Money Marketing
22 September 2004

  • 'Equity release an alternative to pension'

    23 Sep 2004

    The FSA wants to see con-sumers actively consider equity-release-style products as an alternative to pensions to fund their retirement. Speaking at the Liberal Democrat Party Conference this week, FSA consumer director Anna Bradley said there is a danger that the industry only encourages people to think about pensions for retirement. In response to Consu-mers' Association senior policy adviser Mick McAteer asking what the panel of financial services experts thought ...

  • 'Technical hitches hold back sales'

    23 Sep 2004

    A shake-up is needed in the way that investment trusts are marketed and distributed, according to delegates at a round table meeting in London last week organised by Money Marketing and Sway. A panel of 24 directors, analysts, technical and marketing experts met at Somerset House to discuss ways to increase the distribution of trusts. Delegates called for a fresh look at how the sector is marketed to deliver trusts to a wider audience. Sway chief executive and ...

  • A CONSUMER's view

    23 Sep 2004

    One of the fundamental problems with the FSA's approach to simplified stakeholder products and the basic advice regime is that, no matter how simple the product, without a proper investigation of the individual's finances, aims and requirements, there is always a very real risk of misselling. Stakeholder pensions are a case in point. It is probably just as well that the vast majority of pension policies sold to individuals have been taken up by the relatively wealthy middle ...

  • Abbey way opens up for Santander

    23 Sep 2004

    The field has been left open for Santander Central Hispano's takeover of Abbey National after weeks of speculation ended with HBOS ruling itself out of the bidding. HBOS says its bid for Abbey was abandoned because it sees better prospects for shareholder value in developing its existing business. It is also believed that HBOS analysts decided that a battle with the Competition Commission and the regulators could prove lengthy and carry a high risk of failure. Deutsche ...

  • Advisers say providers should take more blame

    23 Sep 2004

    IFAs believe providers should take more responsibility for products that provoke complaints from consumers. At Money Marketing's round table last week, IFAs hit out at providers and the FSA over products such as precipice bonds, endowments and pension transfers, saying they should shoulder some of the blame for consumer complaints. King Associates senior partner Sue King asked chief ombudsman Walter Merricks why there is no responsibility taken by providers over misselling ...

  • AIFA's View

    23 Sep 2004

    I am not going to get into "so fare-well then" mode just yet. I am still too busy and have plenty of loose ends to tidy up, FSCS costs and cross-subsidies, for example. I was glad to see in last week's Money Marketing that there is a hint of FSA contrition about the scale of the increases which the industry suddenly has to contend with. Better, clearer consultation is promised. No bad thing. The fees papers have been remarkably lacking in the sort of hard fact with which one ...

  • AITC planning wrap platform

    23 Sep 2004

    Investment trusts are set to become available on a wrap platform being developed by the AITC. It is working on a technology package that will enable intermediaries to access a range of investment trusts instantly. Director general Daniel Godfrey says a wrap product, similar to that developed by Transact, is being developed. It would be the first of its kind for the investment trust industry, following the wave of wrap products that are being introduced for unit ...

  • Alan Johnson

    23 Sep 2004

    N ews of Andrew Smith's sudden departure and the appointment of Alan Johnson as Work and Pensions Secretary turned the nation's attention yet again to the Brown • Blair feud which has been bubbling with increasing vigour over the past year. But what exactly can we expect from the new Blairite pensions minister? On the face of it, Johnson has the potential to make big waves in pensions in the next few years. There were rumours last week that Number 10 was working ...

  • Analyst says move is halfway house

    23 Sep 2004

    Witan's move to a multi-manager structure has been described as a halfway house by one of the investment trust sector's leading analysts. Close Wins investment trust research argues that a true best of breed vehicle would be unlikely to hold 50 per cent of its assets in tracker funds, as is the case with the Witan fund. The analyst also notes the absence of performance records for the selected managers because Witan cannot provide them for legal and compliance reasons ...

  • Anger as adviser asks watchdog for splits' redress

    23 Sep 2004

    A well-known figure in the financial advice industry has lodged a split-cap complaint with the Financial Ombudsman Service claiming a lack of understanding of the risks in zeroes. The individual, who has held directorships, has many years experience working in the IFA sector but has asked Leeds firm Pearson Jones for compensation on a split-cap investment on the basis of insufficient understanding of that type of product. Pearson Jones is unwilling to name the individual ...

  • Arlington makes fund debut

    28 Sep 2004

    Arlington Property Investors, which was created through a merger of Arlington's investment management business with Aberdeen Property Investors in May, has unveiled its first fund. The Arlington UK balanced property fund is a Dublin-registered Oeic that invests initially in a portfolio of 18 UK commercial properties. It aims to secure a high income yield with the potential for capital growth and can gear its assets by up to 50 per cent.The initial portfolio has been ...

  • Arlington Property Investors - Arlington UK Balanced Property Fund

    28 Sep 2004

    Type: OeicAim: Income and growth by investing in UK commercial propertyMinimum investment: Lump sum £90,000Investment split: 26% offices, 23% retail shops, 24% industrial, 27% leisurePlace of registration: DublinCharges: Initial up to 2%, annual 1.25%Commission: Subject to negotiationTel: 0141 306 7600

  • Axa starting £6m ad push to unite brands

    23 Sep 2004

    Axa is running a £6m advertising campaign to bring together its three UK businesses under a single branding. The campaign will unite Axa Insurance, Axa Sun Life and Axa PPP Healthcare under one brand strategy. The campaign will use a Be Life Confident theme to promote its investments, pensions, healthcare and insurance products. The campaign ads - which use Axa employees picked through a national selection process - will run on national television, in trade and national ...

  • B&W launches first start mortgage

    28 Sep 2004

    B&W is launching a joint mortgage between home-buyers and their parents or other family members to help first-time buyers get onto the property ladder.First Start is designed to take the burden of providing a deposit away from parents while allowing first time buyers the opportunity to buy a suitable property.The First Start mortgage is calculated by incorporating the first time buyer's income with a parent's income, minus the parent's annual mortgage repayment. ...

  • Bailey is set for equity income fund of funds

    23 Sep 2004

    Multi-manager specialist T Bailey will bring out an equity income fund of funds in November to complement its existing growth fund of funds. The Ucits III-compliant Fof will contain around six underlying funds. It will aim to outperform the FTSE All-Share index by at least 10 per cent and will have an annual target yield of 4 per cent. It will be managed using the same approach as the existing Fortress funds of funds. In a separate move, the retail Fortress foundation ...

  • Brain says lenders not ready to share their data

    23 Sep 2004

    Many lenders are not ready to share data and engage in product verification in the lead-up to M-Day, leaving sourcing systems short of information. Mortgage sourcing and e-trading company Mortgage Brain says only 62 lenders have committed to verifying data and only 40 per cent of the 155 lenders in the market have said they will share their calculations on APR and redemption penalties. Just 40 per cent of lenders have promised to send Mortgage Brain their KFIs ahead of ...

  • Britons are worst savers but they invest sensibly

    23 Sep 2004

    Britons are among the worst at saving from their disposable incomes although they take sensible risks when investing, according to a survey by Liverpool Victoria. Research published by the friendly society shows that fewer people in the UK than in any other country surveyed put their disposable income towards saving for their future or retirement. Only 13 per cent of people surveyed say they save compared with 19 per cent in Germany. Head of external affairs Nigel Snell ...

  • Buy-to-let sector starting to show signs of cooling

    23 Sep 2004

    The first signs of cooling-off in the buy-to-let market are being seen, says Nationwide's specialist lender UCB Home Loans. Figures from UCB indicate that higher house prices and increasing interest rates are leading to a gradual slowing of buy-to-let purchases. It says rental returns of 4 to 8 per cent can still be found in areas such as Sheffield, Manchester, Liverpool and Blackpool but yields are declining in areas such as Edinburgh where the ratio of landlordto ...

  • C&G launch two fixed-rate bonds

    27 Sep 2004

    Cheltenham & Gloucester is launching two fixed-rate bonds from September 27.Customers will be able to invest from £500 in a one year fixed rate bond paying 5 per cent per year gross / AER until November 30 2005. The second option is for a two year fixed rate bond paying 5.25 per cent per year gross / AER until November 30 2006.C&G's savings director Rick Hunkin says: "Both bonds offer a competitive and guaranteed return on balances of £500 and above. Whether ...

  • CA snubs ABI consumer confidence claims

    23 Sep 2004

    Consumer groups have hit back at ABI claims that the industry has started to rebuild confidence in financial services. Speaking at the Which? fringe meeting at the LibDem conference, ABI head of media and political affairs Alan Leaman said there is a real danger that the progress which has been made by life offices in particular is being overlooked. But Consumers' Association senior policy adviser Mick McAteer said he has not seen improvement in industry attitudes ...

  • Cable says Govt to blame for borrowers saddled with debt

    23 Sep 2004

    Liberal Democrat Treasury spokesman Vincent Cable is calling for the Government to push for more responsible lending from providers to prevent borrowers being saddled with unsustainable debts. Cable told the LibDem conference in Bournemouth this week that he blames the Government for failing to prevent lenders offering big mortgages to borrowers who may not have a sufficient understanding of the impact of interest rate rises or a fall in house prices. The LibDems want ...

  • Chain reaction

    23 Sep 2004

    Multi-managers have been heralded as the saving grace of IFAs, allowing them to throw off the shackles of asset allocation and spend more time advising clients. But just how much demand is there for fund of funds and manager of manager offerings? Most providers say there has been a definite increase. Axa head of multi-manager Simon Ellis says the take-up has been good but not huge, mostly because in the last year there has not been as much investment business coming through ...

  • Chance was missed on depolarisation

    23 Sep 2004

    The AITC says the FSA missed an opportunity to promote the marketing of trusts during the consultation on depolarisation. Director general Daniel Godfrey told last week's Money Marketing/Sway round table meeting at Somerset House that the regulator could have done more to help by unbundling the cost of advice from the sale of the products. Investment trusts are lagging behind unit trusts because IFAs prefer their commission structure. In a depolarised advice market, ...

  • Close and Man hedge fund is aiming for 11% return

    23 Sep 2004

    Close Fund Management and Man Investments have set up a hedge fund product guaranteeing initial capital. The product, which is aimed at investors looking to diver-sify their portfolios away from traditional equities and bonds, is targeting annualised returns of 11-13 per cent over the medium term and annualised volatility of 7-9 per cent. A capital guarantee provided by Royal Bank of Scotland ensures the return of 100 per cent of investors' initial investment at the ...

  • Close bears fruit from Berry

    27 Sep 2004

    The Close Finsbury multiasset portfolio is an Oeic fund of funds that aims for growth by investing in a range of asset classes including equities, bonds, property and hedge funds.In keeping with Close Finsbury's policy of outsourcing, the fund will be managed by Berry Asset Management. Berry was chosen because it has managed multi-asset portfolios since it was formed in 1981. The company will select and monitor the underlying investments, using a combination of its own research ...

  • Close Finsbury Asset Management - MultiAsset Portfolio

    27 Sep 2004

    Type: Oeic multi-manager fund of fundsAim: Growth by investing in equity funds, bond funds and alternative investments including commercial property and hedge fundsMinimum investment: Lump sum £25,000Investment split: 36% UK equities, 12% fixed interest, 10% US, 10% commercial property, 8% structured investments, 8% hedge funds, 6% Europe, 5% Japan, 3% natural resources, 2% cashIsa link: NoPep transfers: NoCharges: ...

  • Count down

    23 Sep 2004

    Having discussed the merits and fallacies behind the principle of pound cost averaging, in my last article I started to look at an alternative method of making frequent investments known as averaging down. The quick example I gave towards the end of that article outlined the basic principle of averaging down. If a unit price falls below a predetermined limit, further investments must be made so the average cost of the holding falls. The theory suggests that the price does not ...

  • Customs briefing sets out position on network VAT

    23 Sep 2004

    Support services providers could face Vat bills on member services but traditional networks will escape the charges, according to a leading tax expert. After industry pressure, HM Customs and Excise has issued a business briefing to explain how Vat should be applied to IFA networks in the future. The briefing, which was quietly issued to Aifa by Customs this week, outlines rules for companies that operate using a sub-agency arrangement between a network and appointed ...

  • Duffy on Mortgages

    23 Sep 2004

    The first full year of co-education has just finished for the FSA and the AMI. Let us look at the AMI's report first. "An excellent start to its first year. The AMI is a popular, intelligent and communicative member of the mortgage class and can develop further." Around 12,000 professional members and 30 associate member lenders speaks for itself. The AMI has made incredible progress since April 2004. Rather than becoming just another industry talking shop, it has ...

  • Equity-release deal opens up France, Spain and Portugal

    23 Sep 2004

    PropertyFinance4Less is offering an international equity-release scheme for overseas property owners. The product, when combined with a currency account and overseas payment plan from sister company Currencies4Less, allows people with homes in Spain, France and Portugal to release the equity in their properties, which is not permitted in these countries' domestic markets. The scheme is available to homeowners who are non-resident in the country where the property is ...

  • Events calendar

    23 Sep 2004

    Am I in the minority in still thinking that clients should come first? When I joined the industry more than 10 years ago, I was motivated to provide truly independent, straightforward advice, sold without any bias to the product provider except that it was the best one in the marketplace for that customer. I have always been happy to disclose my commission to clients - as any professional would be. I feel comfortable that I have given the client good advice, and they ...

  • Exclusive Connections - Mortgage Express 1.16% Three Year Discount

    27 Sep 2004

    Type: Discounted-rate mortgageDiscounted term: Three yearsDiscount: 1.16%Payable rate: 5.59%Minimum loan: £60,000Maximum loan: Up to 90% of valuation subject to a maximum of £250,000, up to 80% of valuation subject to a maximum of £300,000, up to 70% of valuation subject to a maximum of £500,000, up to 60% of valuation subject to a maximum of £1mIncome multiples: Up to ...

  • Eye to the future

    23 Sep 2004

    Gartmore has introduced four multi-manager funds to complement its Gartmore portfolio: balanced strategy fund. One of the new funds, the Gartmore port-folio: UK high alpha fund, aims for growth by investing in funds that invest mainly in UK equities. A core and satellite approach means relatively lower-risk core UK funds will be complemented by a smaller number of higher-risk satellite funds. The first step is researching the fund universe to identify which funds are ...

  • Fast-track approval process from First4Brokers for ARs

    28 Sep 2004

    First4Brokers is launching a fast-track approval process for broker firms of any size.With the creation of this process, F4B says it will confirm within 48 hours whether a due diligence process is required for the firm. Following completion of the full application form, F4B will then undertake the due diligence procedure and give full approval within 14 days.After one week since its official launch, the mortgage network is currently processing 30 applications for assessment ...

  • Final thoughts

    23 Sep 2004

    I have been told that my pension scheme accrual rate has dropped to 80ths from 60ths, my contribution is going up by 2.5 per cent to 7.5 per cent and my retirement age is being put back to 65 from 60. What should I do? First, look at your contract of employment to make sure that these changes comply with employment law. Under pension law, they are allowed. The scheme's trustees have a responsibility to the membership and presumably negotiations between the trustees ...

  • FMO offers rolling deal for loan advisers until they get authorisation

    23 Sep 2004

    First Mortgage Options is offering a rolling monthly deal to mortgage brokers who want direct authorisation but fail to get their FSA authorisation by October 31. Your Mortgage Options, the mortgage network within the FMO group, will allow mortgage brokers of any size to operate as authorised representatives on a rolling mon-thly contract until their authorisation is received from the FSA. YMO, which has full part four authorisation from the regulator, says this ...

  • FOS zeroes in on time zones

    23 Sep 2004

    The Financial Ombudsman Service will soon set out the time zones it will use to pinpoint liability for advice given on zero-dividend preference shares. The FOS said earlier this year that it will be adjudicating on zeroes' complaints according to when advice was given. For example, if advice was given in the early stages, the FOS says it is reasonable to assume that zeroes were low-risk. In the middle stage, it says increased information about risks should have been ...

  • Fringe benefits

    23 Sep 2004

    Consumers who have shunned traditional investments after losing out in the prolonged bear market are being offered increasingly quirky schemes. New alternative investments are the latest in a line following such offers as a managed wine investment plan launched in 1994 which aimed to provide a return of between 15 and 20 per cent a year and each portfolio was invested in wine from the top 25 Bordeaux chateau. In the late 1990s, John Govett offered a classic car fund which ...

  • FSA chairman hits out at law suits

    22 Sep 2004

    FSA chairman Callum McCarthy has spoken out against the increasing number of law suits brought against the regulator. Speaking at a Mansion House dinner for City leaders McCarthy warned that the growing number of legal challenges against the FSA threatened to add costs and delay decisions for consumers.

  • FSCS won't allow IFAs to pay huge increase in instalments

    23 Sep 2004

    The Financial Services Compensation Scheme has ruled out any chance of IFAs paying their levy in instalments this year but admits it had been an option. The FSCS says it considered the possibility of allowing firms to pay the increased levy in instalments but it was ruled out for being too costly. IFA firms have reacted angrily to the hike in charges, which coincided with the caping of the Pass fees product provider supplement. Many IFAs are struggling to meet bills that ...

  • FTBs are buying abroad to build up deposit for UK property purchase

    23 Sep 2004

    First-time buyers frustrated with soaring prices in the UK housing market are turning to overseas property, according to Datamonitor. A Datamonitor report has revealed that some FTBs are buying property in Spain, France, the Caribbean and Eastern Europe in the belief that returns on their investment will help towards a deposit for a UK property. A series of interviews with overseas mortgage advisers showed an emerging trend in FTBs speculating overseas. The proportion ...

  • Furbs from the madding crowd

    23 Sep 2004

    Last week, I started to look at possible investments for existing funded unapproved retirement benefit schemes. Given the protected status that these schemes can secure by accepting no further contributions after A-Day, many may well feel this to be valuable. Tax-free payment of lump-sum benefits and inheritance tax freedom on the payment of benefits on death is not to be sneezed at, is it? I gave a brief overview last week of the tax position. This week, I am going to look at ...

  • Good advice is hard to find

    23 Sep 2004

    The business press puzzles me. To my mind, it is easy to differentiate between an adviser and a salesperson or organisation, yet week in week out, the business press attributes successful sales volume to advice. For example, MM recently asked: "How did one of the most successful advisers in the UK come to be in this position?" Are you seriously suggesting that the David M Aaron Partnership gave advice to its (apparent) 7,200 precipice bond clients, or the other 140,000 on its ...

  • Hair today...

    23 Sep 2004

    The last week has been totally unrecognisable from anything I experienced up until a month ago when I bade farewell to London for a change of lifestyle in the middle of nowhere in the Kent countryside. I am occasionally joined by a spider in my spacious office in the attic, which I have to climb a ladder to access, but I have taken the view that we should all learn to live together. On Tuesday morning, a particularly intimidating tarantula-like creature plonked itself ...

  • Hall faces dilemma on no-fee stance

    23 Sep 2004

    Alexander Hall mortgage brokers says it will have to offer a fee-based advice option for its customers to secure its independent status despite its no-fee stance. Chief operating officer Andy Pratt says its no-fee status has been threatened by the FSA's guidelines because brokers must give clients the opportunity to pay a fee if they still want to maintain their independence. The London firm says it is working on how the option will work. Pratt says the proposal ...

  • Henderson keeps role in Witan mandate shift

    23 Sep 2004

    Investment trust giant Witan has confounded expectations by revealing that Henderson has kept more than half of its new trust mandate.After a year-long world-wide search, the 1.3bn investment trust has unveiled five new managers to join Henderson Global Investors in managing the portfolio.Henderson was widely expected to lose any role in the mandate but was chosen for its enhanced index portfolios.Witan was set up in 1909 and is one of the biggest ...

  • Hidden agenda is to oust IFAs

    23 Sep 2004

    The Treasury select committee has questioned the existence of trail fees. Well, MPs have used expense loopholes to claim an average of £119,000 in expenses on top of £56,358 salary and pension contributions of £13,526 as well as profiting from housing allowances and receipt-free travel - a total of £78m in expenses in addition to salaries. I am told that MPs who had pensions in Equitable Life were allowed to transfer out at nil cost. Since Helen Liddell, ...

  • Holding forth

    23 Sep 2004

    Isis Equity Partners is aiming to raise up to £20m in C shares as a top-up to the Baronsmead venture capital trust 2. Baronsmead VCT 2 was established in 1998 and has around 60 holdings. About 84 per cent of the portfolio is invested in qualifying companies so the directors believe now is the time to expand the portfolio to around 80 holdings. Part of the reason for the top-up is that the recent changes to the tax advantages of VCTs, where income tax relief has temporarily ...

  • IFA concern as Witan shuns UK for overseas 'superstars'

    23 Sep 2004

    IFAs and analysts have hit out at Witan's new range of superstar managers because they are unknown in the UK retail market. Whitechurch Securities investment director Gavin Haynes believes the Witan board should have opted for well-known faces such as Andy Brough, Bill Miller and Angus Tulloch to manage the mid-cap, US and Far East mandates of the trust. He says the board has chosen fund managers who UK IFAs and consumers have never heard of. Haynes says retail investors ...

  • IFAs call for rethink on ombudsman's case fees

    23 Sep 2004

    IFAs are pressing for a shake-up of the Financial Ombudsman Service's system of case fees for dealing with complaints. At a round table meeting with chief ombudsman Walter Merricks hosted by Money Marketing, Hamptons International Mortgages managing director Kevin Duffy said the payment of case fees should be proportional to the costs generated by the firm in previous years. Pearson Jones director Yvonne Goodwin said it would be fair if a firm does not pay if a case ...

  • IFAs could boost annuities with a fact-find on health

    23 Sep 2004

    Thousands of people are missing out on extra income because IFAs are not asking health questions, says GE Life. The annuity provider believes many intermediaries are unaware their clients could qualify for an enhanced annuity because the they are not asking clients questions about qualifying conditions. The firm says people may not mention their conditions to intermediaries, who sell eight out of 10 annuities, because they do not think they are relevant. Research ...

  • IFAs critical of direct marketing by providers

    28 Sep 2004

    IFAs have hit out at the direct marketing material that providers send to their customers, a survey showed.Research from National Savings & Investments found that almost half of all IFAs surveyed thought that providers did not understand client needs.Around 47 per cent thought that cross-selling to clients was inappropriate and that a 43 per cent thought the direct marketing was a waste of money.Only one in 20 advisers thought that the direct marketing from providers was any ...

  • IMA wants single 15% fund tax

    23 Sep 2004

    The Investment Management Association is calling for a 15 per cent simplified savings tax for investment funds. It wants the Government to set one savings rate to apply to income, gains and all asset classes. At present, there are five existing and two potential tax regimes, with qualifying investor schemes and property investment funds due to be introduced. The IMA's radical proposals call for incentives to encourage savings. It wants to exempt lower-rate taxpayers, offer ...

  • Independent view

    23 Sep 2004

    I greeted positively the initial news of a prospective merger of the LIA and Sofa. It is a dream - one association to educate, motivate and represent financial advisers. An EGM to vote on the merger takes place on October 13 so we have little time to form a view. We cannot pick and choose what we like or do not like - we have to decide on the entire proposition. As a member of the LIA for 27 years and its president in 1988/89, as well as being a Sofa member, I am aware ...

  • Infinity is ready to provide on-line compliant KFIs

    24 Sep 2004

    Infinity Mortgages has today announced that it is now able to provide fully compliant on-line KFIs to mortgage brokers. The KFI facility will be available to brokers on September 30 via Infinet, the company's online processing system.Infinity Mortgages was launched in January 2004. It is being made available to mortgage brokers in advance of M-Day so they can become familiar with the way it works.Infinity chief executive Matt Gilmour says: "We have been working ...

  • Infinity Mortgages launches application processing system

    28 Sep 2004

    Infinity Mortgages is offering a discount on its application fees by £50 for all mortgages submitted on-lines unsing the lenders' new application processing system, Infinet.Infinet, which can be accessed from September 30 will allow intermediaries to produce accurate KFIs, source products, submit an on-line application and track cases and proc fees.Infinity chief executive Matt Gilmour says: "Infinet is a state of the art mortgage application system whoich enables ...

  • Investment view

    23 Sep 2004

    Last week saw me share a platform with our chief economist Simon Rubinsohn for the first time this year. Simon is a thoughtful observer of the investment scene, only too aware of the criticisms levelled at economists. You can rely on him to express opinions not qualified by the economists' mantra "on the other hand". Working on the basis that most investment trends start in the US, he dissected the elements of the American economy that would be pivotal in determining what happens. ...

  • Investors worried about six key issues

    28 Sep 2004

    The chief investment officer of Merrill Lynch Investment Managers has highlighted key worries of clients.Mlim president Bob Doll says that investors are concerned about economic expansion, corporate earnings, interest rates and inflation, oil prices, terrorism and politics.Doll reckons that the fluctations caused by these issues is making a trendless market where diversification remains the best policy. He thinks that a further decline in the price of oil would be needed to ...

  • Johnson off to a flying start as he asks life offices for policy ideas

    23 Sep 2004

    Newly appointed Work and Pensions Secretary Alan Johnson has hit the ground running by contacting the boards of major life companies directly to ask them to put together policy proposals. He has asked many of the UK's life office directors to provide their views and suggestions on compulsion, pension reform, stakeholder, pension credit and simplification. One life office insider says the move is a dramatic step forward for the DWP as Johnson's predecessor Andrew ...

  • Julian Gibbs

    23 Sep 2004

    A very interesting new product from Keydata - the defined growth plan - gives 52 per cent growth over five years, equivalent to 10.4 per cent simple interest a year, even if the FTSE 100 index does not go up over that period. The plan also pays out this growth if the FTSE 100 falls at any time during the term of the plan but returns to at least its starting level. Even if the market goes down over a five-year period, which is highly unlikely from current levels, then ...

  • Keydata Investment Services - Keydata Aim VCT

    22 Sep 2004

    Type: Venture capita trustAim: Income and growth by investing initially in gilts, other fixed-interest securities and cash, then in unquoted smaller companies listed on AimMinimum investment: Lump sum £3,000Closing date: November 30, 2004Charges: Initial 5%, annual 1.8%Commission: Initial 3% or initial 2.25%, renewal 0.375%Tel: 020 7710 6906

  • Kingsland pack aims to help small brokers

    23 Sep 2004

    Kingsland Consultancy is offering a starter pack for smaller mortgage brokers designed to prepare mortgage and non-investment insurance firms for M-Day. The starter pack consists of an instruction pack, compliance manual, training and competence manual and standard documentation required for dealing with the regulatory bodies. It also comes with a year's free updates and brokers can also opt for client visits, file checking and general compliance checks. Kingsland ...

  • Kirwan warns Santander could sell Abbey intermediary arms

    23 Sep 2004

    Scottish Widows marketing director Nick Kirwan is warning that Santander Central Hispano could sell off Abbey's intermediary businesses if its £8.55bn bid is successful. Kirwan, ex-head of marketing at Abbey subsidiary Scottish Provident, says using intermediaries in Spain is rare. In a recent letter to IFAs, Santander says a key part of the deal is "to build on Abbey's existing relationship with intermediaries". Kirwan says: "Abbey for Intermediaries ...

  • L&G axes Rock deal to quit equity release

    23 Sep 2004

    Legal & General is pulling out of the equity-release market by ending its white-labelling arrangement with Northern Rock. The firm says it no longer wants the product in its mortgage range because of confusion over the product and Northern Rock's own product. L&G has been white-labelling the equity-release product through Northern Rock-owned L&G Bank for the past 20 months. It says it does not intend to re-enter the equity-release market. Mortgage ...

  • Labour conference - More money for CAB advice says Timms

    27 Sep 2004

    Treasury Financial secretary Stephen Timms has pledged more money for free face to face financial advice provided by the Government's financial inclusion fund.Speaking at the Mutuo fringe event at the Labour Party conference this week Timms said the money would go towards provision of advice through the Citizens Advice Bureau network.Timms said the Government is launching a Financial Inclusion task force to monitor progress on distributing money from the fund and an ...

  • Labour conference - Tories blast means testing at fringe event

    27 Sep 2004

    Shadow Financial Secretary George Osborne is blaming the Government's means tested benefits policy for a steady decline in saving.Speaking at a fringe event at the Labour party conference in Brighton he said the crucial answer to addressing the savings gap is tackling the spread of means tested benefits. Osborne blamed the Government policy as the unwitting cause of a steady decline in savings, he added that the introduction of means testing had clouded the savings issue for ...

  • Levy mettle

    23 Sep 2004

    The Association of Mortgage Intermediaries is keen to establish a voluntary arrangement with lenders to subsidise intermediaries' payments to the Financial Services Compensation Scheme after the industry becomes regulated. A similar subsidy has until now been in place for life and pension IFAs via the Pass scheme set up by product providers although this subsidy is under review. The AMI also believes that mortgage intermediaries should be placed in the same fee block ...

  • LIA and Aifa attack FSA move to 'de-skill' advice

    23 Sep 2004

    The LIA and Aifa say FSA plans for simplified products will de-skill financial advice and they want to see qualifications for the sale of stakeholder products. The LIA and Aifa are pressing for an exam and training sessions for people selling the simplified products. They are against FSA proposals that would see a scrip-ted list of suitability questions being read to clients to judge what products can be sold. LIA head of public affairs John Ellis believes this ...

  • LIA brokers get membership of SMP

    22 Sep 2004

    Mortgage advisers who are members of the LIA and who transfer to the proposed Personal Finance Society will receive automatic membership into the Society of Mortgage Professionals. The Society of Mortgage Professionals is the CII's new professional development body. The CII says the mortgage advisers who become part of PFS will be exempt from the £30 joining fee other CII members will have to pay. Members of the LIA and Sofa vote on their proposed merger to become the ...

  • LIA calls for annual health statements from FSA and FOS

    28 Sep 2004

    The LIA is calling for the FSA and the Financial Ombudsman Service to publish annual statements, offering their overview of the health of the financial services sector. In its response to the FSA's consultation on the FOS, the LIA has suggested that these annual reports could draw attention both to areas of concern and also to areas where industry performance is satisfactory or above average.

  • LIA presidents split on merger

    23 Sep 2004

    A split has opened up between former LIA presidents following crisis talks over the planned merger with Sofa. The LIA's 1994 president Andy Bedford has already posted back a yes vote for the merger but 1988 president Len Warwick remains staunchly opposed. The disgruntled former president has broken his silence on the merger and voiced his concerns over the speed that it is happening. Warwick also objects to the proposal that only AFPC-qualified IFAs would be listed ...

  • Lime has the zest for loan roadshows

    23 Sep 2004

    Network Lifetime Insur-ance Mortgage Experts is hosting a series of industry roadshows over the coming weeks. The roadshows will look at regulation, training and the latest support provisions from Lime. Latest initiatives from the network included in the programme are a comprehensive general insur-ance and packager panel, online conveyancing, marketing support, general insurance solutions, a select lender programme and market news. Lime, which has received its ...

  • Link with Interactive is boost for Purely Mortgages

    23 Sep 2004

    Purely Mortgages has struck a deal with Interactive Investor to replace Charcol as its preferred mortgage partner. After a review of its systems, Purely Mortgages has been selected to provide fees-free mortgage solutions to Interactive Investor's database. There are 1.4 million subscribers to the online financial services provider's database and the partnership gives Purely Mortgages greater access to the consumer mortgage market. Interactive Investor chief ...

  • Marlborough Fund Managers - Marlborough UK Micro Cap Fund

    22 Sep 2004

    Type: Unit trustAim: Income and growth by investing in UK smaller companies with a market capitalisation of less than £50mMinimum investment: Lump sum £1,000Investment split: 100% in UK smaller companies with a market capitalisation of less than £50mIsa link: YesPep transfers: Yes:Charges: Initial 5.5%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0870 757 7205

  • Mass appeal

    23 Sep 2004

    As Legal & General squares up to the FSA over the alleged misselling of mortgage endowment policies, the industry waits to see if the regulator can be forced to back down. L&G is disputing £1.1m fine for misselling, It is the biggest company to challenge the FSA openly over a decision. Other companies to be hit with fines over endowments have included Prudential (£750,000), Royal & Sun Alliance (£950,000) and Royal Scottish Assurance (£2m). If ...

  • MCCB countdown to M-Day

    23 Sep 2004

    The Mortgage Code Compliance Board has set out its timetable for the closure of its key activities in the lead-up to M-Day. The changes will take effect on October 31 when the FSA takes on regulating the mortgage industry. From that date, the mortgage code will no longer apply and the MCCB will end its activities. The MCCB's helpline will close on October 31 and callers will be directed to the FSA's helpline or the Financial Ombudsman Service. The MCCB website will ...

  • Merger challenge

    23 Sep 2004

    Any merger of the LIA and Sofa was going to face opposition but it feels as if a bandwagon is beginning to roll against a change. The criticisms are diverse and the convictions deeply felt. Every few days,we get an email or letter from either a long-standing LIA or Sofa member as to why the merger should not go ahead, be delayed or go out to further consultation with the membership. There have also been messages of support and perhaps the no camp is simply a noisier minority ...

  • Merricks fears Public will be confused after depolarisation

    23 Sep 2004

    Chief financial ombudsman Walter Merricks is concerned about the effects that depolarisation will have on the market and fears it will confuse consumers. Speaking at a round table of IFAs hosted by Money Marketing in London last week, Merricks revealed his concerns about the ability of consumers to be sure about who they can bring their complaint to in a depolarised world. He said it is possible that consumers may not be at all clear about the structure lying behind the ...

  • Merricks rules out naming and shaming firms

    23 Sep 2004

    Chief ombudsman Walter Merricks says the FOS considered publishing data about the number of complaints received about IFAs and the number upheld but thinks it would harm the sector. Merricks was asked by Hamptons International Mortgages managing director Kevin Duffy if the FOS has considered publishing statistics about cases where the IFA wins. Duffy wants the public to be able to see that most IFAs are not the enemy while IFAs who lose cases could be named and shamed. Merricks ...

  • Millfield pays 500% rise in £2m bill

    23 Sep 2004

    IFA firms Millfield and Inter-Alliance have paid more than £2m to the FSA this year, including £840,000 to the Financial Services Compensation Scheme. Millfield chief executive Paul Tebbutt has revealed that the firms were faced with a 500 per cent increase in their FSCS levy. Of the £840,000 that the group handed over to the compensation scheme, £348,000 was for Millfield. Last year it paid just £55,000. Tebbutt says that both firms ...

  • Morgan Stanley unveils new plan

    24 Sep 2004

    The Morgan Stanley FTSE protected growth plan 7 is a FTSE 100 linked guaranteed equity bond that could mature earlier than its six-year term.The bond guarantees the return of investors' original capital regardless of the performance of the index. They will get 120 per cent of the growth in the index if the bond runs for six years, but it will mature in year three if the FTSE 100 index has risen by at least 30 per cent by November 29, 2007. Where this happens, investors will ...

  • Mortgage market slowing down

    22 Sep 2004

    The Council of Mortgage Lenders says gross mortgage lending slowed down to £25bn in August, 13 per cent lower than in July where it stood at £28.9bn. This is in contrast to last month when lending was up by 3 per cent on the previous month's figure of £28.2bn. Additionally, the Royal Institution of Chartered Surveyors says potential buyers are being more wary although it rules out a market crash. RICS says buyer enquiries in August were down for the fourth month ...

  • Mortgage market slowing down

    22 Sep 2004

    The Council of Mortgage Lenders says gross mortgage lending slowed down to £25bn in August, 13 per cent lower than in July where it stood at £28.9bn. This is in contrast to last month when lending was up by 3 per cent on the previous month's figure of £28.2bn. Additionally, the Royal Institution of Chartered Surveyors says potential buyers are being more wary although it rules out a market crash. RICS says buyer enquiries in August were down for the fourth month ...

  • Multi-Manager View

    23 Sep 2004

    My Victor Kiam moment came about not when I had a razor in my hand but a great fund in my port-folio: "I liked the product so much I launched a fund." The fund I held was the Eastern European fund managed by boutique investment house Thames River and the one we launched in 2001 was the Hargreaves Lansdown multi-manager special situations trust. Faced with a choice of 3,000 funds, most investors would probably ask why they should even consider using a boutique investment group. ...

  • Nationwide - 2 Year Tracker

    28 Sep 2004

    Type: Tracker mortgageTracker term: Two yearsTracker rate: Up to 95% of valuation - 0.5% above Bank of England base rate, up to 90% of valuation - 0.14% above Bank of England base rateMinimum loan: £1Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to ...

  • Nationwide launches new fixed rate bonds

    24 Sep 2004

    Nationwide building society is launching three new fixed rate bonds which replace the previous one, two and three fixed rate offerings.Nationwide's new one year fixed rate bond pays 5.10 per cent gross per annum / AER of monthly interest of 4.95 per cent gross per year / 5.06 AER. The two year fixed rate pays 5.15 per cent gross per annum / AER or monthly interest of 5 per cent gross per year / 5.12 per cent AER. Finally, the third fixed rate bond pays 5.2 per cent gross per ...

  • New Star select opps opens again

    22 Sep 2004

    Access to the New Star Select Opportunities Fund has been reopened through fund supermarket Fidelity FundsNetwork. The Select Opportunities Fund, which is managed by AA-rated manager Patrick Evershed, closed to new inflows shortly after its launch in June 2002. Evershed believes that there is improved value among many of his target stocks and for this reason New Star will be promoting the fund.

  • No let-up in endowment complaints

    23 Sep 2004

    Mortgage endowment complaints are coming to the Fin-ancial Ombudsman Service at a rate of 1,300 a week, says chief ombudsman Walter Merricks. Merricks said endowment complaints are showing no sign of abating and that the biggest challenge is recruiting people fast enough to deal with the volumes of complaints. He said the FOS had to build up experience on split-capital products as few people knew anything about them before the problems arose but added that most people ...

  • Norwich & Peterborough - 10 Year Fixed Rate

    23 Sep 2004

    Type: Fixed rate mortgageFixed term: 10 yearsFixed rate: 5.57%Minimum loan: £1,000Maximum loan: Up to 90% of valuation subject to a maximum of £250,000, up to 85% of valuation subject to no maximumIncome multiples: Up to 4.5 times principal income plus second or 3.4 times jointArrangement fee: £399Redemption fee: 5% of mortgage balance in first 7 years, 4% in year 8, 3% in ...

  • Norwich Union term and mortgage life insurance reprice

    28 Sep 2004

    Norwich Union is repricing its term and mortgage life insurance as of October 4.Term assurance will on average decrease by 0.45 per cent. Mortgage life assurance - no options - will decrease on average by 1.67 per cent. Mortgage life insurance with guaranteed critical illness option will decrease on average by 3.8 per cent.For mortgage life insurance, joint, non smoker at thirty next birthday with 25 years insured for £175,000, a customer can expect a 2.6 per cent ...

  • Nvesta plan matures with overall profit of 15.93 per cent

    23 Sep 2004

    Nvesta's investment plan matured with an overall profit of 15.93 per cent after three years two months achieving 83.9 per cent capital return. The company says there was soft protection barrier of 30 per cent and hard protection of 10 per cent . But all three indices breached the 30 per cent as markets fell dramatically during 2001 and 2002 meaning that capital return was reduced by the amount each index finished below 90 per cent of the strike level, geared 1.25 per cent.

  • Old Mutual goes for all in one formula

    24 Sep 2004

    OLD MUTUAL ASSET MANAGEMENTOld Mutual Dynamic Bond FundType: Unit trustAim: Income and growth by investing in fixed-interest securitiesMinimum investment: Lump sum £1,000, monthly £250Investment split: 100% in fixed-interest securitiesIsa link: YesPep transfers: YesCharges: Initial 3.5%, annual 1.25%Commission: Initial up to 3%, renewal up to 0.5%Tel: 0808 ...

  • Out of context

    23 Sep 2004

    •"Hi. I'm a confused IFA. Is there any other kind?" - IFA Michael Jacobson phones MM. •"Please give me a call if you have any questions regarding the press release or would like an excellent recipe for beef stroganoff." - Richard Hurst of Trigold. •"I was out until 3am last night. Yes, for an old man like me, it's disgusting." - Purely Mortgages chief executive Mark Chilton on getting home from a night out with Imla. •"You can cut off ...

  • Parents asked for their views on CTFs

    22 Sep 2004

    Parents are being asked what they would like to see in a child trust fund. Henderson Global Investors is polling parents and guardians on their views and requirements of child trust funds through a dedicated website www.investing 4children.com. The website will compile results to produce data on what parents are looking for in an investment vehicle for their children.

  • Parting shots

    23 Sep 2004

    Note to Britannic Asset Management's Francis Ghiloni - there is a long way to go yet. The Diary thought Ghiloni was on to the world record for leaving do's with an amazing six, including one in London, but no, we have a new champion with 14 parting bashes.who is this bon viveur extraordinaire? The man of steel to gladden the heart of land-lords and restaurateurs across Europe is Tom Morley, formerly of Munich Re. Morley, just back from officiating at a cycling tour ...

  • Pioneer creates a fund for all weather

    23 Sep 2004

    Pioneer Alternative Investments, part of the UniCredito Italiano Banking Group, has established the Momentum AllWeather Fund II, a multi-manager fund of hedge funds.The original Momentum AllWeather Fund, Pioneer's flagship hedge fund product, was established in 1995 but closed to new business in June this year. This follow-up fund shares the original fund's low volatility investment approach and focus on risk management.Pioneer says the objective of low volatility favours ...

  • Poor performance of VCTs a myth, say stockbrokers.

    27 Sep 2004

    Stockbrokers Charles Stanley claims that the widely held view that the overall performance of VCTs is poor is a myth.In a new VCT handbook the stockbrokers says that with enhanced tax rebates there is a strong case for resubscribing to the trusts. It advises investors to diversify their portfolios of VCTs by subscribing for different trusts to obtain a more even flow of income and spread of management styles.The handbook has been written by Robert Corden a smaller companies ...

  • Popplewell picks price principle

    23 Sep 2004

    Financial planning expert Keith Popplewell has shown how regular investments on falling unit prices can beat pound cost averaging. He has shown how investors can reinvest cash into a vehicle with a falling unit price that will reduce the price level that the unit needs to rise for the investor to make a profit. Popplewell believes the principle which highlights how pound cost averaging, which dictates that, over time, highly volatile movements in unit prices benefit an ...

  • Product Matters

    23 Sep 2004

    The launch of Old Mutual's dynamic bond fund caught my eye as, unlike many of the funds in this sector, it will move actively between high yield and investment grade although, of course, the minimum level of 20 per cent must be maintained in high yield. Furthermore, it is that holy grail of incomeproducing funds which pays income monthly, with an estimated income yield of 6.18 per cent. It will be managed by Theresa Egan, who joined Old Mutual from Newton this year. ...

  • Product pioneer Allison to retire at ScotLife Intl

    23 Sep 2004

    Scottish Life International marketing director John Allison is to retire next year after 32 years in the industry. Allison, 55, is looking at a number of non-executive directorships. He joined Scottish Life in 1972 and has held a variety of marketing roles. He became marketing manager of Nat-ional Mutual Life, where he launched a self-administered pension operation. In 1981, at Vanbrugh Life, a subsidiary of Prudential, he set up the industry's first loanback ...

  • Progress for pensions

    23 Sep 2004

    The new Secretary of State for Work and Pensions Alan Johnson has asked the savings industry for its views on how to get people saving again. This is the best start to his tenure that he could have made. Johnson already seems to be carrying some weight of expectation of a change in direction. A more pragmatic approach and a genuine attempt to build a partnership with the financial services industry might finally allow some progress to be made. Of course, there ...

  • Proposed LIA name change is an act of lunacy

    23 Sep 2004

    LIA and Sofa have "heads of agreement" to merge and call themselves the Personal Finance Society. I see a fundamental conceptual change in the LIA. It used to be an association of comrades in the industry, supporting each other through changes imposed from the outside. Now, it has become a centralised governing body that prescribes conduct on its members. A happy democracy that used to delight its members and fill conference venues by the thousand has become an autocratic, ...

  • Providers snub FSA offer of levy summit

    23 Sep 2004

    Product providers have rebuffed two FSA offers to hold negotiations on the Financial Services Compensation Scheme levy crisis hitting IFA firms. FSA managing director David Kenmir sent a goodwill gesture to product providers, saying the regulator was willing to meet and discuss the levy dilemma faced by IFAs. But the FSA says there has been no response from any firms since the offer was made at the beginning of the month. Aifa has offered to act as a go-between ...

  • Purely Mortgages on launchpad

    22 Sep 2004

    Purely Mortgages is launching to consumers this week after receiving its full authorisation part IV from the FSA. After its launch the national mortgage broker is now able to offer free advice and arrangement services direct to consumers via its telephone-based advisory service. The launch is marked with a two-year fixed rate of 4.79 per cent until January 1 2007.

  • Put trust in straight talking

    23 Sep 2004

    A fter five years of distinguished service, Paul Smee is off. IFAs will be losing a very skilled operator and a well respected problem solver. Paul's style could not have been more different to mine but in one way we are very similar - we both tell it straight. Not doing so all-ows ministers, civil servants and regulators to go off into a dream world. You only have to observe stakeholder pensions to see where that leads. The best way of doing the job is to get close ...

  • Recruiting graduate trainees

    23 Sep 2004

    The best-planned training programme will be ineffective if the business recruits a graduate trainee who does not have the capacity to make the grade as a financial adviser. The recruitment process is the foundation of the rest of the programme's success and this is reflected in the attention paid to the recruiting process in the guidebook. In this article, we set out to explain why planning the recruitment process is important, the main steps in the recruitment process, from ...

  • Regulation reminders

    23 Sep 2004

    Film buffs out there will remember Hitchcock's The Lady Vanishes. It has one of the most praised scenes in film history showing how quickly time passes. It reminds me a lot of the mortgage market at the moment. To help finalise your preparations for regulation, it is useful to review the new business process. The AMI has just released its Guide to a Compliant Sales Process which sets out the key stages to address. This column does not allow me to discuss the whole process ...

  • Rickman Tooze back in business with MBO

    23 Sep 2004

    Rickman Tooze IFA advisers have struck a deal to buy the assets of the firm forced into administration by a 350 per cent PI increase and crippling pension review costs. A group of the firm's top-earners has succeeded in buying the assets of the business for an undisclosed sum after it went into administration on August 9. The group of 12 has formed a limited liability partnership, which will be known as RT Financial Planners but has not yet received FSA authorisation. The ...

  • Schroders targets growth

    28 Sep 2004

    SCHRODERSSchroder S&P High Alpha PortfolioType: Unit trust multi-manager fund of fundsAim: Growth by investing in a portfolio of 12-15 fundsMinimum investment: Lump sum £1,000Investment split: 47.3% UK equities, 14.8% Europe ex UK, 9.3% Japan, 9% alternatives, 7.8% Asia ex Japan, 5.8% emerging markets, 5.2% Us, 1% cashIsa link: YesPep transfers: YesCharges: Initial 5.25%, annual 1.5%Commission: ...

  • ScotEq taking mystery out of underwriting to aid IFAs

    23 Sep 2004

    Scottish Equitable Protect is relaunching its marketing campaign for its smart underwriting service for the IFA market. The relaunch will emph-asise the increase in efficiency with smart underwriting and increase flexibility for IFAs and includes a new version of ScotEq's Underwriting Today protection magazine. Aegon UK head of underwriting Matt Rann says the aim is to demystify the und-erwriting process for IFAs and help them explain the process to clients. ScotEq ...

  • ScotLife cuts managed fund equity exposure

    23 Sep 2004

    Scottish Life is reducing the equity component of its managed fund range and introducing asset allocation which it says matches policyholders' changing risk appetite. It is cutting average equity exposure in its medium balanced managed fund from 82.9 per cent to 55 per cent. The defensive managed option rises from 21.2 per cent to 27.5 per cent and the adventurous option falls from 99.4 per cent to 75 per cent. ScotLife says the new structure differentiates it from ...

  • Sesame chief in M-Day warning for networks

    23 Sep 2004

    Mortgage clubs and packagers do not realise the risks involved in becoming networks, says Sesame product manager for mortgages Andy Young. The FSA says 70 firms have applied to become networks but Young warns that some of these do not appreciate the costs of becoming a network and the responsibilities they will have after M-Day. He says Mortgage clubs and packagers face three opt-ions as regulation day app-roaches. They can remain as they are, embark on a business to ...

  • Show means business

    23 Sep 2004

    Next Tuesday will see the North's biggest one-day show for financial intermediaries return to Manchester's G-Mex Centre. With 40 CPD-accredited conference sessions and over 100 exhibitors, Money Marketing Live will once again give financial intermediaries the opportunity to discuss some of the key challenges they face with senior industry figures. There are nine streams of seminar content to choose from, including covering the latest developments in the mortgage, ...

  • Singer & Friedlander Cs an opportunity

    22 Sep 2004

    Singer & Friedlander is offering C shares in the Singer & Friedlander Aim 3 venture capital trust.This VCT was established in 2001,raising £32.99m, It followed the original Singer & Friedlander Aim VCT in 1998 and the second Aim VCT in 2000. The range of three VCTS allows Singer & Freidlander to make larger investments in Aim companies, and some Ofex companies, through co-investment with the other VCTs in the range.The money raised by this share issue will initially ...

  • Singer & Friedlander Investment Management - Singer & Friedlander Aim 3 VCT C shares

    24 Sep 2004

    Type: Venture capital trustAim: Income and growth by investing initially in gilts and other fixed-interest securities, then mainly in Aim companiesMinimum investment: Lump sum £5,000Closing date: March 31, 2005 for 2004/2005 tax year, April 29, 2004 for 2005/2006 tax yearCharges: Initial 5%, annual up to 3%Commission: Initial 2.25%,renewal 0.375%Tel: :020 7523 5502

  • Skipton Building Society - Flexible 3 Year Fixed Rate Mortgage

    23 Sep 2004

    Type: Flexible fixed-rate mortgageFixed term: Until January 31, 2008Fixed rate: 5.69%Minimum loan: £25,000Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000. up to 80% of valuation subject to a maximum of £450,000, up to 75% of valuation subject to no maximumIncome multiples: ...

  • Standard opens structured door

    22 Sep 2004

    STANDARD LIFESecured Capital PlanType: Capital-protected OeicAim: Growth linked to the performance of the FTSE 100 indexMinimum investment: Lump sum £5,000Isa link: YesPep transfers: YesTerm: Five years and 48 daysReturn: 82.4% growth in the indexGuarantee: Original capital returned in full at end of term regardless of the performance of the indexClosing date: October ...

  • Standard prompts MPs to carry out major mutuals probe

    23 Sep 2004

    The all-party building societies and financial mutuals group is preparing to launch an inquiry into the future of mutuals in financial services. In the wake of Standard Life's decision to demutualise, the group will look at whether regulation leads to demutualisation. It will look at whether the existence of mutual businesses have an effect on the products and behaviour of other businesses operating in the same markets and if mutuals work to combat social exclusion. MPs ...

  • Standard reopens IHT plans after tax talks

    23 Sep 2004

    Standard Life has reop-ened its inheritance tax product five days after withdrawing the fund bec-ause of pre-owned asset tax rules. The company consulted with a leading QC to see if its gift and loan plan fell under the new Inland Revenue guidelines. All the firm's estate planning products were withdrawn from the market while it was in talks. The Revenue says new pre-owned asset rules are designed to target people who have entered into contrived arrangements ...

  • Stewart Ritchie on Pensions

    23 Sep 2004

    One of the most extraordinary aspects of pension tax simplification is the new investment regime after April 6, 2006. For more than a quarter of a century, the Inland Revenue has policed small self-administered schemes to prevent incestuous transactions, investment in residential property, non-income producing assets and so on. When self-invested personal pensions started, the Revenue introduced a similar set of investment rules. This will all be swept away at midnight on April ...

  • Storm watching

    23 Sep 2004

    Demand for multi-manager products is set to explode as volatile markets lay to rest the concept of the one-stop manager, according to research company Cerulli Associates. Many groups have quietly conceded that they cannot be all things to all men in all asset classes. The study suggests there are 512 global players in the multi-manager arena, with a prediction that this will grow to over 700 in the next two years.The corresponding asset base is forecast to increase from $500bn ...

  • SureCare moves to Templar after poor LTC sales

    23 Sep 2004

    LTC specialist SureCare, part of the Prosperity Financial Planning Group, has joined the Templar Group after poor take-up of long-term care business forced it to look for new business areas. Managing director Alan Marks blames providers for pricing clients out of the market. The firm has two RIs and was set up to advise clients over 55 on immediate and pre-funded LTC and part-funded care. In July, Skandia pulled out of the pre-funded LTC market, leaving the Pension Annuity ...

  • Tailored protection fits the bill

    23 Sep 2004

    The protection market has had some challenging times over the last 12 months as reinsurers withdrew from the market, prices increased for critical-illness cover and the product definitions changed to target cover at conditions with significant lifestyle impact. As a result, sales for most protection products have fallen quarter on quarter as affordability and adviser confidence have been affected. Meanwhile, the life-only market has continued to thrive as price ...

  • Talkback

    23 Sep 2004

    "No. I do not think this would be right. That is why we have the Data Protection Act. Doing this would be an infringement of it." Gareth Measey, Decima Independent Investment Advisers "No. For big IFAs with multi-offices, it is fine and their revenue is probably public knowledge anyway. However, for the smaller IFAs, it is not fair as we would basically be revealing our income." Ian Whiteley, Qdos Independent Financial Solutions "Yes. I do not see the harm in ...

  • Tesco starts supermart Sweep into mortgage business

    23 Sep 2004

    Mortgage lenders believe Asda may move into homeloans proposition after Tesco revealed last week that it will add mortgage products to its personal finance scheme. Halifax press spokesman Paul Fincham says Asda and other leading supermarkets making an entry into mortgages should not be ruled out, saying: "There is a pretty low barrier to entry and it is a very attractive market." But Fincham warns there are around 155 lenders in the UK, which is the most competitive mortgage ...

  • Tories three-year plan for LTC

    22 Sep 2004

    The Conservative party is issuing a long term care proposal where people who take out an insurance plan meeting the cost of three-years' LTC would be guaranteed free care by the Government beyond those three years, regardless of assets. Michael Howard pledged the three-year scheme at a Conservative Party Older People's Summit in Westminster on September 14. The Tory leader said the party will shortly be publishing its full LTC proposal. Howard said the plan was intended to help ...

  • Track record is key for Baronsmead

    27 Sep 2004

    ISIS ASSET MANAGEMENTBaronsmead VCT 2 C SharesType: Venture capital trust Aim: Growth by investing in established unquoted UK companies Minimum investment: Lump sum £3,000 Closing date: January 28, 2005 Special offer: Extra 1% allocation of shares Offer period: Until October 15, 2004 Charges: Initial 5%, annual 2% Commission: Initial 3% Tel: 0845 799 2299Isis ...

  • Trusts move towards open architecture

    23 Sep 2004

    A new trend towards open architecture is set to sweep through the investment trust sector, says the Association of Investment Trust Companies. It believes increasing numbers of investment trusts will change their structures in a bid to become more competitive. Communications director Annabel Brodie-Smith thinks firms will move to an open architecture structure that allows clients to have access to one investment trust with separate product providers and fund managers ...

  • Value judgements

    23 Sep 2004

    Falcon Group investment strategist Andrew Boyett-Camp asks: "Where do multi-managers add value for money in outperformance and what proof do you have that you can produce the goods rather than simply mirror an index?" Skandia Investment Management head of marketing David Moor: "We add value by selecting world-class specialist managers. Our innovative model offers the benefits of holding funds and institutional mandates within a single structure, giving us the widest choice. By blending ...

  • Waiting for a rating

    23 Sep 2004

    Investment trusts are calling for a rating system so advisers can easily pick out good and bad funds. They believe an S&P or Forsyth-style rating system would give IFAs a guide as to which trusts perform well. The ratings would examine the performance, management and trustees of each product and could be used to back up advice to clients. Baillie Gifford sales and marketing director Ken Edwards said: "The IFA community does not have access to the same advice ...

  • Warning on group cover

    23 Sep 2004

    Many employers are considering suspending death-inservice benefits following changes to group policies in the wake of the September 11 attacks, according to Watson Wyatt's latest research. The consultancy firm is predicting that there will be an increasing emphasis on lump sum payments and a potential reduction in death-in-service cover provision in the future as firms move to cap liabilities. Watson Wyatt is encouraging employers to review their group death-in-service ...

  • We've got your slumber

    23 Sep 2004

    There was not much sleeping done by any-one at the recent Senate Conference in Monte Carlo so when Isis fund manager Richard Philbin found himself waiting for transport to Nice Airport, he decided to catch 40 winks at the bus stop. Within seconds, Richard, "famous" after his appearance in the Isis ad campaign, was happily sprawled out on the street asleep. It must have been a gripping dream since Richard slept through the arrival of the bus, the other delegates boarding ...

  • What's on in Manchester

    23 Sep 2004

    CONFERENCE ROOM 1 SESSION 1 09:00-09:30 Opening Keynote Speech Paul Rich, Sector Leader Manager for Retail Intermediaries, FSA SESSION 2 09:45-10:45 Mortgage Regulation Panel Debate The panel will discuss which exams intermediaries will need to pass under the new regime, the regulatory position on General Insurance, Lifetime Mortgages, Home Reversion Mortgages,and the options available to intermediaries in order to remain fully qualified. Richard Fox, ...

  • Why is the FSA crippling smaller companies?

    23 Sep 2004

    David Kenmir is quoted as saying: "We appreciate that we need to do better in communicating likely changes (for which read massive increases) to the [mainly FSCS] fees." Please, Mr Kenmir, spare us such vacuous platitudes. What the FSA needs to do is stop forcing on the industry all the things that are causing these huge cost increases in the first place. And how jolly nice of him to say the FSA appreciates the efforts most IFAs have made to pay the costs in full. What a great ...

  • Will reshuffle bring new deal on pensions?

    23 Sep 2004

    After seven years of pension policies masterminded by the Treasury, this month's Cabinet reshuffle has seen the appointment of a Blairite Work and Pensions Secretary, Alan Johnson, who is already adopting a very distinct tone. Johnson, who got the Government off the hook on university top-up fees earlier in the year by appealing to the instincts of Labour backbenchers, has got his reward with a seat at the Cabinet table. The balance on pension policy is starting to ...

  • Winterthur widening investment options

    23 Sep 2004

    Winterthur Life is planning to build on its reputation as a specialist Sipp provider to provide more general investment services to its high-net-worth and corporate client base. Chief executive Mike Kellard says he believes that with pension simplification and caps on the levels of savings, there will be demand for other investments outside the pension structure which high-net-worth clients will use for financial planning for retirement. The group will investigate offshore ...

  • Woolwich Plan Managers - G+ Account - Issue 2

    24 Sep 2004

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £5,000-no maximumTerm: Six yearsReturn: The greater of 26% of original investment or 55% growth in the index at end of termGuarantee: Original capital returned in full along with 26% growth regardless of performance of indexClosing date: November 10, 2004Commission: Initial 3%Tel: ...

  • Worldwide on track to top 50 with Tudor buy

    23 Sep 2004

    Worldwide Financial Planning has bought Tudor Investment Services, an IFA business within the Burns Anderson Network. Tudor Investment Services will trade for the next year under the name Tudor Worldwide and will operate from the Worldwide offices in Worcestershire. Tudor was set up in 1999 by financial adviser David Hobbs who specialises in investment work and deals mainly with high-net-worth clients. He brings an administrative team of three and over 1,000 clients with ...

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