Money Marketing
21 January 2004

  • Bristol & West go for family affair

    26 Jan 2004

    BRISTOL & WESTFamily Protected Savings PlanType: Capital-protected unit-linked endowmentAim: Growth linked to the performance of the FTSE 100, S&P 500, Nikkei 225 and Swiss Market IndexMinimum sum assured/premium investment: £2,250/£25 a monthTerm: 10 yearsReturn: Up to 85% growth in the indicesGuarantee: Original capital returned in full at end of term regardless of performance of indicesClosing ...

  • 'Industry watchdog must have teeth'

    22 Jan 2004

    If the industry wants consistency, it must accept the Financial Ombudsman Service's right to establish precedent through its rulings, according to chief financial ombudsman Walter Merricks. Speaking to Money Marketing this week, Merricks says the industry holds contrary views on the issue, saying on one hand that it wants consistency but on the other that it rejects that FOS decisions should set precedent. He says: "There is a slight lack of joined-up thinking. I hear people ...

  • 'Lack of investment theme is holding back Isa season'

    22 Jan 2004

    Negative investor perceptions about the Government's commitment to Isas and the lack of unifying investment themes has left the viability of an Isa season in doubt, according to Isis director Jason Hollands. He says the past few years has seen a Isa season dominated by so-called "must-have" products that "whipped investors into action" but although there is some talk of rising interest in mixed equity and bond funds, there appears to be no clear sense of a dominant story for 2004. Hollands ..

  • 'Monthly savings beat lump-sum investments'

    22 Jan 2004

    Investors making monthly contributions have fared significantly better over the past three years than those who have invested a lump sum, according to research from Hargreaves Lansdown. HL has found that monthly savers often enjoy positive returns regardless of whether there is a bear or bull market while their lump-sum counterparts only do well in a bull market. The company says investors paying £100 a month into an average all companies fund in the three years to December ...

  • £2k rise in a week but month sees prices fall

    22 Jan 2004

    Property asking prices shot up by over £2,000 in the first week of this year, according to Rightmove's monthly house price index. The index reveals that the first week saw prices rise by 1.2 per cent, up from under £169,000 to almost £171,000. But Rightmove says month-on-month prices have fallen by 0.1 per cent in January, down to £170,935 from £171,055 in December. It says this is part of a traditional seasonal slowdown but is the lowest in the ...

  • £42 million for Britannia members

    22 Jan 2004

    Britannia Building Society members will receive £42m between them this year through the society's membership reward, which returns a share of annual profits.Members will receive an average payout of £38, with over 80,000 receiving £100 or more.Chief executive Neville Richardson says: "The unique Britannia membership reward provides real, cash-in-hand proof of the benefits of the society being mutually owned."

  • A difficult policy on Standard Life

    22 Jan 2004

    The fortunes of Standard Life and those of thousands of IFA clients are tied together. IFAs will have to await the outcome of Standard Life's strategic review before they can decide properly their attitude to the life office as a long-term business partner. But the outcome of the review also has a massive bearing on what IFAs should be telling clients now. Advisers will already be considering their stance on recommending the with-profits fund as an investment option until ...

  • Abbey is shifting ScotProv jobs to Glasgow

    22 Jan 2004

    Abbey is moving 900 jobs from its Edinburgh offices to Glasgow as part of its review of UK operations. The move could mean redundancies among the 700 Scottish Provident staff based in St Andrew Square and George Street in Edinburgh. Scottish Mutual staff will not be affected. Most of the 730 customer services staff will be offered relocation packages but it is thought that the majority will not accept the deal to relocate or commute to Glasgow. A further 400 jobs in Warrington, ...

  • Aberdeen ends move to sell property arm

    22 Jan 2004

    Aberdeen Asset Management's property division has been withdrawn from sale, with the company snubbing bids as new business streams continue to grow. AAM says Aberdeen Property Investors is no longer up for grabs after previous bids, some as low as £45m, were rejected. The latest bid was believed to have been tabled last December by property services group Teesland. API was expected to fetch around £130m when it was first put on the market last year but AAM privately ...

  • Accounting Standards

    22 Jan 2004

    Standard Life's decision to consider demutualisation is a result of pressure from three areas - the effect of poor equity returns on its solvency mar- gin, the effect of the new "realistic" reporting regime for with-profits funds and the growth of its non-with-profits business. We have known for two years that the new accounting rules were likely to make life harder for with-profits funds and the unusually heavy actions of the FSA in unilaterally going public on their negotiations ...

  • Advisers say Isa season will be a washout

    22 Jan 2004

    Most IFAs believe this year's Isa season will be a total washout, with more than two-thirds expecting the traditional pre-April sales surge to vanish over the coming years. Sixty-five per cent of respondents in a survey of 800 users of The Exchange believe there will not be a "noticeable" Isa season this year, dashing fund managers' hopes that sustained stockmarket rises will kickstart sales. Even greater numbers believe this trend is set to continue, with 69 per cent predicting ...

  • AIFA's view

    22 Jan 2004

    I did not come into work in the New Year starry-eyed but I never anticipated the speed and violence with which events started to move. The Standard Life announcement and the high-income bond saga have sent shockwaves through our sector. By the end of the month, we may well have had the outcome of the Penrose inquiry into Equitable Life. This report will not directly relate to IFAs but its conclusions and recommendations will have to be assessed for their impact across the sector. None ...

  • Alexander Forbes snaps up The Bureaux

    27 Jan 2004

    Corporate pension IFA Alexander Forbes Financial Services has acquired The Bureau, the holding company of The Annuity Bureau and other specialist IFAs.In a bid to strengthen its position in the annuity broking market, AFFS has bought TAB for an undisclosed amount, bringing under its umbrella The Drawdown Bureau, The Care Funding Bureau and The Investors Bureau.AFFS managing director Tim Morgan says: "This is a great deal for both companies. The Annuity Bureau has long been ...

  • AMI aids brokers in AR dilemma

    22 Jan 2004

    The Association of Mortgage Intermediaries has started a service to help brokers who want to become appointed representatives with mortgage networks. The FSA's decision not to pre-authorise networks ahead of mortgage regulation has left many brokers unsure which networks to join as ARs. The FSA will publish "minded to authorise" letters following preliminary checks on networks but formal notices may not be sent out until four to six weeks before the start of regulation. Networks ...

  • And the loser is...

    22 Jan 2004

    Life office chief executives around the UK this week will be shuddering at the thought of winning the CE of the year gong at the IFA and Provider Awards of a downmarket rival in 2004 after last year's winner took an early bath last week. Compared by some to the infamous football club chairman's vote of confidence in his manager, it seems the award is the kiss of death for the recipient.

  • Anger over Liverpool Vic admin reshuffle

    22 Jan 2004

    Leading protection intermediaries are criticising Liverpool Victoria's normally high service standards, saying they have fallen off since the firm announced plans to move life policy admin from Exeter to Bournemouth. Life Policies Direct director Jason King and Lifesearch senior technical adviser Kevin Carr say files are being lost between the two offices and there is confusion as to which files are being dealt with by which office. King says some clients are falling into a ...

  • Anglo Irish Bank - Capital Protected Bond Issue III

    22 Jan 2004

    Type: Offshore guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum investment: Lump sum £10,000Term: Five years and six monthsReturn:Up to 100% growth at end of termGuarantee: Original capital returned in full regardless of the performance of the indexPlace of registration: Isle of ManCommission: Initial 4%Closing date: February 13, 2004Tel: ...

  • Bagger set to have a bonfire with forms

    22 Jan 2004

    Carpetbagger David Stone-banks has been stonewalled again by Standard Life after being told that his proposal to vote on demutualisation will be invalid if the company decides to recommend such a move to members itself. Stonebanks has had an email from company sec-retary Marcia Campbell spelling out the fact that Standard has initiated a strategic review, including a review of the company's mutual status, with a special general meeting to be arranged to vote on any proposals. Campbell ...

  • Baring goes aggressively overweight in the Far East

    27 Jan 2004

    Baring Asset Management has moved to an aggressively overweight position in Hong Kong and Singapore while maintaining its stance on Japan and emerging markets.BAM says it remains confident that growth in China will, despite predictions to the contrary, continue to grow rapidly, prompting it to maintain its overweight position there. It also believes the rest of the region is in the very early stages of a recovery, aided by the decline of the US dollar which, with each devaluation, ...

  • Basic instinct

    22 Jan 2004

    For money that is to be extracted from a company for expenditure, the choice of dividend over salary is even easier for a basic-rate taxpayer than for a higher-rate taxpayer. The fact that not only employer's but also employee's NI contributions at 11 per cent will be due on salary is a significant reason for considering payment by way of dividend. This is best illustrated by an example (below) showing the effective rates of deduction (combined income tax and NI) borne by higherand ...

  • Benefits firm and IFA in alliance

    21 Jan 2004

    Employee benefit and financial planning firm Yorkshire Investment Group has entered into a strategic alliance with Shipley IFA Sydney Packett & Sons. The deal will see Packett's financial services staff and its life and pensions clients move over to YIG. Sydney Packett managing director Gareth Sawyer has been appointed managing director of YIG Consulting, the group's corporate pensions subsidiary.

  • Berkeley Morgan Group back in healthy profit

    22 Jan 2004

    Berkeley Morgan Group is back in the black, turning a loss of £1m in 2002 into a profit that reached nearly £0.5m last year. The Ofex-traded group includes 65-RI IFA division Berkeley Morgan and RE Gee & Co. This area of the business produced a turnover of £2.4m despite "adverse investment conditions" that directors blame for a lack of new business. The group says it intends to redefine its business model ahead of depolarisation to focus on the Sandler range. The ...

  • Berkeley Morgan in move to Assureweb

    22 Jan 2004

    Berkeley Morgan is dropping electronic trading platform Webline in favour of Assureweb in a move that appears to reinforce the growing appeal of no-fees internet-based services for IFAs. The deal comes after national IFA Towry Law moved to Assureweb from market leader The Exchange in October. BM had been using Webline for two years but decided to move across after consulting with Assureweb for a number of months. It will not pay an annual licence fee or monthly subscription as ...

  • Beware of pension planning blight - Ritchie

    26 Jan 2004

    Advisers are being warned to get up to speed with the effects of the pensions simplification proposals, or risk affecting the advice they give their clients now.Scottish Equitable pensions development director Stewart Ritchie says the three month delay caused by Gordon Brown's referral of aspects of the £1.4 million lifetime allowance to the National Audit Office, must be prevented from causing a planning blight.He says the delay gives advisers only one tax year ...

  • BM Solutions limits BTL clients to 10 properties

    22 Jan 2004

    BM Solutions has reined in buy-to-let lending in a move described by brokers as a return to mainstream buy to let. A review of BM's buy-to-let lending criteria has resulted in its 25 to Let scheme being withdrawn. The maximum number of buy-to-let properties an individual borrower can have with BM is now 10. Some brokers believe this is a move towards the amateur buy-to-let market away from commercial landlords. Others say it could be that BM has seen a glut of business on the ...

  • Bright Grey is set to expand in Edinburgh

    22 Jan 2004

    Royal London's protection arm Bright Grey is looking to expand in Edinburgh, after Scottish Provident announced it is closing its Edinburgh office and moving 900 jobs to Glasgow. Communications director Susan Sneddon says Bright Grey has recently taken on 17 new customer service staff and is looking to recruit another 20 to 30 to maintain its service levels as business volumes grow. Bright Grey launched in September 2001 with six staff and now employs a total of just over 200 ...

  • Britannia launches three-way structured product

    26 Jan 2004

    Britannia launching a guaranteed capital bond which links investments to gold and house price rises in addition to the FTSE 100.The three in one guaranteed capital bond protects investors' original capital while allowing unlimited capital growth over five years. The investment is split three ways between the FTSE 100 index, the gold price and the Halifax House Price index. The return is calculated by taking the average rise over all three elements of the investment. ...

  • Broker hits the ceiling over NU's housewife limit

    22 Jan 2004

    Surrey IFA Gary Festa is infuriated by what he describes as Norwich Union "playing God" by refusing to provide more than £400,000 in cover to a housewife looking to take out a stand-alone decreasing term insurance policy. Norwich Union says it has imposed a ceiling of £500,000 for all non-working partners, not just housewives, due to a lack of reinsurance capacity. Festa, who is a partner with Hoyland Financial Management, says he recently put in the application for ...

  • Charcol launches two year discount capped at 4.49 per cent

    21 Jan 2004

    Charcol is launching an exclusive 1.7 per cent discounted mortgage (current rate 3.99 per cent) to 1st March 2006. The product is capped at 4.49 per cent.Maximum loan to value on the product is 95 per cent and it is MIG free to 90 per cent. The lender fee is £300, and the product has an early repayment charge of 4 per cent until 1st March 2006.Borrowers can repay up to 10 per cent a year penalty free. The Charcol booking fee is £75.

  • Chartwell launches bonds guide

    21 Jan 2004

    Chartwell IFA has produced a guide for investors to help them plan ahead for April, when the 10% tax credit on dividend income can no longer be reclaimed. Chartwell says this will lead to a redistribution of assets within client portfolios, with bonds forming a greater proportion of PEP and ISA portfolios to ensure tax efficient income is maximised. The guide highlights the coming tax changes, and gives details on a selection of high quality bond funds that we believe are worthy ...

  • Chelsea Building Society - Five-Year Buy-to-Let Fixed Rate

    23 Jan 2004

    Type:Fixed-rate buy-to-let mortgageFixed term: Until May 1, 2009Fixed rate: 5.79%Minimum loan: £35,000Maximum loan: Up to 80% of valuation subject to a maximum loan of £500,000Income multiples: Rental income must be at least 130% of monthly mortgage repaymentsArrangement fee:£295Redemption fee: 5% of amount repaid until May 1, 2009Introducer's fee .0.35% of original ...

  • Christows on to a winner

    22 Jan 2004

    CHRISTOWS INVESTMENT FUNDSManaged Growth FundType: Oeic fund of fundsAim: Growth by investing in exchange traded funds, investment funds and quoted securities in the UK and overseasMinimum investment: Lump sum £1,000, monthly £50Investment split: 100% exchange traded funds, investment funds and quoted securitiesIsa link: YesPep transfers: YesCharges: Initial 5%, annual 1.9%Commission: Initial 3%, ...

  • Clients were sold short on shortfall

    22 Jan 2004

    A client came to see me recently about the fact that his partner had died without life cover with the result that their joint mortgage remains uncleared. They had had a Scottish Amicable joint-life first-death low-cost endowment that would have paid out if it were not for their having cancelled it a few months earlier. How this came about is that they had visited their local Lloyds TSB branch for a top-up to their mortgage to fund some home improvements. While there, they showed ...

  • Concern over tax consultation deadline

    22 Jan 2004

    Pension experts warn that a full response to the Inland Revenue's tax simplification process will be difficult because the Pensions Bill is unlikely to be published until mid-February. With the consultation closing on March 5, respondents are complaining that they will have only days to interpret the effect of the new Department of Work and Pension rules. Pension professionals say a single DWP project leader should replicate the role of Revenue simplification head Peter Hopkins, ...

  • Convex targets brokers with online conveyancing service

    22 Jan 2004

    Online conveyancing system Convex is introducing a white-labelling service for IFAs that aims to make the homebuying process more transparent. The Convex service sits between the client and the solicitor. Once a milestone in the buying process is passed, for example, exchange of contracts, it contacts the client by email or text message to let them know. Up-to-date information on the deal, including correspondence, is stored on a website and is accessible at all times. Convex ...

  • Correspondent's week - Stephen McDowell

    22 Jan 2004

    I am tired of being a corporate statistic, a digit on a spreadsheet in someone's meeting where they try to "target industry verticals" by "ticking the right boxes" and "pressing hot buttons". I am a person with a voice and an opinion. I want to be a customer. What's wrong with that? Why can't my money be good enough? I earned it and I am spending it with you. Why can't I be always right? It does not work again and I need to speak to someone. Dial. Where is the number? ...

  • Credit threat sparks a surge for pension cash

    22 Jan 2004

    IFAs' clients with small pension funds are opting for income drawdown so they can get their hands on their money, Money Marketing has learned. Clients with small funds are increasingly turning to drawdown as an alternative to annuity purchase because they get more of their cash up front and dependants can get the remainder of the fund less tax on death, say IFAs. Taking the maximum income permitted by the Government Actuary's Department also has the effect of reducing the ...

  • Crombie says mutuality is not the firm's mantra

    22 Jan 2004

    In a dramatic U-turn, new Standard Life chief executive Sandy Crombie says the company's board has never been "religiously associated" with its mutual status and is ready to reconsider. In an interview with Money Marketing this week, Crombie says Standard's board feels strongly that the "set of conditions" emerging in the market look different and that the board does not hold to a "mantra" that mutuality is the only condition, saying that its only mantra is to do what is appropriate ...

  • Exchange takes big wrap step with Fundsdirect partnership

    22 Jan 2004

    The Exchange has taken a major step forward in its bid to challenge wrap providers Skandia, Abbey and Norwich Union by signing a partnership deal with supermarket platform Fundsdirect. In a move first revealed in Money Marketing last October, The Exchange has entered into a strategic alliance with Fundsdirect which both claim will deliver the first full open architecture wrap platform for intermediaries. The wrap, due to launch in Q2, will be formed through the integration of The Exchange's .

  • Five firms accredited for long-term quality

    22 Jan 2004

    Raising Standards has reaccredited five brands under its quality mark scheme for the long-term savings industry. CIS, Eagle Star, Police Mutual, Scottish Widows and Zurich have completed a "rigorous" examination and re-approval process by the scheme's independent assessment body, the Pensions Protection Investments Accreditation Board. Raising Standards says it has been rewarded for its efforts with tangible, positive recognition from the FSA and policymakers. It says the regulator ...

  • Friends cuts critical-illness premiums by 20%

    22 Jan 2004

    Friends Provident is slashing its critical-illness insurance premiums by an average of 20 per cent and withdrawing its stand-alone guaranteed product. The move follows Legal & general cutting critical rates and ending stand-alone guaranteed cover last week. Friends is also removing coronary artery angioplasty from its guaranteed critical-illness product - as is L&G - and cutting the maximum term from 35 years to 25 years. The maximum ceasing age is being raised from ...

  • Frudd to build financial services business at law firm

    22 Jan 2004

    Commercial law firm Beachcroft Wansbrough has appointed former Scottish Amicable group legal director Nigel Frudd as head of financial services, a new position created to develop the firm's financial services business. Frudd has worked previously at St James's Place International and as a corporate financial partner at chartered accountant Robson Rhodes. Partner Simon Hodson believes Frudd's appointment is important for the law firm, which is seeking to build a reputation ...

  • FSA in structured probe on provider-owned IFAs

    22 Jan 2004

    The FSA is investigating whether provider-owned IFAs have disproportionately recommended the structured products of their parent firms as part of its wide-ranging misselling probe. The move could leave Chase de Vere Financial Solutions, the Bank of Ireland-owned firm recently fined for a misleading bond promotion, open to more scrutiny as the only IFA with links to a structured product provider, Bristol & West, which is also a BoI subsidiary. The regulator refuses to comment ...

  • FSA launch new application pack for mortgage intermediaries

    26 Jan 2004

    The FSA has released a new application pack for mortgage and general insurance businesses. It is tailored for small IFAs to make the application process easier for understand.Small IFAs can use the pack if it is a small firm other than a sole trader who does not employ any approved persons and is only arranging and/or advising on packaged products alone or packaged products with mortgage products and/or general insurance products other than life policies and long-term care insurance ...

  • FSA release PI guide

    26 Jan 2004

    The regulator has published a guide to getting professional indemnity insurance in a bid to give IFAs a greater insight into the PI market.The guide includes information on how IFAs can improve their systems and present their risk more effectively to insurers. The guide runs through some of the factors that PI providers take into account, including the advisers-to-support staff ratio, compliance, control systems and monitoring, volume of past business, qualifications and experience, ...

  • FSA says it poses a risk to firms

    22 Jan 2004

    The FSA has admitted its own actions pose a risk to firms and as a result puts pressure on itself, in a statement identifying risks in the coming year. The statement concedes that the regulator's own actions will add risk to the marketplace, stating that the substantial volume of reform will create pressures on firms' resources. Chairman Callum McCarthy admits that firms in wholesale and retail activities are facing a difficult challenge in the next few years as a "great ...

  • FSA to change fee tarif for IFAs

    27 Jan 2004

    The FSA has released details of its fees and fee strategy for 2004/05.Consultation Paper "04/02: Fees and Fee Policy" has confirmed that the regulator will change its fee structure for A12 and A13 type firms -- IFAs -- to a turnover based tarif rather than the present registered individual system in 2005/06.The total tarif base for A.12 firms has dropped from 1,879 to 1,797 which has accounted for a small increase in frees however for the bulk of IFAs (group A13) there ...

  • FSA to review projections and key features

    27 Jan 2004

    The FSA has pledged it will carry out a fundamental review of projections and product disclosure regimes. It plans to consult on new proposals in Q4 2004 with a view to making rules in 2005.The regulator will also revise the current key features regime for product disclosure, presently outlined in CP170: Informing consumers.The news comes as the regulator this morning released its business plan for the financial year 2004/05.

  • FSA: All change for with-profits

    22 Jan 2004

    January 1, 1999: FSA assumes responsibility for prudential regulation of the life insurance industry. December 2000: Equitable Life closes to new business. February 2001: FSA announces with-profits review. October 2001: Baird report into FSA's handling of Equitable Life says regulator "could have done better". February 2002: FSA tells firms to be more open on WP. March-September 2002: Tiner project creates "smarter, simpler regulation of insurance". April ...

  • Gavin swears by rap

    22 Jan 2004

    Creative brains have been at work among the pension team down at Millfield in recent weeks. Everybody knows that art is a reflection of torture and one adviser wanting to expunge his ghosts through the medium of rap is the Millfield Eminem Gavin Squires. Gavin's life is not, it would seem, troubled by the usual gangsta rubbish of feds putting caps in asses, b**ches, Bentleys and Courvoisier. Nor is he dodging lawsuits from his mom. Gavin is blue about the pension simplification ...

  • Gissings launches employee benefits website

    23 Jan 2004

    Employee benefits IFA Gissings has launched a new website for its clients offering its latest product literature and demonstrations of each service area online.

  • GMAC-RFC set to design sub-prime loans for Chelsea

    22 Jan 2004

    Chelsea Building Society has chosen GMAC-RFC to help it extend its range of sub-prime mortgages. Chelsea was the first high-street lender to launch a range of non-conforming products under its own name in 1998. The society says it chose GMAC-RFC as its partner after considerable research of the sub-prime market, following a number of approaches from different lenders. General manager (sales) Marilyn Corke says: "We are confident with the service and menu-style products that ...

  • Halifax set for first flexi loan

    22 Jan 2004

    Halifax is planning to offer a fully flexible mortgage for the first time later this year. The product is described by head of intermediary markets Jack Saxton as being halfway bet-ween a standard mortgage and an offset. It is expected to have all the usual flexible features, including the possibility of making lump-sum payments and taking payment holidays. Halifax has not included a single fully flexible product in its range before although it says there are elements of flexibility ...

  • Hargreaves and Lansdown take £1m pay cuts

    22 Jan 2004

    Peter Hargreaves and Stephen Lansdown, the two founders of leading investment IFA Hargreaves Lansdown, both took £1m pay cuts last year, even though the firm's profits rose by 10 per cent. Chief executive Hargreaves and chairman Lansdown both saw their salary fall by over 40 per cent to £1.35m in the year to June 30, 2003 from £2.39m in the previous year. The company saw profits increase by 10 per cent to £49m for the year to June 2003 from £4.9m the ...

  • IFA uses Tax Act to invest pensions in residential property

    22 Jan 2004

    Midlands IFA Central Financial Planning says a section of the Income & Corporation Taxes Act 1988 has allowed it to develop an approved company pension scheme that can invest in residential property. The self-invested benefit arrangement allows company directors to receive normal pension tax reliefs on their contributions but invest without any restrictions. The Inland Revenue has mooted making investment in residential property available for all pension schemes from 2005 but ...

  • Independent view

    22 Jan 2004

    A study by Peninsula, the UK's biggest employment law firm, shows that businesses spent £20.73bn wading through paperwork between 1997-2002. Companies spent an average of £26,762 complying with legislation in 2002, up from £18,242 five years before. Bosses also admitted spending an average of nine hours a week filling in forms - six hours more than in 1997. Managing director Peter Done says employers are being drained of what could be healthy resources ...

  • Inside edge

    22 Jan 2004

    This is not a Standard Life issue, this is happening to the entire sector. Pru is selling Egg - currently it is at almost the same price as its launch in 2000, and is shortly to close its loss-making French operations. Also shortly before interest rates move upwards, which raises income and profits for card firms. Egg's UK end makes money. Standard Life publishes a rise in free assets of £400m, a rise in margin cover from 210 per cent to 215 per cent and announces it is ...

  • Inter-Alliance in merger talks with BBB

    22 Jan 2004

    Aim-listed national IFAs Berkeley Berry Birch and Inter-Alliance are in mer-ger talks with a vision of creating an IFA worth £1bn within five years. The plan would see two of the industry's biggest personalities join forces on the same board, with Inter-Alliance chief executive Keith Carby expected to take the role of chairman and BBB chairman Cliff Lockyer becoming chief executive. The new enlarged business is likely to trade under the Berkeley Berry Birch brand, with ...

  • Invesco cuts Isa charges by 2%

    22 Jan 2004

    Henderson Global Investors is offering a 0.5 per cent discount on its preference and bond and strategic high-yield bond funds until April 30. The discount brings the initial charge to 3.5 per cent. Henderson is also reducing the initial charge on its European capital growth fund to 4 per cent from 5. F&C Management is waiving the £50 initial charge on its investment trust Isa until May 2004. It is also allowing Pep or Isa transfers into its trust range without levying ...

  • Invesco offers key to asset allocation

    23 Jan 2004

    Invesco Perpetual has added the Invesco Perpetual distribution fund to its Oeic fund range.This fund's objective is income and growth by investing in a combination of at least 60 per cent in fixed interest and the remainder in equities.The fund will be managed by Paul Cause, Paul Read and Neil Woodford, who have worked together at Invesco Perpetual for the last nine years. They currently manage the Invesco Perpetual monthly income plus fund. With ...

  • Invesco Perpetual - Distribution Fund

    27 Jan 2004

    Type: OeicAim: Income and growth by investing in equities and bondsMinimum investment: Lump sum £500, monthly £20Investment split: At least 60% bonds, remainder in equitiesIsa link: YesPep transfers: YesCharges: Initial 5%, annual 2%Commission: Initial 3%, renewal 0.5%Tel: 0800 028 2121

  • Invesco Perpetual adds to distribution gang

    26 Jan 2004

    Invesco Perpetual has added the Invesco Perpetual distribution fund to its Oeic fund range.This fund's objective is income and growth by investing in a combination of at least 60 per cent in fixed interest and the remainder in equities.The fund will be managed by Paul Cause, Paul Read and Neil Woodford, who have worked together at Invesco Perpetual for the last nine years. They currently manage the Invesco Perpetual monthly income plus fund. With the new fund, Causer ...

  • Invesco Perpetual adds to distribution gang

    26 Jan 2004

    Invesco Perpetual has added the Invesco Perpetual distribution fund to its Oeic fund range.This fund's objective is income and growth by investing in a combination of at least 60 per cent in fixed interest and the remainder in equities.The fund will be managed by Paul Cause, Paul Read and Neil Woodford, who have worked together at Invesco Perpetual for the last nine years. They currently manage the Invesco Perpetual monthly income plus fund. With the new fund, Causer ...

  • Invesco Perpetual adds to distribution gang

    26 Jan 2004

    Invesco Perpetual has added the Invesco Perpetual distribution fund to its Oeic fund range.This fund's objective is income and growth by investing in a combination of at least 60 per cent in fixed interest and the remainder in equities.The fund will be managed by Paul Cause, Paul Read and Neil Woodford, who have worked together at Invesco Perpetual for the last nine years. They currently manage the Invesco Perpetual monthly income plus fund. With the new fund, Causer ...

  • Invesco Perpetual adds to distribution gang

    26 Jan 2004

    Invesco Perpetual has added the Invesco Perpetual distribution fund to its Oeic fund range.This fund's objective is income and growth by investing in a combination of at least 60 per cent in fixed interest and the remainder in equities.The fund will be managed by Paul Cause, Paul Read and Neil Woodford, who have worked together at Invesco Perpetual for the last nine years. They currently manage the Invesco Perpetual monthly income plus fund. With the new fund, Causer ...

  • Investment analysis

    22 Jan 2004

    The majority of the world's major equity markets continued to move ahead last week with the latest batch of economic data providing further encouragement. There was also good news from the corporate sector in the form positive results, a generally upbeat outlook and a return of M&A activity. By the end of the week the FTSE World index was trading 0.2 per cent higher. In the UK, cyclical stocks remained the order of the day, with shares in media giant Reuters ending up by over 22 ...

  • Investment view

    22 Jan 2004

    There is no clear message for investors yet in 2004. Such preliminary economic information as trickles into the marketplace has failed to demonstrate any definable trend. Last week, the Office of National Statistics suggested that manufacturers were succeeding in raising prices but then we discovered that manufacturing production, against expectations, had fallen during November. As for company statements, while Tesco and Wm Morrison clearly had a storming time over Christmas, Sainsbury ...

  • John Joseph on Protection

    22 Jan 2004

    Today is a day for sharing what I discovered hidden in 15 hours of research when I volunteered to go through a new client's existing policies to see exactly what he had. A dentist, 46 years old and to my delight, very protection-conscious, to the extent that Medical Sickness - which is now Wesleyan but still does not do business through IFAs - had "protected" this client for 19 years by way of making sure his income-protection policies were regularly reviewed to the maximum possible, ...

  • JPMF elects for two into one

    22 Jan 2004

    JPMorgan Fleming has created the elect investment trust by restructuring two existing trusts -JPMorgan Fleming Managed Income and JPMorgan Fleming Managed Growth.The new trust has three share classes but it is not a split capital trust. The managed growth share class invests in a range of JPMorgan Fleming closed-ended and open-ended funds such as JPMorgan Fleming Claverhouse, JPMF UK dynamic fund and JPMorgan Fleming overseas. It will invest around 65 per cent in the UK, with ...

  • Julian Gibbs

    22 Jan 2004

    One of the very best boutique fund management groups is Neptune Investment Management, founded by Robin Geffen. Two-thirds of the shares are held by Geffen and his senior employees. He has won many awards since 1995 and has wide experience of world markets. All Neptune's funds are top decile or close since launch or over three years. The global equity, Japan opportunities and European opportunities funds performed exceptionally well last year while the recently launched income fund ...

  • Justice group in talks with Aifa and FSA

    22 Jan 2004

    Justice for IFAs is to meet with its main industry rival body and with the FSA, which could be the subject of a legal challenge from Jfifa. The group was set up in December to launch a legal challenge to the FSA. It is meeting with Aifa director general Paul Smee this week and will meet with FSA IFA regulatory chief David Kenmir at the end of January to outline its concerns. Founder Jon Maguire says Jfifa is building a board of directors "steeped in the industry as practitioners", ...

  • Kensington Group reports strong results for 2003

    27 Jan 2004

    The Kensington Group has reported a strong set of results for 2003, revealing before tax profit to be up 23 per cent with new business completions up 98 per cent. For the year ended November 30, 2003, profit before tax and goodwill amortisation rose to £37.1 million from £30.2 million in 2002, a rise of 23 per cent, with new business completions hitting £2 billion, up 98 per cent from £1.01 billion. Kensington's direct distributor TML contributed £545 ...

  • L&G show steady business results

    26 Jan 2004

    Legal & General has recorded a drop of 2 per cent in its UK new business levels in 2003, but saw growth in the last quarter and is holding out strong hopes for further recovery this year.The group saw UK sales drop to £794m annual premium equivalent from £810m in 2002, with worldwide business falling by 2 per cent also to £886m ape from £904m in 2002. However, in the last quarter of 2003, total UK new business rose 6 per cent to £186m ape from £175.5m. ...

  • Laundry lapses cost Bank of Scotland £1.25m fine

    22 Jan 2004

    The FSA has fined Bank of Scotland £1.25m for failing to keep proper records of customer identification for money-laundering rules. An FSA investigation confirmed weaknesses in BoS's record keeping systems and controls across its retail, corporate and business banking divisions. The FSA says in over half the sample of accounts it tested in late 2002, BoS had not retained either a copy of the customer identification evidence or any documentation showing where this evidence ...

  • Legal & General - Capital Protection Plus 2

    21 Jan 2004

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £500-no maximum, £7,000 IsaTerm: Six yearsReturn: Between 21% and 50% growth at end of termGuarantee: Original capital returned in full along with 21% growth regardless of performance of index Commission: Initial 3%Tel: 020 7528 6773

  • LibDem MP backs IFA over FOS fine appeal

    22 Jan 2004

    Liberal Democrat MP Nick Harvey is fighting the corner of a constituent IFA's firm which faces closure if the fine levied against it by the Financial Ombudsman Service is not quashed. Harvey is demanding that the Treasury redraft legislation to allow IFAs the right of appeal retrospectively against FOS decisions. He says a partner in an IFA, who lives in his North Devon constituency, has found new evidence that he believes would absolve his firm but is unable to appeal against the ...

  • Life in the fast lane

    22 Jan 2004

    First off the blocks at 5.30pm in the Scottish Life offices Friday pub sprint each week is deputy sales director Jim Smith, the Diary learns. What lies beneath that business suit is a body that has twice beaten Olympic gold medallist Alan Wells in a 100-metre sprint. Apparently, our Jim was a superb sprinter as a youth. His personal best in the 100 metres was 10.2 seconds which is around the same time that Wells did when he won his medal in the Moscow Olympics. The Diary would ...

  • Liv Vic extends extra allocation offer

    23 Jan 2004

    Liverpool Victoria is to extend the 1 per cent extra allocation offer on its with-profits growth bond until February 27.The move follows on from its recent announcement that the bond's regular bonus rate is to stay at 2.25 per cent. The insurer says that the extra allocation means a new investor could receive up to 104 per cent, with investors that are already members of the friendly society eligible for a member bonus of up to 1 per cent.Intermediary director Rye ...

  • Liverpool Vic freezes WP bonus rates

    21 Jan 2004

    Liverpool Victoria is freezing the annual bonus rates on its unitised with-profits income and growth bonds. Until 2005, when they will be reviewed, the income bond's rate will remain at 4.25 per cent while the growth bond's will stay at 2.25 per cent. Liv Vic says the move demonstrates its financial strength.

  • Loan IFAs can use investment key features

    22 Jan 2004

    Mortgage intermediaries will be allowed to use the same key features documents as those regulated for investment business, according to an FSA policy statement outlining the final rules for mortgage and general insurance regulation. Firms will be permitted to provide a key features document that complies with their investment business rules rather than a policy summary, as originally planned, in a move aimed at cutting down on the burden of red tape. Brokers say it makes sense ...

  • Looking at the laundry list

    22 Jan 2004

    At the end of last year, the FSA gave Abbey a nasty early Christmas present in the form of a £2m fine for money laundering breaches. This apparently arose from an initiative by Abbey whereby they had reported the matter themselves to the FSA. As the saying goes: "If you tell your wife everything, does she love you more afterwards?" Certainly not if you are dealing with a regulator who acts as judge and jury with no right of appeal and is always eager to look at ways of ...

  • Mansfield Building Society - Buy-to-Let Mortgage

    26 Jan 2004

    Type: Discounted-rate buy-to-let mortgageDiscounted term: Two yearsDiscount`:1%Payable rate 4.75%Minimum loan: £35,000Maximum loan: Up to 75% of valuation subject to a maximum loan of £250,000Income multiples: Rental income must be at least 130% of monthly mortgage repaymentsArrangement fee: £250Redemption fee: 3% of the original loan in years one to threeIntroducer's ...

  • Mansfield Building Society - Buy-to-Let Mortgage

    26 Jan 2004

    Type: Discounted-rate buy-to-let mortgageDiscounted term: Two yearsDiscount`:1%Payable rate 4.75%Minimum loan: £35,000Maximum loan: Up to 75% of valuation subject to a maximum loan of £250,000Income multiples: Rental income must be at least 130% of monthly mortgage repaymentsArrangement fee: £250Redemption fee: 3% of the original loan in years one to threeIntroducer's ...

  • Mansfield Building Society - Buy-to-Let Mortgage

    26 Jan 2004

    Type: Discounted-rate buy-to-let mortgageDiscounted term: Two yearsDiscount`:1%Payable rate 4.75%Minimum loan: £35,000Maximum loan: Up to 75% of valuation subject to a maximum loan of £250,000Income multiples: Rental income must be at least 130% of monthly mortgage repaymentsArrangement fee: £250Redemption fee: 3% of the original loan in years one to threeIntroducer's ...

  • Mansfield Building Society - Buy-to-Let Mortgage

    26 Jan 2004

    Type: Discounted-rate buy-to-let mortgageDiscounted term: Two yearsDiscount:1%Payable rate 4.75%Minimum loan: £35,000Maximum loan: Up to 75% of valuation subject to a maximum loan of £250,000Income multiples: Rental income must be at least 130% of monthly mortgage repaymentsArrangement fee: £250Redemption fee: 3% of the original loan in years one to threeIntroducer's ...

  • MarketPlace loan lets FTBs include parents' income

    22 Jan 2004

    The MarketPlace at Bradford & Bingley has revamped its 1st Start mortgage for first-time buyers. The product enables FTBs to include their parents' income when calculating how much they can borrow. The deal is funded by Bank of Ireland and has a discount of 1.5 per cent until March 2006, giving a current rate of 4.29 per cent. There is no valuation fee and redemption penalties apply only in the discount period. Mortgage development manager Elliot Nathan says: "With many ...

  • Marlborough Stirling in exclusive contract negotiations

    22 Jan 2004

    A business update from Marlborough Stirling reveals the group is in exclusive negotiations in relation to a number of contracts it is confident will be secured in the near future.It says if the negotiations are concluded successfully 2004 turnover visibility would increase by around £10m.Marlborough Stirling expects turnover for 2003 to be in line with expectations, and expects overall turnover for 2004 to be similar to 2003.

  • Means of life

    22 Jan 2004

    Talking to advisers active in the field of long-term care, there is often uncertainty as to whether the definition of life insurance for the purpose of the local authority means test includes an investment bond. Indeed, some local authorities have sought to take investment bonds into account as assessable assets despite the fact that, strictly speaking, most investment bonds (other than capital redemption policies) are life insurance policies. Some welcome clarification has now been obtained ...

  • Menu is imminent says FSA

    27 Jan 2004

    The FSA has confirmed the imminent publication of the menu and says firms will be able to take advantage of depolarisation and the menu by Q4 2004.The news comes as the regulator this morning released its business plan for the financial year 2004/05.

  • Mortgages plc launches new product range

    23 Jan 2004

    Mortgages plc has announced the launch of its new Synergy product range, which will be available via its Elite distributors.The Synergy range offers 46 product variations from very light, light, medium and heavy adverse credit mortgages. Rates start from 4.00 per cent and there are discounts of 1.75 per cent until 31 May 2005. The products are available at 60, 80 and 85 per cent loan to value.Applicants for the products may have CCJs or arrears, but not both. Mortgages ...

  • N&P ends NU deal and brings in IFAs

    22 Jan 2004

    Norwich and Peterborough Building Society has stopped dealing exclusively with Norwich Union for regulated products and now has IFAs in its branches. Each of the society's 58 branches now has a financial planner to advise on all regulated products from the whole of the market. N&P was tied to NU for investments, including bonds and Peps, Isas, unit trusts and Oeics from Morley Fund Managers and protection. N&P has also cut its ties with NU on equity release. Charcol ...

  • New network from Tenet

    22 Jan 2004

    Tenet is starting a new mortgage network, Lime, as an extension of its existing network, Independent Mortgage Adviser, launched in July 2000. Lime - Lifetime Insurance Mortgage Experts - will continue to provide exclusive products along with compliance support and regular training. It will also provide professional indemnity insurance support, life and general insurance panels, mortgage and general insurance sourcing software, marketing and business development support and FSA ...

  • New self-cert mortgages from Coventry BS

    27 Jan 2004

    Coventry Building Society has launched a new range of self-certification mortgages.Aimed at self-employed borrowers, the new range includes flexible products at 4.25 per cent,4.49 per cent and 4.79 per cent. It also includes a fixed rate at 5.39 per cent until February 28th 2009, and a 1.39 per cent discount to February 28th 2007.The maximum advance available is £350,000, and the maximum loan to value is 85 per cent unless stated otherwise.

  • New Star Investment Funds - Galaxy Portfolio Service

    21 Jan 2004

    Type: Portfolio management serviceAim: Income and growth by investing in three New Star funds of funds and a New Star unit trustMinimum investment: £25,000Investment choice:New Star performance portfolio, New Star fund of funds portfolio, New Star managed growth portfolio, New Star monthly income unit trustIncome facility: YesCharges: Initial 5%, Pep/Isa transfers 4.25%, annual 1.5%Commission: Initial ...

  • New Star reveals four fund galaxy

    21 Jan 2004

    NEW STAR INVESTMENT FUNDSGalaxy Portfolio ServiceType: Portfolio management serviceAim: Income and growth by investing in three New Star funds of funds and a New Star unit trustMinimum investment: £25,000Investment choice: New Star performance portfolio, New Star fund of funds portfolio, New Star managed growth portfolio, New Star monthly income unit trustIncome facility: YesCharges: Initial 5%, Pep/Isa transfers ...

  • Norwich Union International - Core Funds Bond

    22 Jan 2004

    Type: Unit-linked bondAim: Growth and income by investing in range of 22 Norwich Union funds and five external fundsMinimum investment: Lump sum £10,000, euros 15,000, $15,000Allocation rates: £10,000-£49,999/euros 15,000-euros 74,999 /$15,000 - $74,999 - 101.25%, £50,000-£99,000/euros 75,000-euros 149,999/$75,000-$149.999 - 101.75%, £100,000-£249,999/euros 150,000-euros 374,999/$150,000-$374,999 ...

  • NU looks to pick up Swiss Life UK group IP business

    27 Jan 2004

    Norwich Union Healthcare has launched a dedicated group income protection support team, to help advisers looking to find a new home for group clients not automatically being offered renewal terms by Swiss Life, after its recent announcement that it is closing to new business. The NU team will offer advice and support to choose benefit terms for clients through illustration to policy enrolment. NU Healthcare says its commitment to intermediaries will also include providing named ...

  • Out of context

    22 Jan 2004

    •"Who is that looker standing next to that MM hack?" - Scottish Life's Jim Smith reads the thought bubble of Premiership presenter Gaby Logan as she looks at colleague Alasdair Buchanan. •"Telling a story to you at the moment is about as much fun as going to the World Dart Championships." - MRM PR Richard Wheat to MM news editor on his detoxing efforts •"It doesn't look like Gordon's mistress is Prudence any more." - LibDem leader Charles Kennedy commenting ...

  • Outside edge

    22 Jan 2004

    Is Standard Life Fubar? No probably not, but the company does need to adapt fairly rapidly if it is to maintain its competitive position. From all the information I have seen, including that issued by Standard Life itself, the FSA, and all the credible rating agencies such as Standard & Poor's, Moody's and AKG, the business has a problem but it does not have a disaster. Standard has sufficient reserves to meet its liabilities and to continue to pay bonuses but because ...

  • Park Row Corporate & Private Clients launches

    26 Jan 2004

    Park Row Corporate & Private Clients has launched officially with 23 advisers on board. Head of the company Peter Sprung hopes to have 50 advisers in three years.AXA Sun Life is the business development partner for the new division, and Scottish Widows is the educational and development partner. The Institute of Financial Planning will be providing bespoke courses utilising their fast track to take advisers through to CFP licensing.Sprung says: "We're delighted that ...

  • Pignatelli leaving Schroders

    21 Jan 2004

    Schroders head of European equities Mark Pignatelli is to leave the group by mutual consent after less than six months in the role. Pignatelli, who leaves in April, had been Schroders' chief investment officer until last September, when he was moved to the European desk. He did not run any funds. Head of global equities Ken Lambden will assume the European role in addition to his current position.

  • Pivotal is adding pension for Mom

    22 Jan 2004

    Investment platform Pivotal is adding a personal pension plan to its UK offering, extending access to its MLC manager of manager investment process. Pivotal was established in the UK in March 2003 by National Australia Bank. It says this is the first time the Australian MLC Mom process has been available through a pension wrapper in the UK. Features on the MLC pension include tax efficiency via stamp duty reserve tax exemption. Pivotal says adoption of an individual pension account ...

  • Platform launches new product range

    27 Jan 2004

    Platform has added more products to its range, which now includes a bonus discount scheme on non conforming loans and widened criteria on remortgages.All non conforming cases received by 1st June 2004 will receive an extra 0.25 per cent for the discount term. Unlimited capital raising is now available for remortgaging for any purpose up to scheme limits on the whole range, and discounts now run from completion, and are not end dated.Director of sales and marketing Guy Batchelor ...

  • Product matters

    22 Jan 2004

    The launch of Scottish Life's Works4You is forward-thinking and revolutionary. ScotLife is offering a full HR Intranet site free to all new group money-purchase schemes, including GPP and stakeholder. Staff can access all their benefits, including insured benefits with providers other than ScotLife, and noninsured benefits such as holidays and childcare, at the press of a button. One of the difficulties for employers is putting across the amount of benefits and this will help ...

  • Pru hopes to hatch deal to sell off Egg

    22 Jan 2004

    Prudential it is in talks over the sale of its 79 per cent stake in online financial services provider Egg. Speculation over a possible buyer has centred on US credit card issuer MBNA but Royal Bank of Scotland, HBOS, American bank Capital One and National Australia Bank have also been tipped as contenders. Pru says discussions are at a preliminary stage. Egg has confirmed that it is helping the Pru over a possible transaction. Egg was set up by Pru in 1998 and floated in June ...

  • Relocation on the menu for ScotProv

    22 Jan 2004

    The rumour mill says Scottish Provident employees started getting jittery about their jobs when a For Let sign went up outside their office in St Andrew Square, Edinburgh, late last year and then quickly came down. Then catering staff began talking about how their contracts were not being renewed. ScotProv's parent, Abbey, has now revealed that 900 jobs in Edinburgh are being transferred to Glasgow, with the Edinburgh office closed by the end of the year. Analysts and IFAs ...

  • Rough landing by airline

    22 Jan 2004

    We were contacted by a 53-year-old woman who was made redundant when her employer, a well-known airline, was placed into receivership. She had been informed that her previously guaranteed final-salary pension fund was underfunded and the transfer value had fallen from £346,000 to £226,000 in 12 months. She was very angry with her employer and scheme trustees and wanted nothing further to do with them, preferring to take control of her pension herself. The scheme was now ...

  • Royal London says Standard issue is not a mutual trend

    22 Jan 2004

    Mutual insurer Royal London says the problems that Standard Life is facing are not industrywide. Royal London says the issues that the FSA has identified with Standard Life are specific to Standard and will not have an impact on Royal London. It says it has had routine discussions with the FSA over the development of its own realistic balance sheet over the past few months, and there is no reason to believe that any of the same issues will arise. Royal London underlines that ...

  • Sainsbury puts L&G term cover on its shelves

    22 Jan 2004

    Sainsbury has struck a deal with Legal & General to sell life insurance through its supermarkets. It is Sainsbury's first move into the non-advised term insurance market and the first time that L&G has tied to a supermarket as part of its direct-marketing operation, which includes Barclays, National Australia Bank and Chelsea Building Society. Sainsbury will also sell the product on the internet and over the phone. It says life insurance is still perceived as being ...

  • Sandy Crombie

    22 Jan 2004

    Standard Life's new chief executive Sandy Crombie is an oasis of calm, sitting serenely in the eye of the media hurricane currently whirling around him. The son of a paper mill worker, who went to work for Standard straight out of school at 17, Crombie now finds himself heading up Europe's biggest mutual insurer. "When you have been somewhere for 37 years, it becomes more than a job, it is very much a way of life. It is a privilege to be asked to lead such an organisation. ...

  • Sarasin launch structured investment product

    27 Jan 2004

    Sarasin Investment Management have launched a new structured investment product for investors seeking exposure to the growth prospects of world stock markets, the availability of periodic income and the protection of what it calls a 'cast iron' repayment guarantee in five years time.The Sarasin Guaranteed Portfolio is a five-year fund-linked ivestment note that offers 100 per cent capital protection of the initial investment if the note is held for a full five year term, ...

  • Sarasin secures fund

    21 Jan 2004

    Sarasin Investment Management has unveiled the Sarasin guaranteed portfolio, a capital protected fund linked to the Sarasin CI globalsar sterling balanced fund, which is a Guernsey-based unit trust. The underlying fund has a 16-year track record and invests globally in a combination of equities, bonds and cash. Its objective is to achieve capital growth with lower risks than a pure equity fund. Current holdings include gilts, Cisco Systems, Tesco and Vodafone.Invest

  • Saving graces

    22 Jan 2004

    The fast approaching Isa season will once again find IFAs trying to find the best-performing funds for their clients but there are other factors which could also influence potential returns. One of the choices that clients must make is whether to invest a lump sum or regular contributions. Lump-sum investing pays dividends in a bull market as, the more units or shares owned, the greater the exposure to an upturn. For example, an investor who put £3,600 into a fund in the ...

  • Schroders sail and hearty

    22 Jan 2004

    Schroders is supporting the Ellen MacArthur Trust, a charity that takes children recovering from cancer on summer sailing trips to the Isle of Wight. This summer will mark the second year that Ellen, who in 2001 at the age of 25 became the fastest woman to sail around the world, has taken a group of recovering children yachting. MacArthur says: "I have seen first-hand the joy and inspiration that time out on the water can give kids suffering from cancer. For the short time they ...

  • Schroders' Horsburgh becomes Witan chief

    22 Jan 2004

    Giant investment trust Witan has appointed Schroders veteran Jim Horsburgh as its first chief executive as part of its bid to boost flagging performance by moving towards a manager of manager approach. Horsburgh, who was at Schroders for 17 years, will select investment managers across the industry to run different parts of the £1.3bn trust. The decision could mean Henderson Global Investors, its current manager, loses most if not all of its contract to run Witan. Horsburgh, ...

  • Seminars on pensions simplification from James Hay

    26 Jan 2004

    James Hay Consultancy is running a series of free seminars on pension simplification for IFAs starting on February 4 in London.The seminars will examine small self-administered schemes in the future, the outlook for funded unapproved benefits schemes, and the way director's pensions schemes will be affected by the Government's proposals.JHC managing director Ian Hammond and director of consultancy will present the seminars, which take place on February ...

  • Sesame revenue down 16 per cent

    22 Jan 2004

    Revenue for Misys' financial services business is down 16 per cent from £233 to 195 interim results for the six months to November 2003 indicate.The company believes continued weakness in the market served by IFAs is to blame. It also says demand for network services has been undermined by adverse conditions in the market for long-term savings, insurance and investment markets, blaming "uncertainty in the regulatory environment" Across the group revenues for Misys were ...

  • Shake a legacy

    22 Jan 2004

    Legacy life and pension portfolios stretch a long way into the future and most are still maintained on the systems in use when they were issued. Old world administration is leaking cost and legacy systems have been highlighted as a barrier to the change necessary to compete in the new world. Providers clearly need to respond but how? Before a provider decides what route it should take with its legacy systems, it must ask what it is trying to achieve. Fundamentally, what is its business ...

  • Somewhere over the risk spectrum...

    22 Jan 2004

    Investors and investment risk All investment involves risks in some form or other. Even an investment in a Government bond is subject to the risk that inflation will erode or possibly even cancel out the nominal return. Different investors each have their own level of risk that they find acceptable. The adviser's fact-find process must discover a client's attitude to risk. This might well take some time, especially if the client is not familiar with investment issues and ...

  • St James's Place in new business boost

    22 Jan 2004

    St. James's Place Capital saw a 24 per cent increase in new business in the fourth quarter of 2004. The wealth management group generated a 44 per cent increase in new investment business and a 32 per cent increase in new protection business but suffered an 8 per cent drop in pensions. Its funds under management grew 34 per cent to £7.9bn in the year to December 2003.

  • Standard Bank Offshore - Offshore Equity Growth Deposit

    23 Jan 2004

    Type: Offshore guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum investment: Lump sum £10,000Term: Five yearsReturn: 25% growth if index rises by 25% at end of term,plus 75% of growth above that levelGuarantee:Original capital returned in full at end of term regardless of performance of indexPlace of registration: Isle of ManClosing date: February 25, ...

  • Standard may need to sell loan and healthcare arms

    22 Jan 2004

    Standard Life could be forced to sell off its Standard Life Bank and Standard Life Healthcare if it wants to remain mutual, according to a leading City analyst. The analyst, who spoke on the condition of anonymity, says the subsidiaries would only be likely to remain within Standard Life if it committed to demutualisation. The analyst says the two subsidiaries would probably be sold by the with-profits fund to the holding company if the company demutualises. He questions the place ...

  • Standard shock charges stun IFAs

    22 Jan 2004

    Standard Life has stunned IFAs with new charges on all with-profits business which advisers say will force them to revisit thousands of client files and sound the death knell for with-profits. The new charges, ranging from 0.25 to 0.75 per cent, will hit all existing and future business on with-profits policies. Advisers say they could be forced to revisit all recommendations placing clients in Standard WP products as the charges, combined with the block on projecting mutuality ...

  • Standard sparks questions over value of rating agencies

    22 Jan 2004

    Some insurers and IFAs are starting to question the value that big rating agencies such as Standard & Poor's and Moodys offer to financial advisers in the wake of the Stan- dard Life strategic review. Both S&P and Moodys moved to downgrade Standard after announcements that the firm had been in discussions with the FSA over calculations of its realistic balance sheet and was launching a strategic review which could lead to its demutualisation. One industry expert says ...

  • Standard stands on its record

    22 Jan 2004

    Financial security, customer service and trust. These are the brand values on which Standard Life has been built and they remain the values to which the company remains fully committed. In this respect, Standard Life is the same company it was a week, a month or a year ago. What is also unchanged - and I cannot stress this enough - is the commitment to the IFA community. Standard Life will continue to support IFAs who have recommended the company and who will hopefully continue ...

  • Standard: End of mutuality?

    22 Jan 2004

    May 2000: Independent insurance analyst Ned Cazalet says Standard Life would be worth £16bn if it demutualised. June 2000: Standard Life sees off carpetbagger Fred Woollard, with 53.4 per cent of the 1.1 million policyholder vote supporting continued mutuality. December 2001: Iain Lumsden takes over as chief executive following the retirement of Scott Bell. May 2002: Finance director John Hylands says with-profits will change for the better as a result of the FSA's ...

  • Stars in their eyes

    22 Jan 2004

    Two treats are in store from the consultation mill down at Canary Wharf. First, the FSA is adopting a new numbering system so instead of the long-awaited CP210, we will be crowding in the streets for, wait for it - CP04/1. The regulator has also introduced a "star-rating system" to help you pick and choose the CPs that take your fancy. The Diary understands that three stars means "A good read - pass this one on to your friends", two stars means "Starts well but won't keep your ...

  • Step reaches 10,000 members

    26 Jan 2004

    The Society of Trust and Estate Practitioners has grown to more than 10,000 members. Step provider education and training for its members who specialise in trusts and estates, executorship and taxes. The group plans to introduce a new online technical database.

  • Surge in equity release business for Ship members

    27 Jan 2004

    Mortgage business conducted by the 17 members of consumer protection body Safe Income Home Plans surged 59 per cent to £1.03bn in 2003 from £649m the previous year. Combined business, including mortgage reversion business, grew 36 per cent to £1.16bn in 2003, from £851m in 2002.Ship chairman Jon King says: "These figures underline the success of all the companies that follow the Ship code. Significantly these figures confirm the strong growth which equity ...

  • Survey reveals long delay for term cover

    22 Jan 2004

    A term insurance policy takes an average of 48 days to be put on risk, according to research by IFA Torquil Clark. Torquil says it sold term policies from 15 providers last year and the average time for a policy to be put on risk was just under seven weeks. Scottish Widows and new player Bright Grey provided the fastest service, taking an average of 25 days and 30 days to put applications on risk. Although Bright Grey handled a smaller volume of cases, the company attributes ...

  • T&C deal for loan brokers

    22 Jan 2004

    A new training and competence system for mortgage brokers is being jointly launched by the LIA, Sofa and the Chartered Insurance Institute. Mortgage Assess will help advisers, administrators, support staff, supervisors and managers comply with the rules of statutory regulation. It will be available from February. It includes a knowledge assessment system which tests users' knowledge levels and identifies gaps. Learning modules cover all aspects of mortgages, including regulation, ...

  • Talkback

    22 Jan 2004

    "Yes. Abbey have completely ruined Scot Prov. It was a good company before they got their hands on it." Nigel Graham, Stevenson Financial Planning Centre "No. But ScotProv has a lot of good protection products giving the industry a good variety. If products start going as well as people it will leave a bit of a hole in the market." John Stirling,Stirling Independent "I am of two minds. It will not change the fact that ScotProv will still be around but it will ...

  • The decline and fall of with-profits

    22 Jan 2004

    Is there any future for with-profits amid the gloom over falling bonus rates at most companies and the controversy over Standard Life? One glimmer of hope is that Prudential has been able to keep its bond rates on hold. The Pru halted the slide of its annual bonus rates by keeping the present rate of 3.25 per cent on its Prudence bond. This contrasts with NU's decision to cut bonuses for some with-profits customers. Bonuses on the majority of NU policies have been reduced and 100,000 ...

  • The final performance

    22 Jan 2004

    From June, new FSA rules will stop the use of past performance in advertising to investors unless it is used within strict boundaries. Some experts expect the move will have a profound impact on fund firms' marketing but it may have little impact on clients' choices. The regulator is imposing rules to standardise the presentation of fund data. The aim is to stop fund comp-anies using only favourable timeframes in advertising. The rules stipulate that past performance can ...

  • The invoice of reason

    22 Jan 2004

    Invoice finance - historically termed factoring - has begun to proliferate once again as financial advisers realise its advantages over other forms of debt and as a means of planning cashflow. Over £100bn of invoices now run through those financial institutions which offer the service and the amount is increasing at the rate of 6.3 per cent a year. Around 33,500 UK businesses use invoice finance as an alternative to more traditional funding methods. The River Communications ...

  • Transfer advice has become impossible

    22 Jan 2004

    I have recently been involved with yet another complaint, which has been referred to the Financial Ombudsman. I specialise in transfers of occupational pension schemes, and I am now of the opinion that it is not possible to give advice in this area and be compliant. It may be of interest to other IFAs working in the transfer market that the ombudsman's view of advice on transfers, is that where the critical rate of growth is in excess of the FSA upper rate of growth guidelines ...

  • Treasury refers Penrose Report to SFO

    23 Jan 2004

    The Treasury has referred the Penrose Report into what went wrong at Equitable Life to the Serious Fraud Office.The SFO has confirmed it has received the 800 plus page report and will be looking to see whether it is appropriate for it to carry out a serious criminal investigation. The independent Penrose inquiry into Equitable Life, headed by Lord Penrose, was announced by the Treasury in August 2001 with the aim of examining the circumstances that led to the insurer's ...

  • TV probe brings home pension truths

    22 Jan 2004

    Low pension saving among young people is probed in a Tonight With Trevor McDonald programme, to be aired next Monday. The programme will follow the fortunes in retirement of four young people living in Penny Lane, Liverpool, taking their current level of pension provision and projecting it to their retirement to show what income they can expect. Three of the four people have no pension arrangements but one has an NHS pension. The four, who all currently have decent incomes and ...

  • Verity's view

    22 Jan 2004

    Iain Lumsden's sudden departure from Standard Life after 36 years at the company was, officially, simply a matter of timing. The life insurer's strategic review - which will consider, among other options, the demutualisation of Europe's biggest mutual company - would take too long for him to see it through before his planned retirement date so it made sense for him to go now. Unofficially, observers have quite reasonably been speculating that he did not see eye to eye ...

  • Watchdog warning that FOS decisions will set precedent

    22 Jan 2004

    The industry must accept the inevitability that some decisions made by the Financial Ombudsman Service will become precedents, says chief ombudsman Walter Merricks. Speaking to Money Marketing, Merricks says it is contradictory for the industry to complain that the ombudsman is setting a precedent through its decisions and, on the other, accuse it of being subjective. He defends the FOS's position, saying there will be cases where no other body has made a decision on the types ...

  • Western Provident Association - Professional Health

    23 Jan 2004

    Type: Individual private medical insurance for members of professional occupationsMinimum-maximum ages: 18-65Minimum premiums: £1.65 a month, £18.77 a yearMaximum benefits: Standard cover no maximum, worldwide option up to £250,000 a year. dental option up to £31,250, cash plan benefits level one up to £705 a year, level two £1,410 a year, therapy option up to £1,000 a yearCover provided: ...

  • Where there's A Wills there's a way

    22 Jan 2004

    A core clientele of clergy and professionals is pro-ving to be a solid business base for A Wills & Co. Director Arnold Wills says the last quarter of 2003 was the best yet for the firm, with current annual turnover at £400,000, with £130,000 of this total being trail/fund-based. He is very bullish about the future for IFAs if they have an emphasis on client care and servicing, and attributes the firm's good business over the last six months to "our loyal client base". Wills ..

  • Widows cuts bonus rates

    22 Jan 2004

    Scottish Widows has announced it is cutting bonus rates on many with-profits policies. Unitised with-profits life and pension policies regular bonus rates are down between 0.5 per cent and 1 per cent, while conventional life policy bonuses will remain the same. However, most conventional pension policies will see no regular bonuses.The changes take effect from January 1 and see final bonus rates on with-profits policies generally down.At the same time cash-in values have ...

  • Willetts lays out Tory pension plans

    21 Jan 2004

    Shadow Pensions Secretary David Willetts has announced the Conservative Party's plans to tackle the pensions crisis, reiterating a commitment that a Tory Government would scrap the State Second Pension and cut the social security budget using the savings to raise the state pension and restore the earnings link.

  • WPA launches PMI product for new businesses

    21 Jan 2004

    Health insurer WPA has launched a new private medical insurance product for small and start-up companies.WPA says the Smart-Start product costs 60 per less than similar schemes, getting staff back to work as soon as possible by avoiding NHS waiting lists. A 25-year old in Reading would pay £100.73 a year for Smart-Start which covers in-patient and cancer care. It requires underwriting, along with £250 of shared responsibility. The benefits package ...

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