Money Marketing
22 May 2002

  • ྛ% are not protecting income'

    23 May 2002

    Around 95 per cent of the working population are not sufficiently covering their income against the effects of being off work, according to Scottish Equitable Protect. It is calling on IFAs to look more closely at the lifestyles of their clients to make sure they have adequate cover to protect them in the event of absence from work due to long term sickness. Research from ScotEq found the average family expenditure is £2,154 with mortgage repayments accounting for less than ...

  • 'Ageing population will be boost to CI market'

    23 May 2002

    More people are considering taking out critical-illness cover because of increased longevity and the higher chance of succumbing to medical problems, according to consumer analyst Mintel. A survey of 2,160 adults found that 11 per cent already have critical cover while a further 11 per cent find the idea appealing. Mintel found that most policies are taken out by people in higher socio-economic groups and those between ages 25 and 40. Cancer is the most frequent cause of claims ...

  • 'Fund merry-go-round is damaging the industry'

    23 May 2002

    Edinburgh Fund Managers managing director Harry Morgan says the constant merry-go-round of fund managers is bringing the industry into disrepute. Speaking at the Money Marketing IFA UK conference in London last week, Morgan said the endless procession of star fund managers moving from one company to another is harming clients and leaving them confused about what to do with their investments. His comments come as Lazard UK smaller companies manager Richard Smith has left to join ...

  • 'Public not aware of equity release pitfalls'

    23 May 2002

    The FSA is warning that consumers do not understand the risks and complexities of equity-release products. In its report, the regulator says equity release could develop into a significant market but there are issues with both types of products in the sector - lifetime mortgages and reversions where providers take a stake in the property. The FSA says some of the problems that consumers could encounter include negative equity, interest markedly increasing on the sum owed over time, ...

  • 'Who will carry the can if FSA advice is wrong?'

    23 May 2002

    The FSA is planning to launch an interactive fact-find, leading IFAs to ask who will be left to carry the can if the regulator's advice turns out to be wrong. In its report published this week, the FSA says it plans to develop the fact-find to help consumers understand their finances better. But IFAs are demanding to know who will take responsibility if consumers are misadvised through the scheme and are calling for the FSA to stay out of the advice business. The concept ...

  • A consumer's view - Lorna Bourke

    23 May 2002

    Estate agents, like stockbrokers, are perennially optimistic. So when one or more admits that not all is rosy in the garden, it is definitely time to sit up and take notice - if you have not already heeded the obvious warnings. The latest research from Knight Frank reveals some startlingly depressing statistics for buy-to-let investors. It would be a brave person who put new money into the buy-to-let market and intermediaries should warn their clients of the dangers. Knight Frank's ...

  • A stirling performance

    23 May 2002

    Watch out Schumacher, Gary Heath is back on the track and he won't be letting anybody pass at the chequered flag. Impartial Group chairman Heath has made his return to motor racing after a 30-year lay-off, entering the Ginetta Cup in his Ginetta G20 car. Heath drove the 1,800cc car around the course at Pembury in Wales at speeds topping 125mph. His sixth position in the race puts the leather-clad racer at sixth in the leader table. The Diary will be watching his progress ...

  • Abbey sets up funds supermarket

    22 May 2002

    Abbey National has become the first high-street bank to set up a funds supermarket. It will be caled FundsCentre and will offer 280 funds.

  • ABI sets up wide-ranging review of HIV guidelines

    23 May 2002

    The ABI is launching a consultation on its guidelines for how members deal with HIV and life insurance. The current guidelines have been in force since 1994. Since then, there have been major strides in the treatment of HIV. The major focus of the review is likely to be the issue of doctor/patient confidentiality. In many other countries, people applying for insurance supply the information themselves, in the UK, GPs are required to divulge sensitive information in reports to insurance ...

  • ABI tells CI firms to alter prostate cover

    23 May 2002

    The ABI is telling critical-illness cover providers to offer a product that does not cover prostate cancer, arguing that if it is not excluded, the product will become too expensive for most male consumers. The trade body's revised CI statement of best practice also compels providers to change the definition of what constitutes a heart attack to take into account advancements in medical technology. New key features documents must be in place by the end of May 2003, which clarifies ...

  • ABN Amro fails with Artemis bid

    23 May 2002

    ABN Amro is known to have made an unsuccessful approach to buy fund boutique Artemis following the resignations of its star managers Nigel Thomas and George Luckraft. The approach is thought to have been made last month as ABN tried to replace the managers, who run around £1.3bn of the firm's £1.5bn of UK funds, with a deal that would prevent investors leaving in droves. But Artemis, which rebuffed an approach from New Star five months ago, made a counter bid, offering ...

  • ABN Amro stars join Framlington

    22 May 2002

    ABN Amro star fund managers George Luckraft and Nigel Thomas have joined Framlington, citing an irrevocable breakdown in their relationship with their former employer.The two managers announced their intention to join Framlington last month but had agreed to see out their contracts, which had 12 months to run.But they now say that "certain actions" taken by ABN have made their positions in the company untenable, prompting them to join Framlington immediately.

  • ABN hits back at breach of contract allegations

    23 May 2002

    ABN Amro has rejected allegations that it made star managers George Luckraft and Nigel Thomas' positions untenable, saying it did not cause any breach of contract.

  • ABN injunction against star managers lifted

    27 May 2002

    ABN Amro star managers George Luckraft and Nigel Thomas have had an injunction preventing them working for Framlington lifted in advance of further legal action.

  • Advisers angry as L&G Bank takes its pick

    23 May 2002

    IFAs are accusing Legal & General of cherrypicking business by only giving a limited number of intermediaries access to its equity-release product which was launched last month. L&G Bank has spurned the majority of IFAs by refusing to take applications from advisers it claims do not have adequate expertise in the market. But the company is denying it is being discriminatory, saying this is a "managed roll-out" of a complex product to firms with a proven track record. IFA ...

  • AMP on the trail for franchised network

    23 May 2002

    AMP is setting up a new franchised network of tied trail-based advisers with a promise to foot the bill for start-up costs. The firm is pitching the network at advisers from its tied and IFA rivals who may be reconsidering options in the event of depolarisation. The existing Pearl salesforce will have the option to join. AMP will target advisers and graduates - which it will train at its "academy" - with a recruitment campaign which will be launched this summer. Advisory services ...

  • An early warning system would prevent scandals

    23 May 2002

    Open letter to FSA chairman Howard Davies We contacted your organisation on April 29 asking for infor-mation to put on our IFA information website. We have emailed a reminder since but it bounced (have a look at our site's suggestions on improving communications). I then spent 10 minutes on the phone to a very helpful receptionist who was not allowed to put me through to either of the departments which might help. What we would like is a list of areas where you have ...

  • Andy Halstead

    23 May 2002

    For someone about to reinvent the direct salesforce, few people could have a more classic preparation than AMP advisory services sales director Andy Halstead. Before being poached to revitalise Pearl's direct salesforce, Halstead put in the miles, wearing away the shoe leather as an agent for the Pru. One of last year's big stories was the demise of the direct salesforce, with company after company axing their foot soldiers. But Halstead argues that CP121 opens up the possibility ...

  • Annuity pricing alert as longevity grows

    23 May 2002

    Insurance companies could missell annuity products in their efforts to stem the effects on their solvency of people living longer, the FSA warns. In its report, Financing the Future, published this week, which looks at the implications of the ageing population, the FSA says the "growth and potential mismanagement of longevity risk poses a threat to firms' solvency". The report says: "The key risk to providers is one of mispricing annuities. If the pricing is wrong, this might ...

  • Another IFA portal opens with online 'exhibitions'

    23 May 2002

    A new IFA portal is to hit the market under the guise of an online virtual trade show for advisers, offering them conference trips from their desktop. IFAwebshow.com offers advisers audio-visual presentations, website links to product providers, an interactive IFA-only discussion forum and the opportunity to put questions to an expert panel. The site, run by City-backed FPL Webshows, hopes to attract traffic by offering comparative company and product information from a single ...

  • Appraise you like I should

    23 May 2002

    In my last few articles, I have started to discuss the stages involved in giving investment planning advice on a target benefit basis. In particular, I am attempting to highlight the following throughout this series of articles: •The assumptions which have to be made in this process. •The way in which the assumptions should be determined. •The need for periodic reviews of these assumptions up to the date when the plan reaches maturity. •The effect, over ...

  • Argentina and France set to turn on the style

    23 May 2002

    So, here we are. The World Cup dawns. The next few weeks will reveal all. The favourites will be France and Argentina. No other country has the quality in their side that these two teams possess. Argentina may just have the physical edge over France but France seem the side that is most imbued with talent and experience. A few weeks ago, questions were being raised about the quality and age of the French defence but as the tournament has approached, Marcel Desailly and goalkeeper ...

  • Axa Isle of Man peers above the hedge

    28 May 2002

    Axa Isle of Man has teamed up with Liberty Ermitage to offer an offshore unit-linked bond that invests in a fund of hedge funds.

  • B&B to sell and lease back 30 branches

    22 May 2002

    Bradford & Bingley is to sell and leaseback 30 of its 500 branch network properties, as part of a move to rationalise its property portfolio that could raise £30m. Selling and leasing back the properties will release capital while improving the flexibility of the company's real estate liabilities. Bradford & Bingley says it does not intend to close any branches on account of the deal.

  • B&W sales chief Perks quits for Britannic role

    23 May 2002

    Mortgage lender Bristol & West is losing head of sales Bob Perks to rival Britannic Money, where he will become head of business development. Perks will take up this newly created position on June 17 and work alongside head of intermediary sales Austin Jelfs, who joined from Preferred Mortgages this month. Bank of Ireland subsidiary B&W says it has been restructuring its business divisions and has yet to decide if it will fill the position held by Perks for the last two ...

  • Bankhall founders leave after Skandia takeover

    23 May 2002

    Bankhall founder directors David Warnock and Martyn Weaver are leaving the IFA services provider following its acquisition by Skandia. The boardroom shakeup leaves joint chief executives Paul Hogarth and Simon Taylor in control of the company. Both departing directors say they are happy to be leaving after a restructuring following Skandia's takeover. Bankhall portal IFAengine managing director Warnock is replaced by Skandia senior e-commerce manager Anthony Scammell. Warnock ...

  • Banking on statutory trusts

    23 May 2002

    Since recent high-profile bankruptcies, it is worth remembering the benefits of statutory trusts. The statute in question is the Married Women's Property Act 1882 (MWPA). This act applies in England and Wales. Scotland has its equivalent in the Married Women's (Policies of Assurance) Act (Scotland) 1880 and in Northern Ireland the Law Reform (Husband and Wife) Act (Northern Ireland) 1964. Although there are minor differences between these acts, we will concentrate on ...

  • Bazalgette to retire as M&G investment chief

    23 May 2002

    M&G is hunting for a new chief investment officer for equities following Vivian Bazalgette's announcement of his intention to retire by the end of the year. His retirement means that M&G will join other big players, including Invesco Perpetual and Morley, in seeking replacements for highprofile positions. Bazalgette, 50, has been with M&G for six years. He has been responsible for running its capital fund for the last eight months although he is recuperating from ...

  • Berkshire IFA is fined £120k over continued pension review failings

    23 May 2002

    A series of pension review failings has led the FSA to impose a £120,000 fine on IFA Ward Consultancy of Hill House, Milley Lane, Hare Hatch, Berkshire. It is the firm's second fine in five years. In December 1997, it was fined £20,000 with £5,000 costs for a similar offence. The FSA says the latest penalty was set so high because, despite assurances that the firm would clean up its act following the first fine, it failed to do so and as a result has still ...

  • Bristol & West increases buy to let allowances

    24 May 2002

    Bristol & West is expanding the scope of its buy to let offering by allowing borrowers to borrow on up to ten properties and for combined borrowing of up to £1m per person.

  • Cazenove Investment Fund Management - Cazenove Universal Portfolio

    24 May 2002

    Friday, May 24, 2002 Aim: Growth by investing in one of four multi-manager fund of funds Minimum investment: Lump sum £7,000 Investment split: 100% in Cazenove universal UK growth portfolio, Cazenove universal balanced portfolio, Cazenove universal growth portfolio or Cazenove universal international portfolio (ex-UK funds) Income facility: None Charges: Initial 3.5%, annual 1.5% Commission: Initial 3%, renewal 0.5% Tel: ...

  • Cazenove offers multi-manager portfolio service

    24 May 2002

    Cazenove Investment Fund Management has introduced a portfolio management service that provides access to four multi-manager funds of funds.

  • Cemap registrations exceed 2,000 per month

    24 May 2002

  • Charcol bases loan on US rates for sterling payment

    23 May 2002

    Charcol is launching a new version of its Federal Reserve mortgage, which is based on US interest rates but without the currency risk as all payments are in sterling. The product, underwritten by Leeds & Holbeck Building Society, starts with a fixed rate of 2.99 per cent until January 2003. For the following five years, the mortgage tracks the three-month dollar Libor plus 1.2 per cent. Three-month dollar Libor is currently 1.9 per cent, which would give a rate of 3.1 per cent. ...

  • Chinese impressed with Isle of Man

    23 May 2002

    The Isle of Man is moving towards establishing financial services links with China following a visit by Chinese officials to the island. Representatives of China's Central Bank discussed with the Isle of Man Financial Supervision Commission the possibility of setting up operations on the Isle of Man. They explored the potential for training Chinese bank staff at the island's local higher educational institutions, particularly its new International Business School. The ...

  • CII and IMA publish investment workbook

    27 May 2002

    The CII and Investment Management Association have jointly published a CPD workbook for advisers.

  • Citibank in partnership with Charcol to launch mortgage service

    28 May 2002

  • Clerical Medical launches pensions transfer support

    27 May 2002

    Clerical Medical has enhanced the terms on its pension transfer business with the launch of a support back for IFAs.

  • Clerical Medical offers extra on bond

    28 May 2002

    Clerical Medical is offering a 1 per cent extra allocation on its investment bond and "bond fee" version of its distribution bond.

  • Commission is favoured - no matter what the FSA says

    23 May 2002

    Most of the correspondence I have read on the subject of commission • fees seems to have been from personal financial planners. From this, one might think that perhaps IFAs dealing in the corporate sector consider themselves above all the rancorous debate on this subject. Are we to assume that companies have no problems with paying fees in preference to commission? Apparently not. The other day, I spoke to a former colleague who still works almost exclusively in the corporate ...

  • Concern at FSA split-cap delay

    23 May 2002

    IFAs have criticised the FSA for failing to act sooner to prevent fund managers issuing marketing material which failed to spell out the risks that some split-capital trusts can pose to investors. In a report issued last week, the regulator pledged to formally investigate investment trusts it believes were guilty of producing marketing literature for advisers and investors portraying splits as low to medium risk. But IFAs say the FSA should have acted to ban material which made ...

  • Create national wealth service to nurse the less affluent

    23 May 2002

    The past 10 years have seen the most exuberant period of wealth creation in human history. The world now has 7.2 million people with over $1m to their name. Add to these around 500 billionaires and the power of Western economies to churn out growth seems inexhaustible. Yet, even within the developed world, the fruits of this growth have not been distributed evenly. As overall wealth has increased, so has wealth inequality and, perhaps more worryingly, the number of people with no wealth. ...

  • Credit Suisse to integrate funds

    23 May 2002

    Credit Suisse Asset Management is to integrate its own retail funds fully with those of Sun Life Financial of Canada Asset Management, which it acquired last December. The range will be branded under CSAM's name and expanded to include an additional five funds - SLCAM's extra income, UK growth & income, worldwide growth, managed assets and smaller companies funds. SLCAM's Leigh Harrison, Crispin Finn and Phil True will join Credit Suisse's UK equity desk while Adam ...

  • Eagle Star - Flexible Drawdown Plan

    24 May 2002

    Flexible Drawdown PlanType: Hybrid Sipp Minimum investment: £150,000 Investment choice: Global select growth, environmental opportunities, equity managed, European growth, Japan growth, managed, American growth, Asia growth, property, secure, UK equity, UK preferences and fixed interest, long dated gilt, UK index tracker, unitised with-profits, managed income, cautious managed, UK corporate bond, UK money securities, sterling bond, balanced managed, adventurous ...

  • Exeter expands into Europe

    28 May 2002

    Exeter Investment Group is offering a European fund for the first time after taking over the management contract of the Sanwa European growth trust.

  • Five steps to success

    23 May 2002

    Predicting what will happen with CP121 is not straightforward but anticipating events is advisable. For many financial advisers, one of the most daunting prospects is the migration from a commission to a fee-based charging system and the potentially complex challenges of implementing this change while wanting to ensure continued quality of client service. CP121, in addition to being a regulatory overhaul, will undoubtedly be a catalyst for change, particularly in the way that technology ...

  • Fixed deals for Florida buyers

    23 May 2002

    Abbey National subsidiary First National Bank is offering a sterling mortgage for British buyers of Florida holiday homes. Through its British Mortgages Abroad brand, First National is offering UK-style mortgages to UK residents who are homeowners wanting to buy a Florida property or wanting to remortgage their existing dollar loan. Most US mortgages are long-term fixed-rate deals, commonly for 30 years but BMA is offering a mortgage fixed for three or five years. The rate ...

  • Focused advice is the saving grace

    23 May 2002

    Why don't people save more? This appears to be the number-one question on some ministers' desks. Because they do not have enough money is the stunningly simple response. Other responses are that they are pretty bored by the subject and, anyway, have little confidence in financial services' companies. Because they are put off by the complexities of products and of getting advice is a third reply and a fourth reply is because there has been a remarkable reduction in the ...

  • Foresters rebrand

    23 May 2002

    Foresters, the international financial and charitable organisation, is rebranding itself as part of a modernisation process. The new image will be introduced over the coming year in its three bases of the UK, US and Canada. In addition to a new logo and fresh designs, there will be a comprehensive reworking of its internet site. All its sales staff will receive a "celebratory pack" with samples of the new designs. The design agencies responsible for the new image are Enterprise ...

  • Forum for the future

    23 May 2002

    The Money Marketing G80 summit on distribution, held at the Celtic Manor in Wales, was the first forum designed solely to help the IFA community shape its own future. Inspired by the format of the Group of Eight (G8) summits on global economic strategy, the Money Marketing Group of 80 (G80) summit allowed IFAs to share their vision of the future with their industry peers. The G80 was designed to maximise interaction and discussion both within the IFA community and between IFAs ...

  • Framlington World Cup challenge

    23 May 2002

    Week 12 of the Framlington World Cup Investment Challenge and we find ourselves at the end of this exciting tournament. The game has ended without the volatility in markets that we have seen over previous weeks, meaning that Nick Pike was able to hold on to the top spot for the third consecutive week. The second and third positions remain unchanged in the final week of the competition, with John Bramwell holding on to second place and Brian Rooney securing third place. However, ...

  • FSA probe clears split caps as 'efficient equity vehicle'

    23 May 2002

    The problems associated with split-capital investment trusts have been confined to a minority in the sector, with the balance posing no potential problems to investors, the FSA said last week in its much anticipated report. For those who understand and accept the associated risks, split caps remain a valid investment vehicle, says the regulator. As expected by the industry, the feedback paper does not draw any conclusions about any potential misselling of split-caps but says it ...

  • FSA probes bias on drawdown business

    23 May 2002

    The FSA is to conduct a review of income-drawdown business, looking at the possibility of commission bias and whether drawdown should become a permitted activity. In a report on the impact of the ageing population, Financing the Future: Mind the Gap, the FSA drops bombshell accusations of commission bias in drawdown sales and sets out plans to "review a number of key firms in this market to test the extent of commission bias and take remedial measures if appropriate". The sweeping ...

  • Fund duo's departure stalls UBS's take-off

    23 May 2002

    UBS Global Asset Management has become the latest in a long line of investment houses to fall victim to the wave of fund manager moves which is rocking the industry. But in a week that saw M&G International chief investment officer Theo Zemek and Invesco Perpetual UK manager Stephen Whittaker join New Star, the resignations of Hugh Sergeant and Hari Sandu still came as a major surprise. The move raised eyebrows because their decision to join SG Asset Management has forced UBS ...

  • Fund firms buck trend as total ad spend falls

    23 May 2002

    Investment fund and Isa ads in the press fell by 25 per cent in April from the same period last year despite some firms increasing their spend. Total expenditure on press ads for investment funds from April 5 to April 30 fell to £4.17m from £5.6m last year, according to advertising monitors Thomson Intermedia. This means that the total ad spend has fallen by 41 per cent to £26.5m between January 1 and April 30 from £44.86m from the same period last year. ...

  • Fund moves raise a question of trust Industry naivete over split trusts

    23 May 2002

    It has been disappointing to read some of the opinion on split-capital trusts recently. Sadly, there appears to be a great deal of naivete in the advisory marketplace. The quality of training the AITC has offered has been excellent. However, it should complement an adviser's basic understanding of the products upon which he advises rather than milk for new babies. The situation which has tarnished split-capital investment trusts is disturbing. Is it an adviser's problem peddling ...

  • Genetics body wants ban on two-tier insurance

    23 May 2002

    The Human Genetics Commission is calling on the Government to ban a proposed two-tier system of insurance in which people without adverse family health history get cheaper cover. The report, entitled Inside Information, recommends that the Government's genetics and insurance committee should examine the way the insurance industry uses family information to set premiums. But the report falls short of calling for the inclusion of family medical information in the five-year moratorium ...

  • Govt told it will hamper market with Catmarks

    23 May 2002

    The FSA has sent a shot across the Government's bows by stating that it risks hampering innovation and reducing competition if it introduces Cat standards for decumulation products such as annuities. In its report published this week, the regulator says there is no case for Catmarks to be introduced for decumulation products, including annuities, income drawdown and equity release. But it warns that the Government needs to keep an eye on the market as it develops. The report ...

  • Guidelines for venture businesses

    23 May 2002

    Sedgwick Independent Financial Consultants is issuing guidelines to local businesses which are looking to use Government venture capital funds. The guidelines emphasise the importance of insurance cover to ensure the companies can repay loans. The IFA stresses the importance of income protection insurance cover and scouring the market to get the most competitive rates. Last week, the Treasury said it would match £20m with £20m of public money for investment in local ...

  • Health Shield - Options

    28 May 2002

    Tuesday, May 28, 2002Type: Healthcare cash planMinimum premium: £1.40 a week individual cover, £2.40 a week family coverMinimum-maximum ages: 16-64Maximum benefit: Dental £32, optical £32, Hospital in-patient £12 a night maximum 95 nights a year, hospital day case £12 a day, physiotherapy £65, specialist consultant £65, chiropody £32, health screening £25, surgical appliances £32, maternity ...

  • Henderson manages income

    23 May 2002

    HENDERSON GLOBAL INVESTORSMANAGED INCOME PLANAim: Income by investing in eight Henderson funds Minimum investment: Lump sum: £5,000 Investment spilt: Choice of Henderson corporate bond, Henderson high yield bond, Henderson index linked bond, Henderson long dated corporate bond, Henderson long dated gilt, Henderson preference and bond, Henderson UK gilt and Henderson UK equity income funds Income facility: Yes Charges: Initial up ...

  • Higher-charge funds produce better returns

    23 May 2002

    Funds with higher annual management charges reap better returns in volatile investment markets than those with the lower AMCs, according to research by Standard & Poor's. In a study across a number of investment sectors over the past five years, S&P found that people who were willing to invest in funds with the highest AMCs were more likely to get better returns. In the UK all companies sector, investors with £1,000 in a fund with an AMC of 0.49 per cent or less ...

  • Home truths

    23 May 2002

    In my last two columns, I talked briefly about the forthcoming consultation on the taxation of offshore funds and the review of domicile. I also added a little more detail on the fundamentals of domicile - just to remind you of where we currently are and where the opportunities for planning lie. If there is to be any change in the taxation of non-UK domiciliaries, then the smart money appears to be on the introduction of a statutory test of domicile more akin to a kind of long-term ...

  • How hand of fate can alter our goals

    23 May 2002

    Last week saw me in my home town of Glasgow for the Champions League final. When news of my success in applying for tickets on www.uefa.com reached me, Manchester United were still in contention and the temptation of selling was not inconsiderable. But when United met their end, I watched the value of my tickets - cited by many as being worth 20 times their face value - go into freefall. Market conditions had changed and I accepted this without question. Some time ago, the ABI's ...

  • How I learnt to love CP121

    23 May 2002

    Giving up two days of my working week is not something I do lightly. The subject matter of this summit was, however, simply too important to ignore. If the future of our industry and the possibility of evolving it into a profession were to be discussed then I wanted to be there. My mission was to make sure that the advisers who believe advice must be more than independent in terms of product choice but that it must be impartial had their views aired, no matter how unpopular this sentiment ...

  • HSBC Asset Management - HSBC Pep Plus 7

    24 May 2002

    Friday, 24 May 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum investment: Lump sum £3,000Place of registration: DublinInvestment split: 100% linked to the performance of the FTSE 100 indexGuarantee: Original capital returned in full at end of termIsa link: NoCharges: ImplicitCommission: Initial 3%Tel: 0800 289505

  • Ice work if you can get it

    23 May 2002

    M&G's competition to win a snowmobiling safari in Iceland has been won by Gill Steele of Lodders in Stratford Upon Avon and Malcolm Dowsett of Malcolm Dowsett Financial Services in South Woodford, London. They both receive two return tickets to Iceland, three nights' accommodation, a trip to the famous Blue Lagoon and the snowmobiling safari. The competition is part of M&G's sponsorship of an expedition to the North Pole (pictured left).

  • IFA guide for Equitable policyholders

    23 May 2002

    IFA Dennehy Weller is issuing a guide to help policyholders understand what would happen to their life cover if Equitable Life became insolvent. Equitable's financial situation is being brought under increasing scrutiny after the publication of its annual accounts revealed its solvency margin is very thin. The guide sets out an action plan for Equitable life insurance policyholders if the company should become insolvent. It explains the types of policies, benefits and trusts ...

  • IFAs warned on pension scheme winding-up rules

    23 May 2002

    Employee benefits firm Jardine Lloyd Thompson believes many IFAs could find themselves in the regulatory firing line over new regulations for winding up pension schemes. Regulations under the Pensions Act that came in from April gives Opra the power to fine all parties involved with the administration of a pension scheme. The reporting process now in place requires trustees and their advisers to demonstrate the progress of the scheme wind-up and inform Opra if there are any obstacles. ...

  • Independent View - Nicholas Conyers

    23 May 2002

    As the old proverb says: "May you live in interesting times." It seems particularly appropriate for the IFA sector at the moment as, yet again, we are arriving at another crossroads where fundamental decisions need to be taken as to future business strategy. The recent success of H'Angus the Monkey in Hartlepool is both amusing and tragic and demonstrates how a supposed democratic process can fall into disrepute. Fortunately, democracy can still be seen to work and the response ...

  • Industry's 'three tenors' make their voices heard

    23 May 2002

    London & Country Mortgages' David Hollingworth was the most quoted IFA in April, according to PressWatch's analysis of the national press. Hargreaves Lansdown head of research Mark Dampier was in second place while joint third were Grant Thornton tax partner Mike Warburton and Charcol senior technical manager Ray Boulger. But Hargreaves Lansdown was clear of the field when it came to the most quoted IFA company, with 45 mentions compared with 29 for second-placed London ...

  • Inside Edge - Tony Kempster

    23 May 2002

    In a Saturday FT article a couple of weeks ago, Stuart Fowler exhorted Ron Sandler to force the closure of all with-profits funds and insist those clients move their cash into other investment vehicles where they can see what exactly is happening to their money. He thinks this would be good for investor education and good for competition. Of all the mad things I have heard or read about with-profits recently that is just about the maddest. The fact that Mr Fowler's article is thoughtful ...

  • Investment view

    23 May 2002

    There is an old joke about a man who enters a pet shop to buy a parrot and is shown three specimens - two sleek, well turned out birds and the third a scruffy, moth-eaten specimen. On enquiring the price, he discovers the scruffy bird costs more than the other two put together. Seeking an explanation, the pet shop owner confesses he does not know but remarks that the other two call it "chairman". The word chairman was writ large in my diary last week. Aside from the day job (and as ...

  • Jeeves serves up financial data

    23 May 2002

    Internet search service Ask Jeeves UK is moving into financial services with the launch of a money channel on its site. Consumers will be able to ask Jeeves to answer their money queries and help them compare quotes and terms across a range of personal financial products. The site, which goes live this month, is built around a tool that compares quotes on mortgages, personal loans, credit cards, gas and electricity supplies and interest on savings accounts. Ask Jeeves will ...

  • Julian Gibbs

    23 May 2002

    It looks to me as if the days of income products paying 10 per cent a year are coming to an end. There is, however, a reasonably secure option, with a 65 per cent growth alternative, to be launched shortly by Eurolife under terms fixed some time ago. The plan runs over five years and two months - long enough to be almost certain that the indices to which it is linked will be above initial levels. A strong safety feature is that the indices can fall 35 per cent below the opening ...

  • L&G warns on state pension

    23 May 2002

    Legal & General says the rise in basic state pension is not enough to fund retirement and is warning people to save more into their pension. The Budget increased the state pension by only 2.3 per cent in line with inflation, giving single pensioners an increase of just £2 a week and couples £3 a week. L&G says many people are running the risk of making their retirement a time of poverty and is telling consumers they must plan ahead. Its core messages are ...

  • Manchester Building Society - Bronze Bond

    27 May 2002

    Monday, May 27, 2002 Type: High interest accountMinimum-maximum investment: £2,500-£150,000Interest rate: 5.05% gross a yearTerm: Until June 30, 2003Offer period: Until further noticeWithdrawal penalties: 90 days' loss of interest on amount withdrawn Tel: 08709 900810

  • Namba offers free membership

    27 May 2002

  • NCC wants taskforce on advice for lower-earners

    23 May 2002

    The FSA should implement the defined-payment system but only when it has sorted out extending access to advice to lower-earners, says the National Consumer Council. The call comes in the same week as the body representing IFAs within the FSA, the Small Business Practitioner Panel, says the regulator should drop the depolarisation proposals affecting IFAs. The panel says the DP system and the FSA's "narrow determinant" of what constitutes independent advice is damaging to the ...

  • New Star International creates Oeic

    27 May 2002

    New Star International has established global investment funds, a Dublin-based Oeic, which consists of six actively managed funds. The Oeic aims for capital growth and spans the globe by offering New Star Asian opportunities, New Star European growth, New Star global emerging markets, New Star Japan recovery, New Star UK dynamic and New Star US opportunities funds. New Star Asian opportunities invests in between 50 and 60 large and mid-cap Asian companies, excluding Japan. ...

  • Newcastle Building Society - Capital Safe Bond (Issue 3) - Five Year Term

    22 May 2002

    Wednesday, May 22, 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100, Dow Jones Eurostoxx 50 and S&P 500 indicesMinimum-maximum investment: £1,000-£500,000Term: Five yearsGuarantee: Capital returned in full at end of term regardless of movement in indicesReturn: Capital with up to 85% of growth in indices at end of termClosing date: June 28, 2002 Commission: Subject to negotiationTel: ...

  • Newcastle Building Society - Capital Safe Bond (Issue 3) - Three Year Term

    22 May 2002

    Wednesday, May 22, 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100, Dow Jones Eurostoxx 50 and S&P 500 indicesMinimum-maximum investment: £1,000-£500,000Term: Three yearsGuarantee: Capital returned in full at end of term regardless of movement in indicesReturn: Capital with up to 65% of growth in indices at end of termClosing date: June 28, 2002 Commission: Subject to negotiationTel: ...

  • Newcastle Building Society - Capital Safe Income and Growth Bond - Five Year Term

    23 May 2002

    Thursday, May 23, 2002Type: Combined guaranteed equity bond and high interest accountGUARANTEED EQUITY BONDAim: Growth linked to the performance of the FTSE 100, Dow Jones Eurostoxx 50 and S&P 500 indicesMinimum-maximum investment: £1,000-£250,000Term: Five yearsGuarantee: Capital returned in full at end of term regardless of movement in indicesReturn: Capital with up to 85% of growth in indices at end of termClosing ...

  • Newcastle Building Society - Capital Safe Income and Growth Bond - Three Year Term

    23 May 2002

    Thursday, May 23, 2002Type: Guaranteed equity bond and high interest accountGUARANTEED EQUITY BONDAim: Growth linked to the performance of the FTSE 100, Dow Jones Eurostoxx 50 and S&P 500 indicesMinimum-maximum investment: £1,000-£250,000Term: Three yearsGuarantee: Capital returned in full at end of term regardless of movement in indicesReturn: Capital with up to 65% of growth in indices at end of termClosing ...

  • Newcastle Building Society - Income & Growth Property Bond

    27 May 2002

    Monday, May 27, 2002 Type: Guaranteed growth bond and high interest account GUARANTEED GROWTH BOND Minimum-maximum investment: £1,000-£500,000 Term: Three or five years Interest rate: 4% gross a year Charges: Implicit Return: 100% of growth in the Halifax Price Index for three year term, 120% of growth in the Halifax Price Index for five year term Guarantee: Capital returned in full regardless of movement ...

  • Newcastle ensures capital is safe

    23 May 2002

    Newcastle Building Society has brought out a third issue of the capital safe bond, a guaranteed equity bond that is linked to the FTSE 100, S&P 500 and Eurostoxx 50 indices.

  • Norwich & Peterborough joins Trigold platform

    27 May 2002

  • Opportunity to pick bond risk

    23 May 2002

    Scottish Life International is offering an income and growth investment bond with two levels of risk and potential return linked to three stockmarket indices. The select income and growth bond 2 gives the choice of two risk options - opportunity or cautious - and returns can be income or growth. Returns are linked to the FTSE 100, the S&P 500 and the Euro Stoxx 50 indices. The opportunity option offers 10 per cent gross income each year for three years or 2.4 per cent gross ...

  • Outside Edge - Graeme Laws

    23 May 2002

    Once upon a time, life insurance companies made clear promises. Then, as now, making promises was risky, so they calculated the premiums on a pretty conservative basis. So, when the time came to fulfil the promises, there was lots left over. They put the customer first and thought that some of this "lots left over" should be shared with the people who had coughed it up in the first place. So, with-profits was born, in the context of guaranteed sums assured and unambiguous promises. Until ...

  • Pension credit warning as FSA points to savings alternatives

    23 May 2002

    The FSA has warned that the Government's pension credit is a disincentive to saving and has suggested that some people would be better off not saving for retirement through a pension. The Government is implementing the pension credit in April 2003 with the aim of rewarding savers for their thrift with the message: "It always pays to save." But the proposals have come under fire from pension experts who say that, for some, the credit means their savings are taxed at up to 40 ...

  • Pinnacle launches sports accident cover products

    28 May 2002

  • Platform Home Loans widens express service

    27 May 2002

    Platform Home Loans has improved its right to buy express completion service,

  • Premier Asset Management - Premier Income & Growth Plan II

    23 May 2002

    Thursday, 23 May 2002Type: Closed-ended investment companyAim: Income or growth linked to the performance of the FTSE 100 indexMinimum investment: Lump sum £7,000Place of registration: DublinInvestment split: 100% in Premier equity & growth fundGuarantee: Capital returned in full at end of term provided the FTSE 100 index does nbot fall by more than 25%Yield: Choice of 0.6% a month, 7.5% a year or 32% growth at end of termIsa ...

  • Product matters

    23 May 2002

    It is always difficult to come up with original new ideas when designing new mortgage products. Many are reshaped from a historical template. The new US Federal Reserve tracker mortgage from Charcol, although revamped from their previous version, is a very interesting proposition. A number of consumers are beginning to enquire about euro-style mortgages and, while the actual take-up is low, not many will have come across this US version in sterling. In essence it is a sixmonth ...

  • Projections plummet for DWP statements

    23 May 2002

    The Department for Work and Pensions' new annual pension illustrations are set to show that savers' pensions could be up to 88 per cent lower than their current projections. As reported in Money Marketing in January, the DWP illustrations will be much lower than current projection rates as they will show the value of future pensions in today's money. Annual statements currently show what contributions have been made in the past year and how big the fund is. But under ...

  • Providers reject pension compulsion rumours

    24 May 2002

    Providers have rejected the idea the Government would be seriously considering extending compulsion on pension savings at this stage, despite a story in a newspaper today.

  • Providers' collective to bridge IFA funding gap

    23 May 2002

    A collective investment company funded by providers could bridge the IFA funding gap without compromising adviser independence, according to Aifa. Both Aifa and Sofa have held discussions with providers looking at how to provide capital to the IFA sector while avoiding being seen to influence advisers. Removal of the better than best rule would allow single providers to buy IFAs outright but Aifa is concerned that this could lead to consumers perceiving bias. Life offices are ...

  • Putting the Bootle into home market

    23 May 2002

    Anyone willing to declare that "the housing market is in significant danger of crashing" to a room filled with building society chief executives is a brave man. But if this prediction comes from leading economist Roger Bootle, a former adviser to the last Conservative Chancellor Kenneth Clarke and now a specialist adviser to the House of Commons Treasury committee, it is bound to make people sit up and listen. Speaking at the recent Building Societies' Association conference ...

  • Savings get lost in house moves

    23 May 2002

    National Savings & Investments has found that many savers are losing touch with their money by forgetting to inform financial providers of a change of address. Its research shows that while 95 per cent of Scots remember to pass on their new details, only 22 per cent of people in the South-west are likely to do so. The research was conducted after National Savings & Investments launched a free service last November to help reunite its customers with lost and forgotten accounts, ...

  • Scottish Legal Life closes to new business

    23 May 2002

    Scottish Legal Life has closed to new business with effect from May 23, 2002.The Glasgow-based friendly society, which has 175000 members had been undertaking a major strategic review. But it says the high costs of writing new business and the burden of regulation meant it was forced into the decision to cease to write new business. The society says the move will result in redundancies amongst its 150 staff.

  • See the future in a coffee cup

    23 May 2002

    You can get a very good cappuccino from the Belgravia Coffee Bar. The place does not look much from the outside but Pier Luigi and Roberto, the two brothers who own it, are true wizards at the Gaggia machine. Naturally enough, they have loyal customers who work in the nearby offices, myself included. But in the last couple of years, things have become more difficult for Pier Luigi and Roberto. Within 200 or 300 yards of their establishment, there are now branches of Starbucks, Pret ...

  • Selestia - Selestia Offshore Collective Investment Bond

    23 May 2002

    Thursday, May 23, 2002 Type: Unit-linked bond Aim: Income and growth by investing in unit trusts and Oeics Minimum investment: Lump sum £10,000 Place of registration: Guernsey Investment split: Choice of 190 funds from Aberdeen, ABN Amro, Artemis, Baring, Britannic, Close Fund Managers, Credit Suisse, Deutsche, Dresdner RCM, Fidelity, First State, Framlington, Friends Provident, Henderson, Invesco Perpetual, Investec, ISIS, JPMorgan ...

  • Selestia opens life firm with bonds

    23 May 2002

    Multi-manager platform Selestia is setting up a new life and pension company with an onshore bond and an offshore bond based in Guernsey. Selestia Life and Pensions opens this week with the launch of the collective investment bond and the offshore bond, both of which are made up from a collection of unit-linked, whole-of-life insurance policies. Minimum initial investment is £5,000 onshore and £10,000 offshore. Investments are split between 1,000 policies to allow investors ...

  • Small IFAs urged to form co-ops to compete

    23 May 2002

    Smaller IFAs should form co-operatives to improve their bargaining power in the scramble for distribution, says Falcon Group development director Jeff Williams. At the Money Marketing IFA UK conference in London last week, Williams warned that product providers were only interested in making deals with the top 100 IFAs and smaller firms should form strategic alliances to compete. Williams called on IFAs to develop a new business model that would see consolidation of bargaining ...

  • Something to Crowe about

    23 May 2002

    The Diary hears that at the recent NAPF conference, Norwich Union director of pensions development Jerry Barnfield tried to convince an audience of unwitting pension professionals that he was the spitting image of Hollywood heartthrob Russell Crowe. Nice try, Jerry, but thumbing through the latest issue of a glossy celebrity magazine (it's not all work, work, work, you know), the Diary discovered Jerry's real celebrity doppelganger. Take a look at the photo below and you ...

  • Spanish home bank tracker from N&P

    28 May 2002

    Norwich & Peterborough Building Society is offering a five year bank base rate tracker currently at 5.25 per cent for ex-patriates in Spain and Gibraltar.

  • Sun Bank looking to raise its IFA profile

    23 May 2002

    Sun Bank has appointed Proteus Public Relations to develop awareness of its brand in the intermediary mortgage market. The bank, which was bought by Portman Building Society last year, offers a broad range of residential mortgages through financial advisers but it specialises in the complex prime market. Proteus is a communications company specialising in financial services. Sun Bank marketing director Chris Cummings says: "We have appointed Proteus because of its detailed ...

  • Swedish bank may be targeting UK building society

    28 May 2002

    Swedish bank Svenska Handelsbanken may be looking to expand its UK presence by targeting a building society with a takeover bid according to a story in a national newspaper.

  • Take the credit

    23 May 2002

    My solicitor has told me that the court has made an order for me to share half my husband's pension. What do I need to do now? Your share in your husband's pension is known as a pension credit. This has been confirmed to me at £120,000. Your husband belongs to a final-salary contracted-out pension scheme, which means there are several complications involved with your pension share. I am sure you have heard of the pension misselling scandal, whereby many thousands ...

  • Talkback

    23 May 2002

    "Yes. It is a market that a lot of people are getting into without realising the potential pitfalls." David Jerram, Jerram Surlis & Co "No, I think people can make a decision when they are entering a commercial relationship where any lettings can service the mortgage and if they can't they shouldn't be getting involved." Roger Labbett,Roger Labbett Life Assurance & Pension Consultant "Yes. All mortgages should be properly regulated to be brought in line with ...

  • The Mortgage Partnership to offer divorcees 20 times over standard

    23 May 2002

    The Mortgage Partnership is offering a loan aimed at helping divorcees get a second mortgage to buy a new property after moving out of the family home. The packager claims many divorcees are denied mortgages from mainstream lenders because they are paying off the loan on the family home. It says its New Start mortgage, funded by specialist lender The Mortgage Business, tackles the problem by letting divorcees borrow up to 20 times more than the standard amount. It has produced ...

  • Third of market now covered by quality mark

    23 May 2002

    More than a third of the retail financial services market by value is now represented by the Raising Standards quality mark, according to the first annual report from the Pensions Protection Investment Accreditation Board. It says the nine providers which have the accreditation make up 34 per cent of the market. Providers representing another 13 per cent are in the preliminary stages of acquiring it while providers making up 21 per cent are in discussions with the board. The nine ...

  • Thomson buys pension specialist Read

    22 May 2002

    Thomson Group has bought pension early release specialist Read IFA for an undisclosed sum. Buckinghamshire-based Read IFA has three RIs and will retain its name after the merger with Thomson, which is now owned by German financial adviser giant AWD Holdings AG.

  • Up, up and away in a hot-air balloon

    23 May 2002

    To celebrate its promotion of Family Income Benefit, Swiss Life (UK) plc is offering IFAs the chance to win a fantastic hot-air ballooning weekend for two in Chateau d'Oex, Switzerland. Chateau d'Oex is renowned as an international mecca for hot-air ballooning. Its exceptional micro-climate creates such ideal flight conditions that people flock to this part of Switzerland from all over the world. The winning IFA and partner will fly to Geneva and then travel by train through ...

  • Verso puts advisers on rate-rise alert

    23 May 2002

    Specialist lender Verso is urging mortgage intermediaries to be ready for an increasing number of queries from clients following indications that the Bank of England is set to raise interest rates. Last week, the bank's quarterly inflation report raised its projections for growth and inflation, with deputy governor Mervyn King saying the monetary policy committee "stands ready to counter building inflationary pressures as and when they emerge." Verso says the media speculation ...

  • Way to bridge the savings gap

    23 May 2002

    I attended a seminar recently, during which we were informed that the thrust of the Government policies for fin-ancial services is to "close the savings gap", currently running at around £27bn each year. For this reason we were told, Sandler, CP121, Myners, Pickering and the Inland Revenue pension simplification review are being undertaken. This is, of course, causing great uncertainty for many of us in this industry and, as a small company, making it impossible for us to expand ...

  • What they said in G80 workshops

    23 May 2002

    "The IFA of the future will be a fully time-controlled, cost-driven, professional practice. The bigger distributors will have both and AFA and a smaller (initially) IFA part. "The AFA will look like second-class citizen." "Advice firms have to emphasise ongoing relationships and move away from transactions. They will need IT to support this, service and marketing-orientated." "Use of retainers (per month/per year) to lock in clients and spread fees." "It is about the advice, ...

  • Whistleblow while you work

    23 May 2002

    Imagine a few scenarios. Perhaps your boss has instructed one of your colleagues to transact business which he knows that the individual is not approved to do by the FSA. Perhaps your boss has been sexually harassing a client or colleague or taking clients without authorisation. What do you do? Keep you head down? Think again… On May 1 this year, the FSA issued guidelines entitled, Whistleblowing, The FSA and the Financial Services Industry, which introduces the industry to the ...

  • Yorkshire Building Society - 5.3% Fixed Rate Bond

    28 May 2002

    Tuesday, May 28, 2002Type: High interest accountAim: GrowthMinimum investment: Lump sum £5,000Place of registration: GuernseyYield: 5.3% gross a yearIsa link: NoCharges: NoneCommission: NoneTel: 01481 710150

  • Yorkshire Guernsey launches fixed rate bond

    27 May 2002

    Yorkshire Guernsey is launching a two year fixed rate bond paying 5.3 per cent gross a year.The bond which matures on June 30, 2004 has a minimum investment of £5,000 and a maximum of £500,000 and is available through the post.Interest is paid gross at maturity an can be added to the bond or paid into a separate bank account.

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