Money Marketing
23 May 2001

  • 'Isa providers charging too much'

    24 May 2001

    Isa providers are getting away with charging more for their products than pension providers, even though Isas are easier to administer, claims Scottish Equitable business development manager Steven Cameron. Speaking at the National Association of Pension Funds annual conference in Birmingham last week, Cameron highlighted the poor take-up of Catmarked Isas, while most pension products are within the 1 per cent charge. Cameron said: "Only the minority of Isas have adopted the Catmark. ...

  • 'UK public worry constantly about their finances'

    24 May 2001

    People in the UK are stres-sed by money, according to a survey by Halifax. The Wealth of Nation survey by its Share Dealing service found that out of the 2,000 people questioned, almost a quarter said they think about money constantly. The survey found 23 per cent of women and 22 per cent of men always have money on their minds. It also showed that young people are the biggest worriers, with 28 per cent of respondents aged between 16 and 24 saying they constantly think about ...

  • A consumer's view

    24 May 2001

    The Government needs to think the unthinkable if it is to deal with the pension time bomb. This may include telling the nasty truth that in future, people will have to work longer or face retirement on much lower incomes than is the norm today. Reform of pension legislation is becoming ever more pressing as the cost of providing a decent income in retirement rises and employers increasingly move away from final-salary schemes. Two recently published papers reveal just how urgent ...

  • Agency aids FI&S investment push

    24 May 2001

    Friends Ivory & Sime has appointed Vanbrugh Financial Communications as its public relations agency. Vanbrugh has been working on temporary projects for FI&S for the last six months, including handling PR for its launch into the retail market. The agency will provide strategic communications advice and promote FI&S's investment credentials in its bid to position itself as a leader in institutional and retail asset management. Vanbrugh's account team of four will look ...

  • Aifa and IFAP joint firm to be called Advice First

    24 May 2001

    Aifa and IFAP's new joint marketing initiative will be branded Advice First and headed by former Scottish Amicable chief executive Roy Nicholson, as revealed exclusively in Money Marketing. Aifa and IFAP say the firm will have low running costs as its role is formulating marketing strategy to be implemented by IFAP while leaving Aifa with complete autonomy. The firm will be chaired by Nicolson and includes Aifa director general Paul Smee, IFAP chief executive David Elms plus ...

  • AIG seminars on economy

    24 May 2001

    AIG Life is running a series of seminars around the UK for IFAs to discuss the economic outlook. The 46 half-day seminars will be held between June 4 and July 6 and AIG expects over 7,000 IFAs to attend. The seminars, being led by sales director Neal Bailey, aim to provide IFAs with up-to-date economic commentary. AIG says it has researched the views of experienced professionals from leading investment houses and will provide an insight into the performance of world markets ...

  • An informed client is a happy one

    24 May 2001

    It is often said that investing is about balancing fear and greed. We all want to invest in funds producing stellar returns. But we all know there is no such thing as a sure bet. If you want higher returns, you have to accept higher risk. The propensity to buy funds off past performance has been even more pronounced in recent years with the greater dissemination of information. Clients wanting to pick topperforming funds have a multitude of information sources. The availability ...

  • And the brand plays on...

    24 May 2001

    Huw Sayer Financial analyst, Advertising and marketing agency BV Group Don't sweat the small stuff, there are three big tides shaping financial services. IFAs that take them at the flood will build strong sustainable businesses but those caught in a whirlpool of distractions will suffer slow decline. So, what are the distractions? They are the squeeze on margins, no-load 1 per cent funds, stakeholder pensions, the burden of legislation and its associated costs ...

  • Anger over clutter of Isa posters on the Tube

    24 May 2001

    Lobbying by leading fund managers and advertisers is forcing TDI, the company responsible for Lon-don Underground poster ads, to develop a new poster placement policy. Leading names such as Gartmore and Jupiter and their ad agency Ptarmigan Media are up in arms about the positioning of their Isa posters adjacent to competitors' ads during this year's Isa season on the Underground and some overground railway stations. They claim the clutter of posters makes it difficult for ...

  • Anger over clutter of Isa posters on the tube

    23 May 2001

    Lobbying by leading fund managers and advertisers is forcing TDI, the company responsible for Lon-don Underground poster ads, to develop a new poster placement policy.Leading names such as Gartmore and Jupiter and their ad agency Ptarmigan Media are up in arms about the positioning of their Isa posters adjacent to competitors' ads during this year's Isa season on the Underground and some overground railway stations.They claim the clutter of posters makes it difficult for ...

  • Axe member resolutions, demands Nationwide

    24 May 2001

    Resolutions put forward by building society members place "intolerable pressure" on the boards of mutuals and should be scrapped, says Nationwide chairman Charles Nunneley. Speaking last week at the Building Societies Association conference in Harrogate, Nunneley claimed it makes no sense in today's environment to give customers stakes in mutuals when they can have- like Nationwide - up to 10 million members. He said he would like building societies to effectively become trusts ...

  • B C Asset Management - Property Income and Growth Fund

    29 May 2001

    Tuesday, 29 May 2001. Type: Split-capital investment trust. Aim: Income and growth by investing in UK property, investment trusts, corporate bonds and equities. Minimum investment: Subject to negotiation with stockbroker. Place of registration: Guernsey. Investment split: UK property 75 per cent, investment trusts, corporate bond s and equities 25 per cent. Yield: 9 per cent. Isa link: Yes. Charges: None. Commission: ...

  • Bankhall runs workshops for Pru sales staff

    29 May 2001

    Bankhall is running a series of workshops in June around the UK for Prudential salespeople who are members of the Manufacturing, Scientific and Finance Union to encourage them to set-up as IFAs and join Bankhall.

  • Basic instincts

    24 May 2001

    Selling mortgages through the internet is being viewed in some quarters as a growing threat to the mortgage intermediary's business. The adviser-introduced mortgage sector has proved very resilient to such threats in the past but market share could be vulnerable. Advisers can make their position stron-ger by being sure they are supplying what their potential customers need most. Our research shows applicants are still in need of help with the most basic mortgage issues. In ...

  • Beware the PLCs in sheep's clothing

    24 May 2001

    Good efficient mutuals, such as Nationwide, offer better long-term value than their plc competitors and the logic behind this statement is simple. There is an inescapable difference between the economics of a plc and a mutual. If you are a plc, you have to balance the needs of your customers with the needs of your shareholders. Products and services are priced in order to make enough profit to enable the plc to pay shareholder dividends. If you are a mutual, without shareholders, ...

  • Blair and Hague must come clean on compulsion

    24 May 2001

    Whatever you do, do not mention the 'C' word. At least not within earshot of the voters. Such foul language should be restricted to smoke-filled rooms where insurance chiefs, civil servants and cabinet ministers meet. The unwritten rule is no one, apart from the Liberal Democrats, addresses the issue of legally requiring people to save for retirement. This election may not turn on financial services but it will feature more about them than any for generations. The Conservatives ...

  • C&G launches new mortgage range

    29 May 2001

    Cheltenham & Gloucester is launching a new range of fixed and capped mortgages including a 5.69 per cent fixed for two years for loans up to 90 per cent loan to value.C&G is also offering a mortgage capped at 5.99 per cent for four years, also up to 90 per cent LTV. Its standard variable rate is 7 per cent, and all mortgages carry an administration charge of £199.

  • Changing tax to steera different course

    24 May 2001

    The American financier Bernard Baruch was clear in his advice to voters during the 1960 presidential election contest between John Kennedy and Richard Nixon. "Vote for the man who promises least," he said. "He'll be the least disappointing." Unabashed by such scepticism, William Hague is offering the voters in this country "common sense" while Charles Kennedy is offering them "freedom, justice, honesty". Both are attacking Tony Blair for his Government's approach to tax, savings ...

  • Coles claims best-buy tables pervert market

    24 May 2001

    Coles said lenders that "play fair" lose business to providers that cater products specifically with best-buy tables in mind, even though the loans they offer are often more exp-ensive in the long run. He warned banks and building societies not to leave themselves open to allegations of foul play as consumers become increasingly aware that there is always some other way they will pay. If providers continue to "act in an inappropriate manner", Coles said much valued and hard-won ...

  • Confident investors put selling on hold

    24 May 2001

    Recent downturns in world markets have made it easier for investors to make decisions about their portfolios, according to Threadneedle's investment barometer. The company's research shows the number of inv-estors intending to sell their holdings has fallen and the number of investors intending to hold their investments has risen. There are also no signs of investors wanting to abandon the market entirely. Threadneedle Investments' barometer is a regular six-monthly survey ...

  • Conservatives vow to ease tax and regulation to aid small businesses

    24 May 2001

    The Conservatives are pledging to ease the burden of tax and regulation as part of their small business manifesto, launched this week. The pledge comes despite a call by the party for all retail financial products and services to be regulated by the FSA as part of its financial services manifesto. The financial services document also commits a future Conservative Government to an independent review of the Financial Services and Markets Act and the FSA in 2004. FSA rules would ...

  • Discount deals by Exclusive

    24 May 2001

    Exclusive Connections is offering two discount-rate loans for the buy-to-let and residential markets. The buy-to-let loan, funded by Mortgage Express, offers a 1.25 per cent discount for two years. Borrower can make overpayments, underpayments and payment holidays. The standard variable rate on the loan is currently 6.75 per cent for loans up to 75 per cent loan to value and 7 per cent for loans up to 80 per cent LTV. There is a six-month redemption penalty in the first three ...

  • Edward Vaizey

    24 May 2001

    I love election manifestos. They're like love letters. They make you feel fantastic. A little tweak here, a little tweak there and pretty soon the world will be set to rights. Of course, like love letters, all those good intentions go sour in the end. Political parties have got into the habit of publishing multiple manifestos. London, the disabled, the Welsh, the Scottish, all have bespoke editions. Not the poor financial services industry, however. We must make do with trawling ...

  • Equity release to help with LTC costs

    24 May 2001

    Government equity-release schemes to help the elderly meet the cost of long-term care are on course to be introduced by October if Labour wins the election. The party's manifesto confirms its commitment to the NHS Plan. While few details are given, it is bel-ieved to revolve around the concept of loans being provided by local authorities. The LibDems and the Conservatives have given LTC a high profile in their campaigns. The Tories propose LTC policyholders can ringfence their ...

  • Eurolife forced to cut bond payouts in Revenue battle

    24 May 2001

    Eurolife has had to slash mat-urity payouts on its high-inc-ome bonds while it fights the Inland Revenue over its reinterpretation of the rules governing the bonds. The FSA has told Eurolife to hold additional reserves in the event that the Revenue's decision cannot be overturned, leaving the life office facing a massive tax bill. Eurolife will have to cut payouts on bonds maturing this year by up to 4.75 per cent. The firm says it is prepared to take the Revenue to court ...

  • Financial jargon putting off investors

    23 May 2001

    Financial jargon is putting investors off saving, according to research published by online investment site The Motley Fool which shows that 86 per cent of consumers don't know the difference between an IFA and an Isa.

  • Firm offers buy-to-let guide

    24 May 2001

    Self-certification specialist The Mortgage Business is offering a free guide to intermediaries on buy-tolet lending. The Landlord's Guide to Buying to Let is designed as a sales tool for intermediaries to pass on to clients. The Bank of Scotland subsidiary is aiming to capitalise on the increasing number of people investing in buy-to-let mortgages. Mortgage Business says sales in this market have increa-sed by about 75 per cent to £392m from £223m since July ...

  • Firm's new angle on fund selection

    24 May 2001

    IFA software house Shouts has launched a new investment fund selection service which could revolutionise the way IFAs pick their clients' portfolios. The software takes the form of an investment decision tree that will guide IFAs through a list of questions before producing a short list of suitable funds for their client. As well as allowing IFAs to specify basic investment objectives, desired risk levels and preference of fund manager, it also gives advisers the chance to compare ...

  • FPS Group launches pension administration website

    25 May 2001

    Pension scheme and administrative services provider FPS Group is launching an internet platform to enable employers to administer pensions online.

  • FSA appoints Furse and Hardy to Financial Services Practitioners Forum

    29 May 2001

    The FSA is appointing London Stock Exchange chief executive Clara Furse and London Clearing House chief executive David Hardy to the Financial Services Practitioner Forum.

  • FSA to probe fair play on with-profits

    24 May 2001

    The FSA's with-profits review is set to turn the spotlight on whether life offices treat policyholders fairly and examine unfair contract terms. Plans for the review, ann-ounced in January, are outlined in the regulator's scoping paper published this week. The review will investigate on what basis with-profits off-ices aim to satisfy the interests of customers and how they maintain fair treatment. The FSA says it intends to publish a consultation paper on the use of fair ...

  • FSA warned of regulatory pressure on small firms

    24 May 2001

    The FSA's small business practitioner panel is concerned that the new regulatory regime is placing undue burdens on small firms which could put them out of business. In its second annual report, the panel suggests the burden of regulation may even lead to consumers having less choice as small firms are forced to merge or shut down. The panel also asks the FSA to recognise the impact of increased regulatory costs to small firms arising from the new regime. Joint panel chairman ...

  • Gartmore appoints new portfolio manager

    25 May 2001

    Gartmore is promoting Tim Callaghan to the role of portfolio manager in the European equity team of its investment division.Callaghan has been with Gartmore since 1991 as an investment manager, prior to which he was a fund manger with Morley Fund Management.Gartmore head of European equities Stephen Jones says: "Tim will play an active role in the day to day selection of investments and will strengthen the already proven European equities process."

  • Give your garden a makeover with Merrill Lynch

    24 May 2001

    Merrill Lynch Investment Managers, sponsor of the world's leading horticul- tural event, the Chelsea Flower Show, is offering readers a final chance to win a garden makeover worth up to £10,000 or one of 30 pairs of tickets to this year's show, which is being held in London from May 21 to 25. The Royal Horticultural Society's Chelsea Flower Show, the pre-eminent event in the gardening calendar, was first ...

  • Go Private in affiliation agreement with Pioneer Friendly Society

    29 May 2001

    Go Private, the wholly owned subsidiary of healthcare provider Exeter Friendly Society, has established an affiliation agreement with income protection specialist Pioneer Friendly Society to offer a health cash plan option with its policies.

  • Goodfellows - Incomesafety.net

    29 May 2001

    Tuesday, 29 May 2001. Type: Income protection. Minimum benefit/premium: £100 a month/£2.50 a month. Minimum-maximum ages: 18-65. Deferred period: 30 days. Charges: None. Definition of disability: Own occupation. Commission: Initial 20 per cent, renewal 20 per cent. Tel: 01376 347369.  

  • Government think-tank proposes scrapping inheritance

    24 May 2001

    A key Government Cabinet Office think-tank is proposing banning inheritance as part of its plans to increase social mobility. In its discussion paper on social mobility, published this month, the Performance and Inno-vation Unit claims upward career and social mobility from manual to higher status occupations has declined. The PIU cites access to financial capital as one of the reasons individuals fail to move up and down the social ladder based on merit alone. The think-tank's ...

  • Guilty until proven innocent?

    24 May 2001

    I was interested and concerned to read the letter from Paul Wearden (Money Marketing, May 3) regarding Axa Equity & Law's seemingly unreasonable refusal to meet a permanent disability claim. The same company refused an accidental death claim for a client of mine. My client was a pedestrian when he was hit by a car while crossing a road. He died instantly. Neither the driver nor the passenger in the car tried to blame my client for the accident. The road was unlit and they simply ...

  • Hogging the headlines

    24 May 2001

    The timing could not have been worse. Before the conference had even begun, Halifax did its best to rain on the parade by releasing research it claimed showed most building societies offer higher mortgage rates than many high-street banks. Apoplectic press officers busied themselves hunting down reporters to register their disgust at Halifax's cheek. How could they? How many of its borrowers are on the low rate it was using for comparison? Once spleens had been vented and outraged ...

  • IFAs fear being forced to stop giving loan advice

    24 May 2001

    More than 80 per cent of IFAs fear FSA proposals for lenders to monitor the product information provided to clients will force them to stop offering mortgage advice. The research, by the Intermediary Mortgage Lenders Association, sends a stark warning to the industry and consumers, many of which rely on IFAs for their mortgages. IMLA says this shows the majority of IFAs think the FSA is failing in its efforts to raise standards. IMLA says most IFAs would prefer the FSA and Mortgage ...

  • IFAs increase share of life protection market

    23 May 2001

    New sales of life assurance policies increased by 25 per cent to 1.37m in 2000 from 1.1m in 1999, according to figures published by Swiss Re Life & Health.

  • IFAs set to take on providers

    24 May 2001

    IFAs could go head to head with providers in a move which could be devastating to some of the big players in the market, according to independent research by Datamonitor. The research says IFAs may launch their own branded products to survive industry challenges such as reduced commission, potential changes to polarisation and poor service standards from providers. Datamonitor says this poses a major threat to many prov-iders which rely on IFAs as their main distribution channel. It ...

  • Independent view

    24 May 2001

    A funny thing has happened in the world of internet sales, they haven't taken off - not to any extent anyway. Two years ago, we all trembled at the sight of amazon.com and lastminute.com and thought "here they come". We were told that the new economy would sweep all before it, and that we must move to cyber-space or die. And don't worry, they told us, you are too late anyway. New companies are there before you and already have your customers in the palms of their mouse. Today, ...

  • Industry and charities slam pensions credit proposals

    24 May 2001

    Labour's pensions credit policy outlined in its manifesto has been attacked as misleading by leading industry figures. The policy, which is aimed at rewarding the lower-paid for saving for their retirement, has come under fire from life offices, charities and the Inst-itute of Fiscal Studies. Speaking last week, Tony Blair acknowledged discontent among the elderly who have small pensions or savings and feel they have not been rewarded for their thrift. He said the pensions credit, ...

  • Industry demands compulsion answer

    24 May 2001

    The Labour and Conservative parties are under fire from the industry this week for refusing to come clean over whether stakeholder could become compulsory for individuals. While the Liberal Democrat Party in its manifesto proposes a so-called "owned second state pension" which would introduce a level of compulsion, both the Tories and the Labour party continue to fudge the issue. IFAs are slamming the parties' failure to clarify their positions in their general election manifestos, ...

  • Industry guilty of hidden charges

    24 May 2001

    When you go into the supermarket to buy food, you typically ask yourself two questions - how much does it cost and what is in it? Is the investment world any different? It shouldn't be. Unfortunately, the costs of running a fund are not as clear as you might expect and the fund you are buying may not be what you think it is either. Maybe all funds should carry a label detailing additives and preservatives, just like food. What are the hidden costs in running an investment fund? ...

  • INSIDE EDGE - Andrew Bedford

    24 May 2001

    Who is responsible for branding in your company? For many IFA firms it will be the advisers themselves as almost 50 per cent of IFA firms are sole proprietors. For bigger firms, it may be "the marketing department". However, if any IFA is serious about improving relationships with clients, they need to be aware of the importance of their brand, as this is the very heart of their business. Colin Bennett, a brand specialist, says: "Brand is the personality of a company, the feeling ...

  • Interlink Premier Network appoints business development manager

    29 May 2001

    Interlink Premier Network has appointed Brian James, 44, as executive business development manager. James joins from Scottish Amicable where he was national account manager.

  • Interlink Premier Network appoints business development manager

    29 May 2001

    Interlink Premier Network has appointed Brian James, 44, as executive business development manager. James joins from Scottish Amicable where he was national account manager.

  • Investment view

    24 May 2001

    Having topped up the Tora tan in the middle of the Atlantic (well, pretty much the middle) I could not resist the opportunity to parade myself in front of IFAs in South-west England. The topic is my now familiar case to re-embrace the cult of the equity but go easy on the greed element. As you read this, I should be telling the good folk of Devon and Cornwall that things will get better but not necessarily easier. Prepare for a prolonged period of lower returns. We all became too ...

  • Is stakeholder a conspiracy against its target market?

    24 May 2001

    I refer to the article concerning stakeholder in the May 3 issue of Money Marketing. Before addressing the article itself, which in my view entirely misses the point, I would like to make one general comment concerning IFAs and their relationship with the press, which has often been reported as less than ideal. After reading this article and those in the personal financial pages of the weekend press,I do begin to despair a little, as I am sure must many other IFAs. The IFA community ...

  • Julian Gibbs

    24 May 2001

    Leading pension provider Skandia has launched a distinctive alternative to stakeholder pensions designed specifically for the IFA market. In the new pension environment, IFAs will need to prove genuine added value in recommending non-stakeholder products. This means it is very difficult for any company with stakeholder products to provide a compliance-proof pension arrangement for the IFA market. The new Skandia MultiPension gives the widest possible investment choice, covering ...

  • Jupiter sets up multi-manager service

    24 May 2001

    Jupiter is rolling out its multi-manager service next week with the launch of three funds of funds. The Jupiter growth portfolio, income portfolio and worldwide portfolio trusts will launch on May 29, with an offer period until June 18. The funds will hold around 15 funds each and be managed by director John Chatfeild-Roberts, who Jupiter poached from Lazard in February. The growth portfolio will hold 50 per cent in UK equities, 40 per cent in global equities and 10 per cent ...

  • Ken Davy

    24 May 2001

    L ike John Prescott, Ken Davy started out on cruise liners. As a photographer on round-the-world liners, to be exact. However, he does not have the bruises to show for any encounter with his fellow Yorkshireman. For the chairman of DBS Management, too, politics have been an abiding passion. Davy became Huddersfield's youngest borough counsellor and by the age of 33 had stood as Conservative candidate in three general elections. The need for a career which would support his wife ...

  • Labour move on genetic tests sparks confusion

    24 May 2001

    Insurance companies have been thrown into confusion by Labour's pledge to introduce legislation enforcing a moratorium on genetic testing. The move follows a declaration by the ABI of a twoyear moratorium on the use of genetic test results in underwriting life policies, ann-ounced earlier this month in response to the findings of a House of Commons select committee report into genetics and insurance. But a question mark hangs over the moratorium following the Labour Party's ...

  • Leeds & Holbeck increases Step-up Saver limit

    25 May 2001

    Leeds & Holbeck Building Society is increasing the maximum balance on its Step-up Saver account from £5,000 to £10,000 following strong customer demand.

  • LibDems will relax rules on annuities

    24 May 2001

    The Liberal Democrats will relax annuity rules and give individuals a greater voice in the running of occupational pension schemes as part of their manifesto commitments on financial services. People with company pensions, including those already retired, will be given greater control over the running of their pension fund. LibDem social security spokesman Steve Webb says: "We would introduce legislation so that one trustee would be elected by current employees and one by current ...

  • Liverpool Vic's Mimi eyes loan protection

    24 May 2001

    Liverpool Victoria Life, formerly Permanent Insurance, is setting up a new-style comprehensive mortgage payment protection insurance product. The product, called Mimi, offers a range of selected protection benefits to meet home and personal protection requirements. It gets its name from the four kinds of cover called, Money if you become ill, Income if you are sick and cannot work, Money if you die or Income if you lose your job. Discounts are available if more than one level ...

  • Liverpool Victoria - Mimi

    24 May 2001

    Thursday, 24 May 2001.

  • Loan rivals unite to buy Mortgage Brain

    24 May 2001

    A consortium of major lenders, including Halifax and Nationwide, has acquired software provider Mortgage Brain in a move which will establish the UK's first "mutual" common trading platform. The two bitter rivals, along with Alliance & Leicester, bought a 51 per cent stake in the company this week which they intend to sell to other lenders to create the long-awaited industrywide platform. As revealed in Money Marketing last month, Mortgage Brain had been in talks with many of ...

  • Looking for a long term of office

    24 May 2001

    I seem to remember a hint a year or so ago, in a newspaper article suggesting that the elderly are too set in their ways to be voting converts. Not so, to judge by the way all parties have set out to woo the older voter at the start of this election campaign. Grey power is a new force to be reckoned with as the baby boomers hit 50 and become, as far as the state is concerned, older citizens. This age group has a vested interest in the way the state treats the elderly, either because ...

  • Make mimi a Permanent fixture

    23 May 2001

    Permanent, the protection product division of Liverpool Victoria, has introduced a cafeteria-style mortgage protection package called mimi.

  • Man Investment Products - Man-IP 220 Plus (Series 3)

    24 May 2001

    Thursday, 24 May 2001.Type: Offshore bond.Aim: Growth by investing in futures and hedge funds.Minimum investment: $50,000 or Euros 50,000.Place of registration: Bermuda.Investment split: 100 per cent in futures and hedge funds.Yield: US dollar 18-20 per cent, Euro 17-19 per cent.Isa link: No.Charges: Annual 3 per cent.Commission: Subject to negotiation.Tel: 0041 554153636. 

  • MCCB says code breaches are down

    29 May 2001

    The Mortgage Code Compliance Board says there was a reduction in the number of mortgage code breaches by intermediaries in the six months to January 2001. But the regulator is concerned that a quarter of firms visited by compliance officers failed to provide adequate explanations of the level of service they were providing and internal complaints procedures. The MCCB says it may produce a handbook of good practice notes to help eradicate such breaches. 

  • Minor information

    24 May 2001

    I ended last week's article on what I thought was a fairly upbeat note, namely, that it is possible to plan tax-effectively for your children's or grandchildren's future. Renewed interest in planning for children has been triggered by the Government's recent announcement on the proposed child's trust fund. Admittedly, it is hard to beat Government funding when it comes to improving the attractiveness of an investment but it is also worth remembering that, if approved ...

  • Mortgage Next goes for fixed fee saver

    24 May 2001

    Specialist mortgage broker Mortgage Next has introduced the buy to let five year fixed fee saver mortgage.

  • Mutual message is spin over substance

    24 May 2001

    The Halifax has consistently argued that mutuals may have a role to play in the UK but only small mutuals such as credit unions. Bigger mutuals will face increasing pressure to convert. We have also argued that the assumption that mutuals such as building societies are, by their very nature, better than their plc counterparts is simply not true. There has been a great deal of "spinning" by building societies over the past few years to the effect that they offer superior products ...

  • Mutuals lag behind as mortgages soar

    24 May 2001

    Mortgage lending in April was at its highest level since records began in 1998, according to monthly figures from the Council of Mortgage Lenders. Strong house-buying activity last month resulted in total gross lending rising to £12.6bn from £12.2bn in March and £9.2bn in April 2000. But Building Societies Association figures show gross lending by mutuals fell to £1.9bn in April from £2.5bn in March although the figure was up by 8 per cent on last ...

  • Newbury 5 free from redemption penalty

    24 May 2001

    Newbury Building Society has improved its Newbury 5 mortgage, which has a five year discount and no early redemption penalties.

  • Newcastle Tessa Isa knocks three times

    24 May 2001

    Newcastle Building Society has introduced the second issue of its global guaranteed equity bond, an individual savings account (Isa) for investors with maturing tax exempt special savings accounts (Tessas).

  • Not to be dismissed

    24 May 2001

    Employers need to be aware that events which could lead to a constructive dismissal claim could still be used to succeed in a claim brought some time later. In the case of Abbey National v Robinson, the applicant made a formal complaint about her manager after she had been bullied by him for about 12 months. The manager was disciplined by Abbey National and the applicant was reassured that he would be transferred to another role so that she would not have to work with him. However, ...

  • NU calls for stakeholder rules rethink over with-profits loans

    23 May 2001

    Norwich Union is calling on the Government and regulator to change stakeholder rules to allow ringfenced with-profits funds to borrow from established funds if they fail to meet their guarantees.The change would allow two-way traffic between the new ringfenced policy and the life office's existing with-profits funds or free assets in the form of loans. This would allow the cross-subsidisation if the new fund underperforms.NU is also hitting back at criticism of its proposed ...

  • NU calls for stakeholder rules rethink over with-profits loans

    24 May 2001

    Norwich Union is calling on the Government and regulator to change stakeholder rules to allow ringfenced with-profits funds to borrow from established funds if they fail to meet their guarantees. The change would allow two-way traffic between the new ringfenced policy and the life office's existing with-profits funds or free assets in the form of loans. This would allow the cross-subsidisation if the new fund underperforms. NU is also hitting back at criticism of its proposed ...

  • Offices gear up for test case result on windfall payouts

    24 May 2001

    Life offices on the brink of demutualisation are gearing up for the outcome of a test case which could allow IFAs and providers to offset windfall payouts against misselling compensation. The test case, brought by PI insurers Collegiate Insur-ance on behalf of IFA Needler Financial Services, is being heard on July 16. The FSA says IFAs can stall their pension review cases until the case is settled. Friends Provident, Scot-tish Provident and Scottish Life, which are all holding ...

  • Online information from RJ Temple

    23 May 2001

    National IFA RJ Temple is launching a website which it says is designed to help consumers manage their finances and gain information rather than buy products.Visitors to www.rjtemple.co.uk can access comparative information and a free online investment valuation facility covering a range of funds.RJ Temple says online financial calculators allow people to estimate their mortgage repayments and the value of their pension and to meet their investment objectives.

  • OUTSIDE EDGE Robert Reid

    24 May 2001

    I don't know about elsewhere in the country but the rush to sign up for stakeholder has yet to grip North London. Perhaps the October deadline is the date to focus on, given that many businesses I have spoken to recently have little idea of their obligations. The talking sheepdogs seem to have been left by the wayside. As a friend in advertising informs me, this is most probably due to them being considered insensitive given the foot and mouth problem. I can see stakeholder ...

  • Pensions put in poll position

    24 May 2001

    Party manifestos are being published and we can get a clearer picture of what each party offers as a vision for pensions in the UK. Cut taxes for pensioners. Increase the basic state pension. Abolish compulsory annuities at 75. Allow younger workers to pt for properly funded private pensions. Protect the savings and homes for those needing long-term care. Cut taxes for pensioners This comes in two parts. People who are not higher-rate taxpayers would ...

  • Possible bid for Towry Law

    24 May 2001

    Beleaguered IFA Towry Law has admitted a substantial pension misselling liability and confirmed it has received a conditional takeover approach. It is believed Australian giant AMP could be in the frame to acquire the IFA, as reported exclusively in Money Marketing on April 5. Towry Law says the pension misselling liability resulted from its acquisition of IFA Advizas from Hogg Robinson in January 2000. The IFA says it made a substantial provision for the liabilities recorded ...

  • Press boost Fidelity Isas

    24 May 2001

    IFA recommendations helped Fidelity get better press coverage than any other fund management group during the Isa season, according to PressWatch. PressWatch's new Fund-Watch initiative tracked national press coverage of Isas, unit and investment trusts between January and April and found IFA support for a particular fund has a hugely significant impact on its track record over time. IFAs helped Fidelity's fund portfolio easily outstrip rivals to take the top company award. PressWatch ...

  • Press boost Fidelity Isas

    23 May 2001

    IFA recommendations helped Fidelity get better press coverage than any other fund management group during the Isa season, according to PressWatch.PressWatch's new Fund-Watch initiative tracked national press coverage of Isas, unit and investment trusts between January and April and found IFA support for a particular fund has a hugely significant impact on its track record over time.IFAs helped Fidelity's fund portfolio easily outstrip rivals to take the top company award.PressWatch ...

  • Principality fixes for three years

    29 May 2001

    Principality Mortgages has brought in the three-year fixed rate mortgage.

  • Principality goes for discount

    25 May 2001

    Principality Building Society is stepping lower with the introduction of the stepped rate discount mortgage.

  • Private Label introduces convertible mortgage

    25 May 2001

    Private Label has introduced the tracker fix mortgage with a difference.

  • Product matters

    24 May 2001

    The Sun has hardly shone so far this year. With the backdrop of a fall in its relative market position, the same could be said of Sun Life. But, with forecas-ters predicting a glor-ious summer and with a new Sipp prop-osition that appears to offer everything, the future could be brighter for both. Sun Life's Sipp, launched in March, provides for full and hybrid investment and can be used for phased retirement and draw-down. The charges are reasonably competitive and a discount ...

  • Protected funds will take over, says Close

    24 May 2001

    Protected funds are going to overtake with-profits as a low-risk smoothed investment vehicle, predicts Close Fund Management. It says life offices have not being paying out to policyholders the full ret-urns on with-profits and the continuing concern surrounding the obscurity of with-profits policies will turn investors towards protected funds. It says protected funds, which can guarantee from 95-100 per cent of an inv-estor's capital, work on the same principle of providing ...

  • Pru accused of hindering staff's prospects after salesforce is sold

    24 May 2001

    Prudential has been accused of treating staff unfairly following its deal to sell its salesforce to national IFA Inter-Alliance. Staff have been waiting to hear about their redundancy packages for more than three months since Pru announced the axing of its salesforce on February 13. Some are now calling on the company to clarify their situation in writing. Several Pru salespeople have complained that barriers are being put in their way to try to stop them progressing with opportunities ...

  • Putnam does its homework for new fund

    24 May 2001

    Putnam Investments is picking the brains of its best analysts with the introduction of the Putnam research fund.

  • Raising the issue of standards

    24 May 2001

    As the newly appointed project director for the Raising Standards initiative, I am always interested to get feedback on how the scheme is perceived. I was interested to read Lorna Bourke's criticisms of the Raising Standards initiative (Money Marketing, May 10). The Raising Standards initiative has been developed with the intention of making a real difference to consumers of financial services products. A considerable amount of research and consultation was undertaken with ...

  • Right cash, right hands, right time

    24 May 2001

    This week, I start to look at the fundamental use of trusts in financial planning recommendations. To set the scene for the technical depth of the discussion over the next few weeks, I would like to stress that I will be concentrating on aspects of the use of trusts which should be commonplace in the majority of financial planning recommendations produced by financial advisers and, in particular, independent financial advisers - not the more detailed, technical and creative use of ...

  • Sarasin - Sarasin Equisar Ex-UK Global Thematic Fund

    25 May 2001

    Friday, 25 May 2001. Type: Oeic. Aim: Growth by investing in blue chip equities globally excluding the UK. Minimum investment: Lump sum £250 monthly £100, Isa lump sum £1,000 monthly £250. Investment split: 100 per cent investing in blue chip equities globally excluding the UK. Isa link: Yes. Pep transfers: Yes. Charges: Initial 5 per cent, annual 1.5 per cent. Commission: Initial 3 per cent, renewal ...

  • Sarasin looks beyond the UK

    29 May 2001

    Thematic investment specialist Sarasin Investment Management has introduced the Sarasin EquiSar Ex-UK global thematic fund.

  • Schroder offers fist full of dollars

    29 May 2001

    Schroder is putting its money on an upturn in the US economy with the introduction of its North American unit trust. Schroder's existing North American fund is not available to retail investors and it will be renamed the Schroder institutional American fund to make way for the new fund. The new fund is an American fund that covers a broad range of sectors rather than a single specialist sector. It could suit investors who are looking for a ...

  • ScotEq ads send loud and clear message to IFAs

    24 May 2001

    Scottish Equitable is running a £500,000 ad campaign to show IFAs it is committed to backing the independent market. The theme of the campaign, which will take place over the next few months, is Clearly Investing in Your Future. It will feature a mix of products and services as well as putting across Scot-tish Equitable's corporate messages. The campaign is des-igned to show that ScotEq is clear about its commitment to the future of the IFA market and at the same time ...

  • Skandia adds to protection menu

    24 May 2001

    Skandia is adding long-term care and stand-alone life cover options to its menu-based protection plan. Skandia Protect will offer stand-alone life cover on either a rolling term, fixed term or whole-of-life basis. As the whole-of-life option is not unit-linked, it offers policyholders the security of guaranteed premiums. The rolling term basis allows policyholders to extend their cover after 10 years without further medical evidence. The plan will also offer the option to convert ...

  • Skipton launches mortgage discount scheme

    29 May 2001

    Skipton is launching a mortgage discount scheme which reduces the interest rate of borrowers’ loans the longer they have been with the society. The scheme will automatically apply a 0.3 per cent discount off Skipton’s variable rate of 6.9 per cent after a mortgage has been held for two years and a 0.5 per cent discount after four years. Borrowers on special deals and within redemption penalty periods will also benefit from the discounts. 

  • Split capital trusts website launched

    23 May 2001

    Investors will be able to access online daily analysis of all split capital trusts through a website launched through a joint venture between Fundamental Data and Aberdeen Asset Managers.

  • Standard Life Investments - Standard Life European Private Equity Trust

    23 May 2001

    Wednesday, 23 May 2001.

  • Sun Bank goes halves on flexibility

    25 May 2001

    Sun Bank has designed fix & flex, a flexible mortgage that allows borrowers to split their repayments between a fixed rate and a variable rate.

  • Surpluses and minuses

    24 May 2001

    I recently sold my business after running it for 30 years. When I was a director, I planned for my retirement by making substantial contributions to a pension scheme. My pension adviser now tells me there is a possibility of a surplus arising. Of particular concern to me is the fact that, as I understand it, a surplus is refunded to the company that set up the scheme, regardless of any intervening change in control. Is this true? If it is, what can be done to help preserve any surplus ...

  • Testing conditions for medical fund

    24 May 2001

    Having topped up the Tora tan in the middle of the Atlantic (well, pretty much the middle) I could not resist the opportunity to parade myself in front of IFAs in South-west England. The topic is my now familiar case to re-embrace the cult of the equity but go easy on the greed element. As you read this, I should be telling the good folk of Devon and Cornwall that things will get better but not necessarily easier. Prepare for a prolonged period of lower returns. We all became too ...

  • The Duncan Update

    24 May 2001

    Sarasin Investment Management is launching a thematically managed investment fund. The EquiSar ex-UK global thematic fund will invest in predominantly blue-chip equities globally but will exclude investments quoted in the UK. Cofunds has added Credit Suisse Asset Management and Perp-etual to its fund supermarket, taking the total number of funds to 265. Lazard Asset Man-agement has appointed Kieron Launder as head of independent managed funds. He joins from Citibank. Friends ...

  • Top fund firms link up for IFA roadshows

    24 May 2001

    Three of the UK's top fund management groups are teaming up this autumn to present a series of roadshows to IFAs around the country. Invesco Perpetual, M&G and Schroders have made the agreement, the first to involve three major groups, following M&G and Schroders' joint Isa season nationwide roadshows earlier this year. The fund managers say the aim is to give IFAs more value for their time by pooling res-ources, with each group exp-ected to do two presentations. M&G ...

  • War on Want promotes SRI to pensions managers

    29 May 2001

    Charity War on Want is launching a Just Pensions toolkit which is a new information pack for pension fund trustees and fund managers providing advice on how to improve the impact of pension fund investment on social needs. The moves comes ahead of the first anniversary of the new amendment to the Pensions Act, requiring all occupational pension funds to report on the extent of their Socially Responsible Investment policies.  

  • What next, driving instructors that cannot drive?

    24 May 2001

    I feel I must respond to the front-page article headed, Consumer groups call for free advice. So the Consumers' Association believe that IFAs provide the best quality advice but the price is too high for many consumers. Well, this is not really a surprise to anyone, surely? Although the commission system of remuneration may not be ideal, it does (did) provide a service for clients who want to arrange financial services "products" but do not want to pay fees. However, as the ...

  • Who is real winner in joint venture?

    24 May 2001

    The news that Aifa and IFA Promotion are launching a new company to market independent advice appears to have put the ball firmly back into the IFA court by giving greater control over marketing strategy. Aifa and IFAP each take a 50 per cent share in the new company, called Advice First. The aim of the company is to act as a strategic board, setting a combined policy on how to promote the IFA sector. The board will be made up of Aifa and IFAP directors and will effectively tell ...

  • Widows offers up to 9.75% with fourth version of guaranteed plan

    24 May 2001

    IFA Promotion is to return to terrestrial TV for the first time since its sponsorship of Without Walls in 1992 with a campaign starting on Channel 4 this week. The ads will be piloted for one week in slots around the 15 to One and Countdown quiz shows before a decision is made on whether to continue this strategy. IFAP says it chose these slots because both shows encourage people to interact from home. One ad shows different situations where people could benefit from independent ...

  • Woolwich offsets mortgage for family help

    24 May 2001

    The Woolwich has brought out the open plan offset together flexible mortgage.

  • Zipadee doo dah

    24 May 2001

    As I write this column, weather reports in the background remind me that some things in life are almost inevitable. Today is the first day of the Lord's Test and, of course, rain is expected. In my experience, the equivalent situation with technology is that if it is going to let you down it is going to happen when you need it most. Although it is impossible to avoid such frustrations, there are many things you can do to minimise them. This week I will share a few of the ways I ...

  • Zurich protection gives LTC a Cic-start

    25 May 2001

    Zurich Life has designed a cafeteria-style protection policy that includes long-term care, life assurance and critical illness cover.

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