Money Marketing
21 June 2006

  • 1.4 million pensioners rely on less than 5,000 a year says survey

    21 Jun 2006

    New research from Prudential UK has revealed that 14 per cent of the UK's pensioner population-equivalent to 1.4m people-survive on an annual income of 5,000 or less.

  • A Close call

    22 Jun 2006

    Guy Anker considers the potential for Close Brother's reversion plan

  • A place in the sun

    22 Jun 2006

    "They must have mistaken me for a VIP."Scottish Widows' Nick Kirwan on his corporate invitation to the England v Sweden game"Funny, it seems to be all the ladies answering the phones this afternoon."IFA Peter Cooke calling during the England match"Weather like this makes me wish I was born a princess and didn't have to work."Mitchell Moneypenny PR Sarah Wakefield"Sorry, all this time I thought you were saying you stole a car."Technical Connection's Tony Wickenden mishears ...

  • A tale of two banks

    22 Jun 2006

    Comparing one lender with another can produce inequitable conclusions but when one is Britain's foremost international banking brand and the other its most omnipotent domestic one, it is a worthwhile exercise. We are, of course, talking about RBOS and HBOS.

  • A turn for the bourse

    22 Jun 2006

    Further losses and volatility have continued to affect the performance of the Adviser Fund Indices. None of the three AFIs has been immune to share price falls.The relative performance of the Aggressive index was weak from May 1 to June 15. The riskiest AFI fell by 10.6 per cent over the period while the FTSE All Share index (down by 6.4 per cent), average Investment Management Association active managed fund (down by 9.9 per cent) and Apcims Growth index (down by 5.9 per cent) ...

  • A&L slashes mortgage tracker rates

    22 Jun 2006

    Alliance & Leicester has repriced its tracker mortgage, which is available immediately.The initial offer on its two-year tracker has been reduced by 0.10 per cent and is now Bank of England Base Rate minus 0.16 per cent for two years, then Bank of England Base Rate plus 0.99 per cent, currently 5.49 per cent.On its two tear tracker FeeSaver, the rate is also reduced by 0.10 per to base rate minus 0.39 per cent for two years, then it goes to plus 0.99 per cent.

  • A&L tracker loan ad is branded misleading

    22 Jun 2006

    Alliance & Leicester has become the latest lender to be criticised for using misleading tracker ads after being slammed by the Advertising Standards Authority.The ASA upheld a complaint against A&L that its TV campaign did not state clearly the rate was variable as it tracked the Bank of England base rate. A voiceover on the ad stated that after a 5.04 per cent introductory offer, the mortgage "stays low at 5.49 per cent for the remainder of the mortgage".An ASA statement says: ...

  • Abacus duo set up wrap firm

    22 Jun 2006

    Abacus directors David Ferguson and Philip Martin have secured funding to launch wrap firm Nucleus.The pair say they have secured "several millions" in institutional backing to fund the wrap and it will be part-owned by the seven IFA firms it has initially signed up.The move brings Abacus' future into question, with Ferguson focusing on his role as Nuc-leus chief executive and Martin on his job as business development director of the new firm.The wrap is an open architecture ...

  • ABI sets out guidelines on reviewable-rate risk

    22 Jun 2006

    There must be a valid reason for increasing the premium and this must be communicated'

  • About base

    22 Jun 2006

    Last month it was Yorkshire Building Society but this month Leeds Building Society must hold its head in shame for the worst attempt at link between the World Cup and the financial services sector.Its press release for its base rate tracker mortgage says its home loan has been influenced by the "Maradona Effect".Its reason is that, just like Argentina star Maradona bamboozled the England defence in 1986 by running straight towards the goal while the England defenders expected ...

  • Added complications

    22 Jun 2006

    How can added property affect subsequent periodic and exit charges on a settlement?

  • Advantage opens portal

    22 Jun 2006

    Advantage Home Loans has launched a direct-to-lender portal offering brokers access to its recently launched product range funded by parent Morgan Stanley.

  • Advisers claim inaccurate data feeds are hurting wrap

    22 Jun 2006

    Advisers say the inaccuracy of data feeds that identify asset allocations for investment funds is a major barrier to the take-up of wrap.Falcon business development manager Piers Denne says he is worried that the assumptions and research gathered by stochastic modelling tools are not sufficiently accurate. He claims it is the adviser who will be blamed for bad advice if research is shown to be flawed.Denne says: "I am not sure people are looking too far behind the assumptions ...

  • Aifa attacks £1400 FSCS bill for advisers

    26 Jun 2006

    Aifa director general Chris Cummings has reiterated his call for the cost of the Financial Services Compensation Scheme to be spread among advisers and providers.

  • AIG ponders alternative assets

    22 Jun 2006

    AIG Life is planning to widen its active access fund list, which forms the basis of its multi-manager funds, to include alternative assets such as hedge funds, commercial property and directional bond funds.

  • AMI launches pensions guidance

    27 Jun 2006

    The Association of Mortgage Intermediaries has released a factsheet to inform members of the opportunities to offer pension term assurance.

  • An ethical dilemma

    22 Jun 2006

    Nicola York says more investors are biting the bullet in looking to make an ethical choice on funds but performance has been patchy compared with some of the top funds, which puts advisers in a difficult position in recommending SRI products

  • Axa Framlington hires Tim Short on European desk

    23 Jun 2006

    Axa Framlington has appointed Tim Short as fund manager on its European desk.

  • AXA IM recruits two to lead currency management team

    27 Jun 2006

    AXA Investment Managers has appointed Andrew Dales head of currency management to head up AXA IM's newly established currency management team within its fixed income business.

  • Axa in 6bn deal for Winterthur

    22 Jun 2006

    Winterthur's reputation among high-end IFAs helps secure acquisition

  • B&B hit again by endowment woes

    23 Jun 2006

    Bradford & Bingley has revealed it will have to set aside more funds due to the increase in endowment and investment claims.

  • Best ideas set for UK after 70m launch

    22 Jun 2006

    Skandia Investment Management is considering launching a UK-only version of its global best ideas fund.Money Marketing understands the global best ideas fund has already attracted 70m just a few days after launch.Skandia IM expects competition for assets in the UK all companies sector in the turmoil over Fidelity's special sits fund split and believes such a fund would be well placed to benefit.It would again look to apply 10 managers' best 10 ideas concept.The global ...

  • Birmingham still hotspot for equity-release sales

    22 Jun 2006

    Demand for equity-release products is strongest in the Midlands, according to sales figures from Key Retirement Solutions.The adviser firm says Birmingham is the equity-release hotspot with the company selling 746 plans there, followed by Nottingham with 646 plans, and Peterborough, where it sold 623 plans in 2005.In 2004, Portsmouth was in second place in the KRS equity-release sales league.Of the top 10 towns last year, three are in the Midlands, four are in the South, ...

  • Bolton handpicks new man in his own mould

    22 Jun 2006

    Fidelity's global special sits fund manager-elect Jorma Korhonen said his investment style is similar to Anthony Bolton's, being value-led and focusing on bottom-up stockpicking.The relatively unknown Finnish fund manager, who was handpicked by Bolton, will work alongside the investment guru for three-and-a-half months before taking sole charge of the fund from January 1, 2007.Korhonen said the fund will predominantly invest in bigger developed markets and will be unconstrained ...

  • Bring in PPI exams

    22 Jun 2006

    There has been much debate and rhetoric over how the insurance industry, the regulator and the trade bodies should tackle the payment protection insurance debacle, its anti-competitive practices and flawed sales processes. I applaud any initiatives to drive up standards and am frustrated but not surprised that no tangible solutions are being put in place. As PPI is a non-advised general insurance product, those selling it need only meet the FSA's training and competence requirements. ...

  • Britons ignorant on Government assistance on mortgage repayments

    27 Jun 2006

    More than 3.85m people believe the Government will help them out with their mortgages if they lose their job, according to Lincoln Financial Group.

  • Brokers warned to pay attention to retention

    22 Jun 2006

    Brokers should be wary of taking retention incentives from lenders or they could be treating customers unfairly, according to a report for the FSA.The research by consultancy firm KPMG says brokers could be accused of conflicts of interest if they are deemed to be taking an inducement. It says: "Lenders' efforts to enlist broker support in retention are doomed to fail due to conflict of interest and a potential TCF problem for brokers."Royal Bank of Scotland Intermediary Partners ...

  • Building blocks

    22 Jun 2006

    A wide choice of investment vehicles will boost property as an asset class for retail investors

  • Buy to let is hitting communities

    22 Jun 2006

    An Office of the Deputy Prime Minister committee report on affordable housing and supply has criticised the level of buy-to-let investment in some areas for distorting the market, driving up prices and not creating sustainable communities.

  • Chamberlain calls for change in distribution

    22 Jun 2006

    The distribution model is broken and needs to be adapted to changing market conditions, says Thinc Destini chief executive Simon Chamberlain.At the FSA conference, he said that networks fail to provide a profitable model and are not adapting to the changing market. Chamberlain said: "The reason why Berkeley Berry Birch went to the wall was that it became worthless. Networks pay all the premium and the trail commission to the provider, so they are only ever worth the previous day's ...

  • Chimes quits at Credit Suisse

    22 Jun 2006

    Credit Suisse Asset Management has been left with another senior management vacancy after long-serving managing director Ian Chimes resigned this week.Chimes will leave the group at the end of June. His move follows hot on the heels of UK retail sales director Mark Thomas's defection to River & Mercantile earlier this month. Both vacancies have yet to be filled.Chimes says he intends to take the summer off before considering his options.He has been at the firm for 13 years, ...

  • 'Claim-chaser coached client for complaint'

    22 Jun 2006

    Claim-chaser company Oasis Financial Services has been accused of encouraging complaints by recommending answers to clients lodging a compensation claim.A letter sent by the company on May 11 warns a customer to be careful when filling in a firm's complaint form as the answers will have a significant impact on the success or failure of the complaint.The letter says: "Obviously, I am in no way suggesting that you do not tell the truth, just be careful on the answers. Good example ...

  • Close the advice gap

    22 Jun 2006

    Massive consumer detriment is being caused by non-advised protection sales

  • Commission still drives payment

    22 Jun 2006

    Remuneration continues to be driven by commission and other volume-related incentives, FSA sector leader for insurance Sarah Wilson told the Investment and Life Assurance Group AGM. She said many firms do not consider the conflict of interest.

  • Compensation deal on Towry Law International

    22 Jun 2006

    Investors who bought geared with-profits bonds or the Circus Capital protected growth fund through the now defunct Towry Law International are set to get compensation.Henderson, the former owner of TLI, has agreed to settle claims.It is thought that Henderson has set $43m aside to compensate investors in geared with-profits bonds. A further $25m has been set aside for compensation on the Circus Capital protected growth fund.Negotiations were completed after an investigation ...

  • Concerns growing on tax-free pension cash

    22 Jun 2006

    The lack of explicit information regarding tax-free cash in the Pensions White Paper on the national personal accounts scheme is raising fears that there are plans to axe the allowance.Details of TFC allowances on personal accounts, the Government's version of Lord Turner's NPSS, are not included in the main text but are in a separate 180-page technical appendix.Standard Life marketing technical manager Andrew Tully says this could be a sign that the Government may look to scrap ...

  • Consumer Panel gives FSA mixed report

    21 Jun 2006

    The Financial Services Consumer Panel’s annual report says the FSA has provided “weak” protection to consumers on with-profits funds and self-certification mortgages.

  • 'Consumers confused by property plan risks'

    22 Jun 2006

    An FSA probe has uncovered serious shortcomings in financial promotions for property investment schemes, with many not giving adequate descriptions of the risks involved.FSA promotions team manager Tony Katz told the Direct Marketing Association's financial services conference in London last week that its research indicates firms are confusing customers by failing to clearly describe the difference between commercial and residential property investments and the risks involved.He ...

  • Correspondent's week

    22 Jun 2006

    This week by property and personal finance freelance journalist Robert Liebman

  • Davy savages multi-ties

    22 Jun 2006

    Simply Biz chief says multi-ties chase higher commission and asks if it is in line with TCF regime

  • 'Depolarisation is a failure'

    22 Jun 2006

    Simply Biz and Burns Anderson bosses have attacked depolarisation for confusing consumers and making little impact on the distribution of advice.Speaking during a panel debate at the FSA retail intermediaries conference last week, Simply Biz chairman Ken Davy said one of the main difficulties in assessing depolarisation is that no one is sure what it is aiming to achieve.He said if the aim of the regulation was to get rid of IFAs or to give clients better value, it has failed ...

  • Duffy claims RBS is losing ground to rivals

    22 Jun 2006

    Royal Bank of Scotland still needs to raise its game to catch its competitors despite its four-pronged intermediary relaunch in February, says Hamptons International Mortgages managing director Kevin Duffy.He says the concern is that RBS is losing market share to GMAC, Northern Rock, Platform, Portman and Lloyds TSB because these lenders have been quicker to embrace technology and specialist lending.Duffy says RBS's Intermediary Partners arm is showing signs of improvement but ...

  • Ethical constraints force bond buying

    22 Jun 2006

    F&C ethical manager Ted Scott says he has bought bonds for his stewardship income fund for the first time in four years as he was struggling to deliver a decent yield through equities.Scott says achieving a yield on ethical funds is difficult because the constraints mean he cannot invest in 70 per cent of the FTSE All Share index.He says: "The bond buying was purely to achieve yield because the ethical constraints mean I cannot invest in oil and gas, banks or commodities."Scott ...

  • Exchange new business tracking service is live

    23 Jun 2006

    The Exchange has announced its aggregated new business tracking service is live making it the first portal-based service of its kind.

  • Exit, pursued by regulator

    22 Jun 2006

    The FSA says it may take some lenders to court over the issue of exit fees if they do not alter the current practices.

  • Eye of the storm

    22 Jun 2006

    In turbulent conditions, it is time to seek strong growth companies and shun unproven business models

  • F&C recruits Dagleish to head up pacific equities

    23 Jun 2006

    F&C has appointed senior fund manager Peter Dalgliesh as director, pacific equities.

  • Fair fight as FSA throws cap into ring

    22 Jun 2006

    Clash between lenders and regulator over exit fees

  • Fears over sellers' pack information

    22 Jun 2006

    Home information pack regulations have come under fire from The Law Society for having no provision for sellers to verify the information contained in the packs.The Law Society, which will start a test Hips this month, says the lack of provision is "a serious defect" in the regulations and it says there needs to be a caveat so buyers are aware that the information has not been verified by the seller.It has also voiced serious concerns about the training and regulation of Hip ...

  • Firms asked to rate FSA's performance

    22 Jun 2006

    The financial services practitioner panel has launched the second stage of its 2006 survey of regulated firms' assessment of the FSA's performance. Results will be published later this year.

  • FSA sees shake-up in its crystal ball

    22 Jun 2006

    The roles of advisers and life insurers are set for a shake-up, says a report for the FSA.KPMG management consultancy has published a report for the FSA on the future of UK retail distribution channels outlining "plausible futures" for the retail scene from 2011 onwards.The report, which was commissioned to help the FSA adapt to changes in the market, claims that the take-up of wrap has the potential to alter the financial services landscape and says it is likely there will ...

  • FSA set to investigate quality of after-sale documentation

    22 Jun 2006

    The FSA is to launch a review of firms' post-sale disclosure documentation after uncovering a series of failings in the market.Speaking at the Investment and Life Assurance Group AGM last week, FSA sector leader for insurance Sarah Wilson highlighted the need for firms to provide policyholders with post-sale information that enables them to determine whether a policy continues to meet their needs.She said advisers are failing to meet the FSA's "clear, fair and not misleading" ...

  • Fund moves into Macau property

    22 Jun 2006

    Insight's multi-manager team has added two new holdings to its multi-asset multi-manager diversified target return fund as it moves away from equities.

  • Gartmore holds on to Callaghan with equity share deal

    22 Jun 2006

    Gartmore has managed to retain European focus fund manager Tim Callaghan after the firm's chief executive Jeff Meyer pulled out all the stops to prevent the loss of the entire European equities desk to Resolution Asset Management.Callaghan resigned from Gartmore in April along with European desk colleagues Jonathan Fearon and Adrian Darley and all three had signed contracts to take on similar roles at Resolution in October.It is understood that Meyer drove to Callaghan's house ...

  • Getting a line on float

    22 Jun 2006

    Telephone dial-in conferences are strange events. In the course of my career, I have taken part in two.

  • Green fingers

    22 Jun 2006

    With political parties vying to be more green than each other, the timing of Jupiter's new green trust is superb, particularly as stockmarkets have come back quite a bit.

  • Hectic schedule to meet IFAs and the media

    22 Jun 2006

    Four leading investment IFAs were among the first to meet Fidelity's new global special situations manager Jorma Korhonen.The four were Hargreaves Lansdown head of research Mark Dampier, Torquil Clark investments director Philippa Gee, Chelsea Financial Services managing director Darius McDermott and Bestinvest business development director Justin Modray.Fidelity managing director Richard Wastcoat and head of IFA channel Peter Hicks hosted a presentation on Monday night where ...

  • Hips could devastate economy, Parliament is told

    27 Jun 2006

    Home Information Packs could slash GDP by £5.7bn, according to independent research out today.

  • Household cover may be deregulated

    22 Jun 2006

    The FSA is considering whether to deregulate household insurance. A review of GI regulation, found payment protection insurance and critical-illness cover had the greatest risks for consumers.

  • IFA sets up platform to boost union business

    22 Jun 2006

    Wakefield IFA Premier Financial Protection has set up an online platform.The firm is 38 per cent owned by public sector workers' union GMB. The PFPNexus platform, developed with Quay, aims to speed up business submissions, commission payments and internal communications.It has an exclusive agreement with eight of GMB's 10 regional centres, giving it introducer access to most of the union's 600,000 members.It has 50 directly authorised registered individuals and says it expects ...

  • Ilott raises concern on overseas equities

    22 Jun 2006

    Bates Investment Services head of research Paul Ilott says a lot of Fidelity investors will find themselves with exposure to overseas equities that they never planned for and never wanted.He says he is concerned that investors who want to sell out of the global portion of the split may be hit with charges to move their allocation back to the UK segment of special situations.He says: "My biggest objection to the proposal is that investors who want to restore the status quo and ...

  • IMA warns restructuring FSCS might lead to unfair cross-subsidies

    22 Jun 2006

    The IMA has submitted its response to the FSA’s Financial Services Compensation Scheme funding review.

  • Importing inflation

    22 Jun 2006

    Matt Goodburn looks at the threat of global inflation hitting the UK

  • Insight shuts funds after TCF review

    22 Jun 2006

    Insight Investment has closed three multi-manager portfolio funds it acquired through its takeover of Rothschild Asset Management in 2003.

  • Insurers want to kill off IFAs

    22 Jun 2006

    Nic Cicutti, Andrew Paddick and Peter Hargreaves all discuss the Financial Services Compensation Scheme levy in last week's Money Marketing. Two of the articles start from the viewpoint that insurance companies should support IFAs as one of their methods of distribution. Nic's article gets slightly nearer the point - that insurance companies expect independent distribution to become far less important. The reality is that the insurance companies want to eliminate the independent ...

  • Invesment View: Dread locked

    22 Jun 2006

    The PIMS conference was my original choice to write about in this week's column but markets are not going to let me off the hook that easily. Morbid May has turned into Jumpy June. Are we facing a summer of discontent for investors?

  • 'Keep NPSS within the industry'

    22 Jun 2006

    Association of British Insurers director general Stephen Haddrill has told the work and pensions select committee of the danger of using outsourcers from outside the industry to run the national pension savings scheme, saying they would be more likely to make mistakes.

  • Law firm helps plan risk assessments

    22 Jun 2006

    Beachcroft Wansboroughs is working with the FSA to develop plans for Arrow II. The next phase of the risk assessment visits will be implemented by September.

  • Leeds launches options bond with NU

    21 Jun 2006

    Leeds Building Society has launched a guaranteed rate options bond offering up to 9 per cent.

  • Leitch sets targets for Intrinsic

    22 Jun 2006

    Multi-tie network is aiming to attract 1,000 ARs and technology is key to underpinning the business

  • 'Lenders put borrowers on poor footing'

    22 Jun 2006

    The Association of Mortgage Intermediaries is urging lenders to strengthen their commitment to treating customers fairly by not penalising them for shopping around.The AMI says lenders leave "hard footprints" on borrowers' credit files when they search for mortgage deals. As each attempt to get a quote is marked against them, they can find themselves cascading down the sub-prime scale.The AMI wants more lenders to adopt a "soft footprint" so that attempts to gain credit are ...

  • Lifetime runs wrap seminars

    22 Jun 2006

    Norwich Union-owned Lifetime is running a series of one-day training seminars for SimplyBiz members on wrap.

  • Lincoln joins The Exchange’s IP service

    26 Jun 2006

    Lincoln Financial is the latest provider to join The Exchange’s income protection comparison service.

  • Living room

    22 Jun 2006

    Andrea Tryphonides on how Living Time's pension has found the middle ground between drawdown and a fixed annuity.

  • Lloyds TSB set to target Scotland with Islam loans

    22 Jun 2006

    Lloyds TSB is offering its range of Islamic mortgages across England and Wales following a successful test.The bank says it has not yet had time to formulate products for Scotland because reform of the tax rules so borrowers do not have to pay stamp duty twice, as was previously the case, did not happen as quickly in Scotland as in the rest of Britain.Islamic banking is designed to provide an alternative for Muslims who must avoid paying or receiving interest as it is forbidden ...

  • London to boost commercial yield

    22 Jun 2006

    The commercial property market is expected to return 14.4 per cent this year, according to Scottish Widows Investment Partnership.The company says the returns will be driven largely by the office property sector. Swip forecasts that strong rates of rental growth and total returns will continue, with the City of London office market set to rebound sharply.Over the next three years, Swip expects total returns in City offices to exceed the overall property average by around 2.5 ...

  • Mairs moves to Charles Stanley

    22 Jun 2006

    Former Apcims head of information Brian Mairs has joined stockbroker Charles Stanley as head of public relations.

  • Millfield suspends trading of its shares and admits likelihood of administration

    22 Jun 2006

    Millfield has suspended trading of its shares and has told the stockmarket it is highly likely the company will be placed into administration in the near future.

  • Millfield wins debt deal as it looks to raise capital

    22 Jun 2006

    I don't want to be here in 12 months saying we are still not there yet,' Easter tells members

  • Mixed reactions from leading advisers

    22 Jun 2006

    Jorma Korhonen's appointment as Anthony Bolton's replacement on one half of Fidelity special sits fund has had a mixed reaction from leading investment advisers.Reactions from the first four advisers invited to meet him have ranged from being underwhelmed at his lack of status in UK retail to concerns about his relative lack of experience.Bestinvest business development director Justin Modray says: "His appointment is quite a shock. He has only been running money since 2002 ...

  • Montpelier records record profits as it eyes UK expansion

    27 Jun 2006

    Montpelier Group has announced record profits for the year ended 31 December 2005 of 7.8m.

  • Mortgage broker slapped with FSA fine

    27 Jun 2006

    The Financial Services Authority has fined independent mortgage broker Rainbow Homeloans £35,000 for systems and controls failings which exposed around 1,000 people to the risk of being sold unsuitable products.

  • Multi move

    22 Jun 2006

    The multi-tied advice group Intrinsic has had its official launch with a wide product range and seems to offer quite a bit of choice.

  • Multi-manager View: Flight path

    22 Jun 2006

    The immediate focus for investors following the market correction has been to reposition their portfolios. In anticipation of the correction, exposure to sensitive markets was trimmed in New Star's fund of funds portfolios.

  • Nothing but the Veritas

    22 Jun 2006

    The New Labour tax raid is outrageous and the PC brigade beggars belief

  • NU issues factsheets on disclosure

    22 Jun 2006

    Norwich Union is producing a factsheet for customers highlighting the importance of completing insurance application forms accurately.

  • Package delivery

    22 Jun 2006

    In recent years, few subjects have attracted more attention than how to reconstruct the advice process to reduce advisers' reliance on high levels of front-end-loaded commission.

  • Panel damns and praises FSA

    22 Jun 2006

    The financial services consumer panel's annual report says the FSA has provided "weak" protection to consumers on with-profits funds and self-cert mortgages but praises strong performance on treating customers fairly, mortgage endowments and communication with customers.

  • Peter McGahan

    22 Jun 2006

    Sam Shaw talks to the 'scrapper with an education' who founded Worldwide Financial Planning about his tough upbringing, his commitment to financial planning and a love for peace and quiet that often sees him sailing out into the ocean to chill out with a few beers

  • Phillips is new ABI Investment Committee chairman

    21 Jun 2006

    Scottish Widows Investment Partnership chief executive Chris Phillips has been named as the new chairman of the ABI Investment Committee. Phillips succeeds Morley Fund Management chief executive Keith Jones who has held the role since March 2004. Phillips says: Keith Jones is a hard act to follow, but I am delighted to take up this role. The ABI Investment Committee plays a key role in helping ABI members as investors generate value for our customers. I look forward to continuing ...

  • Push comes to shove

    22 Jun 2006

    They say that the only way to ensure that someone is hooked on drugs is to create a dependency. Somewhat paradoxically, the dependency soon becomes mutual.

  • Quay launches automatic commissions module

    27 Jun 2006

    Quay Software has launched an automatic commissions module to allow advisers to save time through automating and tracking their commission.

  • Ray of sunshine

    22 Jun 2006

    Eaton House, the former home of Berkeley Berry Birch and currently housing software firm Synaptic, had its five minutes of fame recently when it was used as part of the set for Channel 4's football film All in the Game, starring Ray Winstone.The hallowed walls of the Coventry tower block were treated to Winstone's foul-mouthed tirade as he played the corrupt struggling football manager although it probably was not the first time that the air was turned blue in the building in recent ...

  • Reits of Reits are rejected by Treasury

    22 Jun 2006

    The Conservatives are calling on the Government to go further in its implementation of real estate investment trusts and allow Reits of Reits to be set up.At a Finance Bill standing committee meeting last week, Tory Shadow Treasury minister Mark Francois said a Reits of Reits' model exists in the US and would help small investors spread risk.Francois said the move would allow UK Reits, due to be implemented in January 2007, to compete with Reits in other countries.The move ...

  • Retro action

    22 Jun 2006

    Law firm Reynolds Porter Chamberlain has challenged the FSA on its claim that it will not regulate retrospectively.

  • Revenue can levy massive Sipp fines

    22 Jun 2006

    The Revenue will enforce Draconian fines and scheme charges on pension savers who break Sipp rules, warns Hornbuckle Mitchell director Viv Belcher.She says the Revenue has the powers to levy a fine of up to 70 per cent of the overall value of the unauthorised asset for flouting taxable property and Sipp rules.For example, a penalty charge of 40 per cent is levied on the member if an unauthorised, taxable property, such as the member's own home, is found. The same charge applies ...

  • Row over refusal to pay pension cash could go to court

    22 Jun 2006

    The Pensions Action Group, led by former Treasury adviser Dr Ros Altmann, is seeking a judicial review of the Government's refusal to compensate members of collapsed company pension schemes.The move follows the Department for Work and Pensions' rejection of a Parliamentary Ombudsman report which found the Government guilty of maladministration of occupational pension schemes and said it should compensate members who lost some or all of their pension benefits.The refusal came ...

  • Royal Liver moving into guaranteed CI market

    22 Jun 2006

    Royal Liver is looking to enter the guaranteed critical-illness insurance market in the fourth quarter this year.IFA market manager Andy Milburn says the provider did not prioritise the product while it developed its online systems but is now responding to strong demand for guaranteed critical-illness policies.He says Royal Liver's market entry has also been delayed by its concerns over meeting the April 2007 deadline set by the Association of British Insurers to meet its new ...

  • Scarborough says debt will change mortgage market

    26 Jun 2006

    Scarborough Building Society says increasing levels of personal debt will change the way mortgages products are devised.

  • Shape up for the second half

    22 Jun 2006

    With gross lending almost topping 100bn in the first quarter, Alliance & Leicester head of intermediary mortgages Mehrdad Yousefi looks at what the second half of the year may bring for brokers and lenders

  • Ship to insist on lifetime qualification

    22 Jun 2006

    Safe Home Income Plans says members will no longer accept business from advisers who do not hold a suitable lifetime mortgage qualification from August 2007.

  • Sipps change course

    22 Jun 2006

    Regulation will bring challenges and a new shape for the Sipp sector

  • Skandia and Selestia platforms to merge

    22 Jun 2006

    The Skandia Multifunds and Selestia platforms will be integrated over the course of an 18 to 24 months' development programme in a move that will see 600 job cuts in the UK.Parent group Old Mutual has completed its strategic review and says the first phase of the integration process will see assets held on Skandia's Multifunds platform migrated into Selestia's back office. In the interim, front-end operations will remain the same with the two platforms running in tandem.The ...

  • 'Small firms fail with TCF'

    22 Jun 2006

    Small companies are failing to embed the FSA's treating customers fairly principles because they think they will escape regulatory checks, said Thinc Destini chief executive Simon Chamberlain.During a Q&A session at the FSA conference, Chamberlain accused the FSA of applying lower standards of compliance to smaller firms.He said: "Bigger firms are the victims of the FSA's apathy towards smaller ones. Small companies are not regulated well by the FSA and are not visited. TCF ...

  • Smaller windfalls as Standard Life reduces float price

    22 Jun 2006

    Standard Life policyholders will get windfall payouts at least 10 per cent lower than projected after the company cut its expected share price at flotation.Group chief executive Sandy Crombie says the average windfall is expected to be 1,540 rather than 1,700 after the indicative share price fell from between 240p and 290p to between 210p to 270p following recent market falls.The final share price will be unveiled by July 9. Crombie says Standard will not consider pulling the ...

  • Split over pension assets

    22 Jun 2006

    A-Day has had a considerable impact on pension assets for divorcing couples

  • Standard has set mutual flag at half-mast, says Nationwide

    22 Jun 2006

    Nationwide has reaffirmed its commitment to mutuality with a dig at Standard Life.The society has pledged to fly the flag for mutuality "while Standard Life flies at half-mast and prepares to lower its flag altogether".Nationwide has resumed its campaign to increase member involvement and support for its mutual status by launching a report setting out six key reasons to vote at its AGM. It includes a detailed summary of how Nationwide has delivered value to its members over ...

  • Storm brewing in PI market

    22 Jun 2006

    This article comes to you from the Eurostar.

  • Super future will follow US model

    22 Jun 2006

    The mortgage market could see super-brokers that underwrite products but pass the risk on to lenders' balance sheets.The KPMG consultancy was asked by the FSA to research the future of mortgage advice and says the US model, where giant networks act as warehouses for lenders, will spread to the UK.It also predicts that a tougher regulatory stance will see firms with poor compliance practices disappear and increasing intermediary bargaining power due to an oversupply of lenders ...

  • Surprise choice for Fidelity fund split

    22 Jun 2006

    Fidelity's little-known Jorma Korhonen will become sole manager of a new global special sits fund next January.The firm is waiting to see if it has done enough to allay IFA concerns about the split of Anthony Bolton's 6.5bn special sits fund.A Money Marketing online poll showed a slim 51 per cent majority would have preferred a better known name for the global fund. Bolton will remain in charge of the UK portion of the fund until he steps down at the end of 2007 while his successor ...

  • SWIP appoints Vose as head of global developed markets

    26 Jun 2006

    Scottish Widows Investment Partnership has appointed Ian Vose as head of global developed markets.

  • Synaptic aims for Clarity with online research tool

    22 Jun 2006

    Synaptic is setting up an online version of its product research software as it looks to take on Defaqto's Aequos Engage system.The product, called Synaptic Clarity, will be launched at the end of June.Chief executive Selwyn Herring says it will offer speed and functionality not previ-ously available from any rival online service.Defaqto set up its new product research tool last month and the two firms are competing for big network and national adv-iser firm contracts.Synaptic ...

  • Taylor is fifth in five years at Pru

    22 Jun 2006

    Tudor Taylor has stepped into one of the hottest seats in financial services, becoming the fifth head of Prudential intermediary business in five years.The former Origen business development director takes over from Francis Ghiloni, who had only been in the role since November 2005. Ghiloni replaced Chris Traynor, who joined Pru in October 2003 after 22 years at Axa Sun Life.Tony Kempster took the new role of distribution director of Pru's IFA business in July 2001 after a major ...

  • TCF turmoil for mortgage brokers

    22 Jun 2006

    The Intermediary Mortgage Lenders' Association is concerned that brokers have not got to grips with their responsibilities under the treating customers fairly initiative.A member survey reveals that over 80 per cent of feel that brokers are not prepared enough for TCF.Imla is calling for the FSA and lenders to play a greater role in helping brokers understand their TCF requirements.The move comes despite concerns from many intermediary lenders, such as Accord Mortgages, ...

  • The hard facts on footprints

    22 Jun 2006

    The FSA says it wants consumers to be able to "shop around" for a mortgage and that it "expects firms to act in a way that overcomes any difficulties that repeated credit searches might pose to customers shopping around". By implication, lenders should only register a "soft" (quotation) footprint with the initial enquiry for a mortgage so that the consumer can move on and not have a "hard" footprint left by a lender that can then be seen by any future lender that they approach. ...

  • The lion's share

    22 Jun 2006

    The shift in thinking for Standard to demutualise is almost Damascene

  • The Money Portal buys Millfield

    26 Jun 2006

    The Money Portal has emerged as the white knight of Millfield acquiring its two advisory businesses for 10.6m.The Money Portal has purchased MPL and Sage Financial Services for 10.6m of which 3.4m is payable over the 12 months after completion of the deal dependent on performance.

  • This week in Life and Protection

    26 Jun 2006

    Standard Life's interim results are out on Wednesday and analysts are predicting that up to a tenth of itspolicy-holders have surrendered their with-profits policies since the provider's demutualisation.

  • This week in Mortgages

    26 Jun 2006

    Another week, another lender in trouble over its advertising. This time, Alliance & Leicester was slammed by the Advertising Standards Authority for misleading consumers by claiming its tracker mortgage stayed at 5.49 per cent for life, after an introductory offer.

  • This week in Regulation

    27 Jun 2006

    FSA chief executive John Tiner recently moved to allay fears that the transition to a principles-based regime would not lead to an increase in retrospective regulation and a wave of retrospective enforcement action against firms.

  • Tiner says time has run out as he reveals quality problems

    22 Jun 2006

    FSA chief executive John Tiner has warned the industry to brace itself for another round of damaging revelations about the quality of financial advice in the IFA sector.Speaking at the FSA's annual retail intermediaries sector conference in Birmingham last week Tiner said the FSA has just completed an investigation into the quality of advice given by 100 advisers.He said it did find some examples of good practice but it also uncovered shortcomings in training and competence, ...

  • Tiner sparks fears of retrospective action

    22 Jun 2006

    FSA chief executive John Tiner says firms which are unaware that they are breaking an FSA principle at the time of acting will still face enforcement action.Tiner has heightened fears that the regulator's transition to a principle-based regime will lead to retrospective enforcement action against firms which have no idea what the principles are.Speaking at the Enforcement Law Conference in London last week, Tiner said he recognised concerns that for the FSA to punish a firm ...

  • Treasury told to reveal the pension raid truth

    22 Jun 2006

    The Treasury faces being forced to reveal potentially explosive details about why Chancellor Gordon Brown launched his infamous multi-billion-pound raid on pensions in 1997.The independent Information Commissioner says the Treasury was wrong to refuse a recent request under the Freedom of Information Act for estimates given to ministers on the long-term damage to pension funds caused by the removal of advance corporation tax relief on dividends for pension schemes and has given ...

  • Tried and trusted

    22 Jun 2006

    B&CE Benefit Schemes deputy chief executive John Jory says the future for employer-sponsored pension plans remains positive, with many companies reluctant to leave a trusted scheme which has served them well to join a state-run national scheme

  • Vix of the trade

    22 Jun 2006

    Often called the 'worry index', the Chicago Board of Option Exchange Volatility Index is used by many investment professionals as a measure of investor sentiment. Iimia Investment Group chief investment officer Nick Greenwood analyses what the index is saying about today's volatile markets

  • Website offers TCF guidance

    22 Jun 2006

    A website offering guidance to mortgage intermediaries on the FSA's TCF principles has been set up by Frank Eve Consulting. The website is supported by seven major lenders.

  • Website says PTA can save up to 24%

    22 Jun 2006

    Insuresupermarket.com is cross-quoting pension term assurance products and says basic-rate taxpayers can save up to 24 per cent compared with standard term cover.

  • WestLB aims for 7% return with structured product

    22 Jun 2006

    WestLB has set up a structured product looking to provide investors with an income of 7 per cent a year until 2009.After 2009, the capital protected high-income plan 1 will offer returns linked to the performance of sterling swap rates and has a protected capital guarantee.The earliest possible matur-ity date is 2010 if it hits its minimum growth target of 21.5 per cent and if it matures in 2010, it will continue to run until the growth target is achieved. If maturity is not ...

  • Who chose firms on FSCS panel?

    22 Jun 2006

    Financial Services Compensation Scheme spokeswoman Heather Tilston refuses to name the other two firms in the panel of just three IFA firms through which pension review claimants must buy their annuity (Money Marketing, June 15). "We are following regulatory guidelines," she says. May I pose the following questions: Why will the FSCS not name all three firms on the panel? Why does the panel comprise only three firms? By what criteria are these ...

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