Money Marketing
23 October 2002

  • 'Banks will clean up with Sandler products'

    24 Oct 2002

    General practice IFAs targeting the middle market have two years to sort out their businesses before they start facing serious competition from highstreet banks selling Sandler's new products, accor-ding to Clerical Medical. Head of intermediary strategic planning David Shelton says banks and building societies will have an advantage because they will be able to market the stakeholder products as "simple, streamlined, cheap and Government-approved", all qualities which will appeal ...

  • 'Bargains everywhere' in investment trusts

    24 Oct 2002

    There are so many bargains in the investment trust market that it is like being a child in a chocolate shop, says Iimia chief investment officer Nick Greenwood. He believes the current market for investment trusts is promising, with discounts widening so much it is time for investors to go shopping for bargains. He says discounts are at their widest since Black Monday in 1987, having hit an average of 18.7 per cent at the beginning of October. Greenwood says the potential is especially ...

  • 'Euro double whammy would bring chaos to mortgages'

    24 Oct 2002

    The Council of Mortgage Lenders is warning of "regulatory chaos" if the European Union's consumer credit directive is allowed to "drive a coach and horses" through the FSA's plans. The directive is on its way to becoming European law although there is no set timetable. The CML says it would severely constrain the UK mortgage market, potentially wiping out flexible mortgages, which account for about 20 per cent of lending, and also hitting equity release and remortgaging. The ...

  • 'Icing on the cake' is not so sweet for AMP

    24 Oct 2002

    As it becomes clear that depolarisation is going to happen in a softer way than many feared, two of its most avid adherents, Zurich Financial Services and AMP, have been left in disarray. Last week saw their respective UK chiefs - both Australians - lose their jobs. Ray Greenshields was deposed as chief executive of Zurich UK Life while AMP UK Financial Services managing director Tom Fraser found he no longer had a job after new group chief executive Andrew Mohl decided to split its ...

  • 'Keep staff aware of benefits'

    24 Oct 2002

    Good communication is the key to a happy workforce and the most effective way to encourage take-up of employer-sponsored pay packages, according to benefit specialists Youatwork. A recent survey from the employee benefits division of Royal & Sun Alliance reveals that 47 per cent of UK workers would be happier and more productive in their jobs if their employers communicated the full value of their pay packages. It says while most employees are aware how much their salaries ...

  • 'Modest top-up can boost pension'

    24 Oct 2002

    An extra one-off pension contribution of £1,000 could substantially increase the number of people expecting an income in retirement of 50 per cent or more of their final salary, according to JP Morgan Fleming Asset Management. Research from the fund manager indicates that modest additional pension savings can improve retirement prospects for today's workers. It says the percentage of working men who can reasonably expect a pension of half their current salary is only 29 ...

  • 'Outdated Peps need more reviews'

    24 Oct 2002

    The vast majority of Pep inv-estors have distorted and outdated portfolios because their accounts are not being reviewed as often as they should be, according to Bates Investment. The IFA says the average unit trust or Oeic Pep account holder has a portfolio with an 83 per cent weighting in UK equities despite the fact that the UK stockmarket only makes up around one-tenth of the total value of global markets. Using Investment Management Association data, Bates says the average ...

  • A consumer's view

    24 Oct 2002

    It was only a matter of time before it happened but nobody wanted to listen to the warnings. South London estate agent Peter Burchell recently remarked about falling yields in the buy-to-let market: "We are finding that more and more people are putting their property on the market to sell or let and they take which ever deal comes first." It has been obvious for some time that the London buy-to-let market has overheated and that supply substantially exceeds demand. Rents are falling ...

  • A date with destiny for bond values

    24 Oct 2002

    It is probably fair to say that most advisers would claim to have a pretty good grasp of the taxation regime that applies to single-premium bonds. After all, it has been around for many years and the concept of 5 per cent tax-deferred withdrawals, top-slicing relief and the impact of withdrawals in excess of 5 per cent or full policy encashments on the availability of age allowance for clients aged 65 and over should be well known. However, one area that still seems to cause problems ...

  • A new approach to PI insurance

    24 Oct 2002

    In view of the near inability for small IFA firms to get a renewal - even those with no claims in the last five years and none pending - is it not time the PI insurance mandatory requirement was abolished? If abolition is an abhorrence to the FSA and the loquacious Consumers' Association, I would prefer the formation of a national association of small IFAs acting as a co-operative (excluding networks) purely for PI insurance with a sum insured of £1m and a £5,000 suggested ...

  • A new start may be only solution

    24 Oct 2002

    It seems unlikely that saving for retirement has any easy solutions. It is time to look again at how some additional savings could be invested profitably. We know that UK productivity is lower than almost anywhere else in the industrialised world. Little meaningful research has been conducted to establish why. I believe that it is in part the effect of excessive interest rates and pressure to provide non-state pensions funded by dividends. Thus, capital-intensive industries, which ...

  • AA closes down its IFA business

    24 Oct 2002

    The AA has quietly closed the doors on its IFA business less than a year after becoming fully operational, blaming September 11 and plunging stockmarkets. AA Financial Services shut up shop in April after just seven fully operational months but the firm remained tight-lipped about the closure until now. It opened on an executiononly basis in January 2001, offering full advice from September 2001, but the decision was taken as early as January 2002 to close to new business and wind ...

  • ABI wants 'greater flexibility' on annuity guarantees

    24 Oct 2002

    Almost half of UK consumers are either very or fairly interested in receiving a money-back guarantee on their annuity purchase and are willing to accept reduced rates if this concession is allowed, according to research from the ABI. The main reason why 47 per cent of respondents to the trade body's recent survey said they wanted access to guarantees is because they are concerned about getting value for money that will not disappear if they die soon after they have purchased their ...

  • Accreditation symbol for MTE service users

    24 Oct 2002

    Common trading platform the Mortgage Trading Exchange, set up last month in a joint initiative between Mortgage 2000 and Mortgage Brain, has unveiled an accreditation symbol for providers using the service. It says the symbol is intended to give intermediaries a clear and visible means of identifying companies which are committed to trading electronically through MTE. MTE claims that following the agreement between MB and M2000, over 60 per cent of the mortgage intermediary market ...

  • Advice Store plans interactive presentations

    24 Oct 2002

    IFA Network Advice Store is using data, video and voice conferencing to attract new members, train staff and fulfil compliance requirements. The network, which laun-ched in March, has 103 RIs and plans to expand further with interactive presentations held online every day at 11am and 2pm. Potential members can enter a special website set up by Advice Store to view the 15-minute presentation and ask questions live on the net. Users can ask questions in front of other users or privately. Advice ..

  • An unsound deduction

    24 Oct 2002

    Last week's article was on the seemingly stable issue of tax relief on premiums paid by companies under policies on the lives of key people. The rules for deductibility of the premiums and assessability of the policy proceeds are well known and, broadly speaking, provide that premiums will not be deductible unless they are in respect of a policy on the life of an employee with no substantial shareholding in the premium-paying company, the policy is a short-term insurance, the sum assured ...

  • And the long wait goes on...

    24 Oct 2002

    For the first time (perhaps this in itself is an achievement), I begin to question the future of this industry and the people employed in it. I have a client who has a pension arrangement with Pearl which was included in the pension review and received compensation - presumably as a result of bad advice. We asked Pearl to transfer the servicing rights to our agency in September 2000 and were advised that as they were a home service company, it was not possible to transfer servicing ...

  • BIA and Popplewell offer pension transfer services

    29 Oct 2002

    Berkeley Independent Advisers has joined forces with IFA Keith Popplewell to offer a new range of services through member IFAs. Through Popplewell's company, Pension Transfer Advisory Services, BIA members will now be able to offer transfer of preserved pensions, analysis of retirement income options, release of over-funded pensions, claiming of back-dated pensions for part-timers and pension actuarial services.

  • Bloomsbury devises questionnaire to assess risk attitudes

    24 Oct 2002

    IFA Bloomsbury Financial Planning is introducing a risk coaching questionnaire to assess the risk profile of its clients and educate them on the meaning of risk. The questionnaire, which was inspired by similar tools used in the US, includes exercises where the client is asked to rank their attitude towards money on sets of scales from: "Money is the root of all evil" to "I can never have enough" and "Nobody ever got rich by writing cheques" to "I can't take it with me". Clients ...

  • Britannia expands mortgage range

    24 Oct 2002

    Britannia Building Society is adding three new products to its mortgage range. The new products include a first-time buyers loan, a five-year fix and a 10-year fix, all of which Britannia claims to be highly competitive with no extended penalties. The FTB loan offers a fixed rate of 3.99 per cent up to 75 per cent loan to value or 4.19 per cent up to 95 per cent LTV for the first 18 months of the loan. The mortgage has no arrangement or valuation fees and no mortgage indemnity ...

  • Britannia International - Guaranteed Capital Equity Bond Issue 11

    24 Oct 2002

    Thursday, 24 October 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum investment: Lump sum £1,000Place of registration: Isle of ManInvestment split: 100% linked to the performance of the FTSE 100 indexGuarantee: Capital returned in full regardless of the performance of the indexYield: Up to 35% gross after five yearsIsa link: NoCharges: NoneCommission: ...

  • Britannic appoints Thompson as group finance director

    29 Oct 2002

    Britannic Group has announced the appointment of Paul Thompson as group finance director. Thompson, whose appointment takes effect as of December 1, joins from Merrill Lynch where he has been managing director of its Financial Institutions Group since 1997. He replaces Bryan Portman who was promoted to group managing director in September.

  • Britannic Money expands distribution of sub-prime current account mortgage

    29 Oct 2002

    Specialist lender Britannic Money is expanding the distribution of its sub-prime current account mortgage product launched in July by increasing the number of packagers it deals with. Its Restart Homeloan product for borrowers with credit difficulties is now available through packagers Majestic, Mortgage Times and Saracen in addition to the three packagers on-board at launch, All Types of Mortgages, National Guarantee and Solent.

  • BWD Rensburg - BWD UK Micro-Cap Growth Trust

    25 Oct 2002

    Friday, 25 October 2002Type: Unit trustAim: Growth by investing in UK companies with a market cap of less than £100m, UK smaller companies and cashMinimum investment: Lump sum £2,500Investment split: UK companies with a market cap of less than £100m 75%, UK smaller companies and cash 25%Yield: 1.5% grossIsa link: YesPep transfers: YesCharges: Initial 5.25%, annual 1.5%Commission: Initial 3%, renewal ...

  • CA members were warned by their own organisation

    24 Oct 2002

    The Consumers' Association states in Which? in October) that "justice" is being done in claiming compensation against alleged misselling of mortgage endowments maturing after age 65, backed by FSA regulations which freeze the past. But the case quoted never went to court. The April 1983 issue of Which? recommended low-cost endowments as a "best buy", saying: "It is unlikely there would not be enough to pay off the loan." It was explained that the full amount of the loan repayment ...

  • Cake for T

    24 Oct 2002

    Mr and Mrs T were both retired, Mr T being in his mid-70s and Mrs T a sprightly 66-year-old. They had £230,000 from the sale proceeds of a second property and wished to increase their potential income, particularly for Mrs T in the event of Mr T's death, while considering the effects of her age allowance. They were cautious regarding investments in general, especially in the light of the currently volatile stockmarkets, and already had a self-invested Isa through a stockbroker. They ...

  • Calling time

    24 Oct 2002

    One of the biggest timecharging IFA firms in the country is setting its watch for a change in the better than best legislation, counting down to 2003. Advisory & Brokerage Services, with a £5.02m turnover, is ranked 49th-biggest IFA in the UK by Matrix data. Following its purchase by Aegon in Aug-ust, it is now looking to expand from 30 RIs to 60 in the next three years. The immediate cash injection means it will be able to take on five privateclient advisers in the next ...

  • Campaign seeks FSA meaning of misselling

    24 Oct 2002

    Pressure is mounting on the FSA after Aifa chairman Lord David Hunt joined the calls led by Ron Sandler for the regulator to publish a definition of misselling. Hunt called Sandler's recommendation a welcome move, saying that for far too long what constitutes misselling has been defined in hindsight by the FSA and advisers are running scared as a result. In an attempt to open the debate over such a definition, Sheffield IFA Geoff Kangley has come up with his own version of how ...

  • Christows - Multi-Manager Portfolio Service

    23 Oct 2002

    Wednesday, 23 October 2002Aim: Income or growth by investing in exchanged traded funds, unit trusts and OeicsMinimum investment: Lump sum £25,000Investment split: Choice of managed growth, overseas growth, worldwide growth, rising income and high yield portfoliosIncome facility: YesCharges: Initial 4%, annual 1%Commission: Initial 3%, renewal 0.5%Tel: 0800 0353200

  • Cleaning up facts on laundering

    24 Oct 2002

    I refer to the article in Money Marketing, October 10) head-lined, IFAs attack Cofunds on laundering rules, which suggests that there is a "quirk" in the anti-money laundering system used by Cofunds. As the supplier of the anti-money-laundering system that Cofunds is using, Experian would like to clarify some of the points made in your article. First, Cofunds has quite rightly been anxious to follow the money-laundering guidance notes, which require all financial institutions to ...

  • Close Chip fishes for high-yield properties

    25 Oct 2002

    Close Property Investment is seeking between £30m and £50m for Close high income properties (Chip), an offshore closed-ended fund that is also available within an Isa wrapper.

  • Compulsion is morally wrong, says Standard

    24 Oct 2002

    Standard Life is warning the Government that pension compulsion is morally wrong and it should instead bolster the state pension. In its submission to the Work and Pensions select committee, Standard says it supports former pensions minister Frank Field's proposals for a new partially funded state pension even though it would mean an end to contracting-out contributions. Standard questions whether low to average earners can afford to save through stakeholder, claiming that the ...

  • Correspondent's week

    24 Oct 2002

    "I am employed, I am employed. I have a boss, I have a boss." It's my new mantra and something I must once again work hard to place at the centre of my working life. It's Monday morning, week two as head of communications at Park Row Group. Having run the Pretty Technical Partnership for the last eight years with a single co-director, the culture shock is huge but I made the decision that distribution is the place to be and this is the best place to do it. My role is to look ...

  • Cover help and threats as FSA fails to communicate

    24 Oct 2002

    The FSA is sending out 1,200 letters to IFA firms that it has identified as having legitimate difficulties in getting prof- essional indemnity cover, promising to work on a one-on-one basis with them to find compliant insurance. But despite the move, IFAs claim they are still receiving conflicting signals from the regulator. One firm, Philip Evans & Associates, received the letter from director of the investment firms division David Kenmir, detailing the regulator's new ...

  • Credit Suisse and Threadneedle funds get AA rating

    29 Oct 2002

    Credit Suisse's smaller companies fund and Threadneedle's UK growth, UK select growth and UK institutional growth funds have been awarded AA ratings by Standard & Poor's Fund Research. Credit Suisse says this in recognition of fund manager Crispin Finn's performance since he took over the fund in July 1999. Threadneedle says all three of its funds have achieved above average performance over the past five years. 

  • Forum to discuss Sandler suite

    24 Oct 2002

    This week, Money Marketing is launching a new initiative aimed at publicly airing the many issues surrounding the Sandler report and the subsequent action taken by the Government. The Sandler Forum is not a campaign aimed solely at pointing out the negatives of the Sandler proposals but an opportunity to look at the issues from all angles representing the views of those for and against the proposed stakeholder suite of price-capped products. Even though the Treasury has officially ...

  • Foully qualified brokers?

    24 Oct 2002

    Who at Personal Touch Insurance responsible for training promotion still had dreams of a heavy night at Stringfellow's Cabaret of Angels on their mind when sending out exam circulars, the Diary wonders? One IFA received an invitation to a Cemap training day for the bridge paper exam which suggested that, to benefit fully, students should read the "coarse material" before attending.

  • Francis Klonowski

    24 Oct 2002

    After various diversions via the priesthood, catering and then management, IFA Francis Klonowski has finally found his vocation - financial services. Independent from the very start, at the age of 11, he made the decision to leave his Sheffield home and attend the Catholic Seminary at Upshaw college in Durham to begin training as a priest. He describes a sheltered, monastic life at the school where pupils were left with their studies and accompanied even on trips into the local town. Following .

  • FSA drops Defined Payment for Aifa's Menu

    28 Oct 2002

    The Defined Payment System has been scrapped in favour of Aifa's Menu approach to the remuneration of IFAs, the FSA has announced today.

  • FSA must take action on PI

    24 Oct 2002

    The professional indemnity crisis is becoming a very real threat to many IFA businesses. Nearly all are facing huge increases, in many cases, up to double or three times normal premiums and, in one exceptional case, up to 750 per cent more than last year. Others are finding it virtually impossible to access compliant cover, often through no fault of their own but simply as a result of the constricting market, with just a handful of PI insurers willing to take on the perceived risky ...

  • Gainful employment

    24 Oct 2002

    OK, so October is not usually the time you are reminded about capital gains tax planning. However, all plans need to be fully considered before implementation. Now is the time to plan the things you need to mention to clients over the next six months. Property Where clients purchase a second property, they must remember to elect which property is to be treated as their main residence. The time limit is two years from the date the second property is purchased. If a further ...

  • Gap on returns means FSA may cut projections

    24 Oct 2002

    The FSA could be forced to cut projection rates for with-profits policies over concerns that life offices could be attracting new investors by overstating likely future performance. Independent research conducted on behalf of Money Marketing reveals that typical with-profit policies - calculated using the average asset allocation of all available products - are returning far more to investors than their underlying asset performance warrants. Although this smoothing effect is integral ...

  • Getting younger by the day?

    24 Oct 2002

    Fellow press officers at Axa have been concerned that photographs circulating in newspapers of their colleague Steve Muir make him appear much younger and fresh-faced than he actually is. So young did he look, in fact, that people were wondering if he had a wizened portrait in the attic. Keen to correct any false impressions that may have been given, his colleagues kindly suggested they would send some more up-to-date pictures. However, MM's computer system refused to recognise ...

  • Govt says axing 40% relief is 'feverish speculation'

    24 Oct 2002

    The Government has angrily denied that it plans to scrap the 40 per cent upper tax relief on pension contributions for higher-earners after being challenged by the Conservatives. In a heated exchange in Parliament this week, Shadow Secretary of State for Work and Pensions David Willetts demanded to know whether Secretary of State Andrew Smith supported the idea of removing the higher relief. Smith replied: "We do not have such plans. Ministers have taken no decisions of the sort ...

  • Groupama - Cashwise

    25 Oct 2002

    Friday, 25 October 2002Type: Healthcare cash planMinimum premium: £9.80 a monthMinimum-maximum ages: 16-65Maximum benefits: Level one - dental £65, optical £70, inpatient hospital admission £20, accident inpatient hospital admission £20, maternity inpatient hospital admission £20, recuperation payment £70, hospital parental stay £20, hospital day care surgery £40. Level two - dental £95, optical ...

  • Groupama gets wise with cashwise

    29 Oct 2002

    Groupama Insurances has brought out a healthcare cash plan for individuals and smaller and medium-sized companies that are looking for a cheaper alternative to private medical insurance (PMI).

  • High Yeilding New Star

    25 Oct 2002

    New Star Investment Funds - New Star High Yield Bond FundType: Oeic Aim: Income by investing in high yield and investment grade bonds Minimum investment: Lump sum £1,000, monthly £100 Investment split: High yield bonds 55%, investment grade bonds 45% Yield: 7% gross Isa link: Yes Pep transfers: Yes Charges: Initial 4.25%, annual 1% Commission: Initial 3%, renewal 0.3% Tel: 0845 6088704 Broker ...

  • IFAs cutting time spent on less wealthy clients

    24 Oct 2002

    Almost three-quarters of IFAs plan to reduce the amount of time they spend with less wealthy clients while 40 per cent might leave the business altogether, according to research commissioned by IFA and adviser coaching company the Grosvenor House Group. The survey questioned almost 550 IFAs, asking them to answer yes or no to whether, in light of all the changes in the industry, they were considering either leaving the industry altogether, moving out of the private market into the ...

  • igroup makes three senior level appointments

    25 Oct 2002

  • Independent view

    24 Oct 2002

    It is a strange thing to find yourself agreeing with a piece of investigative journalism, but that is exactly what happened a while ago. New Star's billboard campaign extolling the merits of its burgeoning fund range has caught the attention of the media, but I suspect not in the way it was hoping. Its canny campaign was criticised in a recent Sunday newspaper investigation. It highlighted the following quartile rankings: first, first, fourth, first (with "quartile ranking" in very ...

  • Industry airs its fears over deflationary talk

    24 Oct 2002

    Concerns of a deflationary market have prompted some fund managers to issue strong statements to the contrary. Seemingly fearing that talk of deflation could prove to be a self-fulfilling prophecy, the fund managers - joined last week by Baring Asset Management and Schroders - have stressed they do not believe that Britain is in danger. Although the price of manufacturing goods is falling, Baring says it is a trend that is unlikely to spread through the whole economy. Global head ...

  • Inside edge

    24 Oct 2002

    Now that the fire and water has been replaced by a significant period of reality, the question still remains if we really need a 1 per cent world? Whether this applies to pensions or to the wider suite of products currently proposed, what has it meant in reality, what was it set out to achieve and, quite importantly is it achieving these goals? The gambit seemed straightforward enough. Bringing down charges or, more precisely, uniforming charges at a certain level, would encourage ...

  • Insight Investments - Insight Investments US Select Opportunities

    23 Oct 2002

    Wednesday, 23 October 2002Type: OeicAim: Income by investing in US equitiesMinimum investment: Lump sum £2,000, monthly £100Investment split: 100% in US equitiesIsa link: YesPep transfers: YesCharges: Initial 5.25%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0845 8506050

  • Investment analysis

    24 Oct 2002

    Despite the terrorist attack in Bali, which saw a raft of selling in airline and tourism stocks, world equity markets remained on a powerful roll early last week, spurred on by a bout of strong corporate data. Wall Street and the European bourses registered their strongest four-day gain in more than a decade by Tuesday's close. However, the back end of the week saw the markets pause for breath amid profit-taking and corporate disappointments. In the US, strong earnings reports ...

  • Investment view

    24 Oct 2002

    Last week delivered something of a rollercoaster ride for equity markets. London saw its biggest single-day rise for 10 years, only to hand back much of the gain during the following trading session. Individual shares were also moving at alarming speeds - too often down rather than up. By the end of the week the market had bounced back but volatility on this scale can be very offputting for private investors. The continuing poor stockmarket conditions were clearly on many people's ...

  • Jackman wins battle at FSA to save T&C review

    24 Oct 2002

    The FSA is publishing a consultation paper before the end of November detailing its plans for new IFA training and competence standards, according to head of industry training David Jackman. Jackman said last week that a paper outlining the FSA's preference for regime change, first outlined nearly a year ago, would be finished by the end of next month. The announcement comes despite recent industry speculation that the exam review had been put on the backburner as a result of ...

  • Julian Gibbs

    24 Oct 2002

    In most cases, I am very much a believer in following top fund managers wherever they go - although, in the case of the best fund management companies such as Fidelity and Threadneedle and recently in the case of ABN Amro, they replace managers with other good ones very quickly. This is the reason why I am so pleased that Citywire ranks fund managers on a very sound methodology basis. Not only does it measure absolute performance but also how the manager has performed compared with ...

  • Keydata Investment Services - Dynamic Growth Plan

    29 Oct 2002

    Tuesday, 29 October 2002 Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £3,000-No maximumTerm: Five yearsGuarantee: Capital returned in full provided the index does not fall by more than 50%Return: Double the growth of the index up to a maximum of 80%Closing date: December 18, 2002Commission: Initial 3%Tel: 020 7710 6906

  • L&G cuts payouts on with-profits

    25 Oct 2002

    Legal & General has cut payouts on with-profits policies by average 9.5 per cent for pensions and 7.5 per cent for other life policies.The company blames significant falls in world equity markets for the move but reasserts the AAA rating that Standard & Poors has given its fund. Annual bonuses remain unchanged.

  • L&G launches online PMI search

    28 Oct 2002

    Legal & General has introduced an new service allowing consumers to compare the prices and terms of its range of private medical insurance plans over the internet.

  • L&H Fundstore offers access to 650 funds

    24 Oct 2002

    Leeds & Holbeck Building Society is launching Fundstore, a white-labelled version of Fidelity's FundsNetwork fund supermarket. The service, initially aimed at L&H's existing customers, will offer investors access to the full range of funds from nearly 50 fund managers available from the Fidelity supermarket. The service is on an execution-only basis and allows investors to mix and match their investments with more than 650 funds from some of the UK's top managers. The ...

  • Lawyer says FSA failed to act on split-cap alert

    24 Oct 2002

    The FSA may be guilty of gross negligence for not heeding warnings passed to it from the Guernsey financial regulator over split-cap investment trusts, according to Class Law Solicitors partner Stephen Alexander. Testifying before the Treasury select committee this week, Alexander said there may be evidence that the regulator was in possession of information pointing to the risks of split caps but failed to act. He said his firm, which is representing more than 1,000 out-of-pocket ...

  • Legal & General - Global 100 Index Trust

    28 Oct 2002

    Monday, 28 October 2002Type: Unit trustAim: Growth by tracking the Standard & Poor's Global 100 IndexMinimum investment: Lump sum £500, monthly £25Investment split: 100% tracking the Standard & Poor's Global 100 IndexIsa link: YesPep transfers: YesCharges: Annual 1%Commission: Initial lump sum 1%, monthly 0.75%Tel: 020 7528 6773

  • Legg Mason U-turn on direct offers

    24 Oct 2002

    IFAs have hit out at Legg Mason Investors, accusing it of disregarding them and reneging on its pledge not to offer non-commission-paying products direct to clients who have maturing policies. IFA Stuart & Co complained to Legg Mason last year that a client with a maturing five-year structured product had been contacted by the firm offering to reinvest the cash into a new plan free of initial charges and up-front commission. In a letter from April last year seen by Money Marketing, ...

  • Lending slows but still well up on last year

    24 Oct 2002

    Mortgage lending is slowing from the unparalleled levels of the summer but still remains well up on last year's totals, according to latest figures from the Council of Mortgage Lenders. The CML says gross len-ding in September totalled £19.7bn compared with £20.7bn in August and £13.7bn last September. Of the £19.7bn, £10.6bn represented loans for house purchase, £7.6bn was for remortgaging and the remaining £1.5bn was for home improvements ...

  • Managing the managers

    24 Oct 2002

    The manager-of-managers approach to investment has attracted a great deal of attention and a large number of new entrants over the past few months. It is a must-have for an increasing number of fund management houses. Done properly, there is no doubt that a manager-of-managers strategy can add rare value to investors by providing superior performance and reducing relative risk. The portfolio can be built so that it works hard through different parts of the cycle without falling foul ...

  • Meet the fund managers on the Lincoln roadshow

    24 Oct 2002

    Lincoln Unit Trust Managers is hitting the road with a series of seminars aimed at giving IFAs a chance to meet fund managers from Goldman Sachs and Delaware International Advisers, the groups which manage its assets. The roadshows will provide an opportunity for IFAs to find out more about the investment styles and strategies of the Goldman and Delaware teams. Delaware fund manager Emma Lewis, who manages the Lincoln Far East excluding Japan fund, will be discussing why she feels ...

  • Merger for TrustNet

    24 Oct 2002

    Online UK fund information provider TrustNet and data supplier Financial Express Prestel are merging in a move they say will create a one-stop information shop for IFAs. The two firms, which will retain their separate branding, say the merger will allow them to meet all IFA data requirements, including daily prices and dividends, factsheets, total return statistics, capital events and key features documents. IFAs will not see any difference on either company's website but can ...

  • Millfield recruits LTC experts as it targets over-50s market

    24 Oct 2002

    The Millfield Partnership has recruited husband and wife long-term care specialists Jeremy and Janet Davies to build a new national LTC team of around 50 advisers. Jeremy Davies has been appointed business development executive while Janet Davies, who is a specialist LTC IFA, has been appointed one of two national long-term care advocates. The couple, who set up their own long-term care training company four years ago, joined Millfield from ProAct Legal where Jeremy Davies was ...

  • Moore is man with the golden touch, says Fidelity

    24 Oct 2002

    Fidelity Investments claims it has proved that Roger Moore really was the best James Bond. Its research shows that during Moore's 14 years as the secret agent from the beginning of 1973 to the end of 1986, the average annual return on bonds was 12.3 per cent. In second place is Timothy Dalton, who played 007 between 1987 and 1995, during which time bonds returned 11.2 per cent a year. The study, marking the 40th anniversary of the Bond films and the opening of a James Bond ...

  • MP calls for an end to FSA's immunity from prosecution

    24 Oct 2002

    The FSA's statutory immunity from prosecution over misselling and negligence claims should be reconsidered in the light of the split-capital investment trust crisis, according to Conservative MP Andrew Tyrie. Tyrie, a member of the Treasury select committee, made the comments at this week's committee hearing into the split-cap situation. He asked Class Law Solicitors partner Stephen Alexander whether he felt the FSA's immunity should be removed. Alexander replied that, ...

  • New network offers shares to members

    24 Oct 2002

    Berkeley Berry Birch is setting up Alpha to Omega, a new network offering members equity holdings in the business. The network aims to recruit IFA practices with a turnover of at least £500,000 and aiming to grow their business although smaller practices with the right profile will be considered. It will operate alongside its existing Berkeley Independent Advisers network which targets advisers from a direct-selling background. Alpha to Omega, which is waiting for FSA authorisation ...

  • New tool assesses fund managers' performance

    24 Oct 2002

    Investment IFA Bestinvest is launching a new tool that puts fund manager performance under the spotlight. The Bestinvest manager record indicator calculates a statistical measurement which reveals whether any particular fund manager is really a star performer or has just "got lucky". The tool looks at each aspect of a fund manager's career record across the various companies they have worked for. It allows the user to view average monthly relative returns either over the ...

  • Now ScotMut set to offer Sandlerstyle with-profits fund

    24 Oct 2002

    Scottish Mutual is set to become the latest office to offer a Sandlerstyle ringfenced with-profits fund. The proposals are still in the early planning stage, with the company yet to decide the exact design or how it would sit alongside its existing with-profits fund. But the news will give some comfort to the brand which saw parent Abbey National strike a deal two weeks ago to market Pru-dential's with-profits bonds through its high-street branches in preference to ScotMut's ...

  • NS&I offers bond as it looks to FTSE recovery

    24 Oct 2002

    National Savings & Investments is looking to capitalise on indications that the FTSE 100 could be on the path to recovery with the launch of a new series of guaranteed equity bonds. The move comes as economist Lombard Street Research director Stewart Robinson predicts the index will enjoy reasonable growth over the medium term after hitting its lowest level for six years. On the back of these expectations, NS&I is releasing a five-year, capitalsecured bond on sale between ...

  • Octopus cuts risk with small firms VCT

    24 Oct 2002

    Octopus Asset Management is seeking to build on the comparative fund-raising success of its bioscience venture capital trust with a new VCT investing in smaller companies. Due to launch in mid-November, the Phoenix VCT will aim to provide income for relatively risk-averse investors looking to protect their capital by investing in cash-generative domestically focused UK small caps in the Alternative Investment Market. The VCT will be managed by former Old Mutual fund manager Justin ...

  • Online mortgages from Abbey Nat's Cahoot offshoot

    24 Oct 2002

    Abbey National's internet bank Cahoot is to offer mortgages online for the first time from this week alongside its existing range of products, including credit cards, bank accounts and unsecured personal loans. Abbey claims that as Cahoot is a low-cost distribution channel, the move to sell mortgages is in line with its aim of giving customers consistently good value-for-money products. Initially, it will be offering a flexible mortgage fixed at 4.39 per cent for the first year, ...

  • Outside edge

    24 Oct 2002

    To me, the word gamble throws up sometimes glamorous but always exciting connotations - Monte Carlo, the Derby, champagne, dinner suits and now, it seems, a 1 per cent world for mass-market investment products. Hmmm. Spot the odd one out? I can get quite up for the first four of these and in fact I am sure that many of our industry have done in the past (usually at policyholder expense but let's not worry about that for now). The one I struggle with is the 1 per cent world for ...

  • Pensions handbook from Age Concern

    24 Oct 2002

    Age Concern is publishing a new guide aimed at helping people to find out more about and make the most of their pensions before they retire. The pensions handbook aims to make the jargon surrounding pensions clearer and to help people understand the range of different types of products on offer. Age Concern hopes that by educating people about pensions it will encourage them to look at making more provision by contributing to a non-state pension ensuring a more comfortable retirement. Only ...

  • PI in the sky as IFA's premiums rocket by 650%

    24 Oct 2002

    A Brighton IFA has been hit with a 650 per cent rise in its professional indemnity insurance despite having minimal exposure to potential endowment or split-cap misselling claims. SR Financial Management submitted a PI renewal form to insurer St Paul several weeks ago, expecting to receive a quote roughly comparable to the £5,040 it paid for £1m worth of cover with the same company last year. But it was stunned at the end of September to find that St Paul was demanding ...

  • PI's the limit for many IFAs

    24 Oct 2002

    In the days before regulation, I recall that I encountered several clients who had been sold redundancy cover by their mortgage provider where they were self-employed or on short-term contracts. The cover was therefore inactive. When I approached the lenders, they admitted that the cover was inappropriate and refunded all the premiums plus interest. In short, there was never any prospect of a claim being paid. Given my tendency to voice my concerns where the FSA is slow to act, ...

  • Point One grows to 600 members within first year

    28 Oct 2002

    Bankhall says its mortgage, general insurance and non-regulated support services provider, Point One, launched a year ago now has a membership base of around 600.It says Point One's growth includes increasing its preferred protection providers to 15 from 6, extending its mortgage lenders to 43 and adding a range of bespoke products including healthcare, accident, sickness and unemployment policies.

  • Premier Diversified Property Fund - Premier Diversified Property Fund

    28 Oct 2002

    Monday, 28 October 2002Type: OeicAim: Growth by investing in UK commercial propertyMinimum investment: Lump sum £11,000Place of registration: Isle of ManInvestment split: 100% in UK commercial propertyIsa link: NoCharges: Annual 1.5%Commission: Initial 3%Tel: 01624 897572

  • Product matters

    24 Oct 2002

    Canada Life's new range of multi-manager portfolios, operated by Insinger de Beaufort, is the latest in a steady stream of manager of manager launches. The case for recommending such products should be appealing to IFAs who see their role primarily as financial planners but do not have access to the research resources to offer ongoing advice on portfolios of individual funds. Keeping pace with fund manager turnover and assessing how investors should respond is a huge commitment, ...

  • Pru UK sales fall as bond business dips

    24 Oct 2002

    Prudential's new business figures show strong growth internationally but weak performance in the UK and a tailing-off in demand for its Prudence bond. Third-quarter figures show total sales for the group rose by 34 per cent to £20.2bn compared with £15bn for the same period last year. However, UK operations showed a 3 per cent decline in sales to £565m from £582m last year based on an equivalent premium income. Directly sold products were unchanged at ...

  • Prudential debuts drawdown plan

    28 Oct 2002

    Prudential has established its first income drawdown plan for people who want to take tax-free income from their pension instead of buying an annuity.

  • Raising Standards initiative to benefit pre-accreditation customers

    29 Oct 2002

    Several life offices accredited through the Raising Standards isnitiative are looking to extend the features of the scheme to customers whose policies were written prior to accreditation according to independent research conducted by Life and Pensions Moneyfacts. The CIS is planning to issue 700,000 Raising Standards style statements to pre-accreditation customers, 80,000 Friends Provident policyholders will be contacted and Scottish Equitable hopes to do the same according to the research ...

  • Read all about it…

    24 Oct 2002

    The Diary does not make a habit of publishing articles from rival newspapers but sometimes stories are just too important and, well, illuminating to let petty differences stand in the way. Flicking through the protection supplement of another trade pink last week, we were astonished to read that industry experts are predicting that "the ageing population should be good news for the long-term care market". My God! Can it be true? Next they'll be telling us mortgages can help people ...

  • Realistic on retirement

    24 Oct 2002

    The Government has signalled that it will produce a Green Paper on pension policy before the end of the year. Meanwhile, the House of Commons Work and Pensions select committee has begun an inquiry into the future of UK pensions and will be taking evidence soon. How can this all be? Did the Government not publish a Green Paper in 1998 setting out the framework for its policies? Has it not been busily introducing a raft of reforms to implement its strategy? Were the Pickering and Sandler ...

  • Revamp for Jupiter ad campaigns

    24 Oct 2002

    Jupiter Unit Trust Managers is dropping its familiar planet logo from its adverts for the first time since the company's launch in 1996. The latest ad campaign will keep the distinctive red, orange and yellow Jupiter colours and apply them to familiar objects to reflect the characteristics of the various Jupiter funds on offer. The Jupiter undervalued assets fund is represented by the bumper of a BMW Z3 sports car. The fund manager claims this aims to portray the high performance ...

  • Revenue puts partners on the payroll

    24 Oct 2002

    The Inland Revenue is to change its rules to allow employees to make contributions into the pensions of non-earning spouses and partners through their payroll. After a request by Scottish Equitable, the Revenue is expected to ann- ounce soon that it is changing IR76 rules banning employees from making contributions into their partner's schemes direct from their net pay. The move has been welcomed by ScotEq, which believes the decision will not only extend group pension scheme ...

  • RU64-style regime faces IFAs on suite

    24 Oct 2002

    The prospect of an RU64-style regulatory regime has been raised over the new stakeholder suite of products following Ron Sandler's stated preference that IFAs and existing salesforces are the best distribution channel for them. IFAs giving any advice on investments, pensions or with-profits could be forced to defend their decision not to recommend one of the products. Industry sources call it a "frightening prospect" and say IFAs could be forced to sell products on which they ...

  • S&P upgrade Standard Life Investment's smaller companies fund

    25 Oct 2002

    Standard Life Investment's UK smaller companies fund has today been upgraded from an "A" rating to a double "A" by ratings agency Standard & Poors.The company has one other "AA" rated fund - its corporate bond fund. Another seven funds are "A" rated out of a total of sixteen. Earlier this year, the smaller companies team under Harry Nimmo was strengthened by the addition of Mark Niznik.

  • SANDLER FORUM: Chance to voice concerns

    24 Oct 2002

    With all due respect to the Government, the fact that a 1 per cent price cap is simple to convey is no basis for reforming a sector. Money Marketing this week launches the Sandler Forum in a bid to investigate the implications and the possible downsides or positives of the stakeholder suite and the Treasury reviewer in chief Ron Sandler's other proposals. There are some deep industry misgivings about Sandler, most particularly about his plans for low-cost stakeholder products. Treasury ...

  • Saving Graces

    24 Oct 2002

    The ABI is holding its Saver Summit in central London on October 31. The conference will examine what stops people from saving, what new measures are needed to encourage saving and the roles of employers, the Government and the industry. Speakers at the event include Norwich Union chief executive Philip Scott, Work and Pensions select committee chairman Archy Kirkwood MP and FSA consumer panel chairman Colin Brown. The conference is aimed at IFAs, pension managers, consumer and employer ...

  • Scottish Life International serves up with-profits alternative

    23 Oct 2002

    Scottish life International is marketing its protected bonus bond as an alternative to with-profits bonds.

  • Scottish Mutual launches property plan alternative to equities and bonds

    24 Oct 2002

    Abbey National is offering a commercial property plan under its Scottish Mutual brand as an alternative to equity and bond investments. The plan is a single-premium investment maturing on January 15, 2013 and is being marketed in association with Westbury Asset Management and Knight Frank. Abbey says over the last decade the commercial property market has delivered gross returns over 10 per cent. Investors will be able to choose between an income and a growth fund. It will ...

  • Scottish Mutual offers double helping of property

    24 Oct 2002

    Scottish Mutual has introduced the commercial property plan, an investment trust that aims to produce income or growth by investing in commercial property.

  • Scottish Mutual offers double helping of property

    24 Oct 2002

    Scottish Mutual has introduced the commercial property plan, an investment trust that aims to produce income or growth by investing in commercial property.

  • Talkback

    24 Oct 2002

    "No, It will be difficult if the charges remain at 1 per cent. If they really think we are going to sell them, they are going to have to look at the remuneration. Who is going to pay our bills?" Howard Horne, Howard Horne Associates "No, because we will not be able to make any money from selling them." Nick Barker, Charlwood Leigh "Yes, we will sell them but not to the people he thinks should buy them. We will sell them in the same way that we sell stakeholder pensions, ...

  • TEP market maker targeting young policies

    29 Oct 2002

    Traded endowment policy market maker Neville James is looking to buy unitised and unit-linked policies that have been running for less than 10 years. Neville James says its trading platform is currently experiencing a high demand from people wanting to buy policies of this type. It is offering IFAs £50 commission for each policy bought and providing free quotations. It says selling a policy on the open market can often be more profitable for clients than surrendering it to the ...

  • The humane ratio

    24 Oct 2002

    This week, I will continue to look at the way in which a share-purchase arrangement could be structured for Owl Sewerage Services Ltd - the fairly typical company I have been using as an example over the last few articles. Fundamentally, we have by this stage determined the financial needs of each of the shareholders on the death of one of the other shareholders (see table below). By way of a quick reminder, these figures have been derived from a valuation on the company performed ...

  • Threadneedle seeks out healthcare stocks

    25 Oct 2002

    THREADNEEDLE INVESTMENTSTHREADNEEDLE GLOBAL HEALTHCARE FUNDType: OeicAim: Growth by investing in pharmaceutical companies, biotechnology, healthcare providers, medical supply companies and producers of advanced medical devicesMinimum investment: Lump sum £2,000Investment split: Pharmaceuticals 55.5%, healthcare 14%, biotechnology 9.5%, medical technology 7%, medical supplies 8.5%, cash 5.5%Isa link: YesPep transfers: YesCharges: ...

  • TMO sets up mortgage distributors Co-op

    24 Oct 2002

    Packaging firm The Mortgage Operation is launching the Mortgage Distributors Co-operative. The move is intended to encourage entrants into the market and help existing lenders write business in new product areas. The Co-op aims to act as a channel through which lenders can pool resources and distribution. TMO says the combined distribution strength and product knowledge of the Co-op will help the mortgage market expand. Initial members of the Co-op are BDS Mortgage Desk, Genesis ...

  • TV probe slams Aberdeen and Brewin over split-caps

    24 Oct 2002

    Aberdeen Asset Management and stockbroker Brewin Dol-phin were taken to task last week in a BBC documentary investigating the crisis in the split-capital investment trust sector. The Money Programme's The Men Who Wiped Out Billions interviewed several investors in Lincolnshire who claimed to have lost their life savings because they invested in Aberdeen split-caps on the basis of advice given by Brewin Dolphin. One investor claimed the stockbroker told her that investing in zero ...

  • Two MX packages simplify sourcing of staff benefits

    24 Oct 2002

    MX Financial Solutions is offering two new employee benefits packages, MX Flex and MX Select. MX Select allows employees to choose from a range of benefits with leading providers. Under MX Flex, employees can pick from a range of benefits paid for from an allowance allocated by the employer. Benefits available under MX Select include PHI, dental cover, life insurance, car and home insurance, savings, investments and independent financial advice, as well as shopping vouchers and ...

  • UCB ads focus on self-certification

    24 Oct 2002

    Specialist lender UCB Home Loans is launching a new advertising campaign focusing on its self-certification mortgages. The Nationwide BS subsidiary says the campaign, aimed at intermediaries, concentrates on its market-leading position as mortgage supplier to company directors, the self-employed, contract workers and others on variable incomes. It will also include information on a range of improved product benefits, including raised loan-to-value limits. UCB Home Loans self-certification ...

  • What has changed Sandler's mind?

    24 Oct 2002

    I do wish he would make up his mind. You report this week that Ron Sandler has suggested that IFAs will be among the primary distribution channel for the new suite of stakeholder products. He seems to have forgotten that just three months ago he excluded IFAs by omission. 10.47 page 185 of the Medium and Long-Term Retail Savings in the UK A Review lists high-street banks, direct promotion supported by call centres, new channels such as supermarkets and the Post Office and even ...

  • Why the powers that be have lost the plot

    24 Oct 2002

    Sandler - who is this man? - wants the IFA to be the main distribution channel for a new stakeholder suite (Money Marketing, October 17). Has he ever been involved with pensions or the sales of? Surely not. For an industry that is slowly but surely being killed off by politicians and regulation, don't we just need a Sandler. How do these brains actually reach their exalted positions? You do not have to be over-intelligent to realise that pensions do have to be sold. Most members ...

  • Zendor advice on e-marketing

    24 Oct 2002

    Marketing specialists Zendor is offering IFAs advice on e-marketing strategies following research by the Fast group predicting email traffic will hit 7.9 billion messages per day before the end of the year. The company advises that collecting data about users while they are online is key to any email marketing campaign, allowing the IFA to target particular consumer groups in future campaigns. This information can then be used to personalise emails with the name of the recipient ...

  • Zurich cuts 25% off dread cover

    24 Oct 2002

    Zurich Financial Services claims it is aiming to undercut market rates by as much as 25 per cent with the launch of its new critical-illness term insurance product. Claiming to offer the most competitive first-year rates on the market, ZFS's High Cover protection range incorporates critical-illness cover on a term basis and optional life cover, with premiums reviewed on an annual basis. According to ZFS, first-year premiums on a 25-year term standalone CI policy for a non-smoking ...

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