Money Marketing
19 May 2004

  • 'Adviser stole £279k and then murdered pensioner'

    20 May 2004

    Worcester financial adviser Peter Crittenden is standing trial on charges of murdering pensioner Joan Beddeson after stealing £279,00 from her. Crittenden, 64, who worked for Young Ridgeway & Associates, is on trial at Chester Crown Court. He denies the charges. He was appointed financial adviser to Beddeson, 71, after she saw a newspaper ad. Crittenden is alleged to have seduced Beddeson and then persuaded her to sell her investments, transferring the cash into ...

  • 'Flats not the answer to housing problem'

    20 May 2004

    However, Savills' report states that development in sustainable communities needs to be based on a mix of housing types and tenures which are co-existent with local requirements. The report also emphasises that flats do not work regionally everywhere. It states that in many suburban, semi-rural and rural areas, the high-density app-roach is inappropriate as demand for the end product can be limited. Residential researcher Richard Donnell says: "Creating high-density ...

  • 'Sipp step towards buy-to-let regulation'

    20 May 2004

    Charcol senior technical director Ray Boulger says the Government's decision to allow buy-to-let mortgages to sit in a Sipp could be the first step towards the product being fully regulated. Boulger told Money Marketing this week that he believes the FSA has made it clear it thinks BTL should be regulated and he thinks allowing BTL loans in a Sipp could be a "back-door way" of bringing them under FSA rule. He says: "The situation will be very interesting if buy to ...

  • 'There may be trouble ahead'

    20 May 2004

    Charcol senior technical director Ray Boulger wants the FSA to decide as soon as possible which mortgage networks it plans to authorise to ensure that brokers have the widest choice over the best set-up for them to join. Speaking to Money Marketing about the issues facing the mortgage industry in advance of regulation at the end of October, Boulger warns that unless the FSA sends minded to authorise letters to all networks at the same time, some networks would be placed at an ...

  • £400m for collapsed occupational schemes

    20 May 2004

    The Government has agreed to pay £400m to workers who have lost some or all their pensions in collapsed occupational schemes. Work and Pensions Secretary Andrew Smith says the money will help victims of the occupational pension debacle which has seen about 60,000 workers lose pension benefits. Industry experts say the money, which works out at £6,666 a head, will not meet all workers' losses although the DWP hopes that the financial services industry will contribute. The ...

  • 57% of investors put their money into Isas

    20 May 2004

    Fifty-seven per cent of investors took out an Isa in the last tax year, the highest number since the tax wrapper's introduction in 1999, compared with 52 per cent in 2002, according to the IMA. The most common Isa investment remains the mini Isa. Although the cash component is still favoured by respondents, the stocks and shares option recorded 36 per cent compared with 28 per cent in 2002. The IMA says this could be seen as a good indication that investors' confidence ...

  • A consumer's view

    20 May 2004

    There are times when it pays to beat your breast, repeat mea culpa at least three times, and say sorry. Paul Smee, director general of the Association of Independent Financial Advisers, would have done well to remind himself of this before he faced the pitbull terriers who sit on the Treasury select committee, which is reviewing the difficult task of how to restore confidence in the long-term savings industry. Instead of admitting that some IFAs have been less than diligent, particularly ...

  • Abbey for Intermediaries urges caution on S32s

    25 May 2004

    Extreme care is needed when selecting Section 32 contracts to preserve tax-free cash entitlement in the run up to 6 April 2006 says Abbey for intermediaries. Unless the individual has opted for protection against the lifetime allowance charge, and their tax-free cash entitlement at A-day exceeds £375,000, the protection for the tax-free cash entitlement is lost if benefits are not fully vested, says Abbey.Abbey says this can be avoided by transferring before A-day ...

  • Abbey to raise Pegasus CI rates

    20 May 2004

    Abbey for Intermediaries says it will increase critical-illness premium rates for Pegasus whole-of-life contracts. Abbey is writing to IFAs this week to tell them that the new rates start in May 23. Average increase for new maximum cover cases with CI will be 23 per cent and 28 per cent for new standard cover cases. Life cover rates will not alter other than a small percentage change because of the 1 per cent reduction in growth rate. Abbey for Intermediaries ...

  • Acquisitions start to pay off for New Star

    19 May 2004

    New Star made an operating profit of £10.6m in the year to December 2003 as its acquisition programme began to pay dividends ahead of a planned flotation in the Autumn. The company, which made a loss of £9.2m in 2002, saw turnover more than double to £45.9m, which it attributes to its recent purchases, organic growth and strong equity markets. New Star is expected to be valued at as much as £400m at flotation.

  • Aegon aims for 5% share with IFA merger

    20 May 2004

    Origen chief executive Gareth Marr (pictured above left) and chairman Peter Dornan (right) now lead an IFA formed from the consolidation of the five firms wholly owned by Aegon - Advisory & Brokerage Services, Wentworth Rose, Aurora Financial Group, Momentum Financial Services and Elliott Bayley. The new 200-RI firm has aggressive expansion plans to win a 5 per cent market share of the IFA sector and nearly triple turnover to £90m by 2008. Aegon believes the firm will ...

  • Aegon merges five IFAs

    20 May 2004

    Aegon UK is bringing together its five wholly-owned IFAs into a single firm called Origen aiming for 5 per cent market share within four years. The move sees familiar IFA names Advisory & Brokerage Services, Wentworth Rose, Aurora Financial Group, Momentum Financial Services and Elliott Bayley merge into a single 200-RI operation. The new brand will be marketed nationally as an independent advice proposition, with an Origen online execution-only operation being developed. Or

  • Ailo move over cash laundering standards

    20 May 2004

    The Association of International Life Offices is planning to set up minimum standards on anti-money-laundering measures to stop competition on compliance between members. Ailo says the new standards are designed to protect against the reputational risk to the offshore industry of members competing on the basis of which jurisdiction or provider has the lightest-touch anti-money laundering regime. The initiative will also standardise procedures, making it easier for IFAs ...

  • Aitchison & Colegrave confident about future growth

    19 May 2004

    Aitchison & Colegrave director Brian Aitchison says he is confident about future growth of the IFA even with the news that it is to be sold by B&B.Aitchison says he did not expect this course of action from B&B but can understand the reasons for the change in group strategy.He says: "I want to be absolutely clear that we had and still have ambitious growth plans and we're certain we will be an attractive acquisition.""Our priority is to keep running Aitchison ...

  • Amber HomeLoans - Feather Adverse Full Status Discount

    21 May 2004

    Type: Discounted rate adverse credit mortgageDiscounted term: Until July 31, 2006Discount: 2.75%Minimum loan: £25,000Maximum loan: Up to 90% of valuation subject to a maximum of £500,000Income multiples: Up to 3.5 times principal income plus second or 2.75 times jointConditions: Maximum £200,000 CCJsArrangement fee: NoneRedemption fee: 3% of original loan until July 31, ...

  • Amber HomeLoans - Medium Adverse Full Status Discount

    20 May 2004

    Type: Discounted rate adverse credit mortgageDiscount: 1.75%Discounted term: Until July 31, 2006Payable rate: 5.34%Minimum loan: £25,000Maximum loan: Up to 85% of valuation subject to a maximum of £500,000Income multiples: Up to 3.5 times principal income plus second or 2.75 times jointConditions: Capital repayments of up to 10% a year allowed without penaly, maximum of £10,000 CCJs, ...

  • Automated valuations could cut life office phone calls by 40%

    20 May 2004

    Delivering automated valuations could lead to life and pension providers cutting the volume of inbound phone calls by an average of 40 per cent by the end of 2005, according to research. The research, carried out by the Financial Technology Research Centre on behalf of Advisor Forum, shows that delivering information on the value of existing contracts electronically to advisers' client management systems would reduce the call volume. The research examines the percentage ...

  • B&B to create first high street multi-tie

    19 May 2004

    Bradford & Bingley has announced plans to multi-tie its Marketplace franchise, which would result in the creation of the first high street multi-tied operation.The results of a strategic review revealed today see it multi-tying its 740 in-house IFAs which sit under the Marketplace brand in its branches while it will seek to sell its subsidiary IFA operations - Charcol, Charcol Holden Meehan and Charcol Aitchison & Colegrave. B&B will be refocusing and growing its branch-based ...

  • B&B to focus on core lending business

    19 May 2004

    Bradford & Bingley announced today as part of its strategic review that it is to focus on its specialist lending business Mortgage Express and on its own-brand residential, commercial and housing association lending.Group chief executive Steven Crawshaw says: "Bradford & Bingley will simplify, clarify and continue to build upon its core propositions of specialist lending and the retailing of financial services products on the high street. The actions we are taking will allow increased ...

  • B&B to sell IFAs

    19 May 2004

    Bradford & Bingley has announced that it is to focus on its core lending business, which will involve the sale of its advisor arms, Charcol, Charcol Aitchison & Colegrave and Charcol Holden Meehan by the end of the year.It will also be selling its estate agency businesses, but will be retaining The MarketPlace, which will move from full advice to a multi-tied operation.

  • Bank says house price rises will ease in long term

    20 May 2004

    House price inflation will slow sharply in the next two years, according to the latest inflation report from the Bank of England. The report says the factors which keep the housing market buoyant are subject to great uncertainty. Although there are reasons to suppose the ratio of house prices to earnings might remain higher than in the past, it is hard to believe it can account for the full extent of recent rises. It concludes that house prices are likely to rise more ...

  • Calling the tune

    20 May 2004

    This month's award for the most musically gifted PR goes to Lansons' Richard Winder, headlining the Diary's new fave band Numbernine. Winder's tunes packed out the famed Betsey Trotwood in Clerkenwell, even managing a D-List celebrity turnout which included half the cast of The Bill. A special mention also goes to Liz Willder for excellence in the field of phone retrieval for hiking from bar to bar all over Farringdon to find the Diary's phone. Thanks, Liz.

  • Chelsea Building Society - Three Year Fee Free Discount

    20 May 2004

    Type: Discounted rate mortgageDiscount: 1.5%Discounted term: Three yearsPayable rate: 4.74%Minimum loan: £25,000Maximum loan: Up to 95% of valuation subject to a maximum of £1mIncome multiples: Up to 95% of valuation - up to 3.5 times principal income plus second or 2.75 times joint, up to 90% of valuation - up to 3.75 times principal income plus second or 2.8 times joint, up to 75% of ...

  • Churchill quits Zurich to be Pension Protection Fund chairman

    20 May 2004

    Outgoing Zurich Financial Services UK, Ireland and Inter-national life chief executive Lawrence Churchill has been confirmed as the first chairman of the Pension Protection Fund. Churchill resigned from Zurich last week after 18 months. He joined the company in 2002 from Unum Provident. The Government had been looking for an industry big hitter to head the PPF. The fund has already faced criticism for plans to charge schemes a flat rate regardless of their deficits in ...

  • Citibank widens advisory service and fund range

    20 May 2004

    Citibank is expanding its UK investment advisory service to include in-house investment advice and a broader range of equity funds. The Citibank UK Investment Advisory Service includes access to JP Morgan Fleming Asset Management's Isa and Oeic range. The service provides financial reviews and investment recommendations tailored to customers' needs. It is available to Citibank customers with a minimum of £10,000 to invest. Products already available on customers' ...

  • CML predicts housing market trends and interest rates

    19 May 2004

    Speaking at the Mortgage Business Expo in Manchester today, the Council of Mortgage Lenders senior economist Jennet Vass said she expects interest rates to rise to five and a half per cent by the end of the year.Vass said the predicted rises would cause a gentle slowdown in the housing market and the CML expected house price percentage increases to be in double figures by the end of the year. She added that she did not think the market was in a "boom-bust" situation at the moment.

  • Colin Snowdon

    20 May 2004

    T he hardest part about setting up a new business is name awareness, believes Freedom Finance managing director Colin Snowdon. In Freedom, he believes he has a proposition which is set to make waves in the sub-prime mortgage industry. Snowdon has been a mainstay of the mortgage industry for almost 20 years and has made a career of successfully launching mortgage businesses. Since leaving university in Birmingham, he has worked in banking or financial services, starting as a graduate ...

  • Confidence rises in long-term savings

    20 May 2004

    People are becoming more willing to invest in long-term savings products, according to an ABI survey. It believes the figures show a marked improvement in the number of people looking at long-term savings, with 33 per cent saying they would invest spare cash in savings, up from 26 per cent in September 2003. The survey also shows that trust in Government pension policy is edging up, with 20 per cent saying they either trust a great deal or tend to trust the Government, ...

  • Correspondent's week

    20 May 2004

    Monday is jobs' day. By that, I mean that the day has been set aside in my diary as time to discuss, commission and edit features and news articles to appear in the work section of Jobs & Money. It is not personal finance although it has lots of cross-over with the money section and we often tackle money issues that send workers into a blind panic. I am thinking here of pensions. Lunch arrives and breaks my train of thought. A meeting with an actuary, which is ...

  • Demand for BTL staying strong

    20 May 2004

    Mortgage Express has rel-eased its latest buy-to-let confidence report which indicates that demand remains strong and void periods - periods without tenants - continue to be low. The report shows that 45 per cent of respondents believe rental dem-and is increasing and 40 per cent say it will remain the same. Further evidence to suggest that rental demand is increasing is shown in the majority of respondents indicating that void periods were not a major issue. Only ...

  • Elms urges advisers to recognise IFAP's value

    20 May 2004

    IFA Promotion chief executive David Elms is telling IFAs they should prepare to pay more for its services, saying it is time they started recognising the value that being registered with IFAP brings to their businesses. Elms also believes Aifa should be fully funded by its members. He says the only way Aifa can be truly independent as a trade body is if it breaks financial ties with product providers. Between 80 per cent and 90 per cent of Aifa's funding comes from ...

  • Employer shift to DB schemes gathers pace

    20 May 2004

    The number of defined-benefit pension schemes closed or restricted to new staff has doubled in the past two years, according to JP Morgan Fleming. The JP Morgan Fleming annual defined-contribution survey reinforces the increasing trend for companies to move away from DB to definedcontribution schemes, with 60 per cent of respondents from the top 350 schemes now having a DC scheme in place. However, 79 per cent of those surveyed continuing to offer a DB scheme have no ...

  • Equitable chief calls on Parliamentary Ombudsman to re-open inquiry

    19 May 2004

    Equitable Life chairman Vanni Treves today called on the Parliamentary Ombudsman to reopen an inquiry into the stricken society saying she must now investigate regulatory maladministration.Speaking at the society's annual meeting in London, Treves described Lord Penrose's report as a "litany of failure by the regulatory regime and former management."Treves said: "The moral case for an investigation is compelling. Penrose has provided Ann Abraham with the necessary ...

  • Equitable's Treves lashes out at EMAG

    19 May 2004

    Equitable chairman Vanni Treves has launched an attack on the leadership of the Equitable Members Action Group, describing it as "vindictive and untrustwrothy".The attack came at the AGM where members voted 79 per cent against EMAG's resolution calling for a £2m fighting fund to sue the Government.Treves said: "EMAG, through its leadership, has been volatile, vicious and vindicvtive. Bluntly, we regard the leadership as untrustworthy and unreliable."

  • Euro research says only one client in 1,000 will pay fees

    20 May 2004

    Only one client in 1,000 is prepared to pay a fee for financial advice, according to research carried out by the European Federation of Financial Advisers and Financial Intermediaries, the European equivalent of Aifa The EU-wide research found that just 39 per cent of clients surveyed would insist on full disclosure of the commission received by their adviser. The remaining sixty-one per cent are not concerned about what the intermediary is getting. Federation secretary general ...

  • Excise in summit talks to decide network VAT

    20 May 2004

    HM Customs and Excise is holding crisis talks with the Treasury, the FSA and senior financial industry figures to hammer out its policy on the Vat treatment of network member charges. The summit meeting follows a move from Customs to force one small network to pay Vat on its member charges. Following an appeal, the network directors have been assured by Customs and Excise that their business has not been singled out for scrutiny and the rest of the industry should expect ...

  • Fair funding for crashed pensions

    20 May 2004

    It doesn't matter what sort of Cabinet infighting led the Government to decide to help fund the pensions of those facing poverty because of scheme wind-ups. Those affected are now being looked after to some degree although £400m is not a lot of money and the Government is looking to companies and providers to cough up more. But with what justification? It is asking a disparate group of people, say, shareholders in Marks & Spencer and the policyholders of Norwich Union, ...

  • Fidelity to enter CTF market

    25 May 2004

    Fidelity will enter the child trust fund market as soon as the scheme is launched next year. The group says it will launch both a CTF which meets the Government's stakeholder requirements and one which will go beyond these specifications through supermarket FundsNetwork. Parents will have the choice of 900 funds from 55 providers, all managed online.

  • Former Charcol boss not surprised by the sale

    19 May 2004

    Former Charcol head Toby Strauss says he is not surprised to hear that Bradford & Bingley is to sell its non-core IFA businesses.Strauss, who is now chief executive of investment IFA John Scott & Partners, says it makes sense for B&B to streamline its business. He says the market for those looking to buy IFAs may not be as buoyant as it was two to three years ago, but that the bank will likely not struggle to find a buyer.He says: "I think the market for IFA businesses ...

  • FOS staff bonus scheme does not inspire confidence

    20 May 2004

    I am sure we all read with amazement your report on April 15 that the Financial Ombudsman Scheme pays its staff a bonus as part of their remuneration package, and that many of the 600 adjudicators come from a financial services background and are, therefore, used to the idea of targets. It would be of interest to all of us to know the content and structure of the bonus system and whether the payment will be for cases completed or the amount of assessed awards. Was this ...

  • Four more for LIA board

    21 May 2004

    The LIA has appointed four more members to its Board of Directors. Mark Ommanney, John Ellis, Andrew Clarke and Peter Williams have joined the Board as Director General, Public Affairs Director, Finance Director and Director respectively.The move takes the number of Board Members from eight to 12 and is designed to strengthen the LIA's drive to become a professional association.The Board has elected Roger O'Brart as the new Vice President.Further appointments ...

  • Friends CPPI bond offers ethical link

    20 May 2004

    Friends Provident is setting up a CPPI ethical fund with the equity component linked to its flagship Stewardship growth portfolio in a bid to attract disgruntled with-profits policyholders. The Stewardship safeguard optimiser fund will be available through Friends' investment portfolio bond from June. It will be comprised of cash and the £545m growth fund, one of the oldest ethical portfolios. As a CPPI fund, optimiser's cash/ equity blend will be adjusted daily through ...

  • FSA introduces new rule on endowment complaint time-barring

    25 May 2004

    The FSA is changing its rules to require firms explicitly to warn endowment policyholders who have a high risk of shortfall of the date that their right to make a complaint about the sale of the policy expires.Endowment policyholders have three years to complain once they have received their first 'red letter' notifying them that their policy is running a high risk that it will not pay out the target amount at the end of the term.The revised rules will require firms ...

  • FSCS announces Interim Chief Executive

    24 May 2004

    The Financial Services Compensation Scheme has announced the appointment of Ron Devlin, OBE, as interim chief executive, following the departure of Suzanne McCarthy at the end of May. Devlin joined the FSCS in February 2001 as a senior adviser providing advice and support to the investment claims teams and undertaking projects for the chief executive. Prior to this, Devlin was director of pensions at the FSA. McCarthy will become chief executive of the Office of Rail Regulation ...

  • GE Life revamps home-reversion scheme

    20 May 2004

    GE Life has redesigned its home-reversion plan in response to increasing demands from the equity-release market. The equity-release income plan is sold through IFAs. It offers enhanced rates for impaired lives, variable income options linked to property prices and a cash lump sum as well as income. The relaunch coincides with the Treasury's decision last week to regulate the reversion market, which GE Life expects will raise standards in the sector as well as protect ...

  • Gender for change

    20 May 2004

    The House of Lords’ EU sub-committee on social policy and consumer affairs has announced details of an inquiry on EU proposals prohibiting the use of gender criteria in determining prices for products such as car insurance, pensions and annuities.Individuals and organisations such as independent financial advisers are invited to submit written evidence to the inquiry on the proposals for an EU council directive implementing the principle of equal treatment between women ...

  • Genesis Home Loans - Apollo 1

    19 May 2004

    Type: Discounted rate adverse credit tracker mortgageDiscount: 1%Discounted term: Six monthsPayable rate: 5.1%Tracker term: Lifetime of loanTracker rate: 1.85% above Bank of England base rateMinimum loan:£25,001Maximum loan: Up to 90% of valuation subject to a maximum of £200,000, up to 85% of valuation subject to a maximum of £250,000Income multiples: Up to 90% of ...

  • Glass act

    20 May 2004

    The editor of this august organ is renowned throughout financial services as an award-losing journalist and the Diary must bring the sad news to the world that he has done it again. Some two years ago, this foolish curly-mopped fellow turned up at the office with a bag full of shards of glass that had once been the beautiful cut-glass vase that is an ABI award (team award obviously, not individual, readers, please note). His dubious plea was that the paper bag he had ...

  • Group protection offer from Unum

    19 May 2004

    UnumProvident has launched a new product in its group protection product range called Capital Option. The product pays income benefits for an incapacitated employee for two, three or five years. It also will provide a lump sum to an employer to, for example, enhance a pension if an employee is unable to return to work and must retire prematurely.

  • Gunning for business

    20 May 2004

    This week, I would like to offer my heartfelt thanks to those friendly hordes of Spurs fans who so generously opened their hearts and wallets to us Gooners as we waited to enter the pantheon of the modern game that is White Hart Lane. As we queued to file into the Park Lane end, my family made a total of £3.20 in coins that were thrown to us (surely not at us) by our rivals. These funds were no doubt contributed to a celebratory drink or two after the game. We gathered ...

  • Halifax marks start of National Empty Homes Week

    25 May 2004

    Research by Halifax shows there are about 860,000 empty homes in the UK, which equates to 3.4 per cent of the total dwelling stock.National Empty Homes Week runs from May 24 to 28 and Halifax is marking it by extending the offer of its no fee one per cent cashback mortgage.The one per cent cashback will help homebuyers to reduce the costs of bringing an empty property back into the housing stock.Halifax group economist Tim Crawford says: "Empty homes and urban ...

  • Holden Meehan keen for B&B to find buyer

    19 May 2004

    Charcol Holden Meehan director Amanda Davidson says the sooner Bradford & Bingley finds a buyer for the IFA the better.Davidson says she is surprised B&B has decided to sell its subsidiaries given that it only acquired Holden Meehan 12 months ago. But she admits the company was never part of B&B's core activities and understands why the IFA is no longer part of its plans.She says: "It will be wait and see with regard to whether we will be sold with the other IFAs but ...

  • Hugh Stevenson appointed to FSA board

    21 May 2004

    Hugh Stevenson has been appointed by the Treasury a non-executive director of the FSA board for a three-year term.Hugh Stevenson is currently the chairman of Equitas and Merchant Trust. He begins his term on the FSA board on June 1st 2004.Financial secretary Ruth Kelly says: "Hugh Stevenson's experience as a practitioner in investment banking, fund management and insurance will prove invaluable to the board, particularly when the FSA takes on its new role of regulating the general ...

  • IFA edge: Garry Heath

    20 May 2004

    The demise of the small IFA has been trumpeted each year since regulation was envisaged. Those doing the predicting have mostly involved themselves in a mixture of pessimism and wishful thinking. Regulators and product providers instinctively prefer the idea of a market with a smaller number of bigger traders, which they believe would be easier to service and control. Few of these have really thought through the long-term consequences of rationalising the industry's pluralist ...

  • IFA edge: Ken Davy

    20 May 2004

    On reading his obituary, Mark Twain is said to have remarked that news of his death had been greatly exaggerated. Given the number of times that IFAs, particularly small firms, have been told that they are dead and buried, I think they could rightly express the same sentiment. But while there are real challenges which need to be addressed - polarisation, PI and technology being but three - IFAs in general and smaller firms in particular have tremendous opportunities before them. What ...

  • IFAs back Selestia move to find with-profits truth

    20 May 2004

    Fund supermarket Selestia is launching a campaign backed by several prominent IFAs aimed at forcing product providers to be more transparent when promoting their with-profits funds. Firms including Syndaxi Financial Planning and PI Financial are throwing their weight behind Selestia's Tell Us The Truth campaign, which wants providers to reveal how they calculate their policies' MVRs and terminal bonuses. In particular, they want an explanation for the "bizarre situation" ...

  • IFAs fear FSA plot to usher in fee-fixing

    20 May 2004

    The FSA may continue to advocate fees over commission but its latest move to force an IFA to lower its fees has prompted intermediaries to call for an investigation from the Office of Fair Trading. As reported in last week's edition, Money Marketing understands that an IFA firm in London has been told it is charging too much following a visit by the FSA. The regulator cited its conduct of business rules. It is understood that the adviser is appealing against the decision ...

  • IFAs in pilot scheme to give advice via bureaux

    20 May 2004

    The Citizens' Advice Bureau service is teaming up with IFAs to give generic financial advice to consumers. IFAs will work in collaboration with nine bureaux to provide clients with independent and impartial advice. The CAB says, despite the fact that individuals on lower and middle incomes are often most in need of good financial advice, many are reluctant to use advisers because of their inability to afford financial products and a lack of trust. It is aiming ...

  • Independent view

    20 May 2004

    I recently had an intensive conversation about depolarisation with one of my IFA colleagues. My argument was that with the advent of depolarisation and the introduction of multi-ties, there will be a blurring of the distinction between an independent financial adviser and what used to be a tied agent. I argued that the tied agent will disappear because of strategic links between companies. We can see that already happen with some companies. I believe that most of the tied agents ...

  • Industry asked to contribute to package

    20 May 2004

    The financial services industry is being asked to contribute to an assistance package for the estimated 60,000 workers in collapsed occupational pension schemes who have lost benefits. Industry experts have predicted that compensating the workers will cost far more than the £400m that the Government has agreed to pay. Work and Pensions Secretary Andrew Smith has called on the pension industry to help resolve the problem although he did not make clear whether financial ...

  • Invesco VCT targets Aim-listed firms

    19 May 2004

    Invesco Perpetual is launching a £40m venture capital trust investing in AIM-listed companies in a bid to exploit the Government's latest tax breaks. The VCT, sponsored by Noble & Company, will be managed by a team headed by Andy Crossley and Richard Smith. It is expected to open in mid-June at an offer price of 100p and close at the end of July. The minimum investment is £2,000.

  • Investec recruits four to boost fixed-income team

    20 May 2004

    Investec Asset Manage-ment has made four key appointments to boost its fixed-income capability. The strengthened team, now with 25 people, is one of the biggest fixed-income teams in the retail market, with responsibility for more than £11bn in fixed-interest assets. John Stopford, the driving force behind Investec's South African fixed income business, is now heading the UK fixedincome team and driving the investment process and client returns. He also ...

  • Investment analysis

    20 May 2004

    Concerns over inflation, the prospect of the first US interest rate rise for nearly five years as well as a further rise in oil prices resulted in a sharp fall for world equity markets last week. By Friday's close the FTSE World index was trading 1.9 per cent lower, having fallen by 2.8 per cent since the start of the year. In the UK, economic data was mixed, with an encouraging set of employment numbers cancelled out by slightly disappointing manufacturing data. The Bank of ...

  • Investment view

    20 May 2004

    With Europe expanded to include emerging nations from the Eastern fringes, should we once more be looking at a pan-European approach to stock selection? The reality is that many companies now operate in a diversity of European markets but still retain their primary listings in their country of origin. This makes a difference. While there are plenty of cross-border funds, it is the underlying nature of the domestic investor that can make a difference in how shares are rated. In ...

  • Isis Asset Management - Aim VCT 2

    21 May 2004

    Type: Venture capital trustAim: Growth by investing in companies listed on the Alternative investment marketMinimum investment: Lump sum £1,000Closing date: November 30, 2004 Charges: Annual 2%Commission: Initial 3%Tel: 08457 99 22 99

  • JOHCM explores Japan

    25 May 2004

    J O Hambro Capital Management has established the JOHCM Japan Fund, a Dublin-domiciled Oeic that invests in between 40 and 60 Japanese stocks.The Fund is benchmarked against the Japanese Topix index, although the fund manager, Scott McGlashan is not bound tightly to this.McGlashan has almost 30 years' experience in fund management, including 23 years specialising in the Japanese market. He joined JOHCM earlier this year after almost four years at Jade Absolute, which ...

  • Julian Gibbs

    20 May 2004

    I believe Scott McGlashan is the best Japanese fund manager of all. JO Hambro has hired him to run its new Japan Oeic and, like the other JO Hambro fund managers, he has a share in the equity and the performance fee as well as investing his own money in the fund. He has over 23 years experience of managing Japanese equities and, while at Invesco Perpetual from 1988/99, his fund was up by 105 per cent at a time when the Japan Topix index was down by 22 per cent. McGlashan ...

  • L&G launches pension transfer CD Rom for IFAs

    24 May 2004

    Legal & General is launching a CD Rom designed to make life easier for IFAs doing pension transfers. It includes product information, competitor information, transfer analysis and marketing support data.

  • Lockyer and Achilles quit Inter-Alliance

    20 May 2004

    Two executive directors have resigned from Inter-Alliance in the aftermath of the collapsed merger negotiations between the national IFA and Berkeley Berry Birch. Distribution director Phil Lockyer and technology director Mike Achilles, Inter-Alliance's longest-serving executive board member, left by mutual agreement last week. It is believed their departure was prompted by the composition of the post-merger board, on which they had not been allocated roles. Inter-Alliance, ...

  • Losing one's balance

    20 May 2004

    James Brown has run his limited company for five years and now wishes to sell it and enjoy retirement. While there are a number of potential buyers, his professional advisers have warned that there are some financial planning issues he needs to address before the sale goes ahead. Specifically, Brown needs to plan the possible extraction of a cash balance of around £200,000 as this could be potentially offputting for purchasers If only Brown could hold on a little longer, ...

  • Man link hedges Closer

    24 May 2004

    CLOSE FUND MANAGEMENTClose Man Hedge FundType: Capital-protected fund of hedge funds Aim: Growth linked to the performance of a portfolio of hedge funds Minimum-maximum investment: Lump sum £10,000 Investment split: 100% in hedge funds Term: Eight years and six months Return: 13%-15% growth a year Guarantee: Original capital returned in full regardless of performance of under- lying investments ...

  • Mark Chilton on Mortgages

    20 May 2004

    When you next find yourself browsing the bookshelves at the airport before jetting off to enjoy the last spoils of the pre-FSA regime, let me suggest an excellent piece of poolside reading - The Da Vinci Code. This book weaves a fascinating tale from the challenging idea that Jesus had a child with Mary Magdalene, whose descendants live today. Whether or not you are a practising Christian, the idea that this formed the basis of a long-term persecution of the fairer sex by the ...

  • Marr and Dornan take lead roles as Johnston leaves

    20 May 2004

    Aegon's decision to bring its IFA businesses together to form Origen heralds significant changes for the management of the five brands. Advisory & Brokerage chief executive Gareth Marr is becoming chief executive of the newly formed company and Aegon UK Distribution managing director Peter Dornan, who has overseen the purchase of the five IFA businesses for Aegon, will chair Origen. Aurora chairman and chief executive David Taplin is to be managing director, business ...

  • Matrix Money Management - Matrix Ascension Plan

    24 May 2004

    Type: Capital-protected hedge fundAim: Growth linked to the performance of the Winton Futures FundMinimum investment: Lump sum £5,000Investment split: 40% equities, 40% bonds, 20% futuresPlace of registration: BermudaTerm: Seven yearsReturn: 100% growth in the performance of the Winton Futures FundGuarantee: 96% of original capital returned at end of term regardless of performance of underlying ...

  • MEP's call to arms on PI

    20 May 2004

    Directives from Brussels are causing professional indemnity insurance problems for IFAs and Labour MEP Peter Skinner says lobbying should be centred on this issue. IFA firms carrying out both insurance and investment business will be hit with PI requirements stemming from the insurance mediation directive in January and the investment services directive in April 2006. This means firms will need to have £1.5m of PI cover in place if they are to continue trading. Skinner says: ...

  • Merril chief Jones moves to Fidelity

    19 May 2004

    Fidelity has appointed former Merrill Lynch managing director Michael Jones as executive director responsible for its UK bank, insurance and asset manager channels. Jones, who was in charge of Merrill's UK third party and retail businesses until earlier this year, joins Fidelity's Financial Institutions Group in mid-June.

  • Millfield appoints new Board member

    24 May 2004

    Millfield Group has appointed Mike Walmsley to the board as non-executive director.Walmsley, 62, is currently operations director of Polestar, the largest printer in the UK. Millfield has also announced the appointment of Darrell Smith as sales director for the North. Millfield now has six executive and two non-executive directors.

  • Morgan Stanley shows capital value

    19 May 2004

    MORGAN STANLEYFTSE CAPITAL PLUS PLANType: Capital-protected bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £5,000-no maximum, Isa £3,000-£7.000 Term: Six years Return: The greater of 26% of original capital or 60% growth in index at end of term Guarantee: Original capital returned in full plus 26% growth regardless of performance of index Closing ...

  • MPs hold debate on housing market renewal

    25 May 2004

    MPs will hold an adjournment debate on Thursday on housing market renewal. The debate has been called for by Labour MP David Wright and will be held in Westminster Hall ahead of Whitsun recess.

  • NAEA says we are not heading for a recession

    19 May 2004

    Speaking at the Mortgage Business Expo in Manchester today, National Association of Estate Agents president Richard Hair predicted a "gentle slow bump" in the housing market.He said interest rate predictions of a quarter of a per cent at a time were "a reasonable rate to work to" and advised lenders and borrowers not to panic.Hair said: "I don't believe we are heading into a recession. There is not a steep enough rise in prices or interest rates."He added that ...

  • Name game

    20 May 2004

    Obviously, no one messes with the Treasury select committee these days but the Diary would like to get one thing straight - we think it is IFAs, Mr McFall, not iffers. No one wants to point the finger but the Diary believes McFall was the chief mispronunciation culprit. Not to be outdone, Labour MP Angela Eagle continued her criticism of iffy practices in the iffer sector. If in doubt, repeat after the Diary - I F A.

  • New roles at Bright Grey

    25 May 2004

    Bright Grey has announced the appointment of Paddy Lynch as operations director, responsible for overseeing the combined areas of customer care, underwriting and IT.Lynch was previously head of sales and service for Intelligent Finance and has experience in IT, life assurance and the banking sectors. In addition to this appointment, Bright Grey deputy chief executive Tracey Ashworth-Davies is taking on the role of director of strategy and development.The Edinburgh-based ...

  • New Star Asset Management - New Star Managed Hedge Fund

    25 May 2004

    Type: Fund of hedge fundsAim: Growth by investing in a portfolio of New Star hedge fundsMinimum investment: Lump sum £100,000, $200,000Place of registration: DublinInvestment split: 26% New Star hedge fund, 20% New Star Japan Hedge Fund, 18% New Star Convertible Opportunities Hedge Fund, 10% New Star Global Wealth Management Hedge Fund, 10% New Star European Hedge Fund, 10% New Star UK Leaders Hedge Fund, 6% New Star Asia Renaissance ...

  • New Star Investment Funds - New Star UK Special Situations Fund

    19 May 2004

    Type: Oeic Aim: Growth by investing in UK equitiesMinimum investment: Lump sum £1,000, monthly £100Investment split: 37.7% large caps, 34.4% small caps and unlisted, 27.9% mid capsIsa link: YesPep transfers: YesCharges: Initial 5.25%, annual1.5%Commission: Initial 3%, renewal 0.5%Tel: 0845 6088702

  • NU links with Children's Mutual to develop CTF

    20 May 2004

    Norwich Union is the first major product provider to commit to the child trust fund after signing a partnership agreement with Children's Mutual for the development of the product. Both parties say the deal - which sees NU share CM's admin and product development - is essential to achieve the economies of scale needed for the product which is capped at 1.5 per cent. NU says the venture will not duplicate the strategy of stakeholder pensions, where providers expected ...

  • NU raises term but mortgage cover falls

    20 May 2004

    Norwich Union is repricing its term and mortgage life insurance rates from next week. Stand-alone term with no options will rise by an average 0.3 per cent and mortgage life insurance with no options drops by an average of 0.7 per cent. Premiums will rise by 4.5 per cent for a non-smoking 35-year-old male on a 25-year £100,000 mortgage life insurance plan while premiums for a 45-year-old male with a 15-year £175,000 policy fall by 3.3 per cent. There ...

  • Nvesta - Safety Net Income Plan

    25 May 2004

    Type: Capital-protected bondAim: Income linked to the performance of the FTSE 100 indexMinimum-maximum investment: £5,000-no maximum, £7,000 IsaTerm: Five yearsReturn: 6.25% gross income a yearGuarantee: Original capital returned in full provided index does not fall by more than 50% and returns to at least its starting valueClosing date: July 14, 2004Commission: Initial 3%Tel: ...

  • Nvesta offers unique solution

    21 May 2004

    Structured product provider Nvesta has established the Safety Net Income Plan, a capital-protected bond that provides income over a five-year term.The plan provides income of 5 per cent a year net of basic rate tax, which is the equivalent of 6.25 per cent gross for basic rate tax payers and 8.15 per cent gross for higher rate tax payers. In addition, investors will get a full capital return plus 1.25 per cent provided the FTSE 100 index does not fall by more than 50 per ...

  • OMAM appoints new quant team members

    25 May 2004

    Old Mutual Asset Managers has appointed four fund managers to its quantitative strategies team.Dr Gavin Brown and Anna Perriam are joining from Northern Trust Global Investments' European quant team, where both were senior portfolio managers.Dr Ian Heslop, a global equity manager, and Tracey Lander, an asset allocation specialist, are joining internally, having worked in other OMAM departments.Director of sales & marketing Andrew Lightbown says: "We have rebuilt this team ...

  • Omam chooses quants chief to replace Ross

    20 May 2004

    Old Mutual Asset Managers has found a replacement for David Ross, who headed its quants team until his high-profile departure earlier this month. Ross will be replaced by Eoin Murray, who joins from Northern Trust Global Investments. In addition to heading the quants team, Murray will run a number of equity market hedge portfolios and unit trusts. At NTGI, Murray was the European head of quantitative management, leading quantitative business and investment strategies ...

  • Origen of the species

    20 May 2004

    Most of the Aegon IFAs become one operation under the brand name Origen. Aegon's distribution strategy can no longer be faulted for having too many chiefs - although the profitable and part-owned Positive Solutions, a national franchise outfit, remains separate. Origen has a man from the insurer as its chairman, Peter Dornan, and one of the IFA chiefs, Gareth Marr, as its chief executive. The trick now is to combine the strengths of what were seen as several very good businesses ...

  • Out of character?

    20 May 2004

    Character assassination or flattering portrait? The Diary is not sure but it certainly looks as if mortgage supremo Chris Cummings (characterised left) is ready to embrace the whole mortgage industry. This little gem comes courtesy of Infinity Mortgages, which is giving brokers at the Mortgage Expo in Manchester the opportunity to see what sort of character they really are. Caricaturist Mike Bryson will be on the firm's stand and ready to draw.

  • Out of context

    20 May 2004

    •"He's so quiet, retiring and shy that he wouldn't mention it." - ScotLife's Patricia Henderson on boss Alasdair Buchanan's Headline Money Pensions Press Officer of the Year gong •"He uses Polyfilla to control them." - Yorkshire Building Society press officer Tanya Mills explains how colleague David Holmes keeps his homosexual tortoises quiet. •"I always quiver with excitement every time Money Marketing leaves a message." - Threadneedle Asset Management ...

  • Pensions blight over - Bee

    24 May 2004

    The pension planning blight of recent years is now finally over says Scottish Life head of pensions strategy Steve Bee.Bee says IFAs are now in a position to start to advise clients on the new simplified pension regime that will take effect from April 2006.Bee says: "We are now at the beginning of a two-year period when we will finally be able to talk about pensions with certainty again, and people and companies will be able to make sensible and informed decisions regarding ...

  • Pep pill for proactivity

    20 May 2004

    With Royal Liver and Axa planning to enter the protection market, what does this mean for the industry? Verdin: That really depends on the products, the processes and the services they each plan to bring to the market. As for products, no provider looking for volume can really afford to be that different from the rest of the market simply because conformity is dictated by the dynamics around needing products to fit into the various quotation engines. However, this market ...

  • Pinder Fry & Benjamin - Gold 9

    24 May 2004

    Type:Exempt unit trustAim: Growth by investing in Ernst & Young's Central London officeMinimum investment: Lump sum £25,000Investment split: 100% in a commercial propertyPlace of registration: DublinClosing date: July 14, 2004Charges: Initial 4.96% Commission: Initial 1.75%Tel: 020 7291 7700

  • Pinder Fry & Benjamin goes for Gold

    20 May 2004

    Pinder Fry & Benjamin is targeting small self-administered schemes (SSASs) and self-invested personal pensions (Sipps) with the introduction of the Gold 9 exempt unit trust.This product invests in Becket House, a £76.9m office in London's Waterloo that will be let to international accountancy firm Ernst & Young until 2026. The UK government previously occupied the building which means it will guarantee around 84 per cent of the current rent until 2014.The trust ...

  • Pink offers a taste of Freedom

    21 May 2004

    PINK HOME LOANSFreedom Finance FS 1 Year DiscountType: Discounted-rate mortgageDiscounted term: One yearDiscount:1%Payable rate:4.83%Minimum loan: £25,001Maximum loan: Up to 90% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £500,000Income multiples: Based on affordability calculation and credit scoreArrangement fee:£385Redem

  • Pink opens its loan club to Inter-Alliance

    20 May 2004

    Pink Home Loans and Inter-Alliance have formed a strategic partnership giving the network's members full access to Pink Home Loans mortgage club. The club has a panel of 42 lenders and offers 24-hour payment of commission, access to a legal services provider, a range of secured and unsecured loans and self-build loans. Inter-Alliance mortgage development director Stuart Wilson says the deal fits in with the firm's mortgage and general insurance network, launched ...

  • Planning portfolios

    20 May 2004

    In my last article, I looked at some important messages revealed by the results of the latest annual survey from the National Association of Pension Funds. I will continue this theme here by considering an issue which is not only becoming increasingly recognised as important to pension schemes but to investment strategies generally - asset allocation. The NAPF has identified that pension schemes are paying much more attention (not least prompted by recommendations in the Myner's ...

  • Polin makes return to Aberdeen

    20 May 2004

    Jonathan Polin, the former managing director of Aberdeen Asset Management, has rejoined the group less than 18 months after he left to join HSBC Asset Management. Polin quit AAM in late 2002 after seven years to head HSBC's intermediary business, where he won plaudits for stabilising the company following a series of major manager departures. But he left the bank suddenly in February after HSBC decided to merge its business development teams and hand Polin's responsibilities ...

  • Positive Solutions to stay outside new group

    20 May 2004

    Newcastle-based national IFA Positive Solutions will not be incorporated into Aegon UK's Origen cluster of advisers but its relationship with Aegon remains amicable. Aegon, which has a 60 per cent majority stake in Positive Solutions, decided to exclude it from the shake-up as it says its style would be unsuitable for this type of programme. It says because Positive Solutions is a national while the rest are specialist regional firms, it is best placed to continue ...

  • Positive steps

    20 May 2004

    Traditionally, when a protection provider receives a valid life insurance claim, they pay a cash benefit to the family of the deceased. The aim is to help to solve any financial problems caused by the death. But cash is usually all that the cover provides. Critical-illness products pay a cash amount to help solve any financial problems caused by the claimant's illness while income protection pays an income to solve any financial problems caused by their inability to work. Apart ...

  • Preferred loan covers minor credit problems

    20 May 2004

    Non-confirming mortgage lender Preferred Mortgages is offering its Near Prime product, targeting customers with minor credit problems. The product aims to bridge the gap between Preferred's existing non-conforming products and products available on the high street. The range of products provides solutions for customers with varying credit problems and offers rates from 4.59 per cent until October 1, 2005 and 4.99 per cent until October 1, 2006. Business development ...

  • Product matters

    20 May 2004

    The idea of investing in a collection of life insurance policies which pay out when their unlucky American owners die of ill health seems a little bizarre. However, that is the opportunity that Fortress Group International aims to offer UK retail investors. Essentially, the fund invests in policies where the owners are aged between 78 and 82 and have multiple health complications. Clearly, the age bracket coupled with the health position is a near guarantee of early death from ...

  • Profits boost for Positive Solutions

    20 May 2004

    Positive Solutions nearly tripled profits in the year to December 31 as it continued its policy of attempting to recruit big numbers of IFAs. Despite tough market conditions, the national IFA firm saw profits rise by 161 per cent from £425,716 to £1.11m with turnover rising by 41 per cent from £18.1m to £25.6m. It says the improved results are partly due to the quality of its IFAs. The firm boosted its number of advisers by 35 per cent from ...

  • Protection sector is hit by plunges in CI and IP sales

    20 May 2004

    The protection market has seen a significant drop in individual critical-illness cover and income protection sales of 8.7 per cent and 11.8 per cent respectively last year, says the Swiss Re protection market report. The report, Term & Health Watch, cites several reasons for the fall in sales. A major factor is the hardening of reinsurance rates and price increases due to the reduction in long-term guarantees. It also points to medical advances, leading to earlier ...

  • Put the customer in control

    20 May 2004

    In the coming months, we will see regulatory and legislative changes designed to improve consumer confidence and help people to save more easily. As we work to improve consumer perception of our industry, one area that is likely to get increasing attention is the commission system. Commission exists as a means of remunerating sales in almost all aspects of our lives, from cars to electrical goods, holidays to foreign exchange. In many cases, it is not disclosed to us ...

  • Reid all about it

    20 May 2004

    For several months, I spent one morning a fortnight sitting on a sofa and answering queries as one of the guest IFAs on the Money Channel. One week, I was joined by a young adviser from one of the major accountancy firms. Her ability to answer anything other than the most basic of questions was conspicuous by its absence. I was reminded of this when I was approached by an IFA which had been taken to task by the FSA over the level of fees it was charging. The implication was that ...

  • Renting cheaper than buying in half of London

    25 May 2004

    Research from FPDSavills reveals that it is now cheaper to rent rather than buy in over half of London's boroughs. Renting is cheaper in the more expensive boroughs where house prices are highest, but in many parts of outer London where house prices are lower buying is still cheaper than renting.Savills says that the high house price growth of the last few years has driven up buying costs but this has been largely offset by falling interest rates. However, whilst the cost of ...

  • Simon Tyler to launch mass market mortgage intermediary

    20 May 2004

    Chase de Vere Mortgage Management owner and managing director Simon Tyler has announced plans to launch a new mass market mortgage intermediary business.He believes there is a significant new customer base emerging of mid-market borrowers across the UK who value the service of an intermediary but want a simpler service with rapid execution.The new business will operate on a national basis and will offer customers a fee free service with rapid decision making based on a ...

  • Singer & Friedlander mirrors private portfolio

    25 May 2004

    SINGER & FRIEDLANDER INVESTMENT MANAGEMENTModel Portfolio FundType: Oeic Aim: Income and growth by investing globally in equities and fixed-interest securities Minimum investment: Lump sum £75, 000 Investment split: 55% UK equity, 7.6% UK fixed interest, 7.4% European equity, 5.2% Far East, 5.1% US equity, 2.9% Japan, 5.1% rest of world, 2% UK gilts, 9.3% cash, 0.4% otherIsa link: Yes Pep transfers: ...

  • Singer & Friedlander open fund doors to retail investors

    19 May 2004

    Singer & Friedlander Investment Management has issued a retail share class on its institutional model portfolio fund, making it available to retail investors who can afford the £75,000 minimum investment.The fund is designed to mirror the types of portfolio services that are available to investors with larger amounts. Ts objective is to provide income and growth with a medium risk profile by investing globally in equity and fixed interest markets globally. Despite the freedom ...

  • Smee in the corner

    20 May 2004

    The MPs of the Treasury select committee - specialists in difficult questions - need to turn their famous scrutinising powers upon themselves.Their latest victim is a certain Paul Smee, director general of Aifa. Smee joins numerous insurance company chiefs, split-capital providers and clearing bank chief executives, most notably Barclays Bank chief Matt Barrett, in the committee’ rogues gallery.Hauling over the coals, keel hauling, turning the thumbscrews, hanging, ...

  • Sourcing row over software claim

    20 May 2004

    Mortgage Brain has slammed rival Trigold's claim that it is the first sourcing provider to announce a launch date for FSA-compliant software. Last week, Trigold said its Prospector AAA software is set for release on July 30 and claimed to be the first sourcing system to confirm that it would be ready for regulation in October. Mortgage Brain chief executive Mark Lofthouse says its FSA-compliant software was demonstrated to many of the major corporates in March, some ...

  • Standard shuts five IFA service centres

    19 May 2004

    Standard Life is closing 5 of its IFA service centres in a bid to trim its administration costs. Under the restructure, the number of IFA centres falls to 26 from 31, with 200 job losses expected by the end of July.

  • Standard's Crombie to state the case for keeping commission

    20 May 2004

    Standard Life says it intends to fight the industry's corner on commission and prove it is in the best interests of the consumer in front of the Treasury select committee next week. Chief executive Sandy Crombie will appear before MPs alongside chief executives from rival insurers Aviva, Legal & General and Prudential as part of the committee's inquiry into long-term savings. Standard says it will present a robust defence of commission as the best option for ...

  • Staying ahead in the name game

    20 May 2004

    I was born in 1945. My mother had a crush on an actor called Melvyn Douglas and I was given the same Christian name. In 1972, when I joined the National Provident Institution, I replaced somebody with the same Christian name. He had been referred to as "Mel" and, subsequently, so was I. Time passed and, in the post-Spice Girls era, almost everyone employed in insurance companies was of an age when the name "Mel" was automatically assumed to be female. Virtually all of ...

  • Strength in numbers

    20 May 2004

    The announcement last week that the Treasury will now include home reversion in the regulation of equity release is being hailed as a welcome change of heart on the part of the Government. Most people in the industry and many consumers felt strongly that home reversion should be regulated. However, before last week's news, the battle to convince a headstrong Treasury seemed lost. The Government's rethink means that an unusual alliance between the industry and consumers ...

  • Survey reveals boost for IFAs' fee-based business

    20 May 2004

    Three-quarters of IFAs say they are optimistic about their future, with the same number saying they have seen their fee-based business increase during the year, according to exclusive survey results from The One Account and Money Marketing's State of the IFA Nation 2004 survey. The fact the vast majority of advisers are seeing the fee-based side of their business increase reinforces the continuing trend away from traditional commission-based remuneration for advice. The ...

  • Talkback

    20 May 2004

    "No. There should be guidelines to stop people charging extortionate rates but it should be left to the IFA to decide." Graham Tomlinson, FSC Investment Services "No. As long as the FSA is receiving its fees, what concern is it of theirs what IFAs are charging? I am stunned and gobsmacked by this." David Meakin, David Meakin Independent Financial Advice Centre "No. As long as we set a reasonable and fair fee, there should not be any intervention. If there is ...

  • Threesixty signing up for Sigma fund range

    20 May 2004

    IFA services provider Threesixty is adopting Standard Life's Sigma investment fund range for its 120 firms. The deal follows similar tie-ups with Bradford & Bingley and Co-operative Bank Financial Services. The Sigma range gives access to 75 funds, with 57 run across 12 external fund managers and the remainder managed by Standard Life Investments. Funds are chosen on the basis of ratings from agencies and on popularity with advisers and clients. Advisers ...

  • Time to bridge the gap

    20 May 2004

    Despite concerns about the protection gap, most providers report growth in the market. Pundits are positive when they take into consideration the gap to be filled and the growing need for cover as people borrow more and sources of life cover disappear, for example, when people cash in endowment and whole-of-life policies. Friends Provident head of marketing communications Peter Hamilton says: "The outlook for the term market is quite finely balanced. It has been buoyed over recent ...

  • Treasury minister says Sipp changes will not bring a rise in second homes

    20 May 2004

    Treasury economic secretary John Healey has moved to allay fears that encouraging people to save for retirement through residential property will damage the first-time buyer market. Speaking at an adjournment debate on Treasury housing policy, Liberal Democrat MP Andrew George said allowing residential property to sit within a Sipp wrapper will dramatically increase the number of people owning second homes. But Healey argued there will be no new incentive to buy property ...

  • TUC chief says workers will strike to keep pensions open

    20 May 2004

    Workers feel betrayed because of cuts in their pension benefits and will no longer accept benefits being axed, Trades Union Congress general secretary Brendan Barber has told industry chiefs. Barber warned delegates at the National Association of Pension Funds' conference in Glasgow last week that industrial action would be taken if employers stopped or reduced pension benefits without trying to find solutions to keep schemes open. He said staff appreciated that employers ...

  • Watchdog warns that minority are tarnishing IFAs

    20 May 2004

    A small number of IFAs are in danger of making consumers question the professionalism of the entire IFA sector, according to the Financial Ombudsman Service. Head of communications David Cresswell says the vast majority of IFAs deal well with any consumer complaints they may receive but a small minority are risking bringing the sector's professionalism into disrepute by not dealing properly with customer complaints. Cresswell sees no evidence of a complaints' culture, ...

  • Watkins quits Bestinvest after sluggish demand for closed-end service

    20 May 2004

    Bestinvest head of investment trusts Andrew Watkins has left the company after just eight months following slow demand for its recently launched closed-end services. Watkins, Jupiter's former investment trust chief who joined Bestinvest last October, had been marketing the company's investment trust division which offers manager appraisal, selection and monitoring services to board directors. But with demand proving much slower than expected, Bestinvest says Watkins ...

  • Will SGAM be last to tread the road to conversion?

    20 May 2004

    SG Asset Management will this weekend become the latest company to convert its range of unit trusts into Oeics or ICVCs. The move, which is aimed to boost the group's retail offering in the UK and Europe, will bring the number of Oeics in the market to around 1,200, far in excess of the 800 remaining unit trusts. However, the conversion could be the last that the market will see as the FSA's new rules for collective investment schemes level the playing field between unit ...

  • Winterthur enters into partnership with Capita

    19 May 2004

    Winterthur Life UK has entered into a strategic partnership with The Capita Group which will see the support company acquire the share capital of Personal Pension Management Limited for an undisclosed sum.In addition to buying Winterthur's subsidiary, Capita will also provide the life office with Sipp administration services, allowing Winterthur to focus on product design and distribution for IFAs.Winterthur chief executive Mike Kellard says: "We have chosen Capita because today ...

  • Witan axes benchmark in major allocation switch

    20 May 2004

    Giant investment trust Witan plans to scrap its current benchmark and replace it with a radically altered strategic allocation when it switches to an open architecture structure later this year. The new allocation, which will replace the current 60 per cent FTSE All-Share and 40 per cent FTSE World excluding UK index benchmark, will form the basis for the equity mandates which will be awarded in the autumn. Beauty parades to select the managers will be held throughout ...

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