Money Marketing
24 July 2002

  • '£1m stakeholder lottery could boost pension savings'

    25 Jul 2002

    The Government should introduce a stakeholder lottery paying out £1m a month to encourage low and middle-earners to save through a pension, according to a senior economic adviser to the Government. Dr Ros Altmann says stakeholder has failed to penetrate its target market and the Government needs to take drastic action to increase its take-up. But she says compulsion is a last measure, saying further incentives must be tried first. She believes that Alan Pickering has ...

  • 'Aifa alternative to DPS could bring big savings'

    25 Jul 2002

    Aifa's alternative proposal to the FSA's defined-payment system would result in one-off savings to the industry of £30m and subsequent savings of £24m a year, according to a cost-benefit analysis. The CBA, carried out by consultancy Charles River Associates on behalf of Aifa and IFAP, says within the first three years of introduction, Aifa's alternative, called the Menu Based Option or Price List, could save the market £95m a year as it fosters the development ...

  • 'Handful of firms left in the savings market in five years'

    25 Jul 2002

    Scottish Widows predicts that Sandler's recommendations will trigger a further wave of consolidation in the savings industry, leaving only a handful of companies in the market in five years. Brand and network director David Graham says Sandler's report calls for increased competition in the savings industry while imposing price caps which require providers to be large-scale to be profitable. He predicts that companies will need a market share of 8-15 per cent to make a profit, ...

  • 'Little impact' from housing boost

    25 Jul 2002

    Deputy Prime Minister John Prescott's plans to spend £1.1bn on new housing in the South-east to reduce shortages and ease affordability for key workers will have a minimal impact on house prices in the short term, according to IFAs. Up to 200,000 new homes will be built in the South-east using some of the £4.7bn earmarked for key workers' housing under Chancellor Gordon Brown's spending review. But mortgage experts say the initiative could be too little to ...

  • 'Many borrowers are using flexible mortgage features'

    25 Jul 2002

    Nearly half of flexible mortgage holders have taken advantage of their features, with many overpaying their loans by up to 100 per cent a month, according to new research. The research by the Council of Mortgage Lenders and Office of the Deputy Prime Minister found that one in five borrowers have used the option to draw down equity from their home and a quarter have either doubled their repayments or paid a one-off lump sum to reduce their debt. According to the report, the average ...

  • 'Sandler puts firms between a rock and a hard place'

    25 Jul 2002

    The 1 per cent world of stakeholder-style products proposed by Sandler will leave providers between a rock and a hard place, warns Norwich Union. The country's biggest life company says economics dictates a sliding scale of charges as writing low-premium business is more expensive but to call for higher charges for poorer consumers would court negative publicity. If the products are aimed only at lower-premium business, there would also be no cross-subsidy, which could make ...

  • 40% of IFAs would still recommend US funds

    25 Jul 2002

    Despite the collapse of Enron and Worldcom, over 40 per cent of IFAs say they would still recommend US investment funds, according to George Street Research. Its latest research, conducted for Money Marketing in July among more than 200 IFAs across the UK, found that only 17 per cent would be a lot less likely to recommend US funds following the scandals. The research also found that 134 IFAs claim their PI premiums increased over the past year but only 10 per cent have noticed ...

  • Aberdeen suspends two more split-cap trusts

    25 Jul 2002

    Aberdeen Asset Management has suspended two more of its split-cap investment trusts, leaving investors unlikely to see any ret-urn on their money. The boards of Aberdeen's high-income trust and leveraged income fund suspended trading last week. The news comes only a week after its media & income trust was put into liquidation. Seven splits from across the industry have now been suspended or liquidated since the split-cap crisis started. Aberdeen insists its trusts ...

  • AIG Life - Premier Trustee Investment Bond

    26 Jul 2002

    Friday, 26 July 2002Type: Trustee investment bondMinimum premium: Lump sum £250,000, $375,000, euro 375,000Minimum-maximum ages: From birth-no maximumFund links: 68 funds from AIG Life, 61 external funds from Aberdeen, ABN AMRO, Deutsche, Exeter, Fidelity, Gartmore, Invesco Perpetual, M&G, Newton, Threadneedle, and CazenoveCharges: Annual 0.25-0.5%Allocation rates: 100%Minimum term: No minimumCommission: Subject ...

  • AIG LIfe offers low-cost trustee bond

    26 Jul 2002

    AIG Life has established the premier trustee bond, which aims to provide pension trustees with low-cost access to a range of internal and external funds.

  • AIG LIfe offers low-cost trustee bond

    26 Jul 2002

    AIG Life has established the premier trustee bond, which aims to provide pension trustees with low-cost access to a range of internal and external funds.

  • AMP Pearl and London Life close to new with-profits business

    29 Jul 2002

    AMP Pearl and AMP London Life are closing their doors to new with-profits bond and annuity business. The product range will be plugged with new products from AMP NPI.AMP says that the Pearl fund has been selling equities since the beginning of the year and currently has an equity exposure of 35 per cent. It says it will reinsure or securitise if required to meet regulatory requirements AMP says current market condition mean that it is unlikely to meet its growth targets.

  • Analysts' fears over Abbey as chief exec Harley leaves

    25 Jul 2002

    Analysts are warning that the Abbey National group faces uncertainty until a new chief executive is found following the departure of Ian Harley last week. Harley quit the troubled group, which includes Scottish Mutual and Scottish Provident, following a profit warning and loss of its AA rating in June. Although the problems are mainly within Abbey's wholesale banking and Treasury arms, one source says there is no logic in having two Scottish brands and a new chief executive ...

  • Annuity Bureau guide to pensions

    25 Jul 2002

    The Annuity Bureau is publishing a free guide for those close to retirement aimed at helping them get the most out of their pension pot. The 28-page You and Your Annuity guide has information about the full range of annuities currently on the market, including standard and escalating, impaired life and geo-socio annuities as well as up-to-date information on open market option. The Bureau says annuities have earned a high profile since the publication of the Government consultation ...

  • Berkeley Alexander - HospitalCARE

    29 Jul 2002

    Monday, 29 July 2002Type: Private medical insuranceMinimum-maximum ages: 18-64Maximum benefit: Section one - £5,000, section two - £10,000, section three - £5,000, section four - £5,000, section five - £1,500Cover provided: Section one - Angioplasty, cartilage operation, dental work, ears, eyes, nose,throat, duodenal, peptic or gastric ulcers, gall bladder, hernias, haemorrhoids removal, hip or knee replacement, hysterectomy, ...

  • Berkeley Alexander adapts PMI

    30 Jul 2002

    Berkeley Alexander has established an individual private medical insurance plan that features elements of critical illness cover and healthcare cash plans.

  • Berkeley Morgan buys up Summit

    25 Jul 2002

    Berkeley Morgan is buying rival IFA Summit Financial Holdings in a deal worth about £533,000, which will increase its RIs to 340 from 290, including mortgage advisers. The two companies have worked closely together since October 2001 when Berkeley made an initial investment of £439,500 in Summit. The latest deal means Berkeley buys a further 74 per cent of Summit's shares. The deal also means Berkeley owns over 92 per cent of Summit's total share capital. Summit ...

  • Black & White is aiming for 300 advisers with takeovers

    25 Jul 2002

    National broker the Black & White Mortgage Company says it is on track to boost its number of advisers to 300 from 200 by the end of the year through the acquisition of two smaller rivals. The firm, which was launched two years ago in Staffordshire, says it is set to top the £2bn business mark this year, with around 85 per cent being remortgages, and is looking to compete head-on with established rivals such as Charcol. Black & White claims it is almost certainly ...

  • Boulger bounds into top spot

    25 Jul 2002

    Charcol's Ray Boulger claimed top spot in PressWatch's pundits table last month after speculation over a potential rate rise and the possibility of 50-year mortgages sparked lively interest in the national press. Boulger, together with colleague Alison Cooley, helped push the mortgage broker into the top three, where it was joined by regulars Chartwell which took first place, with Hargreaves Lansdown third. Chartwell's Patrick Connolly was second in the pundit table followed ...

  • Britannic ends talks as it fails to find buyer

    25 Jul 2002

    Britannic Group has blamed market conditions after it failed to find a buyer despite posting satisfactory new business figures for the first half of the year. IFA sales through its asset management arm almost doubled and annuity sales through its Retirement Solutions subsidiary nearly tripled. Total retail life, pension and investment business for the first six months slid slightly to £39.7m equivalent premium income from £42.1m the previous year. Britannic Assurance ...

  • Cancer makes up most CI claims says Scot Prov

    30 Jul 2002

    Almost half of male critical illness claims and the vast majority of female claims are cancer related according to new figures from Scottish Provident.

  • Cazalet attacks Standard Life

    26 Jul 2002

    Influential analyst Ned Cazalet has launched a scathing attack on Standard Life, saying its reserves are severely depleted and that it is pursuing a high-risk investment strategy.

  • Consumers less likely to review pension status

    25 Jul 2002

    Media coverage of pensions is putting people off saving for retirement rather getting them to look at retirement provision, according to research commissioned by Charcol. Pollsters MarketMinder asked a representative sample of 2,009 adults how media coverage of pension issues had affected their actions. Sixty per cent of consumers are unaware of the annuity open market option, with 93 per cent so unmoved by the pension crisis they are not reviewing their retirement savings. A ...

  • Customers continue to leave Big Four banks

    29 Jul 2002

    Around 3.5 per cent of the Big Four banks' current account customers are set to switch in the next year, according to figures published by Which magazine.

  • Davies voices fears over Sandler's safe products

    25 Jul 2002

    FSA chairman Howard Davies has voiced his concerns over Ron Sandler's proposals for a "stakeholder" suite of safe products, saying there is "some difficult work still to be done" before the idea could become a reality. Speaking at the FSA's annual meeting in London last week, Davies said it would be difficult to relax the conduct of business regulations without risking widespread misselling. Davies gave one of the strongest indications yet that the FSA is considering other ...

  • Doctors Direct - Doctors Direct

    30 Jul 2002

    Tuesday, July 30, 2002 Aim: Growth by investing in healthcare providers Minimum investment: Lump sum £2,000 Opening/closing date: July 17, 2002/August 17, 2002 Charges: Implicit Commission: None Tel: 020 7736 0409

  • Fidelity's Bolton to step down from Euro fund

    25 Jul 2002

    Fidelity star fund manager Anthony Bolton is to step down from managing the £2bn European fund amid speculation that he is winding down his responsibilities ahead of retiring within the next three years. The move will leave him to concentrate on his UK responsibilities, where he still manages the special situations fund and the special values investment trust. Bolton, 52, will be replaced by Tim McCarron, 39, who manages the European Values investment trust which he took ...

  • First National launches new discount mortgage

    29 Jul 2002

    First National Mortgage Company is launching a new discounted standard variable rate-based mortgage this week which it says is targeting borrowers who want to minimise monthly payments in the early months. It offers a discount of 1.25 per cent off the SVR of 5.99 per cent for the first six months giving a current starting rate of 4.49 per cent. It has a LTV of up to 90 per cent and a maximum loan of £300,000. Procuration fees are 1 per cent for intermediaries and ...

  • Flight promoted in reshuffle

    24 Jul 2002

    Conservative shadow paymaster general Howard Flight was promoted in yesterday's cabinet reshuffle carried out by Iain Duncan Smith.Flight, long seen as a champion of the IFA sector, is to become shadow Chancellor Michael Howard's deputy on the front benches as shadow chief secretary.He will shadow Paul Boateng on the Government benches.

  • Friends purchase of R&SA investment arm cleared by DTI

    24 Jul 2002

    The Department of Trade and Industry has cleared the takeover of Royal & Sun Alliance's fund management arm by Friends Ivory & Sime.The referral was a routine matter and the decision by the DTI to clear the deal will come as no surprise.

  • FSA pulls warning out of its hat over 'magic circle'

    25 Jul 2002

    The AITC and fund managers have been handed an ultimatum by the FSA to clean up the investment trust industry within six months or face action by the regulator. The deadline, which was imposed by FSA managing director John Tiner as he testified before the Treasury Select Committee last week, came as the AITC revealed that up to a third of split-cap investment trusts may pay out at best only minimal returns. The warning of a clampdown attracted immediate support from Labour chairman ...

  • FSA to look into short selling

    26 Jul 2002

    FSA chairman Howard Davies has announced that the regulator is to consult on the controversial practice of short selling in early October.

  • FSA will take new look at WP reforms

    25 Jul 2002

    The FSA is to produce a comprehensive consultation aimed at bringing its with-profits reforms into line with Sandler's recommendations for ringfencing life funds and distributing orphan assets. Speaking at its AGM in London last week, chairman Howard Davies described Sandler's proposals as radical and said the FSA would have to manage a transition carefully, including the ongoing issue of reattribution of orphan assets. Many industry commentators believe that other companies ...

  • Furore as Davy slams networks

    25 Jul 2002

    The father of IFA networks Ken Davy has sparked outrage by claiming networks are a thing of the past. The founder and former chairman of DBS, who left the network in April after selling his stake to Misys for £6.8m, says changes mean new business models will be needed. He is understood to be considering a new role in financial services but has ruled out a return to a network business. Davy says: "The days of the network are past. The combination of the likely outcomes ...

  • Gainful employment

    25 Jul 2002

    Last week, I rounded off the calculation process for gains made under offshore funds and great it was, too. But, re-reading my explanation, it occurred to me that there is a simple alternative that will lead you to determining the gain made under an offshore roll-up fund. This comparatively simple rule-of-thumb method is to multiply the number of shares sold by the acquisition cost. Then multiply that same number of shares by the proceeds raised on sale. The difference is the gain ...

  • GE Life Sipps into market gap

    29 Jul 2002

    GE Life has filled a gap within its product range with the simplified self-invested personal pension (Sipp).

  • Highest ever compensation award for breach of mortgage code

    30 Jul 2002

    An intermediary is being ordered by the Mortgage Code Compliance Board to pay compensation of £66,300 to a client, the biggest ever pay-out to date for a breach of the mortgage code. The MCCB has not named the broker who the mortgage code arbitration scheme says did not give suitable advice or exercise due care when selling an equity-release mortgage. It decided the intermediary did not ensure the client understood the arrangements being made.

  • HSBC Republic Investments - HSBC Republic Alternative Wealth Protector

    30 Jul 2002

    Tuesday, 30 July 2002Type: Fund of hedge fundsAim: Growth linked to the HSBC Republic wealth protector fundMinimum investment: Lump sum $10,000Place of registration: GuernseyInvestment split: 100% linked to the performance of the HSBC Republic wealth protector fundGuarantee: Capital returned in full at end of five year termIsa link: NoCharges: Initial 3%, annual 1.7%Commission: Subject to negotiationTel: ...

  • IFA business profits reach almost £3,000 per RI

    25 Jul 2002

    Misys is making a profit of almost £3,000 per RI, according to its financial results published last week. The Misys IFA stable of networks, which has 7,500 members, made a profit of £22m from IFA businesses in 2002, giving an average profit per IFA of £2,933. Total turnover through Misys' IFAs was £408m while the financial services division, which includes the general insurance operations, achieved revenues of £447m. DBS made an operating profit ...

  • IFAP boosts commission by £18m

    25 Jul 2002

    IFA Promotion generated £18m in commission for members during 2001. An internal audit by IFAP shows that 263,000 consumers and businesses were put in touch with IFAs during the year after it got 186,000 requests via the internet and 77,000 on freefone hotlines. To date this year, IFAP has had 180,655 requests, 30,000 more than for the same time last year, putting it on track to meet its target of 300,000 requests by the end of the year. The report indicates that public ...

  • IFAP offers tips on surviving market turmoil

    25 Jul 2002

    IFA Promotion has published a guide aimed at advising investors on how to best survive an economic downturn. The turbulence of the markets was clearly seen last week when the FTSE 100 plummeted below 4,000 for the first time since December 1996 to record its single biggest one-day loss since September 11. This was followed only days later by the index bouncing back to almost 4,200, demonstrating the uncertain state of the markets in investors' minds. IFAP's guide aims ...

  • Ill at ease

    25 Jul 2002

    A friend is receiving statutory sick pay from his employer. My employer would commence SSP arrangements after 40 working days' absence. Having considered this carefully, I would prefer, both as an individual and as one of the management team at my employer, for more generous arrangements to be in place. What options are available to me as an individual and to my employer? Basically, there are two options which are that you can either have an individual income replacement policy ...

  • Independent view

    25 Jul 2002

    As some of you may have read, after 14 years running a stand-alone IFA, Ray Peyre and I have sold 50 per cent of our company to Aegon UK. I do not want to use this column to discuss my own business but I would like to show why part of the reason for our decision was that IFAs in Britain have the worst cashraising potential of any industry I know. So far as I am aware, we are the only industry in the country with regulatory controls that prevent us from raising capital to grow - ...

  • Inside Edge: Steve Bee

    25 Jul 2002

    Simplifying pensions is turning into something of a nightmare. I suppose it was bound to, really, what with a proliferation of reviews all taking place at the same time and all aimed at "fixing" different bits of the problem - a bit like three or four different people working on the same Rubik's cube at the same time. It is a recipe for disaster unless everyone is working to the same master plan and everything is very, very joined up. Let us hope it is all as well orchestrated as ...

  • Investment analysis

    25 Jul 2002

    It was another week of extreme turbulence in global stockmarkets as investors continued to sell, reacting to disappointing corporate data, the continued threat of another big bankruptcy and a worse than expected US trade deficit for May. The benchmark FTSE World index lost a further 2.1 per cent bringing its losses since the start of the year to 16.3 per cent The US markets continued to fall despite a speech by President Bush and Alan Greenspan's testimony before the senate committee, ...

  • Investment view

    25 Jul 2002

    How nice that the senior regulator in the UK should try to bolster confidence in UK equities. Some of his comments were, though, a little misleading. By contrasting the fall in the FTSE 100 (42 per cent from peak to trough) with that of the Dow Jones Industrial Average (just 28 per cent down), he merely drew attention to the shortcomings of America's headline index. The S&P 500, which is much more representative of what is going on in US markets, is actually down by virtually ...

  • Julian Gibbs

    25 Jul 2002

    Ron Sandler quite rightly pointed out that life insurance investment bonds are attractive to higher-rate taxpayers but it is questionable whether the Chancellor will withdraw their benefits and, even if he does, he is most unlikely to do it retrospectively. It is wise, therefore, for IFAs to advise higher-rate taxpaying clients to use investment bonds as part of their portfolio, especially if they are likely to need the 5 per cent tax-free income concession. Even if more conservative ...

  • Keen sense of self-preservation

    25 Jul 2002

    It's not often that MM staff are put into life-threatening scrapes (bar-tab squabbles notwithstanding) so we thought we would share this chilling encounter with you. During a night out at a restaurant with MM, Whitechurch Securities chairman Kean Seager spotted a shifty looking man sporting a particularly attractive swept-back mullet (permed at the back, Argentinian-style) and a bright yellow jacket Don Johnson would have refused to wear on the grounds of bad taste. What was disturbing ...

  • Keydata bond gives protection choice

    26 Jul 2002

    Keydata Investment Services has introduced a fifth issue of secure growth portfolio, a guaranteed equity bond that has a five-year term, linked to six funds.

  • Keydata Investment Services - Secure Growth Portfolio 5

    24 Jul 2002

    Wednesday, 24 July 2002Type: Guaranteed growth bondMinimum-maximum investment: £3,000-no maximumTerm: Five yearsCharges: ImplicitReturn: Up to 200% of average growth in First State Asia Pacific, HSBC UK growth & income, Investec European, JPMF premier equity growth, New Star UK growth, Threadneedle American select growthGuarantee: Choice of 80%, 90% or 100% of capital returned in full at end of term regardless of performance of underlying ...

  • LIA says advisers would do better under DPS

    25 Jul 2002

    IFAs would do better under the FSA's defined-payment system than under Ron Sandler's proposals for the remuneration of advisers, claims the LIA. Under Sandler's plans, advisers would negotiate payment with clients, a process the LIA does not believe IFAs are prepared for. Director of public affairs John Ellis says that under the DP system, IFAs can still operate on a commission basis, even if the amount of payment is determined by providers, a concept that Sandler opposes. Ellis ...

  • LloydsTSB set to enter sub-prime mortgages

    25 Jul 2002

    LloydsTSB is poised to enter the sub-prime mortgage market and is recruiting senior managers and directors for the new division, according to industry sources. One industry source says the bank, which owns mainstream lender Cheltenham & Gloucester, is not considering acquisitions but has instead appointed a recruitment consultancy, Maloney Search, to recruit staff from potential rivals. Another sub-prime lender says LloydsTSB has already appointed two directors but warns that ...

  • MacLeod to head Skandia's UK Oeic business

    25 Jul 2002

    Former Investec managing director Jamie MacLeod has resurfaced as MD of Skandia Investment Services. The role will see MacLeod head Skandia's UK Oeic business which has £450m under management. Skandia says MacLeod, 34, will help drive its multi-manager proposition which it claims to have pioneered in the UK. After his sudden departure from Investec three months ago, MacLeod said he quit to spend more time with his family. He will report to investment director Jim Roberts ...

  • Martin to be CEO of banking

    25 Jul 2002

    Ivan Martin is quitting as Misys Financial Services chief executive to become CEO of the group's banking and securities division. He replaces Rupert Soames who is leaving the group after six years in banking and securities. Martin joined the group in 1995 as part of its acquisition of software firm ACT, he was appointed divisional chief executive of information systems, before taking over as CEO of financial services the following year. In the run-up to the planned flotation ...

  • MCCB mortgage guide now in seven languages

    25 Jul 2002

    The Mortgage Code Compliance Board is translating its mortgage guide into seven languages to help homebuyers unable to speak English as a first language to access information about their rights. The move comes after a report published by the Office of Fair Trading stressed the importance of protecting potentially vulnerable consumers such as ethnic minorities. The You and Your Mortgage guide gives the homebuyers details about minimum standards and their lender's obligations ...

  • Misys IFA flotation may bring in up to £700m

    25 Jul 2002

    Misys will float its IFA business within two years and realign its five networks into separate divisions reflecting different distribution strat-egies once the outcome of the FSA's review of polarisation is determined. The flotation of the 7,500 adviser mega-network could raise up to £700m and would satisfy analysts who want Misys to concentrate on its core business as a software provider. Misys will not say whether it will demerge or offer shares to the market direct. ...

  • Misys IFAs may have to switch

    25 Jul 2002

    Misys' IFA members could be forced to change networks as the firm revamps the structure of its distribution channels ahead of the FSA's CP121 depolarisation plans. The company's plan to float its IFA business as a single entity is likely to see a restructuring where IFA Network becomes the home for independent advisers while multi-tied advisers are serviced by Financial Options. Misys says it will wait for the new rules on polarisation before amalgamating its five IFA networks. ...

  • Misys seeking to grow value through flotation

    25 Jul 2002

    Misys intends to float its IFA network businesses within two years, creating a self-contained entity comprising the five networks - Countrywide, DBS, Financial Options, IFA Network and Kestrel - and the software arm. Misys is known as a software business. We get discounted in the market for being a conglomerate so our vision is that Misys should concentrate on its core competencies as a software company and float the life and pension business. Our aim is to build value in the company ...

  • MLIM appoints manager to property team

    26 Jul 2002

    Merrill Lynch Investment Managers has announced Marcus Sperber is joining its property team as a fund manager.

  • Moore's code

    25 Jul 2002

    It may sound surprising given the acres of space they have been filling in every publication touching on financial services but the Sandler and Pickering reviews are a long way from the being the biggest issues facing the financial services today. Oh sure, they have occupied two highly qualified and bright men and their highly qualified and bright teams for months, let alone the hundreds of highly qualified and bright people within the industry who have spent millions of man-hours ...

  • Mortgage 'extravaganza' for IFAs

    25 Jul 2002

    Broker club Mortgage Intelligence is running what it calls an "extravaganza" of events for intermediaries when it goes on the road in September. It is doing a series of roadshows kicking off in Warwick on September 3 and finishing in Leeds on September 13. MI is aiming to encourage as many of its 5,000 members as possible to attend. Each day is split into presentations by lenders in the morning followed by activities, such as a Thames Cruise at the London session on September 4 ...

  • Mortgage lending for June second highest on record

    25 Jul 2002

    Mortgage lending has fallen from an all-time high in May but is still up from June last year, according to the Council of Mortgage Lenders and the Building Societies Association. Despite a seasonal fall, the trade bodies say their figures for last month show the housing market remains buoyant. The CML says gross mortgage advances for June totalled £17.1bn in June, which was higher than the £14.9bn achieved in June last year but lower than May's record of £20.3bn. Loans ...

  • MPs vote themselves big pension rise

    24 Jul 2002

    MPs have voted themselves a hefty raise to their pension schemes this week.

  • Must try harder

    25 Jul 2002

    At this time of year, many parents will be anxiously awaiting end-of-term reports for their offspring. Given the time and effort put into rearing the Sandler and Pickering reviews, I can only assume that the Government is similarly nervous. Master Pickering has proved to be a serious underachiever as his work to date has been both predictable and incomplete. Master Sandler, however, has produced a comprehensive piece of work which proves that any suggestions that the conclusions were ...

  • N&P launch new fixed rate mortgage for Spain

    24 Jul 2002

    Norwich & Peterborough is launching a new one year fixed rate mortgage and says it is set to reduce rates on its fixed rate mortgages in Spain and the UK from July 29.The new product is fixed at 4.38 per cent for one year up to a loan to value of 90 per cent and has a £325 arrangement fee.It also has a Spanish mortgage fixed for two years at 4.49 per cent up to a LTV of 75 per cent.

  • National law firm launches new FSA unit

    30 Jul 2002

    National law firm Russell Jones & Walker has launched a new consultancy arm looking to advise the financial services industry on regulatory issues.

  • NDF Administration - Extra Income & Growth Plan 11

    26 Jul 2002

    Friday, July 26, 2002Type: Guaranteed equity bondAim: Growth and income linked to the performance of the Eurostoxx 50 indexMinimum-maximum investment: £10,000-£1m, Isa minimum £7,000Term: Three years and two monthsGuarantee: Capital returned in full at end of term provided index does not fall by more than 20%Return: 10% a year or 33% at end of termClosing date: September 9, 2002Commission: Initial 3%Tel: ...

  • Need for speed

    25 Jul 2002

    Poor service from lenders because of the booming housing market is one of the biggest frustrations brokers say they face but Bristol & West claims it has tackled the problem and turned itself around. New figures from the Bank of Ireland subsidiary, which offers a range of buy-to-let, self-certification and flexible loans, show it can process 40 per cent more cases within 15 days compared with the same time last year. It claims that 76 per cent of applications are completed ...

  • New appointments to Mortgages plc board

    30 Jul 2002

    Specialist lender Mortgages plc has named Mark Clarke as non-executive chairman to replace Ravi Takhar who it says has left to pursue other business interests. The appointment has been made by the group's major shareholder Nikko Principal Investment which Clarke joined in 1997 as a chartered accountant focusing on acquisitions. NPIL has also appointed Laurence Morey, who joined in 2000, as a non-executive director.

  • New Brain logo bids to end service confusion

    25 Jul 2002

    Trading platform and sourcing software company Mortgage Brain is unveiling a new corporate identity this month intended to end broker confusion about the services it offers. MB, part-owned by Alliance & Leicester, Halifax, Nationwide, NatWest, Northern Rock and Woolwich, says it felt it was time to rebrand its entire product range. But some in the market are questioning the timing and cost of the revamp, claiming MB should focus on making money and gaining market share over ...

  • New head of investment trusts at First State

    29 Jul 2002

    First State Investments has announced the appointment of Lucy Allan as its new head of investment trusts.

  • No buyer shortage as IFAs sell up

    25 Jul 2002

    More IFAs than ever before are looking into selling their firms after the publication of the Sandler report, according to business consultancy Amas. The firm, which specialises in IFA purchase, sales and mergers, says it has seen a notable increase in the number of IFAs looking to sell. The company believes that in the wake of the Sandler and Pickering reports, the uncertainty about the future of the industry over the past few weeks has begun to take its toll. The firm says ...

  • Northern Rock cuts flexible and capped rates

    26 Jul 2002

    Northern Rock is reducing rates on its flexible and fixed capped mortgage range for new applicants with effect from Friday July 26. Reductions range from 0.10 per cent to 0.40 per cent and at the same time as a customer applies for a new fixed or flexible capped product, Northern Rock will consider an unsecured cash reserve up to a maximum of £10,000.

  • Norwich Union prospers for second time

    25 Jul 2002

    Norwich Union has brought out the second issue of the prosper guaranteed capital bond that is linked to the FTSE 100 index for four-years.

  • NU makes emergency cuts

    25 Jul 2002

    Norwich Union is devaluing all with-profits policies by 5 per cent and slashing bonuses in an emergency measure blamed on falling stockmarkets. The changes, which take effect from August 1, mean terminal bonuses will be cut by whatever amount necessary to meet the 5 per cent overall cut. Some terminal bonuses will be wiped out altogether. Reversionary bonuses will be cut by 0.5 per cent across the board. The payout on a 10-year pension with a £200 monthly premium will be ...

  • Outside Edge: Nick Bamford

    25 Jul 2002

    Alan Pickering has had an unenviable job to do. He was tasked with making proposals to simplify a complex set of pension rules. Only time will tell if his proposals achieve this aim. As he stated when interviewed by BBC recently, he and his report might be condemned to the dustbin of history. At a time when pensions can truly be said to be in crisis, the Pickering report provides an opportunity to give consideration to the way forward. Overall, the objective of Pickering was to ...

  • Over 6,700 company pension plans axed

    25 Jul 2002

    More than 6,700 company pension schemes were closed last year, reducing the number of occupational schemes by 6 per cent, according to figures from the Occupational Pensions Regulatory Authority. The wave of closures means that 437,000 workers' occupational schemes were affected. The figures come a week after former National Association of Pension Funds chairman Alan Pickering reported that employers should be given more freedom to axe spouses' benefits and inflation protection ...

  • Package bids to stop firms quitting

    25 Jul 2002

    A package is being prepared by Misys with the aim of stopping firms quitting its networks in the two-year run-up to flotation of its IFA division in 2004. It is planning to offer IFAs share options at the time of the flotation, as well as measures to offer benefits that cover recruitment, retirement an retention. Misys also plans a practice-buyout programme and a loyalty scheme to counter the threat of high-earning firms leaving the network to take up deals with product providers. It ...

  • PanEuroLife - Sterling Guaranteed 5-Year Maturity Fund

    26 Jul 2002

    Friday, 26 July 2002Type: Unit-linked fundAim: Growth by investing in corporate bonds and short-term depositsMinimum investment: Lump sum £5,000Place of registration: LuxemburgInvestment split: 100% in corporate bonds and short-term depositsGuarantee: Capital return in full along with 5.5% growth a year at end of five year termIsa link: NoCharges: Initial 0.6%, annual 0.15%Commission: Initial 0.2%Contact: ...

  • Peak practice

    25 Jul 2002

    The average life of a mortgage has fallen from seven years in 1996 to just four, according to the Institute of Actuaries. In the sub-prime market, the average is less than two years. This means that even when the property boom begins to subside, IFAs and lenders will continue to face strong demand from borrowers for remortgaging into the future. Many IFAs and lenders seem to be viewing the current surge in demand as short term and appear to be reluctant to alter their processes ...

  • Pearl in financial strength tables

    25 Jul 2002

    Pearl is the "financially weakest" company, last week's Money Marketing survey shows. In relation to the comments made about Pearl, the following matters not included in the article are important. Pearl Assurance met all statutory solvency require-ments at December 31, 2001 based on the regulatory returns submitted. Comments from KPMG in relation to the Money Marketing Financial Strength Survey were not intended to indicate that Pearl Assurance had not met these requirements. Based ...

  • PI's the limit

    25 Jul 2002

    Do you think small mortgage IFAs/brokers will be forced out of the market because of increasing costs of professional indemnity cover? Charlesworth: Yes, undoubtedly the cost of PI will have an effect on the smaller mortgage brokers who may decide that the increased cost and compliance burden makes the option of outsourcing the mortgage advice element of their business more economically viable. Increased cost of regulation will have the effect of polarising the market into referrers ...

  • Platinum Capital Management - Platinum 110% Protected Plus Fund

    29 Jul 2002

    Monday, 29 July 2002Type: Single premium bondAim: Growth by investing in zero coupon US Treasury bonds and hedge fundsMinimum investment: Lump sum $50,000, euros 50,000Place of registration: Cayman IslandsInvestment split: 100% in zero coupon US Treasury bonds and hedge fundsGuarantee: 110% of initial investment returned at end of five year termIsa link: NoCharges: Annual 2.5%Commission: Subject to negotiationTel: ...

  • Product Matters

    25 Jul 2002

    Norwich Union's latest structured offering Prosper 2 is an interesting concept but does not necessarily offer good value. Spread over a four-year term, which is divided into eight six-month periods, the returns are linked to the FTSE 100 index. Basically, the maximum gain or loss is capped at 6.5 per cent in each six-month period and these are all added up at the end of the term. Capital is guaranteed so even if the losses outweigh the gains an investor cannot lose money. However, ...

  • Pru announces new business figures and FAR

    24 Jul 2002

    Prudential has reversed current trends by announcing healthy new business figures for the first half of the year and a free asset ratio of 11 per cent for its UK life fund.

  • Question marks

    25 Jul 2002

    As expected, June turned out to be a hectic month, taking on some 33 new clients as well as dealing with my existing clients. As if that was not enough, I was also trying to help out some very unfortunate Equitable Life members. This left me very little time to open my Cemap syllabus but having gone through it already and confronted any fears I had about the exam, I was not too concerned. Furthermore, I felt safe in the knowledge that I had a training and revision session with Scottish ...

  • Rayne supreme

    25 Jul 2002

    After a barren spell, the Diary has been made awareof some more hidden talents in the crazee world of financial services. In this case, though, the talent has actually won something. Congratulations, then, to 20-year-old Close Fund Management sales & marketing assistant Gabrielle Rayner, who won the British National Irish Dancing competition two weeks ago at the Empress Ballroom in Blackpool. Gabrielle beat rivals from England, Ireland, Scotland, Wales and the US in the age 19-21 ...

  • Richard Saunders

    25 Jul 2002

    As the man who used to be Norman Lamont's press secretary during his reign as Chancellor, Richard Saunders has a wealth of experience in fending off brickbats. The Investment Management Association chief executive has had plenty of ammunition to fire back over the past couple of weeks following the publication of Ron Sandler's long-awaited and highly controversial report. Saunders is keen to stress he is comfortable with much of it but does not hold back when it comes to ...

  • Royal Bank of Scotland launches self-cert mortgages

    30 Jul 2002

    Royal Bank of Scotland is launching two self-cert mortgages for borrowers who are self-employed or whose income does not fit its standard criteria. One is a three-year discounted mortgage at 4.95 per cent, one per cent off RBS's standard variable rate until October 2005. The second is a lifetime discounted mortgage at 0.5 per cent off the SVR for the duration of the mortgage.

  • Sandler misses the point on with-profits

    25 Jul 2002

    Ron Sandler's report is well intentioned, well structured and, in some quarters, well received. The intention, it seems, is for the lowest-income groups to drive a Mondeo like the middle-income group. Unfortunately, what will happen if his recommendations on the "simplicity front" are carried through is that everyone will end up driving a Trabant with a trail of blue smoke adding to the current haze. The report tells us we need to move to simplicity and create a new with-profit ...

  • Sarasin - Sarasin CI Income Portfolio

    24 Jul 2002

    Wednesday, July 24, 2002 Type: Unit trust Aim: Income by investing in bonds, equities and cash Minimum investment: Lump sum £2,500, monthly £100 Place of registration: Guernsey Investment split: Bonds 70%, equities 20%, cash 10% Yield: 4.5-5% Isa link: No Charges: Initial 4%, annual 1.25% Commission: Initial 3%, renewal subject to negotiation Tel: 020 7246 0430

  • Sarasin blends income sources

    24 Jul 2002

    Sarasin has established the Sarasin CI income portfolio, a Guernsey-based unit trust that invests in a portfolio of bonds and equities.

  • ScotMut in bid to promote pensions

    25 Jul 2002

    Scottish Mutual is launching a pension campaign to promote its range of preand post-retirement plans on offer to IFAs. The Scottish Mutual, Take a Closer Look campaign is centred around an information pack featuring guides to Scottish Mutual's pensions, support services, sales aids and sales ideas. The campaign will be launched with a series of ads in the trade press publicising and inviting IFAs to request the new pack. The life office has also unveiled a new web page Gray ...

  • ScotMut offers HK dollar WP fund

    24 Jul 2002

    Scottish Mutual International is launching a guaranteed Hong Kong dollar with-profits fund to coincide with the opening of the Dublin-based company’s new base in Hong Kong. The product is available to locals and expatriates with product literature in both Chinese and English with a menu of different guarantees. Investments can be make in Sterling, Euros, US and HK Dollars. 

  • Scottish Equitable International launches two new products

    29 Jul 2002

    Scottish Equitable International is launching the two new low risk products from its Dublin base.

  • Scottish Widows gets flexible with-profits

    25 Jul 2002

    Type: With-profits bondAim: Income or growth Minimum investment: Lump sum £5,000 Bonus rates: With-profits growth 4%, with-profits income 4.75%Allocations rates: 98.25-103.25% depends on age and premium level Charges: Initial 0.5%, annual with-profits growth 0.85%, with-profits income 1%Commission: Subject to negotiation Tel: 0845 8432111BROKER RATINGSFlexibility 6.3Bonus rate 2.0 Company's ...

  • Second issue of National Savings equity bond

    25 Jul 2002

    National Savings and Investments is offering a second issue of its guaranteed equity bond following the success of the first issue in March. The five-year bond allows investors to gain from growth in the FTSE 100 index while offering 100 per cent capital security on investments of between £2,000 and £1m - or £2m for joint investments. Investors receive all the proceeds of growth in the index, without fees or charges, subject to a maximum gross return of 70 per ...

  • Sedgwick and Grace link

    25 Jul 2002

    National IFA Sedgwick has signed a deal with long-term care specialist Grace Consulting which will see a joint referral service set up between the two firms. Consumers with general financial planning and queries about funding care will be put into contact with an RI from Sedgwick while those with more general concerns about care and what it entails will be referred to Grace Consulting. Sedgwick says while it has always offered its clients LTC advice as part of its advisory service, ...

  • Skipton Building Society - 2 Year Fixed Rate Bond

    30 Jul 2002

    Tuesday, 30 July, 2002Type: High interest accountMinimum-maximum investment: £1,000-£10,000Interest rates: 4.95% gross a yearTerms: Until September 30, 2004Offer period: Until further noticeWithdrawal penalties: No withdrawals permitted during termTel: 0800 446776

  • Slander and Pickle show

    25 Jul 2002

    So, now we know. The long-awaited Sandler and Pickering reviews have emerged from their long gestation period. They have already got their nicknames. An IFA community up in arms about the threat from Sandler have nicknamed him "Slander" for the way they feel he has unfairly portrayed their industry and good old Pickering, who you thought would not want to hurt a fly, has been castigated as "Pickle" by officials at the DWP for leaving their bosses in the proverbial as they wrestle with ...

  • Stake or break for housing market

    25 Jul 2002

    Media speculation over whether the housing boom will end in a crash or a whimper continues unabated. Much depends on interest rate decisions over the coming months and the priority the monetary policy committee gives to tempering the overheating housing market. While many homeowners revel in their growing equity, there is increasing recognition of the downsides of rapidly rising house prices. If rates rise significantly, this could trigger arrears, repossessions and a downturn in the ...

  • Stock lending a cause for concern

    25 Jul 2002

    Concerns over recent shorting, especially from arbitrageurs who have borrowed stock, are valid so may I propose that stock lending is banned? Other than for nominal adjustments for market-makers on overnight positions, analysing the situation suggests that those doing the stock lending in the first place are not doing themselves any favours anyway. Why do arbitrageurs borrow stock? They do it to sell short in the anticipation of buying back later at a lower level - to make a profit. During ...

  • Suite cap would be sour for savings

    25 Jul 2002

    Ron Sandler's embrace of price-capping on a grand scale is deeply disappointing and deeply hazardous for IFAs although much depends on the FSA. Providers are expressing serious concerns about whether the FSA could do a stakeholder-style RU64 ruling on the planned price-capped suite of products. Even without this, a new 1 per cent regime could prove infectious. Money Marketing believes price-capping is wrong in principle. It smacks of a half-baked nationalisation, such is ...

  • Sweet Charity

    25 Jul 2002

    Welcome to my first column as I take over from my old friend Brian Lawless. Brian will certainly be a hard act to follow but I would like to start with a topic frequently raised by financial advisers - suitable investments for charities. Most charities are constituted as trusts. The last few years have certainly been interesting ones for trustees, with substantial alterations to the tax regime affecting trustee investments and the Trustee Act 2000, which also applies to trustees of ...

  • Taking issue with role of the CA

    25 Jul 2002

    CA director Sheila McKechnie demonstrates the seamless transfer of consumerists from single-issue research into single-issue six figure income news management in the FT with the headline, If this industry can rip off consumers, it will. From being an unbiased observer, she joins those of the Daily Mail ilk, that is, if it is not news, it gets printed, if it is news, it is omitted, so if she has anything worth saying, it is compromised. Single-issue treatment without following through ...

  • Talkback

    25 Jul 2002

    "Yes. Maybe there ought to be changes to the rules, bearing in mind what has gone on. There is perhaps too much investing in each others' trusts." Alastair Cameron, The Cameron Consultancy "Yes. I think the general public is not that aware of how investment trusts work and some people may take advantage." Richard Peasley, Churchill Securities & Co "No. I think they are stringent enough. Regulation is all well and good but if it goes over the top, it makes it difficult ...

  • The review from here

    25 Jul 2002

    If nothing else, last week's reports from Messrs Sandler and Pickering seem to contain something for everyone to dislike. The FSA will probably not like being told that it has to start providing far more guidance on what it is expecting from the rules. IFAs will have some, perhaps understandable, concerns about the products designed to be sold without advice. Life offices will hardly be celebrating the fact that they can no longer help themselves to 10 per cent of the profits in ...

  • The wait goes on for pension framework

    25 Jul 2002

    Reactions to Alan Pickering's report, A Simpler Way to Better Pensions, have varied from wholehearted approval to suggestions that it should be consigned to the bin. The different reactions to the report vary with the different expectations of what Pickering was going to be able to achieve, with some parts of the industry champing at the bit for a clear sign from Pickering that the pension framework will receive its much-needed simplification while others are looking to the Inland ...

  • Threat posed by closing savings gap

    25 Jul 2002

    I could not agree more with Lorna Bourke's article last week in Money Marketing which gave the real reasons for people not saving. However, there is one major point I do disagree with. Compulsory pensions, which I believe will come in at least from an employee point of view, will not be inflationary but extremely deflationary. One point that has not come out of the Sandler or Pickering report is this. If the UK population starts saving and closing that savings gap, where will ...

  • Top-level backlash building against Sandler's proposals

    25 Jul 2002

    A high-level backlash against Ron Sandler's recommendations is under way, with a senior economic adviser to the Government and the FSA chairman criticising the proposals for a family of simple "stakeholder" products. Speaking to Money Marketing last week, Downing Street economic adviser Dr Ros Altmann said that two weeks after the publication of the Sandler and Pickering reviews, the Government was no further towards motivating more people to save. In a speech to the FSA's ...

  • Treasury rethinks regulation timetable

    24 Jul 2002

    The Treasury has published a revised timetable for the regulation of mortgages and general insurance as it is still waiting for the EU to adopt the insurance intermediary directive.

  • Two more splits hit bottom

    30 Jul 2002

    The board of Aberdeen Asset Management's high income split cap investment trust called in the receivers this week and another, the Yeoman Investment Trust suspended its shares as the outlook for the sector continued to worsen.

  • Whitechurch chiefs back portfolios with own cash

    25 Jul 2002

    Whitechurch Network chairman Kean Seager is putting his money where his mouth is by transferring his own pension pot into one of four equity portfolios the network has developed for its members. He is following close on the heels of Whitechurch Securities managing director David Davies, who will be first into the new portfolios. Using Skandia's multi-manager proposition, four portfolios have been put together. There is a portfolio for people 30, 20, 10 and five years from retiring, ...

  • Yet another review as MPs probe the pension crisis

    25 Jul 2002

    The pension industry is to face yet another review as the Parliamentary work and pensions select committee has announced a wide-ranging inquiry into the "pensions crisis". In the autumn, the all-party committee will examine what role the Government and the private sector has in increasing savings through pensions. The industry has questioned the need for another pension review, especially as the Government will respond to Sandler and Pickering in a Green Paper this autumn. The ...

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