Money Marketing
2 October 2002

  • 'Multi-tied IFAs will be marginalised'

    3 Oct 2002

    IFAs that multi-tie in a depolarised world will become marginalised as they will be going head to head with the banks, warns HBOS insurance and inv-estment chief executive Phil Hodkinson. He told delegates at a polarisation conference in London last week that advisers who stay independent will not be threatened by bancassurers as they are chasing a different market although some IFAs dispute his claims. Hodkinson criticised CP121, saying the argument over fees •commission ...

  • 'Tax-free Isa dividends set to stay'

    3 Oct 2002

    The 10 per cent tax credit on dividends within Isas will continue despite the Government's current policy of scrapping them on April 6, 2004, according to senior industry sources. They say that in private conversations with Inland Revenue senior policymakers they have been assured that the tax incentives on Isas will be maintained despite stated Treasury policy that the benefits will be phased out. The news comes despite others in the industry claiming that their impression ...

  • 'The savings gap can be closed with better ads'

    3 Oct 2002

    The UK's savings gap is as much due to poor advertising as product providers not having the right products, according to Prudential ad agency WCRS chairman Robin Wight. Speaking at the launch of the £20m the Plan from the Pru campaign which he directed, Wight says he came to these conclusions following research of financial services advertising in his preparations for the Pru brief. The Pru's campaign draws upon poetry and emotional imagery to direct consumers to its ...

  • £1m homes make up for slumping stocks

    3 Oct 2002

    The number of properties sold for over £1m has increased more than tenfold since 1995, according to Halifax Bank. Figures compiled by the company using information from the Land Registry reveal that 2,434 properties valued at over £1m were sold last year compared with 232 in 1995. Halifax says the overwhelming majority of £1m-plus property sales are in Greater London and the South-east. In the first half of this year, in Greater London, 850 homes were sold for ...

  • £4m loss for Inter-Alliance but it aims to be in profit by end of 2003

    3 Oct 2002

    Inter-Alliance made a loss of almost £4.3m for the first six months of this year but expects to be back in profit by the end of next year. Chairman and chief executive Keith Carby, who joined the national IFA in January, says the company has been in a period of recovery. The loss was down by £20m on the £24.3m loss for the last six months of 2001 and an overall loss for the year of £27.3m. Turnover in the first half rose to £25.5m from £21.8m ...

  • A graphic account of the downturn

    3 Oct 2002

    Imagine if fund managers started claiming that investments can go up as well as down. The humour behind this belies the difficulty of promoting investments in a third consecutive bear year. The bull market of the 1990s saw the unit trust industry grow massively. Rising stockmarkets gave companies the opportunity to use graphs in their advertising showing impressive year-on-year growth. Now, of course, graphs would tell a very different story. Advertising agency CCHM chairman Lucian ...

  • A&L rejects centenarian's cash

    3 Oct 2002

    An IFA has hit out at the inflexibility of the FSA's money laundering rules after a 101-year-old client's £170,000 investment in a two-year fixed-rate bond with the Alliance & Leicester was refused. Croydon IFA Dennis Munday says centenarian Phyllis Grogan had her application turned down because of insufficient identification. Mrs Grogan's nephew, a senior partner of Streeter Marshall solicitors, to which Munday is attached, had instructed Munday to invest the ...

  • Aberdeen executives take 33% pay cuts

    3 Oct 2002

    Beleaguered fund firm Aberdeen Asset Management is cutting executive pay by a third in a bid to stem criticism surrounding its failed split-capital trusts. Aberdeen chief executive Martin Gilbert and global investment trust director Chris Fishwick will both join senior management in taking a 33 per cent pay cut and postponing the payment of bonuses totalling £2.65m. The move is designed to placate shareholders who have seen shares slump in value to 77.5p from almost £7 ...

  • Advisers in fight for survival

    3 Oct 2002

    Why are we all so quick to criticise what others are saying or doing? I am convinced that all the negative comments about other people's perspectives are divisive and make us look like a laughing stock to the FSA and the Government. What has happened to us working together and putting forward logical, rational and intelligent solutions that will help advisers and consumers alike? There are now 77,000 registered individuals compared with 300,000 in 1986. That is only 26 per cent ...

  • AITC says the worst is over for split sector

    3 Oct 2002

    The collapse of the Aberdeen preferred income trust and the Dartmoor investment trust have brought the total number of split-capital trusts in receivership to six but the Association of Investment Trust Companies says the troubled sector is turning the corner. To date, a further 12 split-cap trusts have had trading in their shares suspended, with investors standing little chance of recovering any of their original investment. The AITC believes the worst is over but advisers are ...

  • Alliance & Leicester launches new discounted base rate tracker

    7 Oct 2002

  • Any Perception Required

    3 Oct 2002

    Acronyms in the small print of mortgage advertisements are being interpreted in increasingly interesting ways, particularly among the under-25s. APR was thought to mean Another Pint Required, while some thought LTV means Loves Television. Mortgages were far from the minds of the individual who thought MRP means Meal Required Pronto and SVR means Still Very Raunchy. The Diary was equally impressed by the VFM given by health workers who came up with Average Pulse Rate, Little ...

  • Average property asking price tops £150,000

    3 Oct 2002

    The average asking price for a house across the UK broke the £150,000 mark in Sept-ember, according to property website Rightmove.co.uk. Its real-time property rep-ort shows an upswing in asking prices as the national average rose by 2.3 per cent to £151,429 in September from £148,024 in August. The firm says this shows the market strengthening compared with the summer months when rises of around 1 per cent were seen. The report, which bases its findings on ...

  • Basis instinct

    3 Oct 2002

    Having set the ball rolling with my initial look at the proposals for corporation tax reform, this week I will focus exclusively on an issue which could impact directly or indirectly on the attraction or otherwise of financial products. I will also look at the advice that may be given to companies in light of any tax changes that may emerge from the consultation. First, it is worth reminding you - as if that were necessary - that awareness of change and explanation of its relevance ...

  • BBB £20m share issue to finance major deals

    3 Oct 2002

    Berkeley Berry Birch is issuing over 27 million new shares to raise £20m to fund a string of large-scale acquisitions and infrastructure improvements. The group, which has 645 registered individuals and a turnover of £55m, plans to spend £16.2m on buying a number of national and regi-onal IFAs on the basis of one-third cash and two-thirds shares. BBB says the capital from the share issue would give it the potential to make around £50m-worth of acquisitions ...

  • Big two finance unions to start merger talks

    3 Oct 2002

    The UK's two biggest financial services unions are in talks to merge, creating a single body with more than 200,000 members representing the bulk of unionised financial industry employees. MSF, the white-collar arm of Amicus, and Unifi start talks this autumn and hope to join together next spring. Both unions feel they would represent their members' interests better and be more effective at lobbying Government regulators and employees if they speak with a single voice. Amicus-MSF ...

  • Birmingham Midshires revises childrens account

    4 Oct 2002

    Birmingham Midshires has revised its young savers account to make it more accessible to children.The move was made in response to research carried out by the former building society which revealed that 88 per cent of people believe they picked up their financial habits from their parents.Under the new conditions, the minimum opening balance has been reduced from £25 to £1 and savers will receive 4 per cent on all balances.

  • Bless this exemption

    3 Oct 2002

    Capital gains tax is pretty clear-cut when it comes to your main residence - the gain is exempt and that is it. Or is it? Like everything else in the simplified tax regime we now live with, it is not that straightforward. Main residence exemption If you have used your house as your main residence for some or all of the time you have owned it, then some or all of the gain you make on selling it will be exempt. If your main residence has a bit of land or garden attached, ...

  • Bowled over by the B&B squad

    3 Oct 2002

    Messrs Bradford and Bingley are being reincarnated this week with the unveiling of a new TV advertising campaign for the group's IFA division, The MarketPlace. But B&B says the characters (pictured right) have been updated as the Advice Squad - a male Bradford and a female Bingley, sporting dark glasses and black suits with the customary bowler hats. It says it decided against using the pair to launch The MarketPlace at B&B in March last year because they were too clearly ...

  • Bristol & West - Global Income & Growth Guaranteed Equity Bond 7 Year Growth Issue 2

    4 Oct 2002

    Friday, 4 October 2002Type: Guaranteed equity bond and high interest account GUARANTEED EQUITY BOND Aim: Income and growth linked to the FTSE 100, Nikkei 225, SMI and S&P 500 indices Minimum-maximum investment: £2,500-£1m Term: Until December 14, 2002Guarantee: Capital returned in full at end of term regardless of movement in indices Return: Up to 90% of growth in indices Closing date: November 30, ...

  • Bristol & West launches new structured product

    4 Oct 2002

    Bristol & West has introduced a new seven-year income & growth bond with guaranteed return of capital.The structured product offers monthly income of 5.84 gross for the term of the product. Part of the sum invested is placed in a seven year guaranteed equity bond which pays interest linked to 90 per cent of the average growth in the FTSE100, Nikkei 225, S&P500 and SMI.The company offers commission of between 2.5 and 3.5 per cent

  • Bristol & West launches new core mortgage range

    8 Oct 2002

    Bristol & West has launched a new core range of mortgages including fixed rates, tracker rates, buy-to-let and remortgage products.It has a five year fixed rate at 5.75 per cent and a loan to value of 85 per cent which it says is specifically aimed a remortgagers looking for a better deal. There is a also a three year tracker currently with a rate of 5.29 per cent.As an incentive B&W is offering free legals as part of the remortgagers package.

  • Britannia scores two more soccer club affinity deals

    3 Oct 2002

    Britannia Building Society is offering affinity accounts to supporters of Birmingham City and Liverpool football clubs. The clubs get an annual donation of 1 per cent on the total balance of their fans' save and support accounts. The accounts can be opened for £1. Birmingham's accounts are up and running and Liverpool's schemes will be available from October 26. Britannia already has affinity accounts with Stoke City, Chelsea, Sunderland and Everton. These teams ...

  • Britannic Money offers guide to mortgage regulation

    8 Oct 2002

    Britannic Money is publishing a guide explaining how the FSA's proposals for mortgage regulation will affect intermediaries.

  • Brokers are facing last-ditch exam dash

    3 Oct 2002

    Many IFAs face a last-minute dash to get the minimum qualifications by the end of the year to continue doing mortgage business, according to IFA Promotion. IFAP reveals that only around 950 of its 10,300 listed IFAs have passed the Maq or Cemap bridge paper with less than 100 days until the Mortgage Code Compliance Board's December 31 deadline. It says between 40 to 50 per cent of its database list mortgage advice as an area of expertise so they must think about qualifying quickly ...

  • CA claims five million have been missold endowments

    3 Oct 2002

    The Consumers' Association has started its endowment-action campaign to help the five million people it claims have been missold endowment policies. The survey also shows that only 4 per cent or 330,560 endowment policyholders have made a formal complaint over misselling. A website has been created at www.endowmentaction.co.uk to help people determine whether they have been missold a policy and to guide them through the complaints process. CA director Sheila McKechnie says: ...

  • Canada Life salesforce in move to Lighthouse

    3 Oct 2002

    Canada Life has struck a deal to transfer its direct salesforce of 198 registered individuals to national IFA and network group Lighthouse. The move will potentially increase the company's tally of RIs to 600 from around 400 if all the salesforce take up the opportunity to move to Lighthouse. No money changed hands in the deal. Instead, Light-house will pay for training, fees and infrastructure for the salesforce for up to a year. As part of the deal, Canada Life has the ...

  • CII launches new service

    7 Oct 2002

    The Chartered Insurance Institute has launched a new members only area in the CII Library Online.

  • CIS to publish voting record

    8 Oct 2002

    CIS is to publish all its voting decisions online in a drive to promote responsible shareholding among institutional investors.The initiative was launched at a seminar on social responsibility at last week's Labour conference. CIS says it is the first institutional investor to make this commitment. The move was welcomed by Labour MP and chairman of the House of Commons Treasury Select Committee John McFall.

  • Close Property Investment targets healthcare and leisure opportunities

    7 Oct 2002

    Close Property Investment has created the healthcare and leisure property fund, an offshore Oeic that invests in the hotel, care home, house building and leisure sectors.The fund is registered in the Isle of Man and co-invests alongside the Close Brothers venture capital trust (VCT) and the Close Brothers protected VCT. It aims to provide income of 7.5 per cent a year, with capital growth of 2.5 per cent a year. The fund will be used to finance the construction of new buildings ...

  • Closing time

    3 Oct 2002

    Closure has a ring of finality about it. Closing something implies that you have finished with it and that you are now moving on. But in the world of pensions though closure often means something fundamentally different. A recent survey conducted by Hazell Carr of small to medium-size enterprises with defined-benefit pension schemes found that 25 per cent had made the decision to close their scheme in the next 12 months. Leave to one side for a minute the surprising finding that one ...

  • Commitment to with-profits

    3 Oct 2002

    In response to the article in last week's Money Marketing headlined, NU rethinks with-profits bond strategy, NU wishes to set the record straight on its commitment to with-profits bonds. Norwich Union is one of the biggest providers of with-profits bonds in the industry and believes they have a key role to play in the investment arena. To reinforce our continued commitment to with-profits,we have just launched a special offer on our main bond products and launched an offshore with-profits ...

  • Common sense has no place in regulation

    3 Oct 2002

    What a pig's ear our politicians have made of our business. It was inevitable that this would happen when the motley crew that constituted Miboc came on all heavy with all their embryonic rulebook. At the newly formed Securities & Investment Board, the hostility to practitioners was pretty evident when even the most conscientious practitioners found themselves falling foul of the early minutiae in the rulebook. Under the self-regulating regime of the day, ordinary practitioners ...

  • Compulsion obsessives

    3 Oct 2002

    Pensions are one of the big issues dominating this year's political party conference season. By the time you read this, the Labour Party conference will be drawing to a close and, as at the Liberal Democrats in Brighton last week, the state of UK retirement provision will have catapulted itself still further towards the top of the political agenda. While the number of financial services businesses exhibiting at each of the three main party conferences may be down on last year ...

  • Credit where it's due

    3 Oct 2002

    The jigsaw pieces in the Government's plans to help today's pensioners are slowly falling into place. Following the introduction of help with winter fuel bills, free television licences and the minimum income guarantee, the Pension Credit Bill has been given Royal Assent and this new credit will become part of our lives from October 2003. There may be advisers who think that the pension credit will not affect them or the advice they give. This may be somewhat hasty. The Government ...

  • Death is still the final taboo

    3 Oct 2002

    Death is the biggest conversational taboo in the UK even though two out of every three people has lost a close family member or friend in the last three years, according to research by Norwich Union. People in the North-west found death easiest to talk about, with only 12 per cent saying it is a taboo, compared to 24 per cent of Londoners. For 16 to 24-year-olds, talking about Tony Blair and politics generally is the only thing more taboo than talking about death. The survey ...

  • Derbyshire launches ten-year fixed rate mortgage

    4 Oct 2002

  • Equitable in new compensation offer

    3 Oct 2002

    Equitable Life is to put forward a new compromise scheme for the 70,000 former policyholders who have potential claims for misselling. Policyholders say they should have been told before taking out a policy of the impending guaranteed annuity case. Equitable predicts it will have to pay out will be between £40m and £75m following the delayed publication of the report - ordered by the FSA - by B&W Deloitte into the misselling claims. The report found the company's ...

  • Exeter Investment gauges its exposure to split caps

    3 Oct 2002

    Exeter Investment Group is reviewing the exposure of its funds to the split-cap sector in response to IFAs' concern over professional indemnity insurance. The move comes after the group found that PI insurers were asking IFAs who do business with Exeter to advise them of their exposure to splits. Exeter has decided to limit the short-term exposure to splits of the £70m Exeter capital growth fund. Historically, the fund has concentrated on the capital shares of splits ...

  • Face up to fees

    3 Oct 2002

    For too long, IFAs have been waiting to be convinced that the FSA was right when it said that consumers are prepared to pay a fee for financial advice. If the latest research is to be believed, they will now be even more sceptical. A recent survey by market research firm Nunwood has revealed that 80 per cent of the public are not prepared to pay a fee for financial advice and only 5 per cent said they would pay over £100. But should we really be surprised by this finding? Clearly, ...

  • Fidelity completes European fund range

    2 Oct 2002

    Fidelity Funds has increased its European fund range to six funds with the introduction of its European larger companies fund.This Luxemburg-based Sicav will invest more than 50 per cent in a portfolio of larger European companies, with the remainder going into high-growth medium-sized companies. The fund will be managed by Frederic Gautier, who will aim to outperform the fund's benchmark index, the MSCI Europe index. Gautier joined Fidelity in February 1994 as an analyst ...

  • Fidelity Funds - European Larger Companies Fund

    8 Oct 2002

    Tuesday, 8 October 2002Type: SicavAim: Growth by investing in larger European companies and high-growth medium-sized companiesMinimum investment: Lump sum £1,500, monthly £50Place of registration: LuxemburgInvestment split: 100% in larger European companies and high-growth medium-sized companiesIsa link: NoCharges: Initial 5.25%, annual 1.5%Commission: Initial 3%Tel: 0800 414181

  • Flood of calls amid cash fears

    3 Oct 2002

    IFAs are being deluged by phone calls after press reports claiming that Equitable Life is preparing for insolvency. Advisers are concerned that Equitable might raise its market value adjuster to stop a further exodus. The Sunday Times claimed board minutes show the society is preparing to appoint administrators in the event of insolvency, had breached its minimum solvency requirements in June and is setting its MVA at a level to return a profit. Equitable Life strenuously denies ...

  • Fresh thinking

    3 Oct 2002

    Between 1988 and 1995, I contributed to a personal pension plan. I paid in both a regular monthly amount and a series of lump-sum payments. I am now able to recommence making contributions but I am unsure as to whether I should restart my plan or start a new plan. Which should I do? Personal pension plans have changed enormously since you first started paying into your plan in 1988. Not only has there been a lot of consolidation of product providers during the past years but ...

  • FSA confident that life offices can take strain

    3 Oct 2002

    The FSA has moved to reassure investors and advisers that life companies are capable of withstanding the stresses of plummeting stockmarkets. But while the regulator says the companies can cope with further big falls, it would not give a figure as to the size of fall they could withstand. In the progress report from the Tiner Project, the FSA reveals that the implementation of the new regulatory regime for insurers is an immediate priority. It has recruited 35 industry specialists ...

  • Has the FSA really changed its mind?

    3 Oct 2002

    It appears the FSA may have conceded the case over the defined-payment system and decided to scale back its plans for the reform of polarisation. Speaking at the industry conference Distribution Strategies Post-Sandler in London recently, FSA head of polarisation review David Severn said the FSA would prefer to drop the authorised financial adviser model. In Severn's words, the thinking is that if an alternative to the DPS is adopted "which the majority of IFAs, if not all, ...

  • Health care providers merge

    4 Oct 2002

    Health care providers HSA and Simplyhealth have announced they are to merge after receiving FSA approval.

  • Homeowners Investment Fund Managers - Education Isa

    8 Oct 2002

    Tuesday, 8 October 2002 Type: Oeic mini and maxi IsaAim: Growth by investing in the Homeowners investment growth fundMinimum investment: Lump sum £500, monthly £30Maximum investment: £7,000Catmarked: YesInvestment choice: 100% in Homeowners investment growth fundCharges: Annual 1%Commission: NoneTel: 0800 0286248

  • IFA aid to raise media presence

    3 Oct 2002

    IT specialist Quay Software Solutions is offering a free guide for advisers looking to raise their media profile. The guide, called Telling the Independent Story: guide to media relations, is aimed at advisers with no media experience. QSS says it explains everything an IFA needs to know about establishing a media presence. It details how to contact journalists and pursue a working relationship, what journalists need from their contacts and how they work. The guide also ...

  • IFA leading way on environment

    3 Oct 2002

    Holden Meehan is claiming to be the first IFA in the world to go carbon-neutral, meaning that all the carbon it produces will be matched by carbon saving elsewhere. The IFA, which has a track record in socially responsible investment, has committed to a two-year investment programme in technology that will save on carbon fuels used in Bethamangala, in Southern India. The investment will fund a biomass gasification plant which creates environmentally-friendly gas from crop waste ...

  • IFAs see surge in demand for cautious investment products, survey shows

    8 Oct 2002

    Stockmarket volatility is causing IFAs to call for more cautious investment products according to research carried out by Axa.

  • IFAs take two-thirds of fund sales

    3 Oct 2002

    The best-selling funds in the IFA sector in August were UK all companies, equity income and corporate bonds and North America funds, according to Investment Management Association figures. Fund sales in the tied market were concentrated on UK corporate bond funds. Gross retail fund sales overall fell from July's £2.3bn to £2.05bn but that figure was slightly up on August 2001's £2.02bn. Gross sales of Isas fell to £272m in August from£465m ...

  • IFAs voice SSAS fears after court rules on executive's tax-free cash

    3 Oct 2002

    IFAs are warning that a court ruling that an executive director is not allowed to retire and take a tax-free lump sum if he remains a non-executive director in the firm could have serious ramifications for the small self-administered scheme sector. The Court of Appeal overturned an earlier High Court decision in the case of Vena-bles •Hornby, ruling that Venables, who was an executive director and major shareholder, had not retired within his company's pension scheme and was ...

  • Impaired sales rise by a third

    3 Oct 2002

    Sales of impaired life and enhanced annuities grew by 30 per cent in the first half of this year and are set for further growth, putting greater pressure on conventional annuity rates, says consulting actuaries Watson Wyatt. The firm says enhanced annuity business reached £254m in the first half, representing a 9.3 per cent share of the annuity market of £2.7bn for the half year compared with to 7.3 per cent in the first half of 2001. Watson Wyatt believes new FSA rules ...

  • Inside edge

    3 Oct 2002

    The case for change in the life industry is well documented. CP121 put forward a number of proposals, which ultimately have the potential to create a more efficient framework within which we can address the saving needs of the UK consumer. As we move forward, however, it is important that unintended consequences are avoided and many feel that one of these could be the demise of the IFA sector due to unworkable remuneration terms. A positive outcome for policymakers, the industry and ...

  • Investment analysis

    3 Oct 2002

    It was a volatile and mixed week for global markets. The FTSE world index 1.3 per cent lower, predominantly on the back of corporate concerns in the US. There was a batch of encouraging US economic data - durable goods orders fell by 0.6 per cent, much less than the forecast 2.6 per cent, sales of new single family homes rose to record levels in August and unemployment fell. However corporate news and continued uncertainty surrounding Iraq dragged the Dow and Nasdaq to fresh fourand ...

  • Investment view

    3 Oct 2002

    I was on holiday in sunnier climes last week. Those of you who feel obliged to exclaim "again?" with a quizzical grin etched on your features should reflect on what a stressful place the investment world has become. Anyway, with the bear market showing no signs yet of having run its course, a little R&R appeared no more than prudent - certainly preferable to explaining to Aunt Agatha why her portfolio is down in value for the third year in succession. But in these days of mobile ...

  • James Hay sees Sipp market share grow to 37 per cent

    4 Oct 2002

    James Hay now has 37 per cent of the SIPP market, with over £6.5bn of funds under administration and over 26,000 SIPPs. James Hay says this now makes it the largest SIPP provider in the UK.

  • Journey to the outsource

    3 Oct 2002

    Until 2000, there was little real competition in the market for outsourcing in the UK financial services as there were few serious players. However, falling margins have forced insurers to consider the case for outsourcing seriously. Companies considering outsourcing fall into a number of categories: •New business with unpredictable volumes and the overhead of building the infrastructure for launch and beyond cannot be immediately justified. •Existing businesses wanting ...

  • Julian Gibbs

    3 Oct 2002

    Until now, it has been almost impossible to obtain a reasonable tax-free income plus exposure to the stockmarket with full capital protection. NDF, in conjunction with Abbey National Treasury Services, has come up with the selector income & growth plan. One option offers 3.5 per cent a year income over five-and-a-half years, tax-free through an Isa or liable to 10 per cent tax on sums invested direct by basic-rate taxpayers. To earn 3.5 per cent a year in a taxable deposit account, ...

  • Kelland steps down at Burns-Anderson to set up franchise

    3 Oct 2002

    Burns-Anderson founder and former chairman and chief executive Steve Kelland has stepped down after 14 years with the network. Kelland, who recently quit as Burns-Anderson chief executive to make way for Ian Parsons as part of the transition to a new management team, retired as chairman last week. He has been replaced by Colin Parker, who joined Burns-Anderson nine years ago as non-executive director representing the network's institutional investors. Parker was formerly investment ...

  • Kelly says Treasury backs stake suite

    3 Oct 2002

    The Treasury has given a ringing public endorsement of Ron Sandler's flagship recommendation of a stakeholder suite of products. Treasury Financial Secretary Ruth Kelly called the products a fundamental part of the Treasury's thinking and commended Sandler for recognising the advantages of product rather than sales-based regulation. The comments come a week before the Government responds to Sandler's proposals. Speaking at a fringe meeting at Labour's conference ...

  • L&G launches two in one Isa

    8 Oct 2002

    Legal & General is launching an Isa which allows investors to split their monthly savings into long and short term pots.

  • L&G newsletter online

    8 Oct 2002

    Legal & General is now offering its 'IFA News' bulletin online in a drive to adopt e-business practices.

  • Legal & General - Select Isa

    8 Oct 2002

    Tuesday, 08 October 2002Type: Unit trust mini or maxi IsaAim: Growth by investing in unit trusts and corporate bondsMinimum investment: Lump sum £500, monthly £25Maximum investment: £7,000Catmarked: NoInvestment choice: UK index, US index, European index and fixed interest trustsCharges: Annual up to 0.75%Commission: Initial 1% for lump sum investments, 0.75% for monthly investmentsTel: 0800 0920092

  • Lenders fear EU credit squeeze

    3 Oct 2002

    Lenders are warning that half the UK mortgage market could be affected by a restrictive new European directive on consumer credit which may be fast-tracked into legislation. Standard Life Bank says the directive risks wiping out remortgaging, equity release and offset and flexible mortgages or making them more expensive. The bank is also worried that the rules could be rushed through within a year. The warning follows the Council of Mortgage Len-ders labelling the European Commission's ...

  • London property falls as Northern prices rise

    3 Oct 2002

    London house prices fell in September while Northern regions saw strong rises. Market analysts Hometrack says the average price in central London fell by 0.2 per cent in September to £441,350 from £442,251 in August. Its monthly survey of the housing market in England and Wales shows that overall price growth was 0.6 per cent, with the average national house price now £134,400 compared with £133,600 in August. The biggest growth was in the North, where ...

  • Merrill Lynch to Give choices on structured plans

    3 Oct 2002

    Merrill Lynch Investment Managers is aiming to introduce two new structured products by the end of the year. Its stepped growth fund and income II fund, which will be listed on the Dublin Stock Exchange, will be the latest in a series of transparent and flexible structured products from MLIM. The funds will be made up of a number of different share classes and tailored for the risk-averse investor looking to diversify away from traditional equity or fixed-income investments. Investors ...

  • Mind the savings gap

    3 Oct 2002

    The last couple of years have been anything but dull for those in the financial services industry, particularly for financial advisers. Issues have arisen across so many areas - misselling scandals, highly volatile markets, margin pressure, regulatory change and industry consolidation are among the more major themes that we have seen. The challenge facing IFAs is not just to cope with this change but to react positively to it, positioning businesses for future growth. In respect ...

  • Misys seeks damages for 'forged documents'

    3 Oct 2002

    Misys is seeking damages for what it claims were two forged documents which it alleges were sent by former DBS member Evan Owen, according to official High Court papers obtained by Money Marketing. Last week, Money Marketing reported that Misys had taken out an injunction against Owen. In the court papers, Misys claims a fake press release was emailed to financial journalists, including Money Marketing, while a forged email claiming to be from the chief executive of DBS was sent ...

  • Mood swings

    3 Oct 2002

    Our survey says…if the latest research into consumer confidence in financial services is to be believed, then possibly not even Les Dennis could put a brave face on it. The results from Zalpha's latest mood survey, carried out monthly on a sample of 1,000 people, prove that stockmarket confidence varies not only by region and gender but even by daily newspaper and that although the majority of people would still seek financial advice from an IFA, they are sticking to buying ...

  • More firms offering paternity leave but staff prefer pensions

    3 Oct 2002

    Paternity leave is the fastest growing perk in the UK but pensions remain the favourite employee benefit, according to research by Virgin Money. It says over 51 per cent of employers now offer paternity leave compared with just 24 per cent a year ago. But it warns employers looking to water down their pension provision that an employer-funded pension is considered the most important employee benefit by 86 per cent of employees although such schemes are only offered by 49 per cent ...

  • Non-partisan policy urged for pensions

    3 Oct 2002

    Labour MPs, the ABI and product providers are urging politicians to work together to sort out pensions, saying if they cannot, then responsibility for pension policy should be removed from the political system. At a fringe meeting at Labour's conference in Blackpool this week, ABI director general Mary Francis said pensions would be better served if they were not subject to short-term political thinking. At another event, Labour MP and Treasury select committee chairman John ...

  • Norwich Union International - With Profit Bond

    8 Oct 2002

    Tuesday, 8 October 2002 Type: With-profits bondAim: Income by investing in the Norwich Union with-profits fundMinimum investment: Lump sum £10,000Place of registration: DublinInvestment split: 100% invested in Norwich Union with-profits fundCharges: Annual 1%Bonus rate: 4.75% a yearCommission: Initial 5%, renewal 0.8% or initial 2.5%, renewal 0.5%Tel: 0845 300 2114

  • Norwich Unions lowers rates on equity release

    7 Oct 2002

    Norwich Union has lowered the fixed rate of interest on its cash release plan equity release product from 7.79 per cent to 7.55 per cent.The new effective rate was introduced at the end of September by Norwich Union, which claims to be the largest equity release provider in the country. It says sales of the mortgage-based product are booming - sales for the first six months were up 49 per cent on the same time last year.

  • Not the sort of help we need

    3 Oct 2002

    The article in the September 12 edition of Money Marketing suggests help is on the way from the FSA.While welcome, with respect, they are one of the main reasons we are now in this mess.Our PI brokers say the RU Owed envelopes inviting claims have played a major part in the phenomenal rise in PI premiums.The farce is that the FSA appears to acknowledge that a big part of the£12bn costs of the pension misselling exercise was unnecessarily spent.Final-salary scheme ...

  • Outside edge

    3 Oct 2002

    While happy to point that out that last time I wrote on this topic I did not feel that a defined-payment system climbdown was likely, I would not necessarily be jumping for joy at the apparent change in tack. Despite the news that the FSA is set to relax the rules on DPS, there seems little doubt that greater transparency will still be sought by the regulator. It seems to me that the strong drive of the regulator is toward a value-based business model. One of the steps on this ...

  • Pensioners fail to maximise potential

    3 Oct 2002

    Over a third of pensioners wish they had invested more for their retirement, while over a quarter will have to make sacrifices in retirement, according to research from Britannic Asset Management. In retirement, the overwhelming majority of pensioners prefer deposit accounts to unit trusts, Isas or corporate bonds. Nearly 12 per cent of retired people wish they had put more into bank and building society deposit accounts despite current low interest rates while only 5.7 per cent ...

  • Pickering rejects annuity purchase compulsion

    3 Oct 2002

    Pensioners should not be forced to buy an annuity but must ensure they have a regular income for life, according to Alan Pickering. Speaking at the Chartered Insurance Institute's annual conference in Birmingham last week, Pickering said he disagreed with the notion that the Government should dictate how the income stream from pensions is decided. He did not call for the scrapping of the obligatory purchase of an annuity at 75 but said providers should be encouraged to design ...

  • Politicians to blame for misselling, says Pickering

    3 Oct 2002

    Politicians and civil servants must shoulder some of the blame for pension misselling as they created the environment that allowed it to happen, according to pension review chief Alan Pickering. Speaking at the Chartered Insurance Institute annual conference in Birmingham last week, Pickering said that by not allowing concurrency during the years when pension misselling occurred, the Government effectively fostered a situation where unscrupulous selling took place. Pickering said ...

  • Poll shows attitudes to mortgage regulation

    3 Oct 2002

    Only one in four mortgage intermediaries believes FSA regulation will help them grow their business by improving the image of the sector and creating new opportunities, says BM Solutions. But the BM Solutions smart index survey of 200 brokers also reveals that 29 per cent are still concerned that regulation to be introduced in 2004 will be a drain on money and admin resources. With under 100 days to go until the Mortgage Code Compliance Board's deadline of the end of the year ...

  • Product matters

    3 Oct 2002

    I am only in favour of structured products linked to one index, preferably the FTSE 100, as in the Prudential income & growth plan. In the current climate, the five-year term of this plan is preferable to three-year products as this gives more time to iron out the peaks and troughs. The income level at 8 per cent a year or 0.62 per cent a month and growth of 42 per cent on maturity are slightly lower than rivals but this is compensated by some of the advantages on offer - headline ...

  • Quester 5 raises more funds

    8 Oct 2002

    Quester Capital Management is raising further funds for the Quester 5 venture capital trust (VCT).

  • RBS backs guide for lone parents

    3 Oct 2002

    The Royal Bank of Scotland Group is sponsoring a free guide explaining the state benefits and tax incentives available to single parents. The guide, published by the National Council for One Parent Families, includes contacts to other support agencies as well as practical information. It explains the new tax credit system which is due to replace the working families tax credit and other benefits for children from April 2003. It also includes information about the different ...

  • Roger Ramsden

    3 Oct 2002

    Roger Ramsden cannot be accused of merely dipping his toe in the water in his first foray into financial services. As Prudential marketing director, he plans to spend£20m on a relaunch of one of the UK's biggest brands. He joined Pru a year ago after seven years at supermarket Safeway and last month launched the Plan from the Pru campaign, intended to pick up where the Man from the Pru left off. Ramsden arrived at the Pru only around eight months after the brand started ...

  • Royal descent

    3 Oct 2002

    Bob Mendelsohn was the man drafted in to try and make a difficult match between Royal & Sun Alliance work. It is a shame that he is no relation to Felix Mendelsohn, the Wedding March composer, who could maybe have offered some much needed advice on harmony. The chief executive finally stepped down this month. To the horror of shareholders and policyholders, Mendelsohn is laughing all the way to the bank after getting a £1m payout on his contract which had two years to run. ...

  • Sandler attacks industry failure to motivate savers

    3 Oct 2002

    The financial services industry must not view the prospect of pension compulsion as a redemption for its own failure to create demand for its savings products, warned Ron Sandler. In explaining why the compulsion issue was only touched upon in his report in July, Sandler told delegates at the CII conference that the industry has much more to do to motivate savers. He said if the Government was to introduce compulsion, it would serve as a bailout to an industry which has largely ...

  • Sandler doesn't make the grade

    3 Oct 2002

    I have been assessing comments on the Sandler report now that many have had time to digest his glossy blue book. Comments seem to fall into two main categories -hysterically anti regarding much of the detail or fawningly obsequious. Ignoring the detail and looking at it in the context of the bigger picture, it is a rubbish piece of work. If I had handed in such a piece when I was at college I would have had it thrown back in my face. These are the comments I would have made as an examiner: In ..

  • Scarborough Building Society - Access 4

    2 Oct 2002

    Wednesday, 2 October 2002 Type: High interest accountMinimum-maximum investment: Lump sum £3,000-£500,000Interest rates: 4.1% gross a year, 3.85% gross a monthTerm: Until further noticeOffer period: Until further noticeWithdrawal penalties: Four free withdrawals a year thereafter interest rate reduced to savings base rate Tel: 0845 458 4458

  • Scarborough Building Society - Members Two Year Bond Issue Four

    7 Oct 2002

    Monday, 7 October 2002 Type: High interest account Minimum-maximum investment: £1,000-£100,000 Interest rates: 4.1% gross a year, 3.85% gross a month Term: Two years Offer period: Until further notice Withdrawal penalties: No withdrawals permitted during term Tel: 0845 4584522

  • Standard slices payouts 10% as surrenders rise

    3 Oct 2002

    IFAs say Standard Life has bowed to the inevitable by imposing a 10 per cent market value adjuster and slashing payouts by 10 per cent on Monday. Standard has made the with-profits cuts in an interim bonus declaration. It blames the move on stockmarket falls and rising surrenders. It follows increasing media and industry speculation about the line the company was taking. Before Monday's announcement, it was the only major life company which was not imposing an MVA, and anecdotal ...

  • Supermarket forces

    3 Oct 2002

    There can be no questioning the fact that fund supermarkets have had a dramatic impact on the personal investment market in the past couple of years. Virtually unheard of in the UK three years ago, recent research carried out by Cofunds suggests that 94 per cent of IFAs use these organisations for some of their investment fund business. In some cases, the market share is substantial. One major national IFA recently told me it was placing 80 per cent of their fund business across ...

  • SVM goes continental

    7 Oct 2002

    SVM Asset Management has introduced the continental Europe fund, an Oeic that aims for capital growth by investing mainly in European large caps.The fund is benchmarked against the FTSE World Europe ex UK index and despite the focus on large caps, the portfolio will also include mid-caps that appear to have high growth potential. The stocks will be selected by the fund managers using the FTSE Eurotop 350 index.Michael Nicol and Paul Casson are the co-managers of the fund. ...

  • Talkback

    3 Oct 2002

    "No because one of the benefits of a pension is the ability to draw down that lump sum. Some people have already drawn down income from their pension and it would be unfair for others not to." Emma Ames, Cathedral Financial Management "No. A lot of people do not have much faith in pensions already." Howard Pickersgill, Howard Pickersgill & Co "It would be entirely in accordance with the Government preaching pensions and then disincentivising people from using them. It would ...

  • Tax returns

    3 Oct 2002

    Do you think the Inland Revenue's delay in publishing its report into taxation of pensions is because it is adjusting its proposals to make them more complex or less complex? Clarke: I doubt very much that the Inland Revenue will make recommendations to the pension tax regime that would complicate the existing minefield of rules and regulations, particularly as the DWP is determined to simplify pensions. It is vital that the Green Paper demonstrates that there has been joined-up ...

  • The fund couple

    3 Oct 2002

    Like the double-act of Walter Matthau and Jack Lemmon, Framlington's new star fund managers Nigel Thomas and George Luckraft chat with the ease of two men who have worked together for 20 years. Both are clearly uncomfortable about the furore surrounding their well publicised and acrimonious move from ABN Amro to Framlington and are looking to put the past behind them and get on with managing their new funds. Speaking for Luckraft, Thomas points out that the new job is only Luckraft's ...

  • The name's corporate bond...

    3 Oct 2002

    When you think of Aston Martin, you think of James Bond. When you think of bonds, you think of M&G, the biggest investor in corporate bonds in the UK. There are two big events coming very soon, the first is the relaunch of the M&G Spin-free Guide to Bonds. The second is the release of the latest James Bond film in November. The new film marks the 40th anniversary for Bond on the silver screen and is the first Bond film to have been produced since The World is Not Enough ...

  • The Quay to media coverage

    3 Oct 2002

    The Diary was delighted to read that IFAs hoping to raise their media profile should buy their favourite hacks meals and drinks, as well as paying the cab fare home, according to Quay Software's media guide. Although we agree with Quay Software's view that Money Marketing is of 'far reaching impact' and is 'often used by Government departments as a paper of record on important decisions', we are not so sure about some of their other assertions. For instance it ...

  • The relevance graveyard

    3 Oct 2002

    Increasingly, individuals with occupational pensions are transferring to personal pensions to take advantage of the flexibility available with future funding and drawdown. There is quite often a need to take benefits from a pension plan, particularly tax-free cash, without wishing to retire. A personal pension is the only vehicle that will allow this flexibility. But tax-free cash in isolation cannot be taken from a personal pension. Where income is not required, the minimum drawdown ...

  • Threadneedle eyes up health stocks

    3 Oct 2002

    THREADNEEDLE INVESTMENTSTHREADNEEDLE GLOBAL HEALTHCARE FUNDType: OeicAim: Growth by investing in pharmaceutical companies, biotechnology, healthcare providers, medical supply companies and producers of advanced medical devicesMinimum investment: Lump sum £2,000Investment split: Pharmaceuticals 55.5%, healthcare 14%, biotechnology 9.5%, medical technology 7%, medical supplies 8.5%, cash 5.5%Isa link: YesPep transfers: YesCharges: ...

  • Tiner tells the CII that commission is still on the cards

    3 Oct 2002

    The FSA has publicly acknowledged that IFAs may still be able to get paid by commission following depolarisation. Speaking at the Chartered Insurance Institute annual conference in Birmingham last week, FSA managing director John Tiner repeated the regulator's message that it is looking at a number of alternatives to its defined-payment system, including Aifa's menu option. Taking the debate one step further, however, Tiner said Aifa's menu is interesting because it allows ...

  • UBS fund scours the US

    3 Oct 2002

    UBS Asset Management has established its fourth UK retail fund, the US equity fund.

  • UBS Global Asset Management - US Equity Fund

    3 Oct 2002

    Thursday, 3 October 2002Type: OeicAim: Growth by investing in US equitiesMinimum investment: Lump sum £1,000, monthly £50Investment split: US large-cap companies 65%, US mid-cap companies 35%Yield: NoneIsa link: YesPep transfers: YesCharges: Class A shares - initial 4%, annual 1.5%, class B shares - annual 0.9%Commission: Initial up to 3%, renewal up to 0.5%Tel: 0800 5872111

  • UBS looks long term with US equity fund

    3 Oct 2002

    UBS Global Asset Management is offering a US equity fund as part of a stable of at least 12 funds which it plans to launch over the next three years. This is the fourth retail fund to be set up by the firm this year. The fund will be managed by Chicago-based Tom Digenan, an executive director of UBS Global Asset Management, who will be supported by a team of 31. The aim of the fund is long-term capital growth through the active management of a diversified portfolio primarily ...

  • Verity's view

    3 Oct 2002

    At a recent conference of IFAs, a poll was taken of the 600 delegates to find out how many of them believed their businesses would survive. Fifty per cent said they would need additional capital to withstand the impact of the Sandler and FSA proposals. But what is it about these reports that is so damaging? The proposal to have more products with flat 1 per cent (or a little more) charging structures is vastly overplayed. Many products along these lines are already on the market so ...

  • Virtual virtuoso

    3 Oct 2002

    If Junior Sobowale's enthusiasm is anything to go by he is about to bounce his competition - the big IFA networks - out of the ring. Last week, he launched a new internet-based IFA network Virtual Net alongside management team Stuart Smith, Ian Nairn and Yinka Akanji. Energy is definitely not something this chief executive lacks. After completing the London marathon in April he decided the experience was the closest he will ever get to childbirth. But after another marathon effort ...

  • Widows and Rock take higher ground

    3 Oct 2002

    Scottish Widows is offering combination products which consist of a guaranteed equity bond and a high interest account. The Scottish Widows guaranteed investment combination is a six-year guaranteed investment bond linked to the FTSE 100 index and a high-interest account called the term deposit account which offers an interest rate of 7 per cent gross over 12 months. Northern Rock already offers a similar product. Issue 12 of Northern Rock's 50:50 product consists of a five-year ...

  • Would you want...

    3 Oct 2002

    Would you want to rely on Tracey Emin's dirty sheets to look after you in your old age? Well a growing number of people, disillusioned at pension uncertainty and poor equity returns wouldn't baulk at the prospect. Art, the Diary understands, is the new buy to let, with increasing numbers trawling auction houses for that objet with a touch of added value. All the financial advice that Roberts Clark director Jo Roberts can muster isn't enough to stop her mum and dad ploughing ...

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