Money Marketing
21 August 2002

  • 'Axing fee disclosure a backward step'

    22 Aug 2002

    The Mortgage Code Compliance Board is warning the FSA that it is in danger of taking a backward step by dropping the full disclosure of fees currently required under its code. The MCCB is concerned that the proposal in CP146, The FSA's Approach to Regulating Mortgage Sales, that intermediaries will only have to state whether they got a fee from a lender but not reveal the value, could be to the detriment of consumers. The MCCB says its rule that brokers must disclose ...

  • 'Cut the gap with 2% cap'

    22 Aug 2002

    The ABI is endorsing Sandler's recommendation of "stakeholder"-style products by proposing two new safe-haven products although it wants the 1 per cent price cap raised. A report by Oliver Wyman & Company for the ABI says the savings gap could be closed by £5bn through its product models. The ABI says Sandler is right in saying simple products can be effective but says there must be face-to-face advice and the charge cap must be raised. The report, Strategies ...

  • 'Line being drawn under dual-pricing complaints'

    22 Aug 2002

    Halifax and Cheltenham & Gloucester say the Financial Ombudsman's rejection of complaints about their dual-pricing policies shows the arbitrator is trying to draw a line in the sand for future complaints. Last week, the ombudsman threw out a case of a couple tied to C&G's standard variable rate of 7.25 per cent who applied to be transferred to the lower variable rate of 6.35 per cent after it was withdrawn in September last year. The ombudsman says C&G's commercial ...

  • 'The protection gap is 10 times bigger than savings shortfall'

    22 Aug 2002

    Scottish Equitable Employee Benefits is spending £50,000 on a campaign aimed at explaining and simplifying the group risk market to IFAs. The campaign highlights what SEEB calls the protection gap, which it says is the £270bn shortfall in long-term health and life cover. It says this gap is 10 times wider than the widely publicised savings gap highlighted by the ABI and the Sandler review. SEEB is producing a CD-Rom, which helps IFAs identify an employer's ...

  • 10 commandments of consultants written on water

    22 Aug 2002

    Here is my selection of the average broker consultant's 10 most used questionable assurances when approaching IFA practices for business: 1: I'm here to help you build your business. 2: We have recently restructured our administration divisions to ensure the (atrocious) problems that you have experienced for the last 10 years are now a thing of the past. 3: I joined XYZ Life because I believe they have a first-class range of products. 4: XYZ Life ...

  • Abbey Nat gets on the hobby horse

    22 Aug 2002

    Abbey National is encouraging parents to save for their children's pastimes after a survey revealed British parents spend £795m a year on their children's hobbies. Almost a quarter of children regularly participate in as many as five hobbies, contrary to the image of couch potato children who only play computer games. The most expensive individual pastime is motocross, which costs an average of £383 per year, closely followed by skiing at £352 ...

  • ABI reviews life cover for people with HIV

    22 Aug 2002

    Life insurance for people with HIV could become available as part of a wide-ranging consultation by the ABI on how insurance companies deal with the condition. The ABI is revising its current code of practice for life insurance and critical-illness cover on HIV and is set to launch a wide-ranging consultation later this year. The association is currently engaged in preliminary discussions with charities, doctors' groups and IFAs. Its current code of practice was last ...

  • Aegon buying spree gathers Momentum

    22 Aug 2002

    Aegon's buying spree continues with the outright purchase of leading national corporate IFA Momentum. The purchase, for an undisclosed sum, will not affect the firm's independent status but means a third big brokerage will not place business with Aegon-owned Scottish Equitable or Aegon Asset Management until the current rules are changed. The Hampshire-based IFA was created by a management buyout from giant global broker Aon's UK operation two years ago and employs ...

  • Alliance & Leicester International - Offshore 180 Plus Account

    22 Aug 2002

    Thursday, 22 August, 2002Type: Offshore high interest accountMinimum-maximum investment: £50,000-£1mPlace of registration: Isle of ManInterest rates: 4.4% gross a yearTerm: Until further noticeOffer period: Until further noticeWithdrawal penalties: 180 days' loss of interest on amount withdrawnContact: www.allianceandleicester.co.uk

  • AMP offering 13 funds on child savings plan

    22 Aug 2002

    AMP is broadening its product range with its first child savings product. The plan will be sold primarily through the tied salesforce. It was developed after feedback from its advisers showed a demand for a savings product tailored for children. The product has 13 fund options within an Oeic structure, including socially responsible investment. Minimum monthly contribution is £25, which can be made on a child's behalf by any adult over 18. Premiums can be increased ...

  • AMP Pearl slashes payouts

    23 Aug 2002

    AMP Pearl is slashing payouts on Pearl with-profits policies by 12.5 per cent on life policies to 15 per cent for pensions.It has defended the cut by saying that a twenty-year endowment would still show a return of 9.4 per cent.The company has signalled its intention to transfer all its with-profits business over to ringfenced Sandler-friendly funds.

  • Are IFAs staring down the barrel?

    22 Aug 2002

    Money Marketing has too much respect for its readers to call for Sir Howard Davies to be stuck in a barrel and shot. Or any of his staff. After all, two or three of them may even be quite good at their jobs. The FSA chairman is reported in The Independent to have made a similar remark about IFAs - that he is "trying to get all the IFAs into a barrel and shoot them one by one". The conversation supposedly took place with a big, unnamed IFA while in discussions over CP121. Unfortunately, ...

  • B&B boosted by distribution

    22 Aug 2002

    Bradford & Bingley got a big boost from its distribution business which more than doubled profits in the first half of this year. B&B's distribution arm, which includes the MarketPlace and Charcol operations, saw profits surge by 258 per cent to £14.7m from £4.1m in the first half of last year. Group profits rose by 4 per cent to £135m from £129m. The figures were boosted by £7.2m due to a change in accounting procedures Lending grew ...

  • Berkeley Alexander has new approach to PMI

    23 Aug 2002

    BERKELEY ALEXANDERhospitalCAREType: Private medical insuranceMinimum-maximum ages: 18-64Maximum benefit: Section one - £5,000, section two - £10,000, section three - £5,000, section four - £5,000, section five - £1,500Cover provided: Section one - Angioplasty, cartilage operation, dental work, ears, eyes, nose, throat, duodenal, peptic or gastric ulcers, gall bladder, hernias, haemorrhoids removal, hip or knee replacement, ...

  • Birmingham Midshires offers tracker Isa

    27 Aug 2002

    Birmingham Midshires is offering a capital protected Isa that is linked to the FTSE 100 index over a five-year term.

  • BoE says equity dip will hit savings

    22 Aug 2002

    The Bank of England monetary policy committee claims that savings levels in the UK are threatened by consumers' existing exposure to the stockmarket through with-profits and mutual funds because of market volatility. The minutes of the last MPC meeting held on July 31 and August 1 say that higher levels of private pensions and equity-linked savings in the UK and US means that stockmarket volatility could dent consumer confidence. But the top economists who set BoE interest ...

  • Borrowers look to switch loans ahead of rate rise

    22 Aug 2002

    Borrowers are increasingly looking to switch their mortgage to take advantage of better deals in anticipation of an increase in rates in the coming months, according to Legal & General. Its research found that 17 per cent of borrowers intend to move their mortgage in the next year compared with 13 per cent in October 2001. The number of borrowers expecting interest rate rises has almost doubled to 63 per cent from 34 per cent last October. Borrowers are confident ...

  • Britannia International - 3 Year Fixed Rate Deposit Account Issue 5

    23 Aug 2002

    Friday, 23 August 2002Type: High interest accountMinimum-maximum investment: £10,000, £5,000 for existing Britannia International customers-£1mPlace of registration: Isle of ManInterest rates: £5,000-£24,999 4.5% gross a year, 4.2% gross a month, £25,000-£49,999 4.65% gross a year, 4.35% gross a month, £50,000 and above 4.8% gross a year, 4. 5% gross a monthTerm: Three yearsOffer period: ...

  • Britannia International - Guaranteed Capital Equity Bond Issue 10

    21 Aug 2002

    Wednesday, 21 August, 2002Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum investment: Lump sum £1,000 Place of registration: Isle of Man Investment split: 100% linked to the performance of the FTSE 100 index Guarantee: Capital returned in full regardless of the performance of the index Yield: Up to 38.25% gross after five years Charges: None Commission: None Contact: ...

  • Chartwell publishes income guide

    22 Aug 2002

    Chartwell Direct is offering a service, Incomeline, which provides consumers with information and risk ratings on income-producing vehicles. Investors who need to generate a regular income can receive an information booklet which details various income investments including National Savings and Investments products, bank and building society accounts and corporate bond fund investments, as well as annuities, unit trusts and split-capital investment trusts. Each type of ...

  • CIS quits WP endowments to focus on 'modern products'

    22 Aug 2002

    CIS is quitting the with-profits endowments savings plan market, saying it is looking to provide new with-profits products which are better suited to the post-Sandler environment. At the peak of the product's popularity in 1996, CIS sold about 100,000 with-profits endowment plans in the first six month. However, in the first half of this year, the company sold only 19,000 plans. It withdrew from mortgage endowment sales two years ago. Many other providers ...

  • Clerical Intl shows focus on advice to the wealthy

    22 Aug 2002

    Clerical Medical International is running a series of seminars for IFAs on advice and assistance to wealthy clients. The firm says its roadshows highlight a significant business opportunity for IFAs because of the rising number of UK millionaires. CMI says the needs of wealthier investors are often different from the average client. They need financial planning to avoid liabilities such as inheritance tax, sophisticated investment solutions which may go beyond the norm ...

  • Confusion as FSA says PPPs could beat OPPs

    22 Aug 2002

    IFAs are calling for FSA guidance on how to assess the value of final-salary schemes, warning that risks to defined-benefit schemes have increased significantly. They also argue that the surge in the winding-up of final-salary schemes means that many consumers caught up in the pension misselling scandal are better off having transferred out of an occupational scheme even before they received compensation under the review. The FSA says it is for IFAs to decide. FSA spokeswoman ...

  • Correspondent's week

    22 Aug 2002

    Having shipped my gear over to the Isle of Wight on Friday, I pitch up at 8am for my first day on duty at Skandia Life Cowes Week. We kick off by hosting a press briefing for Emma Richards, who is sailing around the world single-handed. Then it is off to another press briefing at 9.30am, where we are told to expect no wind for the yacht racing that day. I make my way out to our press hospitality yacht in midSolent on a fast inflatable boat and arrive aboard in ...

  • Credit Suisse bond gets S&P rating

    27 Aug 2002

    Credit Suisse's corporate bond monthly income fund has been awarded an 'A' rating by research agency Standard & Poor's.

  • David Henderson

    22 Aug 2002

    Aegon UK group chief executive David Henderson, or Hendo as he is known to colleagues, is not one to follow the pack. Peers describe him as driven, focused, hard-nosed and even a little rough around the edges. He knows what he wants and believes his strategy will achieve his desired goal of "leaving the company in good shape when I retire". Aegon's strategy of buying medium-sized specialist IFA firms goes against the tactics employed by many of its competitors. It bought a ...

  • Davies denies 'shoot' story

    22 Aug 2002

    FSA chairman Howard Davies has rejected reports in a national newspaper that he told the head of a big IFA that he wanted to "round up and shoot all IFAs". A story in The Independent last weekend claimed that in a private conversation about polarisation, Davies is alleged to have said: "I am trying to get all the IFAs into a barrel and shoot them one by one." Davies called in from his holiday and angrily rejected the claims, saying they did not represent his views. On ...

  • DBS chief Ansell sails away

    22 Aug 2002

    DBS chief executive Nick Ansell has stepped down following the network's parent Misys IFA Services' integration of the firm into a single management and support structure. The move will see DBS research teams moved to Mifas HQ in Oxford this month to be integrated with staff supporting the other four Misys networks. They will be followed by the sales and marketing, HR, communications and IT departments by September 1. The business unit remaining in Huddersfield ...

  • Derbyshire Building Society launches new fixed rates

    21 Aug 2002

    Derbyshire Building Society is cutting the rates on its three and five year fixed rate deals from today.It has three year deals available from 4.89 per cent on loans to value up to 80 per cent, with an APR of 5.8 per centIt has five year fixed rates starting at 5.09 per cent on a LTV of 80 per cent and an APR of 5.8 per cent.

  • Deutsche Asset Management - DWS European Opportunuities Fund (Europe ex-UK)

    21 Aug 2002

    Wednesday, 21 August 2002Type: OeicAim: Growth by investing in European equities excluding UKMinimum investment: Lump sum £1,000, monthly £25Investment split: 100% in European equities excluding UKIsa link: YesPep transfers: YesCharges: Initial 4.25%, annual 1.5%Commission: Initial up to 3%Tel: 0800 917 0005

  • Do the fairies pay for commission?

    22 Aug 2002

    I will try to squeeze three points into a short letter. First, Julian Stevens' mortgage idea (Money Marketing, August 15) is seriously flawed.A repayment mortgage repays capital from day one. I did a quick illustration and 15 years into a 25-year mortgage on a repayment basis, 40 per cent of the capital has been repaid - in this example, £33,000 out of £80.000). The flexibility is a good idea, but overpaying mortgages to shorten the term is old news. Second ...

  • EFM widens online Isa/Pep service range

    21 Aug 2002

    Edinburgh Fund Managers is adding its range of 11 Portfolio funds to its online Isa/Pep service this week, raising the number of funds available through the website to 25. By logging on to the site existing investors will be able to access a range of services including online valuations, real-time performance data and the ability to top up existing funds, while new investors can apply for an Isa. 

  • Few fanfares for the common definition

    22 Aug 2002

    What constitutes an independent mortgage broker looks set for a radical overhaul following the publication of FSA consultation paper 146 on the regulation of the mortgage sales process. The FSA's Approach to Regulating Mortgage Sales proposes two options for how independence will work. In typical FSA fashion, the consultation paper does not specify which option the FSA favours, leaving the industry scratching its head as to the likely way forward. The first is a fundamental ...

  • Five year fixed with cashback from Leeds & Holbeck

    27 Aug 2002

    Leeds & Holbeck Building Society is rolling out a five year fixed rate loan offering £200 cashback to borrowers who apply before the end of September.The rate is fixed at 5.49 per cent for loans up to 90 per cent of property value or 5.89 per cent with an LTV of 95 per cent.There are no early repayment charges, no completion fee, free in-house legal services for remortgages and six months free mortgages payment protection cover. 

  • Friends Provident International redesigns bond

    22 Aug 2002

    Friends Provident International has revamped its investment bond by adding another charging structure and portfolio fund to its original design.

  • Friends signs distribution with Countrywide

    23 Aug 2002

    Friends Provident has payed £25 m in a deal with estate agency group Countrywide for the sole distribution of mortgage-related protection products.At the same time the life company has sold its estate agency network to Countrywide for £21m.Countrywide expects to receive £250m over the next 15 years from the agreement, which would see Friends Provident’s double the amount of protection business it writes.

  • Future Mortgages calls for MIG review

    23 Aug 2002

    Sub-prime lender Future Mortgages is urging the industry to review the use of mortgage indemnity guarantees.Sales & marketing director Brian Pitt says many first-time buyers are falling into higher loan to value bands which effectively force them into making large MIG payments.He wants the industry to review this process, which he says is inappropriate as it does not offer any protection to borrowers.

  • GE Life to simplify impaired life annuity

    22 Aug 2002

    GE Life is looking to extend its presence in the annuity market with an impaired-life product and a strategic review looking at new products to add to its annuity range. A simple impaired-life annuity product with no underwriting is planned for the autumn as GE Life believes consumers and IFAs want impaired-life annuities that can be bought easily and without the intrusion of having to get medical records. The firm is also looking at new flexible annuity products, focusing ...

  • Genesis adding self-cert deals

    22 Aug 2002

    Genesis Home Loans is introducing three new mortgages to its Gemstones adverse-credit range. Aquamarine is a full-status mortgage for purchase or remortgaging for borrowers with poor credit history. Maximum loan is £150,000 up to a maximum of 95 per cent loan to value. It offers a 1.25 per cent discount, giving a rate of 6.99 per cent until the end of 2003. Turquoise is a self-certification product with a maximum LTV of 90 per cent and Garnet is aimed at heavy adverse ...

  • Global Investment Advisers - GAIM Market Neutral Hedge Fund

    22 Aug 2002

    Thursday, 22 August 2002Type: Tracker fund of hedge fundsAim: Growth by investing in up to 20 hedge funds in the equity market neutral and convertible arbitrage indicesMinimum investment: Lump sum $100,000, euros 100,000Place of registration: DublinInvestment split: 100% in up to 20 hedge funds in the equity market neutral and convertible arbitrage indicesIsa link: NoCharges: Annual 1.75%Commission: Subject to negotiationTel: ...

  • GMAC fixes non-conforming loan at 5.74% for two years

    22 Aug 2002

    GMAC-Residential Funding is offering a two-year fixed-rate deal for non-conforming borrowers at a rate of 5.74 per cent until September 2004. The rate is available for mortgages up to 90 per cent loan to value and is aimed at borrowers who have received county court judgments in the last three years totalling up to £3,000, missed two payments in the last 12 months or one in the last six months. GMAC-Residential Funding is also offering a 5.99 per cent fixed rate ...

  • Gunners sign up Scottish player

    22 Aug 2002

    Arsenal is teaming up with Bank of Scotland to launch Your Financial Arsenal, an extended range of branded products available to the team's supporters following the success of a Gunners credit card. BoS has signed a five-year deal which will generate income for the club, and offer Arsenal supporters a selection of three credit cards - gold, platinum and classic, a range of personal loans, with a number of other products due to follow shortly. Your Financial Arsenal ...

  • Half-year profit rises for Coventry BS

    21 Aug 2002

    Coventry Building Society's interim results for the half year to June 30 show pre-tax profits jumped to £20.4 million from £19.1m over the same period last year.

  • High climbers choose Sheffield

    22 Aug 2002

    Suburban Sheffield has the highest percentage of high earners outside London and the South-east, according to research by Barclays' wealth management arm, Barclays Private Clients. Around 7.9 per cent of the residents of Hallam, a Sheffield suburb which backs on to the Peak District, earn more than £60,000 a year. Hallam is home to more high-earners than Windsor which has 7.8 per cent, Sevenoaks with 7.7 per cent and Tunbridge Wells with 7.5 per cent of the population.

  • Honey, the kids shrunk my income

    22 Aug 2002

    Continuing the theme of future financial provision for children, it has to be said that very few of us are likely to have sufficient liquidity to meet significant expenditure needs such as the cost of further education or the cost of a deposit for a home or assistance with its purchase. Much has been written about the cost of further education but it is worth bearing in mind that this is usually the smallest part of the equation - the cost of living is far more expensive, especially ...

  • HSBC fund pledges to protect capital

    22 Aug 2002

    HSBC Asset Management has set up a capital-protected fund for investors wary of market turbulence. The safe haven growth fund guarantees 100 per cent of initial capital and 100 per cent of any growth in the FTSE 100 stockmarket index at the end of its six-year term. If at the end of the first two years, the index has risen by at least 20 per cent, the product will wind up and investors will receive their initial investment returned plus 20 per cent. If this does ...

  • HSBC Republic makes guaranteed hedge fund of funds debut

    21 Aug 2002

    HSBC Republic Investments has introduced its first guaranteed fund of hedge funds with a minimum investment of $10,000.

  • Identext to centralise Cornhill marketing database

    22 Aug 2002

    Cornhill Direct is commissioning customer manage-ment and marketing auto- mation specialist Identex to design and manage its new centralised marketing database. The database will provide Cornhill with a detailed profile of its customers, allowing the company to target and tailor direct marketing to the needs of its customers. Cornhill Direct, one of the biggest direct marketers in insurance, previously held consumer data on three separate files. This new project brings ...

  • IFAs say hedge funds will boom

    22 Aug 2002

    IFAs are predicting a boom in the hedge fund market over the next 12 months, according to quarterly IFA research commissioned by Axa. The research, by public relations firm Citigate Dewe Rogerson, found that 60 per cent of IFAs believe hedge funds will increase over the next year. Half of IFAs questioned believe the increase in interest is due to consumers being better informed while 30 per cent of IFAs attribute the increase to market volatility. The survey also found ...

  • Independent view

    22 Aug 2002

    All these reviews are driving me mad. It is the same old story of politicians hoping their radical and forward-thinking actions will lead to an increase in their public profile - they seem oblivious to the fact that what happens is an increase in doubt in the consumer's mind. There are better ways of achieving the same ends without scaring consumers rigid. And how surprising it was to discover that one of the reviewers is an ex-bank man. And here I was thinking that we were ...

  • Inside edge: Andrew Bedford

    22 Aug 2002

    The football season has started again. Mark Lawren-son said on Football Focus that the definition of optimism is a club's supporters at the start of every season. There is less optimism with the Sandler report and the paper that we expect from the FSA shortly. There has been a lot of debate on payment schedules for advisers and other matters such as transparency, clarity and simplicity for the consumer. These all seem generally sensible. However, there is ...

  • Institute seminar offers a guide to the new pension regime

    22 Aug 2002

    The Pensions Management Institute is holding a full-day seminar on Managing Pension Schemes on September 3, in London. The seminar is designed for pension managers and consultants, pension scheme advisors, human resources advisers and scheme trustees and is open both to members and non-members of the PMI. The aim of the day is to help pension professionals navigate their way around dealing with regulation, pension sharing, advising trustee boards post-Myners and stakeholder. The

  • Investec Asset Management - American Fund

    23 Aug 2002

    Friday, August 23, 2002 Type: Oeic Aim: Growth by investing in American companies Minimum investment: Lump sum £1,000, monthly £100 Investment split: 100% in American companies Isa link: Yes Pep transfers: Yes Charges: Initial 4.5%, annual 1.5% Commission: Initial 3%, renewal 0.5% Tel: 020 7597 1900

  • Investment analysis

    22 Aug 2002

    Events in the US dictated last week, with the much feared August 14 deadline for chief executives to certify financial statements passing by with little more than a whimper. Relieved global markets, in the main, gained ground over another volatile five days, with the FTSE World index rising by 1.6 per cent. In the US, the airline industry was rocked when US Airways, the seventh-biggest airline in the world, filed for bankruptcy. Much of the gains from the previous week, which ...

  • Investment view

    22 Aug 2002

    I do like a touch of blue. Last week, summer had undoubtedly arrived in the Square Mile, with blue skies abounding. Blue, of course, is the colour used to show share prices that are rising. The trading screens were predominantly blue last week and not before time. Of course, markets are very thin at present. Sensible investors and traders have taken themselves off to the beach and are not concerning themselves with financial news. This is a pity as there has been plenty to digest ...

  • Julian Gibbs

    22 Aug 2002

    Last month saw the launch of Nvesta, a specialist financial product provider that designs, implements and manages investment plans for UK investors. It is part of Eurolife Group, a market leader in this sector for many years. Its first offering is the Capital Secure FTSE plan, which guarantees a 100 per cent capital return plus all the growth of the FTSE 100 index over five years up to a maximum of 70 per cent of the sum invested. At first glance, it looks exactly the ...

  • Jupiter says life firms buying IFAs to control market share

    22 Aug 2002

    Poor investment performance by life and pension providers is forcing them to shore up their market share by buying distribution through IFAs, according to Jupiter joint managing director Steve Glynn. He says the market is resigned to the fact that depolarisation is likely to go ahead but fund firms are less likely to be affected by the shake-up than life offices, which are buying up or taking stakes in IFAs. Speaking to Money Marketing following parent company Commerzbank's ...

  • Keydata targets Toisa market

    21 Aug 2002

    Keydata Investment Services has established the FTSE lock-in Tessa-only Isa (Toisa), which guarantees the return of investors’ original capital at the end of a five-year term, whatever happens to the index.

  • Leave London to boost BTL yields, says Charcol

    22 Aug 2002

    National mortgage broker Charcol is warning that some buy-to-let investors should quit London and look to invest in properties in the regions because of falling rental yields. The warning comes as figures from its sister firm Bradford & Bingley Letting Agents reveal the North-west of England has seen a 1 per cent increase in average rental yields over the past year to 11 per cent while returns in the South-east have fallen to as low as 3 per cent. It says this shows the ...

  • Legislation fears after Revenue loses IHT trust case

    22 Aug 2002

    Life offices are concerned that despite a legal victory against the Inland Revenue, new legislation could spell the end for products which take advantage of IHT loopholes. They warn that even if the Revenue is unsuccessful in overturning a ruling in the Eversden case, legislation is expected to be introduced by the next Budget to close the loophole which allows spouses to gift assets without reservation to each other sheltered from IHT if written in trust. Several companies ...

  • Lenders 'staggered' by FSA distribution claim

    22 Aug 2002

    Lenders and brokers have rejected the FSA claim that less than half of all mortgages are arranged through intermediaries, saying it is a minimum of 50 per cent of all loans. In CP146, The FSA's App-roach to Regulating Mortgage Sales, the regulator states that while requiring independent mortgage intermediaries to advise on the whole of the market will protect some consumers, it "is likely to affect less than half of all transactions because a significant proportion of mortgages ...

  • Lending in July hits record £21.8bn

    21 Aug 2002

    Mortgage lending in July totalled a record £21.8 billion, up 41 per cent from £15.5m reached at the same time last year and up from £17.1bn in June according to the latest figures from the Council of Mortgage Lenders.

  • Marketing manager at Scottish Life

    23 Aug 2002

    Scottish Life has announced the appointment of Peter Darvill as marketing support manager for the South Region which encompasses the life office's branches in Romford, Reading, Redhill, Bristol and London branches.Darvill will become responsible for promoting Scottish Life products and support services to the IFAs. He will report to operations manager Andrew McGlone.  

  • Maude made Solution Network chairman

    21 Aug 2002

    Prestbury, the group that owns the non regulated portal and network group Solution Network, has appointed MP Francis Maude as chairman in the run up to the group's planned flotation on AIM later this year.

  • Misys stresses tax benefits of donations

    21 Aug 2002

    The Giving Campaign is teaming up with Misys to help raise awareness amongst IFAs of the tax benefits of making charitable donations available to their clients.

  • MLP cuts full-year profit forecast

    21 Aug 2002

    German IFA giant MLP which has 40 RIs in London, have revised its full year profit forecasts after recently published half-year results revealed investigations into the company's accounting practices 'caused great unrest'.

  • Moore's code

    22 Aug 2002

    The denizens of the Treasury and Department for Work and Pensions will be feeling relaxed and peaceful during the current holiday season. That is because as they sip on their wine in the hills of Chiantishire they know that there will be plenty of satisfying paper shuffling to do when they return. Not one but two "consultation" exercises to get excited about. The Pickering and Sandler review teams will be gearing up to lead the exercises which will keep an army of Government staff ...

  • NIBi - Target Return Fund

    22 Aug 2002

    Thursday, August 22, 2002 Type: Fund of hedge funds Aim: Growth by investing in hedge funds Minimum investment: Lump sum £20,000, US$ 25,000 Place of registration: Isle of Man Investment split: 100% in hedge funds Isa link: No Charges: Initial up to 5%, annual 1.75% Commission: Subject to negotiation Tel: 01624 630300

  • Niznik set for Standard fund spanning small firms to mid caps

    22 Aug 2002

    Standard Life Investments is launching a fund in November that will invest in FTSE 250 and UK smaller-cap companies under the stewardship of former Invesco Perpetual manager Mark Niznik. The fund, which will be the first to be managed by investment director Niznik following his move to Standard in April, will invest in companies from the top end of the FTSE 250 scale to those with a market capitalisation as low as £10m. The balance between smaller and mid-cap companies ...

  • No lock-in on Abbey discounts

    22 Aug 2002

    Abbey National is offering a new range of discounted and fixed mortgages with no extended tie-ins. The mortgages include a 1.15 per cent two-year discount loan giving a rate of 3.85 per cent. The rate is available on loans up to 75 per cent loan to value, is open to first-time buyers, movers and remortgage customers and has no extended tie-ins. Abbey is also offering a five-year 0.95 per cent discount giving a current rate of 4.05 per cent for loans up to a maximum of ...

  • Now IFAs face laundry lockout from fund firms

    22 Aug 2002

    IFAs will not be able to conduct business with several leading fund management companies in less than two weeks time unless they comply with a voluntary initiative aimed at helping providers meet new money-laundering requirements. This latest revelation comes just a week after Money Marketing exclusively revealed that at least five life offices said they are adopting a similar stance. The fund firms say unless advisers possess a document called the IFA Certificate, which ...

  • NU says increased awareness has boosted equity release

    22 Aug 2002

    Norwich Union increased its equity-release business by a third in the first half of this year as elderly homeowners unlocked £313m from their homes. The figures, compiled by Safe Home Income Plans, compare with £235m released in the first six months of 2001. NU lent £218m in mortgage schemes and £95m in the newer reversion-based schemes. NU says the figures reflect increased awareness of how equity release can be used to fund long-term care or ...

  • Old Mutual makes marketing director redundant

    23 Aug 2002

    Old Mutual director of marketing and client servicing Barry Russell has been made redundant as part of the fund manager's drive to cut costs in poor market conditions.

  • Omo backlog farce keeps on running

    22 Aug 2002

    It has come to my attention that a new plot has arisen to defraud the great British public. Not content with the pension, endowment and FSAVC scandals, we now have the great annuity farce. What happens is that the annuity company, having received a properly completed cheque and application for an Omo, does not process the paperwork due to a backlog Apparently, it is possible for the client to predecease the payment of the pension due to a backlog which never clears. The ...

  • Outside edge: Garry Heath

    22 Aug 2002

    Is the financial services industry being pushed into the Government's own fantasy world in which analysis, fact and intellectual rigour have been replaced by spin, urban myth and self serving argument?I think so and Mr Sandler has done little to reverse it. The first thing to say about Mr Sandler's report is that it is an intellectual giant in comparison to the hastily issued CP121. He has many intelligent and thoughtful points to make about the present regime, not least ...

  • Over half of L&G's life protection business submitted online

    23 Aug 2002

  • Pension assets just beat liabilities

    21 Aug 2002

    The value of assets of pension schemes of the FTSE-100 companies exceeds their liabilities, but only just, according to a survey by consulting actuaries Hymans Roberts. FTSE100 pension scheme assets total £227bn, while liabilities calculated under the new FRS17 accounting standard total £224bn. But FRS17 funding levels vary from 70 per cent of liabilities for some companies to 140 per cent for others. 

  • Plan for cooling-off period on remortgages scrapped

    22 Aug 2002

    The FSA has abandoned the idea of introducing a cooling-off period for remortgages after the industry said it did not make sense in the mortgage market. In feedback to CP98, the Draft Mortgage Source-book, the regulator said it was scrapping its plans. The industry said there is no justification for a cooling-off period because consumers are not pressured into buying anything in the mortgage market. The FSA statement says: "Those representing the consumer interest ...

  • Positive Solutions offers online tracking

    21 Aug 2002

    Positive Solutions is introducing an online tracking system which links its RIs directly with product providers allowing them to monitor the progress of applications.

  • Probe shows wide divide between MVRs on WP pensions

    22 Aug 2002

    Life offices are hitting investors with widely differing market value reductions on with-profits pensions, with some running at 28 per cent while others have none at all, according to research by Money Marketing Online. The research found that Scottish Equitable tops the table for biggest MVRs, with up to 28 per cent, followed by Scottish Friendly with up to 25 per cent, Legal & General with up to 24 per cent and Scottish Widows with up to 22 per cent. Pearl, Liverpool ...

  • Product matters

    22 Aug 2002

    The penny is dropping. Life offices are beginning to realise that high charges on offshore funds will kill a deal, especially where big sums are at stake. This latest offering from the stable of the Scottish Equitable International team, offers, in my opinion,an excellent low to medium-risk investment vehicle for people with over £75,000. As a non-income-producing asset, it should appeal to higher-rate taxpayers, trustees and cash-rich companies. The latter must ...

  • Protection business is booming for L&G

    22 Aug 2002

    Sales of protection products at Legal & General have rocketed by 88 per cent from last year. It says equivalent premium sales leapt to £70m for the first six months of this year from £37.2m in 2001. L&G attributes the rise to historically low life insurance premium rates and efficient online trading. It says sales of protection products have benefited from the shift to repay- ment mortgages, allowing IFAs and other business partners to promote the benefits ...

  • R&SA fined £1.35m for pensions review failings

    27 Aug 2002

    Royal & Sun Alliance has been fined £1.35m by the FSA for "systematic weaknesses" in its internal pensions review affecting 13,500 consumers.

  • R&SA in talks on outsourcing life operation

    22 Aug 2002

    Royal & Sun Alliance is in discussions which could see its closed life operations outsourced and its investment strategy changed. A deal would enable R&SA to take advantage of admin and technology efficiencies without having to find capital. The company closed its doors to new life business two weeks ago to free capital for its general insurance business. R&SA has already outsourced its life and pension investment management to Friends Ivory & Sime. In January, ...

  • R&SA makes emergency cuts to annual bonus

    27 Aug 2002

    Royal & Sun Alliance has made emergency cuts to annual bonus rates on its unitised with-profits by 1 per cent and payouts on its conventional with-profits by 10 per cent.

  • Raising standards consults on mergers

    23 Aug 2002

    If a merger were to take place between two life offices both having the Raising Standards Quality mark, they could retain their kitemark according to proposals published by the scheme this week.

  • Renewed interest brings Chartwell bond guide

    22 Aug 2002

    Chartwell has updated its distribution bond guide after an increase in interest in the products this year. The guide explains what makes up a distribution bond, how they work and what investors should look for when choosing a bond. Chartwell examines each of the products on the market, offering information about the providers, as well as data on year-on-year performance and its top 10 recommendations. The company has not updated the guide for the past two years ...

  • RSAE and Framlington team up

    22 Aug 2002

    Pack says the reputation is: "Declining, and the company is selling off sectors." He adds that its reputation has never been marvellous, but it is worse now. Marsh is slightly more enthusiastic, calling it fair, but saying it is Framlington’s reputation that is relevant in this case, and this is good. The panel has differing opinions on the past performance of Framlington. Hill calls it mixed, saying: "Few companies have ...

  • RSAE and Framlington team up

    22 Aug 2002

    Royal & SunAlliance Eurolife RSAE Framlington Health Fund Type: Sicav Aim: Growth by investing in healthcare, medical services and product companies Minimum investment: Lump sum Euro 15,000 Place of registration: Luxemburg Investment split: 100% in healthcare, medical services and product companies Isa link: No Charges: Initial 0.5%, annual 1.5% Commission: Initial 5% Tel: 00353 15009100 Broker ...

  • Scottish Mutual boosts choice for bond investors

    23 Aug 2002

    Scottish Mutual has set up a multi-manager portfolio service for investors in its flexible investment bond.

  • Screening aims to cut time off

    22 Aug 2002

    PMI provider HealthSure is offering a new health screening policy aimed at helping the corporate market cut the £13bn lost each year in health-related absences from work. Futures covers the full cost of one health screen per employee every 24 months as well as associated costs such as GP or specialist consultation fees. The provider says the product is a cost-effective way for companies to reduce time off for health reasons. It estimates that only 14 per cent of ...

  • Seven-year fix as C&G revises loan range

    22 Aug 2002

    Cheltenham & Gloucester has introduced a new range of fixed-rate mortgages over terms of one, two, three, five and seven years. The products replaces C&G's previous range introduced in June. The rates start at 4.49 per cent for one year for loans up to 90 per cent loan to value or 4.79 per cent up to 95 per cent LTV, rising to 5.49 per cent up to 90 per cent LTV or 5.79 per cent up to 95 per cent LTV over seven years. The fixed rates expire at the end of November of ...

  • Skandia defends drawdown deals

    22 Aug 2002

    Most income-drawdown investors are no worse off than people who took out an annuity at the same time, despite stockmarket falls, according to Skandia. The company says many investors have benefited from high levels of income while maintaining the level of their initial capital over three years and six years. It is urging IFAs to check the relative performance of drawdown clients against those who have taken an annuity and not be put off drawdown by falling markets and ...

  • Skipton Building Society - 2 Year Fixed Rate Bond

    27 Aug 2002

    Tuesday, 27 August 2002Type: High interest accountMinimum-maximum investment: £1,000-£10,000Interest rate: 4.5% gross a yearTerm: Two yearsOffer period: Until further noticeWithdrawal penalties: No withdrawals permitted during termTel: 0800 446776

  • Skipton launches two-year fix rate mortgage

    27 Aug 2002

    Skipton Building Society has launched a new two-year fixed rate mortgage with a rate of 3.99 per cent until November 30 2004.It offers 0.30 per cent discount off the variable rate, currently 5.70 per cent, in years three and four, and 0.50 per cent off the variable rate from year five onwards.It is available with a loan to value up to 95 per cent and has free mortgage indemnity guarantee up to a 90 per cent LTV.

  • Standard Life covers mortgages against job losses and disability

    22 Aug 2002

    Standard Life is offering mortgage outlay cover for borrowers to insure against income loss through disability or unemployment. It offers disability and unemployment benefit cover or a disability-only option. Benefits can be altered in line with changes to the level of the mortgage without additional health-related questions. Cover can be increased to up to 140 per cent of the mortgage value for additional mortgage-related expenses such as buildings insurance. Premiums ...

  • Standard sets up range of fixed loans

    21 Aug 2002

    Standard Life Bank is launching a new range of fixed rate Freestyle mortgages with the first fixed until May 20, 2005 at 4.9 per cent on loans to value up to 90 per cent and 5.09 per cent on LTVs up to 95 per cent.

  • Supermarkets make a meal of negotiations

    22 Aug 2002

    IFA Chelsea Financial's criticism of Cofunds and FundsNetwork last week showed how frustrated IFAs have become at the fund supermarkets' apparent inability to come to a compromise on the funds appearing on their platforms. After several months, the two rivals have admitted that they are still locked in talks over a deal which would see the funds of their parent companies become available on both platforms. The news has dismayed IFAs because the fund managers involved ...

  • Temple throws out a Lifeline

    22 Aug 2002

    National IFA RJ Temple is opening a campaign to benefit the Southern Africa Crisis Appeal by giving money each time it finds lower life cover quote for clients. The Lifeline campaign offers a free quotation for life insurance and for each quote that is lower than the person's current premium, Temple will donate £10 to the charity appeal. Even if it cannot come up with a cheaper quote, Temple will donate £2 to the fund. The firm says that as life ...

  • The missing links

    22 Aug 2002

    One thing this year has not been short of is consultation papers on reforming the industry. The last few weeks have been no exception. Following hot on the heels of the Sandler and Pickering reports, we now have the FSA's CP146 on regulating mortgage sales. At the same time, PS129 also appeared, giving the results of the FSA's earlier consultation on implementing the e-commerce directive. Let me deal with the latter briefly. There are some who believe that ...

  • Timberlake's IMS wins Way global management deal

    22 Aug 2002

    Way Fund Managers is outsourcing the management of its global portfolio range to investment guru Richard Timberlake's firm Investment Manager Selection. IMS will run Way's global portfolio range, which is sub-divided into three portfolios, with each investing in around 20 multi-manager fund of funds unit trusts, from the beginning of September. The portfolio's existing managers Progressive Alternative Investments will switch focus to manage Way's fund of hedge fund ...

  • Two equity funds mark DAM rebranding

    22 Aug 2002

    Deutsche Asset Management is setting up two aggressive equity funds, each investing in only 25 stocks, to mark its rebranding as DWS Investments. DWS UK opportunities and DWS European opportunities are the first two funds to be offered in the UK under the DWS brand, which translates fully as the investment specialist in German. The brand is also the operating name for the fund manager in several of the European countries where it has a presence. The name will be adopted in the ...

  • Two year stepped discount from The MarketPlace

    27 Aug 2002

    The Marketplace is launching a two-year stepped discount mortgage with cashback funded by Bristol & West.

  • Urgent action is needed on pension shortfall

    22 Aug 2002

    I am very pleased to see some sane comment appearing in the pages of your publication concerning 1 per cent charged products. Judging by the fact that some perfectly reputable companies have already withdrawn from this market and others seem to be following weekly, I entirely agree with you that it is about time that the Government was told that something is indeed dramatically wrong- I do not have access to statistics but I know what is happening with our own practice in that ...

  • Warning on home-reversion regulation

    21 Aug 2002

    Equity release specialist IFA Key Retirement Solutions is warning of a potential home reversion misselling scandal unless the FSA includes such products under its mortgage regulation regime.

  • Workers strike over move to axe DB scheme

    22 Aug 2002

    Steelworkers at a company owned by a Labour peer will strike for a second time this week in protest at proposals to scrap their final-salary pension scheme. Workers at Caparo Steel Group plants downed tools for a one-day strike last week as the flight from defined-benefit to defined-contribution schemes prompted the UK's first pension strike. Caparo, owned by Labour peer Lord Paul, has gone back to members of the ISTC union with an offer of a cheaper version of its ...

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