2003

    Axa is calling for improved tax incentives for young people to increase retirement funding amongst those who do not save.

  • Bates urges switch to Global focus from tech

    20 Mar 2003

    Bates Investment Services is urging investors in higher-risk sectors to switch from technology funds to global focus funds to escape the volatility it believes plagues the TMT sector. In a move which could sound the death knell for some smaller funds, the firm is recommending clients to ditch funds in the tech, media and telecoms sector as their performance is unlikely to justify the risks they continue to pose. Head of investments James Dalby says investors in the medium to high-risk ...

  • BM Solutions launches online sales tool

    24 Mar 2003

    Specialist lender BM Solutions has launched a range of sales tools on its intermediary online service, BM Solutions Online. The tools include affordability calculators, covering buy-to-let and flexible repayments helping brokers maximise sales. Personal illustrations reveal bottom line savings for clients and users are guided through the facility at every stage.

  • Bond choice

    20 Mar 2003

    I have just been made redundant. I understand the stockmarket may bounce back but I need to maintain the capital value of my money. Bond investments seem appropriate for my needs. Which bonds should I consider and why? There are many types of bond available, including UK Government securities, gilts, other government bonds and corporate bonds. As you are looking for stability of capital, it is important that the right bonds are selected. A range of collective investment schemes ...

  • Britannia dedicated to the offset market

    20 Mar 2003

    Britannia Building Society is set to enter the offset market with a product called the savings mortgage which offsets a dedicated savings account against the customer's mortgage. The society says it has set up the product after research found that consumers wanted simplicity from an offset mortgage. Britannia says offsetting against a separate savings account avoids the aggravation of changing current accounts. There are no fees for arrangement, admin or valuation. The mortgage ...

  • C&G offering book of poetry on marine life

    20 Mar 2003

    Cheltenham & Gloucester is teaming up with the Marine Conservation Society to offer a booklet of poetry inspired by turtles that aims to raise youngsters' awareness of the marine environment. The book, called Celebrate The Sea, has been created from entries to a poetry competition for four to 11-year-olds organised by C&G last autumn. Marine Conservation Society founder David Bellamy was in London last week for the launch of the poetry book that contains over 50 poems. ...

  • Catalyst diversifies EISs

    24 Mar 2003

    Catalyst Investment Group has established a second enterprise investment scheme (EIS) fund that invests in a portfolio of between four and 15 EISs.The fund aims for growth by investing in small and developing companies over a five-year term. With a minimum investment of £3,000, it is designed as an alternative to EIS portfolio management services, which many investors cannot access because minimum investment levels are high. For example, the Rathbones EIS portfolio service ...

  • Chance to win free marketing makeover

    20 Mar 2003

    Marketing agency Positive Profile is offering Money Marketing readers a free marketing makeover as it launches PPGoldMark financial services advisory service. The PPGoldMark healthcheck, which will be free to the first 10 Money Marketing readers who apply, is designed to give a quick but thorough overview of successes and failings of a company's marketing strategy. The service, headed by former Mercury Asset Management head of UK retail Richard Clarke, is designed to be completed ...

  • Chelsea warns of heavy losses on index bonds

    20 Mar 2003

    Most investors with structured products maturing in the coming months are set to sustain heavy capital losses as poor design and downside gearing take their toll on performance, according to Chelsea Financial Services. The company's figures reveal that just six of the main 19 index-linked bonds maturing between April and August are on course to return 100 per cent of capital. The other 13 are likely to leave investors facing losses approaching 70 per cent. One of the worst offenders ...

  • Correspondent's week

    20 Mar 2003

    The week promised to be an interesting one as Platform was officially launched as the intermediary lending arm of Britannia Building Society. This week would be the culmination of many months of hard work which had seen a huge influx of new business and a recruitment drive in response. I was one of the new recruits, joining Platform in September 2002, from my native home, Down Under in Australia! Launch day, Monday, saw my colleagues and I dressed in the new corporate colours - green ...

  • Couple win £5k in N&P eco-home challenge

    20 Mar 2003

    Norfolk grandparents Colin and Margaret Williams have won the £5,000 prize in Norwich & Peterborough Building Society's eco self-build competition for constructing a home with energy-saving features. The society awarded the prize for the home that made the best use of systems that reuse household water, super-efficient insulation and double-glazing and energy-saving central heating systems. As part of the prize, environmental group Future Forests will plant eight trees ...

  • Critical moment

    20 Mar 2003

    The dust hasn't settled over recent guaranteed premium increases and changes to definitions but product providers are warning intermediaries that there are still substantial changes to be made if the health of critical-illness products is to be ensured. Most providers believe reviewable premiums will become more popular as guaranteed rates cover risk inadequately. Price has become a major concern for IFAs as the past two quarters saw premium increases of up to 50 per cent in ...

  • Dampier goes to top of Presswatch table

    20 Mar 2003

    Hargreaves Lansdown head of research Mark Dampier has taken the accolades as Presswatch's top press pundit for February, beating last month's winner London & Country's mortgage adviser David Hollingworth to the top spot. Dampier gets 38 mentions, beating Hollingworth with 36 mentions and Charcol senior technical manager Ray Boulger with 27 mentions. Hargreaves' domination of the overall IFA coverage continued last month with pensions research manager Tom McPhail ...

  • Derbyshire launches first time buyer mortgage

    25 Mar 2003

    Derbyshire Building Society has launched a first time buyer mortgage to help home-buyers get a foot on the housing ladder. It is a three-year stepped discount with a reduction off its standard variable rate, currently 5.59 per cent, of 2.40 per cent in the first year, 1.44 per cent in the second and 1.00 per cent in the third. It has a loan to value of 95 per cent in its core operating area, and 90 per cent elsewhere.

  • Drop the pilot

    20 Mar 2003

    Given the success of reality TV, perhaps we need a show based on someone getting their financial affairs in order. If people are prepared to watch a show based on budget airlines, why not film those planning for their future? Last week, I attended a meeting at the Treasury to witness the launch of the generic fact-find or financial healthcheck. Those in attendance included the "firms" (the FSA's preferred term for anyone in the market) and the consumer lobby. After the perfunctory ...

  • Employees name their pet benefits

    20 Mar 2003

    Seven out of 10 employees would prefer to work for a company offering a choice of benefits rather than a fixed package, according to a survey by youatwork, Royal & Sun Alliance's employee benefits division. The provider warns that companies which ignore this message risk losing talented staff to rivals offering better benefit packages. The survey shows that 63 per cent of workers would like more flexibility and choice over the benefits they are offered. Sixty-seven per ...

  • Exchange offers best service, say advisers

    20 Mar 2003

    The majority of IFAs believe The Exchange offers a superior service to Assureweb and IFA Engine. The State of the IFA Nation poll shows 71 per cent of IFAs believe The Exchange offers the best service compared with 16 per cent opting for Assureweb and 9 per cent for IFA Engine while 11 per cent did not state a preference. Looking at mortgage platforms, The Exchange and Mortgage Brain are each backed by 25 per cent of respondents. Behind them is Mortgage 2000 with 16 per cent, Trigold ...

  • Fidelity continues supermarket sweep

    20 Mar 2003

    Fidelity increased its stranglehold on fund supermarket Skandia's list of best-selling Isas last month, accounting for three of the top six funds on the platform. The US giant's special situations, moneybuilder income and European funds came in first, second and sixth respectively. Jupiter's flagship income fund, which was second in January, dropped back to third place. The Fidelity funds were respectively first, fourth and eighth in January. Other upwardly mobile funds ...

  • Firms applying for IFA captive PI role

    20 Mar 2003

    The FSA has received formal applications from companies looking to become authorised as a captive professional indemnity insurer for IFAs. As revealed in Money Marketing in February, there have been talks between the FSA, Aifa and the ABI about setting up a captive insurer selling PI insurance to IFAs on a commercial basis. Aifa director general Paul Smee says he is encouraged by the progress but would not give details on the parties involved. FSA director of investment firms ...

  • Fortune banks on Hedgeyield

    21 Mar 2003

    Fortune Asset Management has introduced Muzinich & Co's Hedgeyield fund through its Emerging Manager Program, which helps new hedge fund managers raise the initial capital to start running their funds.Muzinich & Co's Hedgeyield fund is a high yield corporate bond hedge fund that aims to exploit price differences in high yield corporate bonds, mainly in the US. It will use leverage and arbitrage strategies and will invest in bonds rated BBB and above. The fund will aim to ...

  • Fourth EIS fund from McDonald Glencross

    19 Mar 2003

    McDonald Glencross, a company that specialises in EIS funds, has created a fourth fund that invests in a portfolio of 10 unquoted companies.The McDonald Glencross approved EIS fund 4 aims to provide capital growth and tax benefits to experienced investors. It will invest in a range of unquoted companies at different stages of development, including early stage companies and those that are preparing for a stockmarket flotation. These are likely to be in sectors such as food & beverages, ...

  • Francis emerges as FSA candidate

    20 Mar 2003

    The Treasury is believed to have drawn up a short list for the next FSA boss to replace outgoing chairman Howard Davies and ABI director general Mary Francis could feature prominently on it. The list, which follows on from last week's deadline for applications, is believed to include Francis, Customs & Excise chairman and former Schroders executive Richard Broadbent and former Treasury second permanent secretary Sir Steve Robson. It is thought that Robson, who while serving ...

  • FSA backtracks on stats in ads

    20 Mar 2003

    After almost a year of consultation, the FSA is set to scrap its original plans to ban past performance from being the predominant feature in fund advertising. According to an unpublished draft paper seen by Money Marketing, the regulator will allow past performance to remain the main feature of an ad so long as it is presented in a standardised format. Of course, the GSA could change its mind but if the draft is implemented in this form it will be something of a reversal from ...

  • FSA turns attention to projection rates and Tep market

    20 Mar 2003

    The FSA is to consult on projection rates and review the traded endowment market later this year. Both consultations are mentioned in a comprehensive list of regulatory initiatives included in this month's handbook development newsletter. The regulator says it has undertaken to look at projection rates every four years and the consultation planned for June is part of this process. It is widely thought that future rates of return will be lowered as a result. Later in the ...

  • FTBs are getting older and wiser with bigger deposits

    20 Mar 2003

    First-time buyers in the UK are making their first step on to the housing ladder at a later age and putting down relatively bigger deposits than 20 years ago, says mortgage lender Halifax. Its new research, 20 Years of First-time Buyers, reveals that the average age of a first-time buyer is now 33, up from 31 in 1983. Sixteen per cent of the total first-time buyers are 25 compared with 30 per cent in 1983. Halifax says there are a number of reasons for this trend, including ...

  • Hats off

    20 Mar 2003

    Hats off to over 100 Royal Liver volunteers who burnt the midnight oil on Red Nose Night. The pyjama-clad scouse army manned the phonelines throughout the night in the Royal Liver Building collecting donations. Diary applauds the 150 Legal & General staff who gave similar stalwart service through the night at its Birmingham offices.

  • Househunters held back by threat of war

    20 Mar 2003

    Over half of househunters in the UK and 70 per cent in London feel the threat of war with Iraq has been adversely affecting the housing market, says research by property website rightmove.co.uk. Its survey of 1,037 people looking to move house carried out this month shows that 58 per cent feel that concerns about the conflict have been damaging confidence in the property market. Thirty-two per cent say such concerns are directly affecting their willingness to look at properties, ...

  • HSA offers corporate cash plan

    20 Mar 2003

    Healthcare cashplan provider HSA is aiming a plan at the corporate market as part of its campaign to raise awareness of the value of the product as a staff benefit. The plan includes health screening and a change of job feature as well as 100 per cent cover on all optical and dental costs plus 75 per cent on a series of other treatments including physiotherapy, osteopathy, chiropractic, acupuncture and homoeopathy. For premiums of £6.80 a week, a family of four can get cover ...

  • Income crisis is looming as the state steps back

    20 Mar 2003

    Reform of state pensions must take place as a priority if the UK is to avoid tomorrow's pensioners being worse off than today's pensioners, warns the Pensions Policy Institute. The warning came at the PPI conference in London last week after reports that there is no indication that future pensioners will be any better off despite Government initiatives such as Sandler's suite of products and stakeholder pensions. It says both the state and employers are reducing long-term ...

  • Independent view

    20 Mar 2003

    There was an interesting theory being touted by many young, straight out of Oxford merchant bankers a couple of years ago. Indeed, we were "flattered" to be approached with this wonderful get rich quick idea. They came along to me and said: "Peter, you should just expand your number of IFAs." It did not seem to matter whether they were good, bad or indifferent IFAs. The fact remained that firms such as Mediolanum in Italy and MLP in Germany were worth zillions based on how ...

  • Industry is top for business lunches

    20 Mar 2003

    Financial services professionals spend more time having business lunch than any other profession, according to a survey by restaurant chain Pizza Express. The survey found that people in the financial services industry attend business lunches or dinners an average of 45 times a year, narrowly ahead of media workers, who average 42. But despite famous lunchers such as the five former employees of Barclays Capital who spent £44,000 on lunch in July 2001 and were sacked in February ...

  • Inside Edge

    20 Mar 2003

    Since my last article in August, the Treasury is reported to have given a ringing public endorsement of Ron Sandler's flagship recommendation of a stakeholder suite of products. Indeed, Ruth Kelly went on to say he should be commended for recognising the advantages of "product rather than sales-based regulation". I would comment that IFAs are in the advice-based regulation, which may include a sale if appropriate. However, it is still possible to recommend a fabulous product, to ...

  • Investment analysis

    20 Mar 2003

    It was a rollercoster five days for world equity markets last week, with a one-day loss of 5 per cent on the UK's primary index being erased within 24 hours. By the end of an extremely volatile week, the FTSE World index had edged up by 0.4 per cent. In the US, the three-year anniversary of the Nasdaq peak, when it reached 5,048, was met on Monday with a sell-off. The major indices both lost 2 cent on the day, with the Nasdaq finishing the day at 1,278. However, Wednesday and Thursday ...

  • Investment view

    20 Mar 2003

    I must be getting old. The gyrations of this stockmarket are making me dizzy. Last week, we saw one of the biggest-ever one-day falls on record. The following day, the market bounced by even more. You could have been forgiven for missing what epitomises the problems facing today's investors. Volatility discourages retail investors. Worse, you might make the wrong interpretation of events. Are you confused? You should be. Listening to the reaction to Wednesday's sharp sell-off ...

  • Investors out for the discount

    20 Mar 2003

    Invesco Perpetual is extending its 2 per cent discount on all Isa investments and Pep/Isa transfers until April 5, including its monthly savings and phased investment options. It is also extending the discount to its corporate bond, global bond, monthly income plus and European high-yield funds for investments made outside an Isa. JP Morgan Fleming is giving a 2 per cent discount on its Oeic range. The discount reduces the initial charge to 3.5 per cent until April 5 and includes ...

  • Isis warns slump may be worse than 1929 crash

    20 Mar 2003

    Isis is warning that if US equities do not rise by at least 7 per cent a year until 2009, global markets will have performed worse than in the 1929 crash. Chief investment officer Robert Talbut says companies are repairing balance sheets after poor profitability and interest rate cuts have not had the desired effect. Isis says equity valuations are a clear buying opportunity but modest returns over the medium term mean people should take a more diversified approach to asset allocation. Talbut ..

  • Julian Gibbs

    20 Mar 2003

    I have often been asked what I consider to be the safest venture capital trust now raising money. In my opinion, Close Brothers Development VCT is the most secure because it invests in asset-backed investments such as freehold children's nurseries and garden centres. Forty-one per cent of its investments have a first charge over debtors and 47 per cent have a second mortgage over freehold or leasehold assets. Most of its assets are invested in growth areas such as healthcare ...

  • L&G hopes guarantees will help sell last-minute Isas

    20 Mar 2003

    Legal & General is offering two protected growth plans in an attempt to motivate investors into last-minute Isa season action. The provider says it is hoping to attract investors who have been so far disenchanted by plunging stockmarkets by guaranteeing their initial capital will be protected if they keep money in the plan until October 31, 2008. Minimum investment in both the protected index plan 2 and index growth and protection plan is set at £1,000. In the protected ...

  • Lambeth lets the loan take the strain

    20 Mar 2003

    Lambeth Building Society is opening its first mortgage shop at the world's busiest railway junction. Its Clapham Junction branch will be open for longer hours than its normal branch operating times, closing at 7pm on weekdays. On Saturdays, potential borrowers can make appointments until late afternoon as the branch will operate flexible hours which it says will benefit those spending the morning looking at properties. The society says the centre will be able to place business ...

  • Landlords maintain gearing levels in buy-to-let market

    20 Mar 2003

    Buy-to-let lending remains at comfortable levels relative to property valuations, with less than 5 per cent of landlords having loans over 75 per cent of the value of their investment property portfolios, says Paragon Mortgages. The March issue of Paragon's quarterly buy-to-let trends survey shows that the average loan to value is just 42.7 per cent, down slightly from 43.9 per cent in December 2002 and from 43.3 per cent in October 2002. Over the first quarter of this year, ...

  • Legal & General - Index Growth and Protection Plan

    19 Mar 2003

    Wednesday, 19 March 2003Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £1,000-no maximum, £7,000 Isa Term: Five years six months Guarantee: Capital returned in full regardless of the performance in the index Return: 70% of growth in index Closing date: April 25, 2003 Commission: Initial 3% Tel: 020 7528 6773

  • LIA in plea for blanket waiver as PI insurers shun sector

    20 Mar 2003

    The LIA is calling for the FSA to extend a blanket professional indemnity insurance waiver to all IFA firms with annual turnovers below £500,000 until it reaches a long-term solution to the PI crisis. Head of public affairs John Ellis says that he has seen evidence from LIA members that PI insurers are not willing to offer any cover to firms unless their turnover is over £500,000. He warns that unless the FSA takes action soon, a "fairly significant number of IFA firms ...

  • Liontrust in bid to unitise knowledge economy trust

    20 Mar 2003

    Fund manager Liontrust is asking shareholders to approve plans to unitise the knowledge economy investment trust after the trust's discount to net asset value rose to more than 15 per cent. Liontrust is asking shareholders to liquidate the trust and swap their existing shares for units in its intellectual capital unit trust, which is managed with largely the same ethos by the same manager, Anthony Cross. The IT's discount to NAV at which the shares trade has hovered around ...

  • Loan firms set sights on key workers

    20 Mar 2003

    Specialist lender BM Solutions and packager The Mortgage Partnership are offering a key worker mortgage to help teachers, nurses, firefighters and health workers get on the housing ladder. The product will be available across the UK but is primarily targeting hotspots such as London, where affordability is an issue for key workers on relatively low salaries. The loan allows up to four applicants to pool their resources - one applicant can be from any profession - to widen the option ...

  • Manor Park - Guaranteed UK Selected Growth Fund

    25 Mar 2003

    Tuesday, 25 March 2003 Type: Guaranteed growth bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £5,000-no maximumTerm: Three yearsGuarantee: Choice of 85%, 90%, 95% or 100% of capital returned in full regardless of the performance of the indexReturn: 160%, 120%, 80% or 40% growth dependent on chosen capital guaranteeClosing date: April 30, 2003 Commission: Initial 3%Tel: ...

  • Margetts seeks funds for Captain Scarlet

    21 Mar 2003

    Margetts Fund Management has unveiled Gerry Anderson Productions, an enterprise investment scheme (EIS) that aims to create a new version of the cult television series Captain Scarlet.Gerry Anderson created the original series in 1967 using a puppet animation technique called supermarionation. He also used this technique for Thunderbirds, Joe 90, Stingray and Fireball XL5. The new series will be created using computer graphics and preparation work is currently being done including ...

  • Martin Currie goes for unique opportunity

    20 Mar 2003

    MARTIN CURRIEMARTIN CURRIE EUROPEAN EQUITY FUNDType: Investment trustAim: Growth by investing in a portfolio of European private equity funds and European direct equities Minimum investment: Lump sum £100,000 Maximum investment: £2m Investment split: European private equity funds 85%, European equities 15% Types of shares: Ordinary Isa link: No Pep transfers: No Redemption date: July 1, ...

  • Mortgage Brain in software deal for IFAs

    20 Mar 2003

    Sourcing system Mortgage Brain has teamed up with insurance provider Payment-shield to provide software, giving IFAs free access to mortgage and insurance products. The move comes as Mortgage Brain integrates its software with Paymentshield's Inertia quotation system which currently gives 12,500 intermediaries access to a range of general insurance and protection products from a selection of firms. When processing Inertia insurance proposals through Mortgage Brain, intermediaries ...

  • Network aims to free 'imprisoned' advisers

    20 Mar 2003

    Bristol IFA practice The Kilminster group is setting up a new network which it claims will free advisers "imprisoned" in their existing networks. The Kilminster Partnership will operate as a new division of the group and has already signed up seven firms and 20 RIs, increasing the group's total number of RIs to 65. Although it plans to offer compliance, training & competence and PI cover and will be regulated by the FSA as a network, Kilminster insists it will not operate ...

  • NU presses Government on life taxation

    24 Mar 2003

    Norwich Union is pressing the Government not to abolish the 5 per cent withdrawal rule on life bonds in the forthcoming budget.It says that any restriction on the rule would in isolation reduce the attractiveness of life bonds. Instead, NU is calling for a comprehensive rethink for the tax regime for all savings products and says it favours a gross roll up regime where an investment it only taxed on encashment.

  • NU sets out plan to 'nationalise' private health

    20 Mar 2003

    Norwich Union Healthcare is trying to build an industrywide consensus for its proposed healthcare model, which would see the NHS compete as an insurer with the private sector by offering consumers a core package of cover. Initially unveiled in September 2001, the stakeholder healthcare model would see individuals pay a separate premium for their healthcare, reflected by reduced income tax rates. Some tax revenue would still be funnelled into a ringfenced pot earmarked specifically ...

  • NU takes 5% stake in Bankhall

    20 Mar 2003

    The latest in a swathe of product provider investments in IFAs has seen Norwich Union take a 5 per cent stake in support services provider Bankhall. The company has bought the chunk from Bankhall parent company Skandia with the option to buy up a further 4.99 per cent of the business by the end of 2009. Skandia acquired 86 per cent of Bankhall for £150m in December 2001 but then offered two 5 per cent stakes for purchase in September 2002. NU has bought the stake for an undisclosed ...

  • One in three portfolios not diversified enough, says Invesco

    24 Mar 2003

    One in three investors admit their portfolio is not diversified enough, according to research commissioned by Invesco Perpetual.

  • Open and shut case

    20 Mar 2003

    Change is the word perhaps most often applied to the life and pension industry nowadays. For years, everything was the same. Now it is not. New business volumes are, at best, static and the market is oversupplied and the seemingly never-ending equity slide is dramatically affecting economics. With challenges to product design and pricing and the polarisation about-turn set to create a massive shift in power between providers and distributors and their servicing requirements, hoping ...

  • Out of context

    20 Mar 2003

    •"Journalists always try and nick my nuts." - iimia head of investment trusts Nick Greenwood after the mysterious disappearance of his cashew nuts. •"We can afford plastic spoons." - Platform sales and marketing director Guy Batchelor. •"This is an anoraks' convention." - LibDem pensions trainspotter extraordinaire Steve Webb. •"Why ruin a good meal?" - Standard Life senior technical manager John Lawson on turning down a salad with his main course. •"I ...

  • Outside edge

    20 Mar 2003

    So "misselling" is in need of redefinition is it? Well that is Ron Sandler's view but is he right? It is my contention that the current highly pervasive compensation culture is in need of far more than the simple redefinition of a word that has never had a definition in the first place. "Misselling" is not a legal concept. It is an invention of previous incarnations of regulators encouraged by passing legions of ambitious junior ministers. In 1,000 years of English or Scottish civil ...

  • Pension cap could turn away savers

    20 Mar 2003

    Mounting a defence of people with pension pots likely to exceed £1.4m in the court of public opinion is not an easy task. These well-off and presumably dedicated savers stand to lose from the Pensions Green Paper but there is an escalating row over how many of them there are. The Treasury is wedded to its original assertion that it will catch only 5,000 personal pension savers. Pension consultants, IFAs and most pension providers put the number closer to 100,000. This ...

  • Pensions are not the only fruitful vehicle

    20 Mar 2003

    At least three million people are not putting away enough money to see them through retirement, according to the Pensions Green Paper. Undoubtedly, Work and Pensions Secretary Andrew Smith is right when he says the sheer complexity of the pension system deters many people from making that first move towards catering for their future financial needs. Pension planning is an incomprehensible maze for most people, he says, with eight separate tax regimes. All this will be simplified ...

  • People say wages must double to preserve lifestyle

    20 Mar 2003

    Most people believe they will need to double their income over the next 10 years to maintain their current lifestyle, according to research from fund company Insight Investment. Asked by the HBOS-owned fund firm to estimate the salary they will need in a decade, the average amount suggested by 72 per cent of respondents was £45,729, almost double the current average salary of £23,607. The remainder did not know what income they would need. Twenty-three per cent ...

  • Phillip Cartwright

    20 Mar 2003

    London & Country managing director Phillip Cartwright is not too worried about making waves or ruffling feathers. In fact, when he is passionate about something and thinks he is right, he goes out of his way to do just that. Nothing exemplifies this more than his recent attack on the market over the length of time it takes to process mortgages. L&C broke from industry convention earlier this month by guaranteeing to complete mortgages within 28 days or it will pay clients the ...

  • Plugging a tax leak

    20 Mar 2003

    Over the past few weeks, I have been looking at the importance of the dividend yield in driving overall returns from equities. With the average yield on the FTSE approaching 4 per cent (and with the chance of capital growth in addition), it is not hard to see why this subject has created so much interest. My focus was on how to minimise the tax on the reinvested income and I investigated the insurance structure, with insurance companies paying no further tax on dividends received. All ...

  • Portals in a storm on IFA user figures

    20 Mar 2003

    A row has broken out between intermediary portals, with AssureWeb claiming to have recorded its best-ever month in terms of active users and suggesting that IFAs could be switching from The Exchange. The Exchange has immediately hit back, saying an increase in the number of active users on AssureWeb does not mean it has experienced a decline and that it remains the "portal of choice" for IFAs. It says it does not understand the grounds for AssureWeb's claim, arguing it is the ...

  • Private pension membership is on decline as young start saving later

    20 Mar 2003

    Young people are starting pension saving later in life and will have to save longer than previous generations and retire later, says the Pensions Policy Institute. Until recently, membership of a private pension scheme had increased with each successive generation, according to the Pensions Landscape report. The proportion of young people starting private pension provision has fallen considerably over the last five years. The report found that only 33 per cent of people aged between ...

  • Rovers and out...

    20 Mar 2003

    At last Corrie's evil IFA Richard Hillman has done the decent thing and driven into the Weatherfield canal in what looked like a Metro, surely not a suitable car for an IFA, even a serial-murderer IFA, but what a shame that Gail got out. I suppose she looks so much like a fish that she must have felt in her element. Now the Hillman Imp has finally run out gas with a plot which would shame a Victorian melodrama perhaps we can get around to repairing the unfairly besmirched reputation ...

  • Royal Liver set for £17m deal to buy Park Row

    20 Mar 2003

    Friendly society Royal Liver is poised to snap up IFA group Park Row for £16.7m in a deal that moves the society firmly into the IFA arena. Park Row will keep its own name and operate as a stand-alone business, continuing to offer a multi-platform distribution model. Royal Liver says it has struck the deal to expand its distribution and product development in the IFA market in a move away from direct sales. It says it may look at further IFA investments. This is the second ...

  • S&P looks at rating pension funds

    20 Mar 2003

    Standard & Poor's is looking at giving financial strength ratings on occupational pension schemes which it says could make it easier for IFAs to advise on transfers. The international rating agency suggested the move at last week's National Association of Pension Funds conference in Edinburgh. It could look at asset allocation and exit penalties, much as with-profits fund ratings already do. Industry sources say the move could mean the FSA would have to change regulations ...

  • Sainsbury's builds on Sandler suite

    25 Mar 2003

    Sainsbury's Bank is building on the Sandler proposals by offering an income Isa that invests in the Halifax Investment Management corporate bond fund, which was established in September 2002.This Isa has a target yield of 5.75 per cent and has an annual management charge of 1 per cent. The majority of the underlying portfolio will be invested in corporate bonds rated BBB and above, although small amounts will also go into bonds below this.Corporate bonds, particularly ...

  • School of thought

    20 Mar 2003

    What can be done to improve consumer understanding of the need for protection and who should be leading the drive? Armstrong: All players in the industry - providers and advisers - need to work together on this. Providers can help by making products and marketing material easier for consumers to understand. The Raising Standards Quality Mark scheme has helped address some issues in this area. Expectation management in terms of claims is also important here to ensure that consumers ...

  • ScotMut helps IFAs target retirement market

    20 Mar 2003

    Scottish Mutual is redesigning its Complete Retirement package which is aimed at helping IFAs target the flexible retirement market for high-net-worth clients. The package consists of a range of tax-efficient products such as income drawdown and phased retirement aimed at higher-net-worth investors with £100,000-plus to invest. New additions to the package include the contemporary occupational withdrawal and the contemporary protected rights income-withdrawal plans. There ...

  • Scottish Mutual - Smoothed Investment Bond

    24 Mar 2003

    Monday, 24 March 2003Type: Unit-linked bondsAim: Income or growth by investing in corporate bonds and equitiesMinimum investment: Lump sum £5,000Fund links: Smoothed income fund, smoothed growth fundAllocation rates: £5,000-£29,999 - 100%, £30,000-£49,999 - 101%, £50,000-£99,999 - 101.5%, £100,000 and above - 102%Charges: Initial 1.3%, annual 0.85%Switches: Three free switches ...

  • SEI offers two ringfenced WP offshore funds

    20 Mar 2003

    Scottish Equitable Inter-national is offering two new ringfenced offshore with-profits funds available to investors through its Dublin investment portfolio. SEI says it is the first firm to offer a ringfenced offshore fund which meets the requirements stipulated under the Sandler review and FSA with-profits review for transparent charges and smoothed returns. The with-profits growth fund will invest primarily in equities, with the aim of providing long-term growth while smoothing ...

  • Self Trade offers portfolio service for IFAs

    20 Mar 2003

    E-broker Self Trade is rolling out a dealing service allowing IFAs to manage their clients' stock portfolios through a comprehensive execution-only share system. Currently only available to online banks, including Cahoot, the service allows advisers to deal online, access clients' trading histories and calculate fees. It will be aimed at fee-based IFAs with high-net-worth clients later this year. It also has a bulk dealing capability enabling IFAs to buy or sell a particular ...

  • Sending out the wrong message

    20 Mar 2003

    It is little wonder that equities continue to plumb the depths when those whose activities can determine the direction of a market are preaching one thing and yet doing another. How many seminars or presentations has anybody attended recently or how many articles have been read recently from fund management groups and life insurance companies to indicate the comparative value of equities, particularly with regard to the income being generated? How many of those institutions, particularly ...

  • Serious business

    20 Mar 2003

    Product providers have another two months to update their critical-illness products to meet the revised ABI statement of best practice. This involves changes to the definitions of cancer and heart attack and allows early-stage prostate cancer to be excluded in response to advancements in medical treatments and screening techniques. The change to the cancer definition is an attempt to move the benefit back to covering more serious conditions. As medical advancements continue, we are ...

  • Skandia wins battle of the supermarkets

    20 Mar 2003

    Skandia's fund supermarket is the most popular among IFAs, coming ahead of Fidelity's Funds Network, Cofunds and Selestia, according to the State of the IFA Nation poll. The survey found that 44 per cent of IFAs prefer Skandia compared with 29 per cent who opted for Funds Network and 26 per cent who chose Cofunds. Five per cent named Selestia, 2 per cent Transact and 1 per cent Sterling. Skandia says the result is recognition of its position as the creator of the fund supermarket ...

  • Smee's warning on PI for loan and general brokers

    20 Mar 2003

    The FSA's extension of mandatory professional indemnity insurance to up to 35,000 general insurance and mortgage intermediaries could stifle an already constricted PI market, Aifa has warned. Director general Paul Smee says he has serious concerns about the proposal outlined in CP174, published last week, to force advisers to have compulsory PI insurance once they become regulated by the FSA in late 2004 or early 2005. IFAs wanting to give mortgage or general insurance advice ...

  • Standard warns of 60% tax over lifetime limit

    20 Mar 2003

    People aged 30 who earn £41,000 a year will hit the £1.4m lifetime pension contribution limit when they retire unless it is linked to earnings and not prices, Standard Life has warned. The company says linking the limit to prices means that 5 per cent of male earners will be hit with 60 per cent tax under their current savings plans. Chancellor Gordon Brown is thought by some in the industry to be the driving force behind tying pension tax incentives to prices rather than ...

  • Suffering from paranoia or is it persecution?

    20 Mar 2003

    First, we have Howard Davies saying he does not think hindsight reviews are helpful either to the industry or the public. But then, the deadline for holders of low-cost endowments to claim that their policy was missold to them is mysteriously extended, presumably because rather fewer policyholders than certain people had been hoping had actually lodged a formal complaint within the original timeframe. Next, we have a new round of reprojections going out which, according to new parameters ...

  • T&G creates residential property trust for pensions

    25 Mar 2003

    Teather & Greenwood has created an exempt unit trust that enables self-invested personal pensions (Sipps) and small self-administered schemes (SSAS) to invest indirectly in residential property.Property Investment for Pensions will invest in a portfolio of around 250 furnished properties in London and the surrounding suburbs. These areas were chosen because rental yields tend to be higher than other regions and capital value is higher The properties will be let on short-term tenancies ...

  • Taking the risk Out of risk

    20 Mar 2003

    One of the inevitable trials of giving financial advice is that from time to time you come across clients who really need their heads testing. They will be unreasonable in their expectations, so how do you introduce a little more reality to their thinking? At the very least, you should be able to document fully that you have made it clear what it is reasonable for them to anticipate from their investments. Shortly, it will be possible to carry out tests on clients to address this situation. Ever

  • Talkback

    20 Mar 2003

    "Yes. The costs of both are too high anyway and for most small IFAs it will be another nail in the coffin." Geoffrey Hunt, Rickard Hunt & Co "No. I don't do mortgages or general insurance anyway but this will not change my views." Alan Flint, Alan Flint Insurance & Investment Consultant "No, because most of the mortgages I deal with are half a million-plus so, with the procuration fees, that sort of money does not bother me." Martin Richards, Martin Richards Financial ...

  • Tax - Optional?

    20 Mar 2003

    An interesting development occurred in a recent case heard by the Court of Appeal, Mansworth •Jelley, which, unfortunately, given the size of the sums involved, had no connection with me. In the case before the court, the taxpayer received share options from his employer company when he was not resident in the UK. Later, after he had become UK-resident, he exercised the options and sold the shares. Jelley argued that he did not make any capital gain in those circumstances for ...

  • Tax relief but little rate relief for Isa savers - IF

    24 Mar 2003

    Not one of the top ten paying instant mini-cash Isas launched in 1999 when the savings wrapper came to market remains in the top ten paying accounts today according to new research from Intelligent Finance.

  • Teather & Greenwood - Property Investment for Pensions Plc

    20 Mar 2003

    Thursday, 20 March 2003Type: Exempt unit trustAim: Growth by investing in London residential propertyMinimum investment: Lump sum £10,000Investment split: 100% in London residential propertyCharges: Initial 7.5 - 11%, annual 1.7 - 4.8%Commission: Initial 2.5%Tel: 020 7426 9583

  • Thames River Capital flows into emerging markets

    24 Mar 2003

    Thames River Capital has established the Thames River Topaz fund, a hedge fund that will invest in global emerging markets, including Russia, China and Mexico.The fund is structured as an Oeic and aims to produce capital growth by using a long and short equity strategy. Thames River Capital believes the volatility and inefficiencies within global emerging markets provide ideal investment opportunities for hedge funds. Ed Morse, director of sales at Thames River Capital, ...

  • The miles file

    20 Mar 2003

    April is the cruellest month, wrote TS Eliot in The Wasteland. It will certainly be a difficult time for thousands of savers who sank their savings into a generation of stockmarket-linked bonds with tempting headline rates of return. Four such products, now called precipice bonds by our friends at the FSA, reach maturity next month. Barring a last-minute rally of spectacular strength, capital losses are pretty much a foregone conclusion on the quartet of bonds and Peps from NDF,GE ...

  • The project process

    20 Mar 2003

    Our research, called The Focus Quotient, indicates that 2003 will be a strong year for the adoption of e-commerce in the life and pensions market. This study of key providers forecasts that as much as 60 per cent of new business could be processed electronically by the end of the year. The rash of new regulations and draft legislation such as the Government's Pensions Green Paper will put pressure on providers to cut costs, reduce margins and make charges more transparent. Providers ...

  • The search for PI

    20 Mar 2003

    These are trying times for IFAs. The current high-profile debate about the failure of split-capital trusts, the poor performance of pensions and stockmarket investments has contributed to what is fast becoming a national crisis of confidence in the financial services industry. Sadly, by the very nature of our jobs, IFAs are right in the front line. But it is not just clients who have lost confidence in the products we sell. Another important stakeholder group now also views IFAs with ...

  • This year's model

    20 Mar 2003

    The final nail has been well and truly hammered into the coffin on polarisation with the publication of CP166. Yet, while a depolarised world undoubtedly offers many opportunities for IFAs, providers and customers, it brings developments that have already attracted criticism. But the changes are positive for IFAs. A year ago, there was real uncertainty and the prospect of the IFA disappearing almost completely. The only survivors bearing the name independent would be the minority ...

  • Top ten original mini cash Isas have fallen from grace says IF

    24 Mar 2003

    Not one of the top ten paying instant mini-cash Isas launched in 1999 when the savings wrapper came to market remains in the top ten paying accounts today according to new research from Intelligent Finance.

  • Tories bring in plans for patient's passport

    20 Mar 2003

    Patients would be encouraged to seek treatment from private medical insurers and self-pay providers under Conservative proposals aimed at fundamentally reforming the NHS. The idea of a patient's passport was outlined by Shadow health minister Dr Liam Fox at the Tory Party's spring conference in Harrogate last weekend. The proposal is initially to enable patients to go to another NHS provider if their local provider is not competitive but would then be extended to the private ...

  • Towers of London - Enterprise Investment Scheme

    21 Mar 2003

    Friday, 21 March 2003Aim: Growth by investing in the development and production of filmsMinimum investment: Lump sum £2,000Opening/closing date: December 17, 2002/April 5, 2003 Charges: Initial up to 6%Commission: Initial 2.5%Tel: 020 7917 9444

  • Vauxhall puts the brakes on pension transfers

    20 Mar 2003

    Vauxhall Motors is the latest blue-chip employer to lock final-salary members into its underfunded pension scheme, raising IFA fears of a trend developing where trustees of schemes of well established companies refuse transfer valuations. A subsidiary of General Motors, Vauxhall is relying on Opra's decision to allow schemes to defer transfers until new rules come in that will allow lower valuations. The move will trap 15,000 members in the £1.3bn fund. Opra says trustees ...

  • Waiver-thin reassurance for investors

    20 Mar 2003

    The FSA has admitted that with-profits offices are finding its current solvency requirements "problematical" and has sent out letters encouraging the take-up of solvency waivers. As a measure of the seriousness of the situation, the FSA is suspending its usual consultation process to move quickly to a new regime and allow life companies to apply for four different kinds of solvency waiver. Waivers are available for how the companies calculate mathematical reserves, to allow shareholder ...

  • War threat takes toll on house price confidence

    20 Mar 2003

    Uncertainty over possible war with Iraq took its toll on house price confidence last month despite the recent 0.25 per cent cut in base rate, according to the Woolwich. Its consumer confidence research for February found that 55 per cent of the 1,000 people questioned believe house prices will fall compared with 53 per cent in January. Confidence in the housing market has been falling since a peak of 68 per cent in May last year, which Woolwich says suggests that the public are ...

  • Widows and City firms pump £12.5m into Inter-Alliance

    20 Mar 2003

    IFA group Inter-Alliance is set to get £12.5m-worth of funding from Scottish Widows and a group of City institutions. Scottish Widows is planning to invest £4.3m in the group, taking a 9.87 per cent stake in the business, pricing the company at £43m. It is the fourth product provider to invest in the group and follows in the footsteps of Norwich Union, which holds a 6.04 per cent stake, Friends Provident with 3.5 per cent and Skandia with 2.25 per cent. City ...

  • Widows site offers pension tools

    20 Mar 2003

    Scottish Widows is increas-ing its support for IFAs targeting the pension market with a pension tools website that gives illustrations of tax savings and retirement planning opportunities. The facility has two main elements - how to save more efficiently for retirement and tax and pension planning for directors. The retirement saving tool includes a third party, Isa and pension and basis year calculator. The director's tax planning calculator covers salary sacrifice and bonus ...

  • You can't softsoap the public

    20 Mar 2003

    When you buy a soap powder, there is very little commitment to the product you are buying. Provided it washes your clothes effectively and without damaging them, you will probably be satisfied with your purchase and are quite likely to buy the same brand again when it has run out. But if, when you go to buy it again, you find that it is not available, you may be mildly disappointed but will buy another brand without a great deal of concern. When it comes to investment, by contrast, ...

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