Money Marketing
20 October 2004

  • 'IHT bands would lead wealthy to sell homes'

    21 Oct 2004

    Wealthy homeowners may be forced into downsizing their properties as they reach retirement to save inheritance tax, says Baring Private Clients. Baring believes the top end of the property market will cool off if the Government introduces IHT bands. Thinktank the Institute for Public Policy Research recently issued a paper proposing a new top IHT rate of 50 per cent for estates worth more than £763,000. Properties worth between £263,000 and £288,000 would ...

  • 'IHT discriminating against homes in high-price areas'

    21 Oct 2004

    The firm says the price of the average UK house - £161,746 - takes up 61 per cent of the inheritance tax-free allowance compared with 31 per cent of the band in 1995. This is even higher than at the peak of the property boom in 1989 when the price of the average UK house - £68,754 - represented 58 per cent of the £118,000 band. Bates points out that the inheritance tax-free band discriminates against households in high-price property areas. The average house in ...

  • 'Pensioners are better off with credit'

    21 Oct 2004

    The Treasury has hit back at claims that the pension credit disadvantages savers, saying pensioners are better off than they were under the minimum income guarantee. It has revealed under the minimum income guarantee - which preceded pension credit - around 1.8 million pensioners faced a 100 per cent reduction in benefits for any pensions or savings they had built up. Under the pension credit, around 940,000 of these households lost 100 per cent of benefits while 860,000 ...

  • 'Providers to lose power in IFA field' Sesame to target mature staff with experience

    21 Oct 2004

    The influence of product providers in the IFA sector is diminishing ahead of depolarisation. That was the message at a round table last week, at which marketers said they believed the control that providers had exerted up to now was waning and IFAs were developing their businesses without their help. Punter Southall Financial Management managing director Arthur Allison said that after looking at the way that markets had developed in Australia, providers would return to ...

  • A consumer's view

    21 Oct 2004

    An important point barely touched on by Adair Turner in his Pensions Commission Report is the fact that incentives to encourage people to save for retirement will fail as long as individuals do not trust the savings institutions. And they don't. Research from the Consumers' Association shows that this is an enormous hurdle for the industry to overcome, with only one in three prepared to believe that financial institutions are not about to rip them off. The National ...

  • A tough Act to follow

    21 Oct 2004

    A change to a Government minister with a pensions brief is a significant event for our industry. Sometimes there is a collective sigh of relief, such as when Helen Liddell moved on after earning a reputation as the scourge of the industry by naming and shaming companies she thought were dragging their heels over the pension misselling review. Sometimes there is regret at the loss of an innovative and generally sympathetic minister like Ruth Kelly, who has moved from the Treasury ...

  • Abbey shareholders vote for Santander takeover

    21 Oct 2004

    Abbey has got the go-ahead for a takeover by Spain's biggest bank Banco Santander Central Hispano despite a stormy shareholders' meeting last week. The support of major shareholders brought 94.6 per cent backing for the takeover, based on share value but, counting one vote per shareholder, only 64.8 per cent approved the deal. Deutsche Bank analyst John Sheridan says some smaller shareholders felt that the valuation of £8.7bn was low at a time when Abbey was ...

  • All party group mutual inquiry

    25 Oct 2004

    The Parliamentary All-Party Group for Building Societies and Financial Mutuals is conducting an Inquiry into the extent to which mutual business contribute to the economy and society.

  • Analysis costs may stop IFAs doing transfers

    21 Oct 2004

    IFAs may stop doing pension transfers altogether if they are forced to pay for independent transfer value analysis, warns a leading technology provider. Chambers Townsend Con-sultancy managing director Nigel Thomas says Sesame's decision to force members to pay for reports from independent TVAS provider O&M Systems - reported in Money Marketing last week - could see other networks adopt the same policy. CTC is the technology provider for Alexander Forbes IFA. Thomas ...

  • Assureweb wins first deal with consumer site

    21 Oct 2004

    Assureweb has beaten off competition from The Exchange for a deal to provide UK Life Direct with a quotation tool for its customer website. The move is its first step into the direct-to-consumer sector, where The Exchange has a major market share. Assureweb is creating a simple quotation tool that UK Life Direct will license to power its consumer-facing website. Potential customers of UK Life Direct will be able to visit the website and search for details of the leading ...

  • AVCs could lose out to fat cats in Bill change

    21 Oct 2004

    A Pensions Bill amendment could see people who have made additional voluntary contributions lose their money to fat-cat directors, warns an occupational pension consultancy. The amendment, made by the House of Lords last week, will overturn the current situation where money invested through AVCs is the first to be ringfenced on scheme wind-up. First Actuarial director Alan Smith says the situation would be most likely to arise when a scheme is ref-erred to the pension ...

  • B&B sells property services

    20 Oct 2004

    Bradford & Bingley has sold its property services businesses to Countrywide for £44.3m in cash while the fate of Charcol still remains uncertain. Goldman Sachs advised on the sale of B&B's 307 estate agency offices and SecureMove Property Services. Countrywide has four main divisions - estate agency, financial services, residential surveying and valuation. In addition, Lloyds TSB Autolease has bought the portfolio of car financial credit associated for £5.2m in cash.

  • Baillie gifts Sipp scheme

    25 Oct 2004

    BAILLIE GIFFORDSELECT PENSIONType: Self-invested personal pension Minimum investment: Lump sum £50, monthly £50 Investment choice: Scottish Mortgage Investment Trust, Monks Investment Trust, Scottish American Investment Company, Edinburgh Worldwide Investment Trust, Baillie Gifford Japan Trust, Baillie Gifford Shin Nippon, Pacific Horizon Investment Trust, Mid Wynd Investment Trusts, Baillie Gifford Bond Pension Fund, Baillie ...

  • Bamford in plea for unity after yes vote for merger

    21 Oct 2004

    Sofa chairman Nick Bamford is calling on IFAs who opposed the merger between Sofa and the LIA to support it now it has won the go-ahead from members. Both organisations have voted in favour of the mer-ger and Bamford is asking IFAs who were against the move, such as Harry Katz of Norwest Consultants, not to leave the Personal Finance Society as they would be missed. Katz recently wrote to Money Marketing, saying as he has been unequivocally opposed to the merger he would ...

  • BGI goes to exotic ETF

    21 Oct 2004

    Barclays Global Investors has added the i-Shares MSCI Japan fund to its range of exchange-traded funds and will follow this up with three more new additions.The fund will track the performance of the MSCI Japan index, which consists of companies such as Nissan, Honda and Toyota motor companies, Canon and Sony. The index represents a range of industrial sectors including consumer goods, industrials and healthcare.As an exchanged traded fund, the i-shares fund differs from ...

  • Birthday present for Fidelity investors

    21 Oct 2004

    Fidelity is reducing the initial charge on two multi-manager funds celebrating their first anniversary. The multi-manager growth and income portfolios managed by Richard Skelt are both offering a reduced charge of 3 per cent until December 17 along with flexible transfer pricing. This allows IFAs to offer discounts to their clients by quarter-point increments. Advisers who want to rebate their entire initial commission can transfer Isa and Pep clients to the multi-manager ...

  • Boulger telling loan networks to go for quality

    21 Oct 2004

    Charcol technical adviser Ray Boulger is warning networks that they should be selective about which brokers they choose and not take all-comers just to build up their numbers. Boulger says networks are desperate to get appointed representatives but he says mortgage intermediaries are still undecided as to what they want to do less than two weeks before M-Day and it could prove difficult to do business with them. The FSA's latest figures show that by September 30, 7,400 ...

  • Box clever

    21 Oct 2004

    In the Greek myth, Pandora receives a box filled with dubious gifts from the gods and is instructed never to open to it. Curiosity gets the better of her, however, and she risks a peek inside. Out swarms Evil in myriad guises and by the time Pandora slams the lid shut, all that is left in the box is Hope. For many financial advisers, clients who hold with-profits bonds are their Pandora clients - they are praying that these investors do not lift the lid. You may be among ...

  • Boyd quits Just Retirement

    20 Oct 2004

    Just Retirement head of external communications Jim Boyd is leaving financial services for a job with transport company Go Ahead. The former Britannic Retirement Solutions PR is well known for his lobbying in the industry on issues such as telling annuitants clearly about their right to exercise the open market option and the full regulation of equity release.

  • Broken fall

    21 Oct 2004

    In my last article, I started to identify and discuss certain aspects of the main risks associated with pension drawdown contracts. I concentrated on the risks to a drawdown client of market interest rates falling before he buys a conventional annuity with his fund. It is clear that annuity rates will generally fall as interest rates fall, meaning that the client will secure a lower level of pension income than he might have anticipated when he first entered into the drawdown ...

  • Campbell to open investment boutique

    20 Oct 2004

    Former managing director of Jupiter and Artemis Jamie Campbell is set to open a new investment boutique. Campbell will be managing director of Montague Asset Management which is thought to be launching a UK growth fund in the first quarter of 2005. This will be run by former Axa global emerging markets manager Bill Roden. FSA authorisation has yet to be granted for Montague Asset Management.

  • Cazenove Fund Management - UK Dynamic Fund

    20 Oct 2004

    Type: OeicAim: Growth by investing in UK stocks including those listed on AimMinimum investment: Lump sum £1,000Investment split: 100% in UK companies including Aim stocksIsa link: YesPep transfers: YesCharges: Initial 3.5%, annual 1.5%Commission: Initial 3%, renewal 0.5%:Tel: 020 7155 5566

  • Cheltenham & Gloucester - 7 Year Fixed Rate

    22 Oct 2004

    Fixed term: Until November 30, 2011Fixed rate: Up to 95% of valuation - house purchase 5.74%, remortgages 5.99%, up to 90% of valuation -- house purchase 5.49%, remortgages 5.74%Minimum loan: £25,000Maximum loan: Up to 95% of valuation subject to no maximumIncome multiples: Up to three times principal income plus second or 2.75 times jointArrangement fee: £299Redemption fee: 7% of amount repaid ...

  • Closed funds make up 20% of WP assets

    21 Oct 2004

    Assets in closed with-profits funds comprise 20 per cent of the overall WP market, according to the Treasury. In monetary terms, this equates to around £191bn out of £940bn in with-profits money residing in closed vehicles. With-profits liabilities in closed funds amount to £84bn out of a market total of £333bn. In its report on long-term savings, the Treasury says it will extend its programme of targeted supervisory work on the treatment ...

  • CML fears firms trading on after authorisation refusal

    21 Oct 2004

    The Council of Mortgage Lenders has raised concerns that brokers will be able to continue trading after they have been refused authorisation. The Treasury has revealed that mortgage firms which fail the authorisation checklist will still be allowed to continue dealing with clients until their appeal is complete. Once a firm has been refused authorisation, it has 28 days to apply for a tribunal hearing. After this deadline has passed, it cannot challenge the adjudication. Althoug

  • Commentary - Peter Hayles

    21 Oct 2004

    T here has been much talk about stakeholder pensions since their launch in April 2001. Much of this has focused on the 1 per cent price cap and the effect this has had on the product, sales and its distribution. Norwich Union's position on price caps is clear. We do not support the principles of price caps. At the price cap of 1 per cent on stakeholder, in many business categories, the product is uneconomical to market widely, especially to those who it could be argued need ...

  • Confusion over status of Network 300 firms

    21 Oct 2004

    Network 300 members who sign up with Thinc are being offered the choice of joining its multi-tie operation, mortgage arm or becoming a fee-based financial planner. To date, none of the 287 RIs in the network has made a decision on whether to join Thinc. Advisers can join Thinc Financial Planning until general insurance regulation starts on January 15 for their pipe-line business, after which they must elect one of the three options. Those who want to operate in the loan market ...

  • Correspondent's View

    21 Oct 2004

    Coming back to so-called normal life and looking for work is quite an odd experience after nearly five months of tripping around the globe. After months where the date and day have absolutely no relevance to anything, pinning down the events of a week feels like an almost impossible task but I will give it a try. Our latest jaunt has been nearly three months in Eastern Europe and a bit of Western Europe to remind us of how cheap the Eastern side is. While ...

  • CPAs should go

    21 Oct 2004

    The dinosaurs from Jurassic Life are out of their pens again trying to justify CPAs. Annuities have their place but it is morally and fiscally wrong that, by law, everyone is forced to put their second-biggest asset in the hands of the actuarial profession 10 years before they are statistically dead. If pension contributions ever become compulsory CPAs must be banned, although if they were banned there would be no need to make contributions compulsory anyway. Give the people access ...

  • Critical barrage for ABI over definitions and website

    21 Oct 2004

    Leading medical figures have criticised the Association of British Insurers for outdated definitions on major critical illnesses and an inadequate website. At a conference organised by reinsurer GenRe, Imperial College professor of cancer medicine Karol Sikora described the ABI website as "trash". One of his main criticisms is it does not define what critical illness is, the ABI's role and what purpose its definitions perform. University of Edinburgh professor of medical ...

  • Critical questions

    21 Oct 2004

    A conference at the Royal College of Pathologists last week hosted by General Cologne Life Re UK brought experts together to address current critical-illness standard definitions and how these could change in the future. Experts from institutions around the UK discussed five critical-illness conditions -cancer-solid tumours, leukemia, myocardial infarction (heart attacks), stroke and multiple sclerosis - and how medical advances will shape the way insurers will deal with them. Cancer heart ...

  • Destini's child

    21 Oct 2004

    Summer 2001 Gary Keyes: We first began to think about an acquisition three years ago, when founding director John Collins retired as chairman of Adams Tingle. As the managing director, I realised that, in order to progress, Adams Tingle needed something more. Regulation around pension selling had created immense pressures on John and further FSA clampdowns were making life difficult, especially in view of the consolidation that was going on elsewhere. As a large local IFA ...

  • Don't panic over with-profits funds

    21 Oct 2004

    The with-profits market has changed dramatically over the past few years. Not so long ago it was booming, there was an abundance of providers and investment performance was delivering stronger returns than we currently experience. Advisers and consumers alike were attracted to the benefits of with-profits. This changed when the markets headed south in 2000 and stayed there for the next three years. Like other equity-based investments, with-profits bonds suffered from stockmarket ...

  • Downing Corporate Finance - Electra Kingsway VCT 2

    26 Oct 2004

    Type: Venture capital trustAim: Growth by investing initially in Electra Investment Trust, Electra Active Management, fixed interest and cash then in Aim-listed and unquoted UK companiesMinimum investment: Lump sum £5,000Closing date: April 5, 2005 for 2004/2005 tax year, April 29, 2005 for 2005/2006 tax yearCharges: Initial 5.5%, annual 1.5% in year one, 2% in year two, 2.5% in year threeCommission: Initial ...

  • Dresdner launches hedge fund covered warrant

    25 Oct 2004

    Dresdner Kleinwort Wasserstein has launched the UK's first covered warrant linked to a hedge fund index.The investment bank is this week launching a three year tracker certificate linked to the returns of the HFRX Global Index. Dresdner launched into the covered warrants market back in February and offers covered warrants based on UK blue chips, commodities and currencies.

  • DUFFY on Mortgages

    21 Oct 2004

    In August, I strike a meaningful wager with our technical director that base rate had peaked for the year at 4.75 per cent. Something to be smug about you might think. Yet I am not. Mervyn King's unsolicited and now infamous after dinner remark regarding the housing market will come to define his tenure as Governor of the Bank Of England. It deliberately applied the brakes to a runaway market but I wonder how comfortable he feels about things eight weeks on. The ...

  • Events calendar

    21 Oct 2004

    Pension edge: james jones-tinsley What the UK pension system needs is an apolitical, long-term agenda for change, but instead our politicians thrive on cyclical short-termism and opportunistic policy-making. Politics itself represents the biggest obstacle to change On October 12, the Pensions Commission released its interim report, Pensions: Challenges and Choices. This is the first stage of a process which started with the release of the Pensions Green Paper in December ...

  • Experienced investors fall for scams

    21 Oct 2004

    Middle-aged professional men are the most common victims of "boiler room" investment scams. A survey of 105 members of the public who called the FSA's consumer helpline after falling victim to investment scams found that the typical victim is a middle-aged professional male with considerable investment experience. Nearly 90 per cent of victims calling the helpline are male and 44 per cent are aged between 35 to 55. A further 42 per cent of calls are from people ...

  • Families unaware of CTFs

    21 Oct 2004

    Two out of three families do not know about child trust funds, a survey from the AITC reveals. The research carried out by the trade body showed that 62 per cent of families were unaware of child trust funds. Awareness was particularly poor among low-income families, with just 30 per cent aware of the scheme compared with 45 per cent of more wealthy families. Communications director Annabel Brodie-Smith says: "There is certainly an important educational role ...

  • Feeling the pinch

    21 Oct 2004

    Obesity is something that has always impacted on premiums for protection products but due to the recent renewed public interest in this sensitive subject, it is a subject which is prompting increasing calls to the underwriting helpline. Obesity is an issue that affects increasing numbers of the population and as a result it is becoming more relevant to financial advisers. With a glut of new programmes such as Fat Nation and You Are What You Eat, nutrition is replacing ...

  • Fidelity gets 60,000 clients in Egg deal

    21 Oct 2004

    Fidelity has bought Egg Invest in a deal that will see 60,000 customers transferred to FundsNetwork. The fund supermarket arm of Egg will mean that FundsNetwork will take on an extra £170m in assets under management when the deal is completed in the first quarter of 2005. FundsNetwork has recorded sales of more than £3bn since its launch in 2000 and offers access to over 900 funds and 54 product providers. Egg Invest is 79 per cent owned by Prudential ...

  • Financial planners bid to lift global standards

    21 Oct 2004

    An international non-profit organisation has been set up to raise minimum standards of knowledge, advice and service among financial advisers around the world. The Financial Planning Standards Board will push for certified financial planners to have the status of accountants and lawyers. The FPSB will set standards for the 45,000 non-US certified financial planners across 17 country associations. These standards have previously been determined by the US Certified ...

  • Financial services need to be sold

    21 Oct 2004

    At a fringe meeting at the Labour Conference, Ron Sandler implied that most people are perfectly capable of sorting out their own financial requirements. I believe the crisis facing the industry is that the FSA, Ron Sandler, the Treasury and others that make the rules and influence the industry do not understand the financial adviser's raison d'etre. The policymakers do not realise that the most perverse attitude of humans is that they do not look after themselves. Generally ...

  • Firms set for form fee switch

    21 Oct 2004

    Asset managers could rep-lace annual management charges with performance fees as a trade-off for access to multi-ties, says Investec managing director Andy Sowerby. Sowerby, joint MD of Investec Fund Managers, says firms are almost ready to make the switch to performance fees. Hedge fund managers are frequently remunerated based on performance. It is only since FSA rules were implemented that performance-related fees in the retail market have been allowed. Gartmore ...

  • First National and igroup launch online KFIs

    26 Oct 2004

    igroup and First National have launched their online Key Facts Illustrations for intermediaries.GE Consumer Finance Home Lending chief commercial officer Sean Webb says: "We see this system as not only a necessity for FSA compliance, but also for the increased speed and efficiency of our brokers' business. We are dedicated to intermediary relationships and making processes easier in order to deliver what they, and ultimately, their customers want. Through the provision of constant, ...

  • First4Brokers acquires Mandeville Ltd

    26 Oct 2004

    First4Brokers, the independent mortgage compliant network has completed its acquisition of Mandeville Ltd, the electronic business to business service.Mandeville provides insurance products and services to mortgage brokers and IFAs.First4Brokers will now be able to deliver a range of electronically delivered general insurance schemes to its full members and firms that are directly authorised via its new subsidiary First4Insurance.First4Brokers managing director ...

  • Former Swip chief joins BBB

    21 Oct 2004

    IFA group Berkeley Berry Birch has appointed former Scottish Widows Investment Partnership chief executive Bill Main as executive deputy chairman. Main, 60, left Swip in December last year. During his time at Scottish Widows, he was group finance director of the fund group and life insurance society and deputy chief executive officer of the group. He set up Scottish Widows Bank and led the integration of Swip with Hill Samuel Asset Management and its subsequent development. ...

  • Friendly approach

    21 Oct 2004

    Appointed by the Treasury following the Penrose report on Equitable Life, Paul Myners is charged with reviewing the corporate governance of life mutuals. The Association of Friendly Societies has responded positively to the Myners consultation paper but it believes that certain issues still need to be discussed further. The history of friendly societies goes back over 200 years when they were first set up by individuals to provide collective funds to pay for a decent burial. Although ...

  • FSA backs trail with service

    21 Oct 2004

    The FSA has hit back at calls by politicians to ban trail commission but say IFAs must prove they are giving ongoing advice. It says its research shows that many consumers prefer a commission-based method of remuneration to payment by fees. However, it will tighten up its rules on trail to ensure that it is not being paid out regardless of service. The regulator says consumers display a reluctance to pay for advice by way of a separate fee and they like the fact that ...

  • FSA to implement Sandler from April 2005

    21 Oct 2004

    The FSA has announced that it will implement the basic advice regime in support of the Government's proposed stakeholder products initiative from April 2005.However, it will not be including the smoothed investment fund in the basic advice regime at this stage after consultation and consumer testing highlighted concerns about the product.Director of retail policy Dan Waters says: "We remain concerned about the additional layer of complexity that smoothing represents ...

  • Gartmore takes cautious steps

    21 Oct 2004

    GARTMOREGartmore Portfolio: Cautious Strategy FundType: Oeic multi-manager fund of funds Aim: Income and growth by investing in UK bond funds, UK equity income funds, property funds and cash Minimum investment: Lump sum £1,000, monthly £50 Investment split: 100% in UK bond funds, UK equity income funds, property funds and cash Isa link: Yes Pep transfers: Yes Charges: Initial 5%, ...

  • Get in training

    21 Oct 2004

    Mortgage regulation at the moment could be compared with being at the 18-mile mark of a marathon. Most of the strong runners have already passed the finishing line by receiving their FSA grant of permission. Some of the field may have dropped out along the way and others are still trying to make it home. But most mortgage advisory firms are in a position where they can carry on doing business legally within the newly regulated marketplace. However, unlike a real ...

  • Going through the emotions

    21 Oct 2004

    We recently asked people who already have a protection product how important claims support was for them. The results make interesting reading and suggest that the potential support available to customers should be a consideration when recommending a provider. Traditionally, advisers concentrate on the details of how much cover for what price over what term and with what provider. That is what you are there to do. But our research shows that is just as important to make sure your ...

  • Govt data shows cooling in house market

    21 Oct 2004

    Figures from the Office of the Deputy Prime Minister show that house price inflation fell from 14.3 per cent in July to 13.6 per cent in August. The average house price was £179,486, up from £177,474 in July - a rise of only 1.12 per cent on the previous month compared with 1.8 per cent in the same period last year. House price inflation in England fell from 13.4 per cent in July to 12.9 per cent in Aug-ust. Scotland saw a fall from 22.3 per cent to 20.2 per ...

  • Hargreaves Lansdown has top salesforce

    20 Oct 2004

    Hargreaves Lansdowne has the most efficient sales force in terms of turnover per adviser, according to a report from Datamonitor. The report, which also reveals that in 2003, 15 per cent of turnover in the total IFA market came from IFA firms which were part of the Sesame network, says IFAs will retain their supremacy in the life and pensions market come depolarisation. Datamonitor predicts that new business through multi-tied financial advisers will increase from 13 per cent to 46 ...

  • IFA's forms get lost in NU system

    21 Oct 2004

    Norwich Union Healthcare's new admin system is unable to find application forms which have been scanned, leaving a Sheffield IFA's applications in limbo. Johnson Birkett IFA Nigel Thompson has been told that three forms for income protection cover have been lost despite being logged into NU's document scanning system. Thompson says copies faxed to NU have also been lost. Under NU's new system, original documents are destroyed once they are scanned. Johnson ...

  • IFAs are getting the message as Emx expands

    21 Oct 2004

    Emx is expanding rapidly into the IFA life and pension markets and has signed up over 30 companies to its electronic transaction service this year. The latest big provider names to sign up include Abbey Wrap, GE Pensions, James Hay, Winterthur Life, Zurich and Allied Dunbar. A number of IFAs, including Positive Solutions, Duncan Lawrie and Sterling IFA, have updated their back offices to enable straight-through processing of fund transactions. The service allows instant ...

  • IMA's disclosure plans 'will disadvantage Fofs'

    21 Oct 2004

    Implementation of the Investment Management Association's portfolio disclosure proposals could make it difficult to manage funds of funds because information on the underlying holdings of funds would be restricted, say managers. The IMA, which is aware of the potential problem, says all investors should have access to the same portfolio information at the same time delay. It says this is because real-time data could be used in market timing, which disrupts markets and can increase ...

  • IMS aims for 3.5% real return on income fund

    21 Oct 2004

    Investment Manager Selection is waiving the initial charge on its new select income fund until December 10. The Oeic-structured cautiously managed fund aims for top-quartile returns and has an estimated yield of 3.46 per cent above inflation. The fund was launched on October 15 and will have an initial 5 per cent charge after the launch period. Minimum investment is £5,000 and annual charge is 1.5 per cent. Commission is up to 3 per cent with 0.5 per cent trail. The ...

  • Independent view

    21 Oct 2004

    It seems to me the FSA assumes it is easier to regulate a small number of large organisations than a large number of small ones. Experience tells us, however, that the opposite is true. If a large organisation decides to behave badly, all you get is a large number of people behaving just as badly. Having said that, I would rather believe that it was collective ignorance. When so many people get enthusiastic about a new product launch, for example, no one dare stick up ...

  • Intelligent Money offers new range of funds

    26 Oct 2004

    Intelligent Money has launched a range of 100 per cent capital secured investment funds.The funds offer wither a fixed return, out-performance of the FTSE and a residential property fund with 100 per cent capital security.All the funds are available within Maxi Isas and Peps (for transfers).The funds will be available from 9 December unless they become fully subscribed before they are released.

  • Internet threat of false ID

    21 Oct 2004

    Forged personal documents readily available on websites could fuel fraudulent mortgage applications warn providers. Money Marketing has seen a website - replacementdocuments.com - that offers credible-looking documents including passports, birth certificates, replacement bank statements and statements of cancellation of debt judgments. A package that includes pay slips, a P60 and references can be bought for £350 from the site. Lenders do not have a uniform approach ...

  • Introducers to face VAT threat over referrals

    21 Oct 2004

    Mortgage introducers who get a fee for referring clients on to an intermediary or network could face VAT bills. The position has been clarified for appointed representatives who will not pay VAT if they are working within a recognised network structure but it looks likely that mortgage introducers will be liable for VAT. Lead-generation agencies pay VAT on their services but Customs and Excise has now made it clear that individuals acting as introducers will also be liable ...

  • Investment view

    21 Oct 2004

    Isn't it strange how people's perception of a job or a profession can alter over time. When I first entered the world of stockbroking in the early 1960s, I believed I was joining an elite band of professionals charged with oiling the wheels of capitalism. Stockbrokers were monied and lived in big houses - or at least that is how I saw them. Looking from the inside, I formed a rather different - and altogether more realistic - impression. Moving into fund management at a ...

  • Is it any wonder that no one wants a pension today?

    21 Oct 2004

    And so we have the Turner report, this time on the retirement savings gap, which the government seems now to have increased from £27bn to £57bn. It would be interesting to know how the Government or its appointed agencies are coming up with these vast figures and also why there's such a vast difference between the first figure and the latest one. Are these figures just plucked out of the air? And how does the Government know just what long-term investments people ...

  • Julian Gibbs

    21 Oct 2004

    The Threadneedle UK Limited Issue fund, now called the UK Accelerando fund because it is also being marketed in Europe, was launched in May 2003. Since then, the share price has risen by 31.6 per cent versus the rise in the FTSE All Share index of only 17.9 per cent to August 31, 2004. This fund was the first of its kind to take advantage of the new Ucits 3 and CIS rules to limit the size of the fund and explicitly use new powers to hold cash positions and certain types of derivatives ...

  • Learning curve

    21 Oct 2004

    Case study Mark Dutton, Age 31, BA (politics/history), UNSW (Australia) Graduate trainee financial adviser After I left school, my plan was to join the Royal Australian Air Force as a fighter pilot and I graduated from the Australian Defence Force Academy with an Arts degree in Politics/History. But my ambition to fly F-111s was cut short by leg surgery. I resigned from the RAAF and spent several exciting and eventful years travelling abroad and my activities included ...

  • Legal & General - Protected Capital and Growth Plan

    25 Oct 2004

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment:£500-no maximum, Isa £3,000-£7,000Term: Six yearsReturn: The greater of 26% of original investment or 50 per cent of the growth in the indexGuarantee: Original capital returned in full along with 26% growth regardless of performance of indexClosing date: December 17, 2004, Pep/Isa ...

  • Life offices urged to share data

    21 Oct 2004

    Life offices and IFA firms should share their data to build more accurate databases and allow them to plan marketing strategies, the meeting heard. Bestinvest head of marketing Justin Modray said providers were taking the wrong approach with the research they made available to IFAs,as the smaller groups which would find it most useful cannot afford to buy it. Modray wants to see providers spend less money on marketing material and use more of their resources for IFA support ...

  • Life Protection from Homeowners Friendly Society

    22 Oct 2004

    Homeowners Friendly Society announces the launch of its Better Start Family Income Life Cover to help parents protected their family financially.The cover provides families with a tax-free monthly income in the event of a parent's death. Following a claim, the cover pays out in monthly instalments for the remainder of the 20-year policy term rather than one lump sum.Premiums begin at £6.16 per month and depend on the level of cover and personal circumstances. ...

  • Luqman Arnold replaced as Abbey CEO

    21 Oct 2004

    Grupo Santander has appointed Francisco Gomez-Roldan as the new chief executive of Abbey National, replacing Luqman Arnold.Gomez-Roldan is currently chief financial officer of Grupo Santander. Arnold will work with Santander as a senior advisor to Grupo Santander Chairman Emilio Botin once he is replaced by Gomez-Roldan on November 15th.The appointment is subject to and with effect from the completion of Santander's acquisition of the bank.Gomez-Roldan says: ...

  • Many IFAs confused over how to justify renewal

    21 Oct 2004

    More than one in 10 financial advisers have no idea how to justify trail commission to their clients, according to research from 1st Software. Three out of four advisers questioned in its survey said they will generate regular client reports and review their portfolios as justification of ongoing commission. Seven per cent will review providers' policy statements with clients and another 4 per cent will simply forward policy statements to clients. Managing ...

  • Marlborough Stirling in Exchange sale talks

    21 Oct 2004

    Marlborough Stirling is understood to have held talks with four product providers to negotiate a consortium purchase of its IFA portal The Exchange. Four product providers, including Norwich Union, Standard Life and Aegon are understood to have been in talks to agree a joint purchase of the portal. None of the four providers is thought to want to buy the portal on their own but IT giant IBM is also understood to have held talks about a bid. Marlborough Stirling ...

  • Matrix Money Management - Unicorn Aim VCT II

    20 Oct 2004

    Type: Venture capital trustAim: Growth by investing in companies listed on AimMinimum investment: Lump sum £2,500Closing date: April 1, 2005Charges: Initial 5.5%, annual 2%Commission: Initial 2.25%, renewal 0.375%Tel:020 7295 3377

  • MCCB calls for reasons-why letters to be retained

    21 Oct 2004

    The Mortgage Code Compliance Board has identified key issues for the industry after the FSA takes over the regulation of mortgages. Its final annual report published last week, the MCCB recommends that in all non-advised sales, consumers should be given a warning of the consequences of not obtaining advice. It also stated that the title adviser should only be used when advice is provided. The MCCB is urging lenders and intermediaries to retain the reasons-why ...

  • Merger is about standards

    21 Oct 2004

    Now the merger has got the yes vote from the members of both organisations, I hope that Harry Katz does not to resign his membership (Money Marketing, October 14). The financial services profession needs people like him. Harry needs to accept that it is possible to disagree and to enter into debate without falling out. Let me reiterate that this debate has been going on at board level for the best part of a decade. It has not got beyond that level during that time because, sadly, ...

  • Michael Jones

    21 Oct 2004

    I f Fidelity was looking for an enthusiastic proponent to head UK distribution, it has not gone far wrong with Michael Jones. Jones hails from the institutional side of the fund management business at Merrill Lynch although his last position there was in third-party retail. But there is little to suggest he will not be able to adapt to the cut and thrust of selling Fidelity to IFAs. He says: "I am immensely proud to be responsible for Fidelity International's jewel ...

  • Missing the points

    21 Oct 2004

    Adair Turner's report sent politicians from right and left into a panic last week. Bombarded by numbers, the Conser-vative Party found itself at sixes and sevens over pension policy. The Diary hears David Willett's first version of the Conservatives eight-point action plan was in fact a 10-step road to recovery. The Diary wonders what happened to the other two points over the weekend and whether they have merely been mislaid.

  • Miton Investment - CF Miton Special Situations Fund

    21 Oct 2004

    Type: Oeic fund of fundsAim: Growth by investing in Oeics, investment trusts, unit trusts, gilts and cashMinimum investment: Lump sum £5,000, monthly £100Investment split: 23% UK equities, 16% Japanese equities, 11% global bonds, 9% emerging markets, 9% resources, 8% gilts, 4% Pacific,3% European equities, 17% cashIsa link: YesPep transfers: YesCharges: Initial 5%, annual 1.5%Commission: ...

  • Miton takes record to IFA market

    26 Oct 2004

    Multi-manager specialist Miton Investments is making its debut in the IFA market with its fourth fund of funds.The CF Miton special situations fund is based on a pension fund that the company has managed since 1998. It will be run on a core and satellite model with defensive assets such as cash and gilts providing a low-volatility base. Potential returns will be boosted by around 30 per cent in special situations funds, which may include investment trusts. These satellite funds ...

  • Mortal combat

    21 Oct 2004

    The Consumers' Association wants a separate investigation to be carried out by the insurance industry into the EU directive proposals for gender equality. Is the CA right if it thinks insurance companies may have a bias? Kirwan: No. There are two quite separate issues here. The first is the insurance implications of introducing gender equality. This is a matter for the insurance industry to work out and say what the consequences for premiums and availability of cover would ...

  • Mortgage firms get a warning over outsourcing

    21 Oct 2004

    Mortgage experts are concerned that many com-panies which have outsourced compliance believe that they will not be liable for any regulation breaches after M-Day. Mortgageforce managing director Rob Clifford warns that far too many brokers who have outsourced their compliance to independent consultancies believe that if any breaches are found, the FSA will pursue the consultancy and not the firm. Although a firm may have grounds for a civil action against a compliance ...

  • Mortgage sector is still reliant on paper processing

    21 Oct 2004

    Most lenders still receive intermediary business in paper format, according to Marlborough Stirling's mortgage benchmarking study. Of the 17 lenders in the study, 13 receive over 70 per cent of introduced business in paper format. Lenders have to re-enter information into their processing systems, leading to increased costs and a higher risk of errors. But half the lenders sampled will make key facts illustrations available to intermediaries via their websites in recognition ...

  • Multi funds confusing advisers

    21 Oct 2004

    Most IFAs do not know the difference between types of multi-manager funds, says Fidelity multi-manager portfolio manager Richard Skelt. He claims many intermediaries are unsure about the difference between fund of funds, multi-manager and manager of manager. One year after the launch of the Fidelity multi-manager funds Skelt claims that IFAs are still confused about what each type of fund does. Last week, Fidelity rounded off a series of national roadshows and ...

  • MULTI-MANAGER view

    21 Oct 2004

    At first glance, the business of running a multi-manager fund would appear straightforward - find the best investment managers and put them together in the same portfolio. Such an assembly of stars would seem to guarantee outperformance. But it is far from that simple. Multi-manager analysis must not be confined solely to an assessment of whether a fund is well managed. It is equally important to determine how the fund fits with other holdings in the portfolio. You need to find ...

  • Mummy's the word

    21 Oct 2004

    Don Clark must take the prize for bravest trip across London this week thanks to his appearance at the Credit Suisse halloween party last week. The Black Country broker left his hotel - a full 20 minutes away from the Banqueting House venue - in nothing but a very long bandage, a few safety pins and a pair of boxer shorts. Don's mummy outfit seemed a high-risk strategy but just about stayed on all night thanks to careful wrapping. Asked where his wallet was, ...

  • Networks awarded Part IV authorisation from FSA

    20 Oct 2004

    The following networks have received their part IV, full authorisation from the FSA in readiness for mortgage and general insurance regulation:Arden CourtBDS Mortgage GroupBest Advice Mortgage NetworkBlue PearlBurns-Anderson Independent NetworkCartelClassic Network SolutionsCompassComplete Mortgage and Loan ServicesComplete Mortgage & Loan ServicesDirect Life & PensionsEthical Mortgage SolutionsEnable Mortgage & Insurance NetworkFalcon ...

  • NU launches new tranche of guaranteed growth plan

    22 Oct 2004

    Norwich Union is to launch a second tranche of its guaranteed growth plan.The plan guarantees a minimum return of 20 per cent regardless of what happens to the FTSE 100.It is a six year single premium product and will be available for six weeks from November 1st. It can be held as a direct investment or held in an ISA, or as a PEP transfer, and the minimum investment is £3,000. Head of investment product development Neil Davies says: "The guaranteed growth ...

  • NU move shows stakeholders just aren't working

    21 Oct 2004

    At last, Norwich Union, one of the major supporters of stakeholder pensions, has effectively admitted that SHPs are not commercially viable. Rather than tell the government the 'facts of life' and dump stakeholders, its solution for the future is to cross-subsidise the distribution of stakeholders with non-charge-capped pensions. It is indefensible that one customer should, effectively, be required to pay part of another customer's contribution. Norwich Union, ...

  • Out of context

    21 Oct 2004

    •"If people continue to get divorced, quite frankly, it's good business for us." - Countrywide chief executive Harry Hill. •"How nice it has been to sit at the head table with the cast of Last of the Summer Wine." - Guest speaker Radio 4's Garry Richardson at The Mortgage Event gala dinner. •"Try and pin Ray down? He's like the Scarlet Pimpernel." - B&B's Siobhan Hotten on Charcol's Ray Boulger. •"There really was a lot ...

  • Package deals

    21 Oct 2004

    I am an employer who wishes to update the benefits package for my staff. I want to ensure I am competitive and utilise technology wherever possible. What can an IFA do to help me? Employers who offer attractive benefits will retain staff and recruit more easily. In the recent Origen employee benefits survey, two-thirds of employees said they would be more likely to stay with an employer who offered good benefits. Pensions are at the core of a good package although many ...

  • Paradox of pension advice

    21 Oct 2004

    The need to incentivise people to save and the cost of advice appear incompatible in the Pension Commission's eyes, placing question marks over the future of IFAs in the pension market. In a report published last week - Pensions: Challenges and Choices - Pension Commission chairman Adair Turner claims the cost of advice is disincentivising consumers from saving while recognising that any further drop in pension charges will make the products uneconomic for intermediaries to ...

  • PI rates could be halved as fears are dispelled

    21 Oct 2004

    Professional indemnity insurance premiums could fall by 50 per cent because problems with IFAs have failed to materialise, says PI broker PYV. PYV says it has recently been able to negotiate up to 50 per cent reductions in premiums for some IFAs and director Neil Pointon expects excess and conditions terms to improve in the future. Pointon says there is an additional 25 per cent of capacity in the PI market for IFAs with the re-entry of Chubb Insurance, which started ...

  • Piecing together pension jigsaw

    21 Oct 2004

    As a fan of Fawlty Towers, I have many favourite lines and scenes but when Adair Turner published his paper, only one sprang to mind. Pension strategy in the country has resembled dodgems, where contact is neatly avoided by judicious spins of the wheel. Just as the actuarial brethren avoid decisions by pushing items on a few years, using the age-old protection method of ensuring that if anything goes wrong, it happens on someone else's watch. I would recommend that ...

  • Political problem with pensions

    21 Oct 2004

    To read the recent national newspaper headlines, one might believe that some action was about to be taken on pension reform. Everyone bought into what the Prime Minister and his pension reviewer Adair Turner had to say. The public were told they would have to save more or taxes might have to go up, they might have to work longer or be compelled to save. The Prime Minister is thought to be planning a move away from means' testing. Secretary of State for Work and Pensions ...

  • Pricing is a key issue for networks

    21 Oct 2004

    Mortgage Intelligence managing director Sally Laker "There has been much debate about how many appointed representatives a network will need to survive after regulation. This is a key issue for those networks that have underpriced their service either intentionally to attract members or because they simply got their sums wrong. For those networks that are providing a comprehensive, high-quality service and have done their homework properly, this is not an issue." Hamptons ...

  • Product Matters

    21 Oct 2004

    Standard Life has been quite adept at rein venting itself over the years. In the 1970s, final-salary scheme business; in the 1980s, it was endowments; in the 1990s it was money-purchase pensions, now in the new millennium it is turning itself into an admin company. The industry's answer to Madonna? The launch of the Standard Life Sipp sends a clear message about where Standard is going. It is placing its bets on being better at running pensions than anyone else. Its group ...

  • Professional target as Sofa and LIA members vote for a merger

    21 Oct 2004

    The merger between Sofa and the LIA is to go ahead following positive votes from the membership of both organisations. Extraordinary general meetings for Sofa and the LIA last week saw 87 per cent of LIA votes in favour of the merger and 75.5 per cent of Sofa votes in favour. The 25,000 members of the combined bodies, believed to represent about 40 per cent of registered UK advisers, will be transferred into the new Personal Finance Society by January 2005. IFAs ...

  • Pru to pick up 25% of Sesame and Millfield business with tie

    21 Oct 2004

    A quarter of Sesame and Millfield's business will be transacted with Prudential through its multi-tie arrangements, says group chief executive Jonathan Bloomer. Pru has raised £1bn through a rights issue to provide it with a war chest to build tie-ups and fund the expansion of its UK business. It is looking to add to its multi-tie agreements and double its IFA salesforce over the next two quarters. The company also says it is looking at acquiring a number of closed ...

  • Reap protection rewards

    21 Oct 2004

    In a significant move by the FSA, the final rules governing the sale of protection and general insurance policies extends the remit of the Financial Ombudsman Service to rule on complaints relating to advice on protection plans. This means, for example, that when the FOS considers a complaint about a disputed claim, the advice given by the intermediary may, for the first time, be taken into account. Given this extended authority, intermediaries need to be entirely clear on what ...

  • Rebel MP bids to link pension with earnings

    21 Oct 2004

    Rebel Labour backbencher Kate Hoey is proposing an early day motion urging the Government to link the state pension to earnings. The EDM has gained 77 cross-party signatures, including 55 Labour MPs, backing the proposal. It supports the call for the restoration of the earnings link set out in the Pensioners' Manifesto drawn up by the National Pensioners' Convention after consultation with 800 organisations. The manifesto was set out at the Pensioners' Parliament ...

  • Research fails the test of time

    21 Oct 2004

    I must respond to the recent article on analysis from Bates Investment Services, saying that cash beat 97 per cent of the funds in the all companies sector. I usually have a high regard for the Bates' research team but I cannot remember for a long time seeing such a piece of nonsensical research. In addition, at a time when public confidence is already low in equities, how does this do anything to encourage investors to put money into the market? I suggest people should be ...

  • Resolution picks finance chief

    20 Oct 2004

    Resolution Life Group is appointing Mike Biggs as its chief financial officer and board executive director. Biggs, the former Aviva group finance director, will be responsible for the company's financial management, consolidated group reporting and capital structure. Biggs helped in the demutualisation of Norwich Union in 1997. He will also lead Resolution's eventual flotation. Resolution buys and manages closed UK life funds.

  • RLA makes progress

    26 Oct 2004

    ROYAL LIVER ASSURANCEPROGRESSType: Menu based protection plan providing term assurance and income protection with optional critical illness and unemployment coverTERM ASSURANCEMinimum sum assured/minimum premium: None/£7.50 a month, £75 a yearMinimum-maximum term: Five-40 yearsOptions: Level or decreasing cover, accelerated critical illness cover, waiver of premium, inflation protectionDeferred period: ...

  • Role of commission will wane

    21 Oct 2004

    IFAs believe commission will become less important in a depolarised market. Speaking at a marketing round table meeting last week organised by Money Marketing and advertising agency Teamspirit IFA, Punter Southall Management managing director Arthur Allison said he believed commission would become a thing of the past. Sesame marketing director Stuart Gitsham agreed, saying he believed commission was no longer the central issue for product providers and that life offices ...

  • Rubbish data in, rubbish data out

    21 Oct 2004

    The problem with life offices' TVAS reports is not the TVA systems that the life offices use but the data that they put into them. It is a case of rubbish in, rubbish out,I'm afraid. Those responsible for the data, or at least checking it's within the bounds of common sense - which means not only the IFA but also the people at the life office they rely on to input the data and understand the TVAS information requirements - too often fall short. Life offices rarely ...

  • ScotProv pays out after probe on critical cover claim

    21 Oct 2004

    Scottish Provident has made a U-turn on a critical-illness policy after it originally refused to pay out following an admin blunder. Rodney Neil Financial Services partner Rodney Neil says ScotProv refused to pay out when a client was diagnosed with multiple sclerosis, claiming there had been non-disclosure of a pre-existing condition. Now the insurer has admitted that it failed to take into account the information disclosed by the client's GP and a separate medical ...

  • Scottish Provident International - Select Offshore Bond

    26 Oct 2004

    Type: Offshore portfolio bondUpdates: D charging structure with 0.1%-0.5% administration fee, no establishment fees, no valuation fees and no surrender charges added for investments of at least £100,000, capital redemption option now availableContact: www.spila.com

  • Skandia hands out £250m in mandates

    21 Oct 2004

    Skandia Investment Management has awarded £250m in fund mandates. The firm has awarded two mandates for its £600m active UK portfolio, with UBS given a £185 value mandate and Gartmore Asset Management given a £65 pragmatic growth mandate. SIM marketing manager David Orr says this is one of the biggest retail mandates ever awarded in the UK. The firm has this year taken £700m in assets under management and has done more than 4,500 deals ...

  • Skipton Building Society - Flexible 3 Year Capped Rate

    22 Oct 2004

    Type: Flexible capped rate mortgage with discountCapped term: Until February 28, 2008Capped rate:5.99%Discounted term: Two yearsDiscount: 0.75%Payable rate: 5.34%Minimum loan: £5,000Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to 75% of ...

  • Smee calls for a grace period if network fails

    21 Oct 2004

    Aifa director general Paul Smee is calling on the FSA to allow appointed representative a grace period if their network goes out of business. Smee is concerned that when a network goes into administration its ARs could have a very short period of time to make fundamental decisions about the future of their businesses. Smee believes that the regulator's requirement for firms to be authorised can end up forcing them into making a decision, which could be a move to another ...

  • Smee ends speculation over ABI role

    21 Oct 2004

    Outgoing Aifa director general Paul Smee has ruled himself out of the running for the role of director general at the Association of British Insurers. Smee announced in September that he will be stepping down from Aifa and joining the Association for Payment Clearing Services as chief executive in December. He says he is committed to taking up his new role, silencing speculation he would apply for the position of director general at the ABI when Mary Francis steps down. Francis ...

  • Someone's got their M-Day figures wrong

    21 Oct 2004

    The Association of Mortgage Intermediaries has kindly given members a 30-step checklist as they get ready for M-Day. But the checklist seems to have jumped to 31. Despite the insistence of policy officer Ben Stafford that there are 30, the Diary still counts that extra one. So, this if for you, Ben: Two weeks left till the end of October Here's something for you to remember Steps to regulation are 31 Except for Ben Stafford Who counts 30 steps clear In ...

  • Summing up in L&G fine appeal

    20 Oct 2004

    Legal & General's appeal against a £1.1m fine from the regulator for alleged endowment miselling will end this week following summing up from both the FSA and the insurer's legal teams. L& G denies systemic miselling.

  • Supermarts pose bigger threat than the banks

    21 Oct 2004

    Supermarkets could be more of a threat to IFAs than banks after depolarisation, warn marketing experts. Although high-street banks such as Barclays are already gearing themselves up to operate in a multi-tie environment, Sesame marketing director Stewart Gitsham said: "I think we should feel more threatened by brands like Tesco rather than the banks." Gitsham believes if supermarkets decide to set up multi-tied salesforces they will win consumers over more quickly than ...

  • T. Bailey - T. Bailey Equity Income Fund

    21 Oct 2004

    Type: Unit trust fund of fundsAim: Income and growth by investing mainly in equity income fundsMinimum investment: Lump sum £1,000, monthly £50Investment split: 80% equity income funds, 20% other investment funds and cashIsa link: YesPep transfers: YesCharges: Initial up to 5%, annual 1.25%Commission: Initial 3%, renewal 0.5%Special offer: Extra 1% commissionOffer ...

  • Tablets for stressed IFAs

    21 Oct 2004

    Increased business demands in recent years have meant that advisers have needed to work harder and longer often just to stand still. Add to this the average two hours a day spent commuting and it is easy to see why better alternatives are being pursued. Technology has long promised a smarter way of working but is it still an idealistic vision? Research conducted by IDC revealed that more than 40 per cent of mobile professionals spend more than 30 minutes each working day doing ...

  • Talkback

    21 Oct 2004

    "Yes. For me it is worthwhile because it certainly can awaken me to a new product as I do not always get time to read through the papers." Gillian Frodham,Gillian Frodham IFA "No. I have never used product descriptions by providers to give to clients as they would never read it." Philip Harrison,Harrison Financial Services "Yes. We get a lot of information from it." Edwin Kelly,Edwin Kelly & Co "Yes. If providers see mailshots as useful and they generate ...

  • The FSA's mortgage broker gap

    21 Oct 2004

    With less than two weeks to go before the onset of mortgage regulation, concerns are surfacing about the considerable number of mortgage brokers yet to be accounted for by the FSA. Recent figures released by the FSA show that it had received 3,995 applications for direct authorisation and 2,917 applications for variation of permission for mortgages and general insurance. Given that around 10,500 firms renewed with the Mortgage Code Compliance Board in April 2004, this ...

  • The hedge of reason

    21 Oct 2004

    Fear among IFAs that they will get the blame if hedge funds do not deliver is stopping the sector from developing. While product providers argue that funds of hedge funds are safe products offering suitable diversification within a balanced portfolio, IFAs are steering clear because they do not want to be held responsible for failing investments. They also claim that many people do not understand how hedge funds work and will not invest in them because they are unregulated. Hedg

  • The main thrust on trusts

    21 Oct 2004

    Over the last couple of weeks, I have considered the impact of the potential change to the taxation of capital gains made on investments (other than insurance-based investments) held in bare trusts created by parents for the benefit of their minor unmarried children or designated for them. This is part of a wider set of possible changes to the income tax and capital gains tax treatment of trusts contained in the consultation process on this subject. There appears to have been ...

  • Tom Baigrie on protection

    21 Oct 2004

    Some industry commentators have been saying recently that simplified advice and generic information will not work. Or to put it another way, if you do not thoroughly know what you are talking about then you are a liability and should shut up. The commentators are talking about government initiatives to lower the bar of knowledge needed when giving simplified investment advice. I agree with them. But I would say that oversimplified generic advice is already the norm in another ...

  • Torquil Clark in talks on five buys to extend its coverage

    21 Oct 2004

    Torquil Clark is in acquisition talks with five IFA companies as part of a plan to boost its national presence and expand its headquarters. The firm has plans to increase its turnover to £10m by making acquisitions and employing more people at its restored Gothic church offices in Wolverhampton. The firm, which has more than 53,000 clients and 57 staff, including 10 IFAs, has been on the lookout for about six months for smaller firms to become part of the business. Torquil ...

  • Treasury opposed to standard risk ratings

    21 Oct 2004

    The Treasury has told MPs it would be concerned about any attempt to standardise risk ratings for investment products. A report from the Treasury reinforces the fears of former Treasury FInancial SEcretary Ruth Kelly that standard risk ratings would not work. It forms part of the Treasury's response to the select committee report into restoring confidence in long-term savings, which was based on a six-month probe of life companies, MPs, economists and consumer groups. During ...

  • Unicorn rides again with VCT

    25 Oct 2004

    The Unicorn Aim VCT II is a venture capital trust which will adopt the same investment strategy as Unicorn's first Aim VCT, established in 2001.Around 50 per cent of the proceeds of this share issue will go into cash to protect the capital. The other 50 per cent will be split equally Unicorn's free spirit, mastertrust, UK income and UK smaller companies funds to provide short-term returns to investors until suitable Aim investments are found. Between 10 and 20 per cent will ...

  • Warning over non-regulated status of BTL

    21 Oct 2004

    Property investors should be aware that the safeguards in the mortgage market from FSA regulation will not apply to buy-to-let or commercial mortgages, says Mortgages for Business. The investment property broker points out that buy-to-let and commercial mortgages will remain non-regulated after M-Day on October 31 unless 40 per cent of the property, including the land, is being used as a residence by the borrower or a direct family member. Mortgages for Business is advising ...

  • Wary advisers are pulling out of equity-release business

    21 Oct 2004

    Advisers are becoming wary of the market for equity release and are starting to pull out and refer to other firms, according to Key Retirement Solutions. KRS managing director Colin Taylor says more IFAs and mortgage brokers are deciding not to bother with equity release because of concerns about the risks involved, preferring to stick to mainstream mortgages. KRS's equity-release referral system, Key Partnerships, has recently seen a surge of interest from firms unwilling ...

  • What's wrong with this picture...?

    21 Oct 2004

    The Diary was slightly surprised to read that former Money Marketing news editor Corey Boles was supposedly now writing for the FT's Company & Markets section since we know him to be at Dow Jones. Why did we think this? While cruising the web, the Diary happened upon the press centre at Thinc's website (www.thinc1.com) which shows an image of a supposed front page of FT Company & Markets with an article by our Canadian former colleague. On further investigation, ...

  • Winterthur arranges management consultancy for IFAs

    21 Oct 2004

    Winterthur Life is teaming up with a management consultancy to provide IFAs with an advisory service ahead of depolarisation. The deal marks an extension to Winterthur's existing Professional Edge IFA package and will put advisers in contact with management consultants who can help them develop business plans or convert to a fee-based model. Winterthur says its research shows there are 500,000 high-net-worth individuals with over £250,000 liquid net assets who ...

  • Woolwich Plan Managers - Accelerated Growth Bond

    25 Oct 2004

    Type: Capital protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £3,000-£500,000, Isa £7,000Term: Six yearsReturn: 700 per cent growth in the index up to 63%Guarantee: Original capital returned in full providing the FTSE 100 index does not fall by more than 50 per cent without returning to its initial valueClosing date: December 21, 2004, Pep/Isa ...

  • Zurich set to move into IFA protection market

    21 Oct 2004

    Zurich is planning to enter the IFA protection market early next year. It is understood to be focusing its relaunch on a small number of IFAs and will increase roll-out over 2005. Protection development at Zurich will be headed by protection development manager Gerry Warner, formerly of Standard Life. Features believed to be included in the launch include a focus on tele-undewriting where additional information can be confirmed confidentially over the phone. A complete ...

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