Money Marketing
24 March 2004

  • 'Annuity cost could rise 60% by 2019'

    25 Mar 2004

    The cost of an annuity for a male aged 65 in 2019 could be between 34 per cent and 60 per cent higher than it is today, according to a report from the Faculty and Institute of Actuaries.The report, entitled, Longevity in the 21st Century, predicts that increased longevity will cause major upheaval in the annuity market and will force life insurers to set aside bigger sums for guaranteed annuity options.The Inland Revenue’ pension simplification proposal to increase ...

  • 'Ending tax loophole could hit 60% of loan firms'

    25 Mar 2004

    Up to 60 per cent of the mortgage industry could be affected by the tax loophole affecting small businesses which was closed in last week's Budget, according to the Association of Mortgage Intermediaries. The loophole enabled firms to avoid tax and Nat-ional Insurance by reclassifying their income as dividends, thus getting a zero tax rate without changing their economic activity. But Chancellor Gordon Brown said the loophole would be closed and distributed profits ...

  • 'Firms waste £2.5bn on staff benefits'

    25 Mar 2004

    Companies are wasting up to £2.5bn on benefits that their employees do not value, according to research from IFA Thomson's Group. The study of 746 firms in February shows that 28 per cent which offer employees a standard benefits package felt they were not sufficiently valued by employees. The research finds that flexible benefits are becoming more popular but employers are wary of the cost. The firms see saving for retirement as the individual's responsibility ...

  • 'IFA firms don't know how easy it is to dump liabilities'

    25 Mar 2004

    Limited liability IFA firms are permitted to offload their liabilities through a loophole in the Companies Act but only a handful have so far done so, according to law firm Financial Services Legal LLP. Partner Gareth Fatchett says the only reason that thousands more IFA firms have not yet dumped their liabilities is because they do not know how easy it is. He points out that IFA firms can legally dump potential misselling liabilities by creating a vehicle to hold assets ...

  • 'Loan firms not taking regulation seriously enough'

    25 Mar 2004

    The mortgage industry is severely underestimating the effect of regulation, according to international law firm DLA. DLA, which specialises in financial regulation, is warning that some mortgage companies are risking their businesses by not taking regulation seriously. It points out that if firms are not authorised by October 31, which requires completing and submitting an application form by April 30, they are risking fines or prosecution. Regulation partner Helen Marshall ...

  • 'Market rebounding with a vengeance'

    25 Mar 2004

    House prices are continuing to move up, recording the second-biggest monthly increase since May 2002, according to the Rightmove property website. Asking prices are rising in all regions of England, with average prices up by 2.9 per cent over the month to £179,570 from £174,506, following an increase last month of 2.1 per cent. This month's increase is the second rise since the boom days of May 2002. Annual house price inflation has risen for the third consecutive ...

  • 'Shift to DC brings need for early retirement insurance'

    25 Mar 2004

    The shift from final-salary to money-purchase occupational pensions is leaving employees in danger of hardship if illness forces them to retire early and could create an opening for a new protection product. Abbey for Intermediaries head of protection, marketing and product development Nick Kirwan says money-purchase members lose the benefit of being able to take their full pension early if they are forced to retire due to ill health. Kirwan says policyholders can end ...

  • 'Who will police pensions?'

    25 Mar 2004

    The Inland Revenue faces a dilemma over whether providers, advisers or individuals should police the trivial commutation limit. The limit has created a tax loophole that from A-Day will allow anyone to set up a pension just below the trivial commutation limit of £15,000, receiving tax relief on the way in and taking 25 per cent tax-free cash on the way out. But Clerical Medical pensions strategy manager Nigel Stammers says the Revenue could change the rules to make ...

  • £20bn in unclaimed assets could be given to charity

    25 Mar 2004

    Life offices, banks and building societies have been given a nine-month deadline by the Treasury to trace the owners of an estimated £20bn-worth of unclaimed assets before the Government reviews redistributing this money to charities. Building Societies' Association spokeswoman Rachel Blackmore has criticised the proposal, saying that the Treasury's plans are confused and it does not clarify the difference between dormant accounts and unclaimed assets sufficiently. ABI ...

  • A consumer's view

    25 Mar 2004

    Perhaps the most galling aspect of the Equitable Life disaster is that while those who have lost substantial sums of money in this damaging debacle face a fight, not to mention a long wait, for compensation - if they get anything at all - those responsible for this catastrophe and those who failed to act when they saw it happening can look forward to or are already enjoying their retirement and generous pensions. While innocent policyholders have seen their retirement plans shattered ...

  • A new lease of life

    25 Mar 2004

    Longevity is increasing in the UK and the figures are there to prove it but do not be mistaken in thinking that the whole population will be blessed with a long and healthy life. Certainly, as a nation, we are living for longer than previous generations. How could we not, given the strength and success of modern medicine, improvements in our diet and life-styles and education for all? In 21st Century Britain, we have eradicated the poverty that prowled the streets of ...

  • Abbey ever after

    25 Mar 2004

    Last year's rebrand coupled with a barrage of criticism from mortgage brokers means the UK's second biggest lender, Abbey, has been much in the headlines. A leading group of brokers challenged chief executive Luqman Arnold last October to provide better competition to HBOS for the health of the mortgage market. Abbey for Intermediaries director Ambrose McGinn admits that Abbey has to try harder. He says: "When you are number two to the big guy, you have to work ...

  • Abbey to go national with buy-to-let deals

    25 Mar 2004

    Abbey is planning to increase the coverage of its buy-to-let offering and roll it out nationally to intermediaries from late spring. It is piloting buy to let with a few brokers but the national rollout will include an enhanced product range and new tighter service standards. The bank launched a large loans' facility in February and says it has had a good reception. The BTL offering will be under the large loans' mortgage service proposition. Dedicated ...

  • Actuaries' fears on pension protection

    24 Mar 2004

    The UK's four most senior actuaries have written an open letter to Work and Pensions Secretary Andrew Smith setting out their concerns over the planned pension protection fund. The presidents and presidents elect of the Faculty and Institute of Actuaries have called for the PPF to be set up and run with the same solvency regulations as an insurance company.

  • AITC launches workshops for investment trust directors

    30 Mar 2004

    The Association of Investment Trust Companies is running two training workshops for investment trust directors.The first workshop will focus on continuity and change in the management and governance of investment trusts, with the second looking at accounting, tax and the role of the audit committee.The AITC says the new Combined Code and AITC Code of Corporate Governance put emphasis on the need for director training and development and under the Combined Code boards will ...

  • Annuity Bureau absorbs income drawdown arm

    30 Mar 2004

    The Annuity Bureau is lowering its minimum pension fund size to £20,000 and launching a new service to help retirees shop around for the best pension annuity suited to their individual preferences. It is also planning to absorb its sister division The Drawdown Bureau into its operations and advise on income drawdown.Annuity Bureau managing director Peter Quinton says: "There is a very large sector of the population whose pension requirements are being insufficiently ...

  • Axa extends bond offer

    25 Mar 2004

    Axa has extended the offer period on its capital-protected FTSE bond to the end of March. The bond, launched on February 9, is a five-and-a-half-year investment designed to benefit from any growth in the FTSE 100 while providing capital protection. It is marketed through IFAs and gives 3 per cent initial commission. The bond offers growth equating to 77 per cent net of any growth in the FTSE. Minimum investment is £5,000 and it can be taken out by one person or jointly ...

  • Bankhall is owed £350k by crashed IFA firm

    25 Mar 2004

    Bankhall is owed £350,000 by collapsed IFA Corporate Planning Group, which went into administration in February. Bankhall Investment Associates arranged a £750,000 facility to CPG in December last year but only advanced £350,000 to the firm. It says the loan will be repaid in full as it is a first charge creditor. Bankhall set up the loan facility for IFA firms in June last year, allowing them to borrow up to £1m to expand their businesses. It says ...

  • BBB chief Lockyer gets FSA warning

    25 Mar 2004

    Berkeley Berry Birch chairman and chief executive Clifford Lockyer has been warned by the FSA that he must show he has acted in a fit and proper manner in moving to wind up Berry Birch & Noble Financial Services. Lockyer has received a letter from the FSA telling him his status as a director could be in question if the transfer of assets out of BBNFS to BBN Financial Planning has not left enough assets to cover anticipated liabilities. BBNFS has now ceased trading ...

  • Best Business Press Advertisement

    29 Mar 2004

    This award acknowledges the adver-tisements in the business to business sector that stood out in the way they managed to project their client's message. The three shortlisted agencies stood out for their understanding of the nature of the relationship between product provider, intermediary and client as well as the changes facing the advisory sector. Judges recognised innovation and excellence of execution in this hotly contested category that attracted 37 entrants.The judges' ...

  • Best Business Press Advertisement

    29 Mar 2004

    This award acknowledges the adver-tisements in the business to business sector that stood out in the way they managed to project their client's message. The three shortlisted agencies stood out for their understanding of the nature of the relationship between product provider, intermediary and client as well as the changes facing the advisory sector. Judges recognised innovation and excellence of execution in this hotly contested category that attracted 37 entrants.

  • Best Consumer Direct Mail Pack

    29 Mar 2004

    Awarded for the cleverest and most innovative direct mail packs aimed at consumers, the shortlist for this category represents the campaigns that stood out among this year's 24 entrants as most likely to generate consumer interest in financial services products. Judges commended the way the top three campaigns conveyed their clients' message with simplicity and clarity in a way that was likely to produce an impact.

  • Best Consumer Direct Mail Pack

    29 Mar 2004

    Awarded for the cleverest and most innovative direct mail packs aimed at consumers, the shortlist for this category represents the campaigns that stood out among this year's 24 entrants as most likely to generate consumer interest in financial services products. Judges commended the way the top three campaigns conveyed their clients' message with simplicity and clarity in a way that was likely to produce an impact.Designed to test the appetite of Prudential's customers ...

  • Best Consumer Press Advertisement

    29 Mar 2004

    This category acknowledges the talents of those who created the most memorable and effective consumer press advertise-ments of 2003. Recognising the best corporate advertisements which promoted specific products through national newspapers or consumer magazines, judges were impressed with the overall quality of this year's entries but felt the four advertisements that made the shortlist showed exceptional wit, charm and intelligence. Judges were impressed with the bravery shown ...

  • Best Consumer Press Advertisement

    29 Mar 2004

    This category acknowledges the talents of those who created the most memorable and effective consumer press advertise-ments of 2003. Recognising the best corporate advertisements which promoted specific products through national newspapers or consumer magazines, judges were impressed with the overall quality of this year's entries but felt the four advertisements that made the shortlist showed exceptional wit, charm and intelligence.

  • Best Corporate IFA

    29 Mar 2004

    1st thomsons online benefits 2nd Momentum Financial Services 3rd Aurora Financial Group

  • Best Corporate IFA

    29 Mar 2004

    1st thomsons online benefits2nd Momentum Financial Services3rd Aurora Financial Group

  • Best Healthcare Provider

    29 Mar 2004

    Winner: Norwich Union2nd: Abbey (Scottish Provident)3rd: Standard Life

  • Best Healthcare Provider

    29 Mar 2004

    Winner: Norwich Union 2nd: Abbey (Scottish Provident) 3rd: Standard Life...

  • Best IFA Direct Mail Pack

    29 Mar 2004

    This award goes to the most outstanding direct mail packs sent to IFAs in 2003. Judges rewarded the campaigns that best understood the challenges and problems faced by intermediaries and inspired them to generate more business. The top three were all campaigns the judges felt most likely to stand out above the sea of marketing targeted at IFAs and actually make it on to his or her desk. Designed to counter gloomy pundits predicting the end of the road for the corporate bond market, ...

  • Best IFA Direct Mail Pack

    29 Mar 2004

    This award goes to the most outstanding direct mail packs sent to IFAs in 2003. Judges rewarded the campaigns that best understood the challenges and problems faced by intermediaries and inspired them to generate more business. The top three were all campaigns the judges felt most likely to stand out above the sea of marketing targeted at IFAs and actually make it on to his or her desk.Designed to counter gloomy pundits predicting the end of the road for the corporate bond market, ...

  • Best Investment IFA

    29 Mar 2004

    1st Bestinvest (Brokers) 2nd Alan Steel Asset Management 3rd Hargreaves Lansdown

  • Best Investment IFA

    29 Mar 2004

    1st Bestinvest (Brokers)2nd Alan Steel Asset Management3rd Hargreaves Lansdown

  • Best Investment Trust Provider

    29 Mar 2004

    Winner: Fidelity Investments2nd: Skandia Life3rd: Foreign & Colonial

  • Best Investment Trust Provider

    29 Mar 2004

    Winner: Fidelity Investments 2nd: Skandia Life 3rd: Foreign & Colonial...

  • Best Life Investment Product Provider

    29 Mar 2004

    Winner: Standard Life 2nd: Norwich Union 3rd: Skandia Life...

  • Best Life Investment Product Provider

    29 Mar 2004

    Winner: Standard Life2nd: Norwich Union3rd: Skandia Life

  • Best Life Protection Provider

    29 Mar 2004

    Winner: Norwich Union 2nd: Legal & General 3rd: Abbey...

  • Best Life Protection Provider

    29 Mar 2004

    Winner: Norwich Union2nd: Legal & General3rd: Abbey

  • Best Mortgage IFA

    29 Mar 2004

    1st L&C 2nd Chadney Bulgin 2nd Charcol...

  • Best Mortgage IFA

    29 Mar 2004

    1st L&C2nd Chadney Bulgin2nd Charcol

  • Best Outdoor Advertisement

    29 Mar 2004

    This year a record 38 entries battled it out for the award for the outdoor advertisement that best conveyed its message in our public spaces. This award acknowledges the work that stood out from the crowd as exceptional in the way it was able to raise brand awareness and drive new business. Judges chose the advertisements that created a buzz in a way that would leave an impression on the passer by.The judging panel loved the way The Leith Agency's Spotting mistakes campaign ...

  • Best Outdoor Advertisement

    29 Mar 2004

    This year a record 38 entries battled it out for the award for the outdoor advertisement that best conveyed its message in our public spaces. This award acknowledges the work that stood out from the crowd as exceptional in the way it was able to raise brand awareness and drive new business. Judges chose the advertisements that created a buzz in a way that would leave an impression on the passer by.

  • Best Pension IFA

    29 Mar 2004

    Winner: Advisory Brokerage Services 2nd: Hargreaves Lansdown 3rd: Momentum Financial Services

  • Best Pension IFA

    29 Mar 2004

    Winner: Advisory Brokerage Services2nd: Hargreaves Lansdown3rd: Momentum Financial Services

  • Best Pension Provider

    29 Mar 2004

    Winner: Standard Life2nd: Norwich Union 3rd: Scottish Equitable

  • Best Pension Provider

    29 Mar 2004

    Winner: Standard Life 2nd: Norwich Union 3rd: Scottish Equitable...

  • Best Protection IFA

    29 Mar 2004

    1st Lifesearch 2nd Direct Life & Pension Services 3rd NHFA...

  • Best Protection IFA

    29 Mar 2004

    1st Lifesearch2nd Direct Life & Pension Services3rd NHFA

  • Best Radio Advertisement

    29 Mar 2004

    The award for best radio advertisement in 2003 recognises the work that caught the attention and projected the message in this effective branch of the media. All four shortlisted entries used the spoken word in a witty, creative and imaginative way that made the listener want to hear right to the end of the story while achieving the client's marketing objective.

  • Best Radio Advertisement

    29 Mar 2004

    The award for best radio advertisement in 2003 recognises the work that caught the attention and projected the message in this effective branch of the media. All four shortlisted entries used the spoken word in a witty, creative and imaginative way that made the listener want to hear right to the end of the story while achieving the client's marketing objective. The clear favourite of all 12 judges, Delaney Lund Knox Warren & Partners created a perfect satire on the relationship ...

  • Best Residential Mortgage Loan Provider

    29 Mar 2004

    Winner: Nationwide2nd: Cheltenham & Gloucester3rd: Halifax

  • Best Residential Mortgage Loan Provider

    29 Mar 2004

    Winner: Nationwide 2nd: Cheltenham & Gloucester 3rd: Halifax...

  • Best Technology IFA

    29 Mar 2004

    1st THE BANKHALL GROUP 2nd Virtual Net (Europe) 3rd Park Row Group...

  • Best Technology IFA

    29 Mar 2004

    1st THE BANKHALL GROUP2nd Virtual Net (Europe)3rd Park Row Group

  • Best TV Advertisement

    29 Mar 2004

    This category recognises the most outstandingly creative financial services advertisements on UK television in 2003. The judges found this year's 20 entries full of wit, charm, suspense and intrigue and capable of attracting the attention of viewers to the traditionally dry area of financial services. From a particularly strong field, the judges felt the shortlisted entries all showed exceptional sophistication and clarity of message.

  • Best TV Advertisement

    29 Mar 2004

    This category recognises the most outstandingly creative financial services advertisements on UK television in 2003. The judges found this year's 20 entries full of wit, charm, suspense and intrigue and capable of attracting the attention of viewers to the traditionally dry area of financial services. From a particularly strong field, the judges felt the shortlisted entries all showed exceptional sophistication and clarity of message.A clear winner, Saatchi & Saatchi's Pigeon ...

  • Best Unit Trust / OEIC Provider

    29 Mar 2004

    Winner: Fidelity Investments 2nd: Skandia Life 3rd: Invesco Perpetual...

  • Best Unit Trust / OEIC Provider

    29 Mar 2004

    Winner: Fidelity Investments2nd: Skandia Life3rd: Invesco Perpetual

  • Best use of New Media

    29 Mar 2004

    The best use of new media award by an IFA recognises the technology solutions that made a difference to the way advisers carried out their work in 2003.

  • Best use of New Media

    29 Mar 2004

    The best use of new media award by an IFA recognises the technology solutions that made a difference to the way advisers carried out their work in 2003.In an era of ever decreasing margins and Government price caps, it is the inter-mediaries that can successfully tap the power of technology that will achieve the business efficiency to succeed. Judges commended use of new media that provided a real benefit to the marketplace and showed e-commerce improving the way people do business. ...

  • BGI adds corporate bond ETF to range

    30 Mar 2004

    Barclays Global Investors has added the iBoxx £ corporate bond fund to its exchange traded fund range.iBoxx, a consortium of seven European investment banks including ABN Amro, Barclays and Dresdner Kleinwort Wasserstein, and the Deutsche Borse, created the index. The iBoxx £ Liquid Corporates Long Dated Index comprises 40 of the most liquid investment-grade corporate bonds in Europe. These include UK supermarket chain J Sainsbury & Co and Dutch bank Rabobank Nederland.Exchange

  • Bristol & West keeps it in the family

    29 Mar 2004

    Bristol & West has teamed up with Family Assurance for a second time to establish the Family protected savings plan 2, a capital protected unit-linked endowment linked to the performance of four stockmarket indices - the FTSE 100, Nikkei 225, Swiss Market Index, and S&P 500.The product marries the capital protection of Bristol & West's structured products with the tax privileges of friendly society plans. Friendly societies can offer tax-free returns on regular savings plans ...

  • Brokers unconvinced on plans for rate rise cover

    25 Mar 2004

    Mortgage brokers have raised fears over the possible costs of a new product suggested by Professor David Miles to insure borrowers against interest rate rises. Mortgage Intelligence managing director Sally Laker is concerned about the price of insurance, saying if it was the same as the saving on a discounted product then it would make the loan look less attractive. She also questions who would supply such insurance and asks if the premium would vary with interest rates. Laker ...

  • Brown is striding on with pension policy

    25 Mar 2004

    The Chancellor's revelation that pension simplification will go ahead a year later than scheduled and with a new improved lifetime fund limit has left the industry feeling positive. The Budget included a list of concessions and changes, including an increase in the lifetime pension fund limit, increased annual allowances and a postponement of A-Day by 12 months to April, 2006. Add to that tax breaks for advice and the confirmation that residential property will be ...

  • Charge offer from Abbey for Intermediaries

    29 Mar 2004

    Abbey for Intermediaries is offering a deal that allows IFAs to reduce the initial commission paid by the client and still receive initial ad renewal commission for its multi-manager range.The offer - which applies to all new single premium Oeic, Isa and Pep investments - allows an initial charge of 2 per cent rather than 4.5 per cent and still pays IFAs 3 per cent commission. If the IFA takes 1 per cent commission, the initial charge to the client is zero.AfI director ...

  • Choice challenge

    25 Mar 2004

    Borrowers getting advice from mortgage network brokers will inevitably have a more limited choice than those opting for fully independent mortgage advice. Arguably, the real issues for mortgage advisers and consumers will centre on how clearly the restrictions of choice at networks are communicated and how flexible networks' panels will be. Bankhall believes that mortgage networks restrict consumer choice and are not a long-term solution for brokers. But some brokers ...

  • Clerical Medical techs up where it left off

    29 Mar 2004

    CLERICAL MEDICALFUTUREPROOFType: Cafeteria-style group pension plan combining group stakeholder, group personal pension, group money purchase and group additional voluntary contributions Minimum group size: 10 Minimum-maximum ages: 16-75 Minimum premium: £20 for stakeholder, otherwise £20 per member a month, £240 per member a year, £500 lump sum, £1,000 pension transfers Fund links: Clerical ...

  • Clerical to add risk-graded fund deals

    25 Mar 2004

    Clerical Medical is introducing a new range of risk graded fund collections following strong demand from intermediaries. The range will be graded as defensive, cautious or balanced and is made up of funds from in-house fund manager Insight Investment and from Clerical's external fund managers UBS, Newtons and Schroders. Clerical says it may add to the fund collections in the future. The risk-graded collection is available on products including Clerical's individual ...

  • Company of the Year

    29 Mar 2004

    Winner: Standard Life2nd: Skandia Life3rd: Norwich Union

  • Company of the Year

    29 Mar 2004

    Winner: Standard Life 2nd: Skandia Life 3rd: Norwich Union ...

  • Consifa puts IFA buying plans on hold

    25 Mar 2004

    IFA consolidation group Consifa has admitted its acquisition plans are on hold and that it has not yet completed any of its planned IFA purchases. Consifa was set up in November 2001 by John Charcol founder Colin Studd, who said at the time that he planned an Ofex listing for the firm within a few months of its launch. But its acquisition plans have stalled and although Studd says Consifa is still in negotiations with six IFA firms, he admits it has experienced more difficulty ...

  • Constant craving

    25 Mar 2004

    If hell hath no fury like an IFA misled, then perhaps it is time to acknowledge that the market for low-risk equity-linked products is in need of a serious shake-up. The last couple of articles by The Abacus on this subject have explored the market for with-profits, particularly with-profits bonds, suggesting that the historic product is currently unattractive and that the next-generation variants will never achieve market penetration. Funds based on constant proportion ...

  • Consumer Campaign of the Year

    29 Mar 2004

    This key category recognises the consu-mer campaign which most consistently communicates a financial services mes-sage to the public across all forms of media in 2003. The shortlist of five reflects the judges' view of the strength of this year's entries. Working through TV and radio, outdoor and print media, this year's top three all impressed judges with the quality of ideas employed and the brilliance of their execution that brought to life their clients' financial services marketing campaign

  • Consumer Campaign of the Year

    29 Mar 2004

    This key category recognises the consu-mer campaign which most consistently communicates a financial services mes-sage to the public across all forms of media in 2003. The shortlist of five reflects the judges' view of the strength of this year's entries. Working through TV and radio, outdoor and print media, this year's top three all impressed judges with the quality of ideas employed and the brilliance of their execution that brought to life their clients' financial services ...

  • Correspondent's week

    25 Mar 2004

    Delving into the delights of Gordon Brown's Budget is an unenviable task. It involves gathering contacts and case studies, not to mention trying to figure out the complex connections that various gimmicks have with the Budget. Among these is Ernst & Young's wooden cube, which unravels into the shape of a snake. Our City Diary writer discovers this is to reflect the complexity of the Budget. Well, I'm damned if I can get it back into its original form. We ...

  • Critical errors with transfers

    25 Mar 2004

    In my last couple of articles, I have identified and discussed some of the ways in which various financial services reviews and judgments can assist IFAs in formulating compliant procedures for giving advice, especially in product areas which can otherwise cause problems. So far, I have concentrated on case histories from the Financial Ombudsman Service relating to lump-sum investments such as high-yield investment bonds or precipice bonds. While continuing to focus on ...

  • Digest

    25 Mar 2004

    The Diary has to ask if Aegon PR Scott White's eye for the horses has anything to do with the company's new ad campaign. With White spending most of last week at the Cheltenham races, the Diary thinks he could have been slightly influenced. Apparently this is a giant magnet (below) but you could be forgiven for thinking it is a horseshoe.

  • Digest

    25 Mar 2004

    Schroders staff put themselves on the line to raise £100,000 for Macmillan Cancer Relief. A number of staff volunteered to be shut in a mock phone booth in the foyer of the company's headquarters in Gresham Street, London, for 30 minutes each. They then had to call as many friends as possible to raise money for the charity. Staff such as fund manager Matthew Dobbs were actively discouraged from thinking outside the box for the day. As part of its 200th anniversary ...

  • Dunbar hit with £725k fine over endowment complaints

    25 Mar 2004

    The FSA has fined Allied Dunbar £725,000 after serious flaws were found in the company's procedures for handling mortgage endowment complaints. The regulator says the flaws, which existed between May 2001 and April 2003, put clients at risk of potential loss. Considerable parts of the complaints' handling guidance that Allied Dunbar gave to its staff were inadequate, according to the FSA. Director of enforcement Andrew Procter believes that in a number ...

  • Electoral role

    25 Mar 2004

    Luring members to AGMs may seem like a thankless task to many financial services companies so Norwich and Peterborough Building Society sent out modern-day suffragettes (left to right) Alison Rolls, Anna Guthrie and Laura Hogg to encourage members to use their vote. In a recent survey by N&P, 79 per cent of its members admitted they have never voted at the AGM.

  • Equity-release business climbs with versatility

    25 Mar 2004

    The versatility of equity release as a financial tool has fuelled a 121 per cent increase in sales in the sector in recent years, says home-income plan specialist Hodge Equity Release. A survey of the IFA market has shown that uses for the cash released from homes include buying cars and holidays or making gifts. Thirty-five per cent of equity-release schemes are still taken out to supplement incomes while 23 per cent are for home improvements. The increasing popularity ...

  • Execution-only in the doldrums

    25 Mar 2004

    Execution-only business is unlikely to show signs of life for at least another 12 months as companies struggle to devise ways to attract investors under prohibitive advertising regulation, says Threadneedle. Execution-only firms have reported a dramatic tail-off in direct sales as big swathes of investors shun markets despite surveys showing rising confidence. But while advised customers are slowly entrusting their money with fund managers again, Threadneedle says rules banning ...

  • Execution-only saved by MEPs' campaign

    25 Mar 2004

    MEPs say they have succeeded in saving execution-only business from an EU directive that could have seen it eliminated from the market. The group, led by Conservative MEP Theresa Villiers, has succeeded in negotiating reforms to the second draft of the Investment Services Directive so that those doing execution-only business will not have to conduct a fact-find with every new client. Firms active in the market had argued that imposing a fact-find on execution-only transactions ...

  • Failed claims suggest public do not understand CI cover

    25 Mar 2004

    Around 65 per cent of total and permanent disability claims made on critical-illness policies are not paid out because they do not meet the criteria, leading to questions about consumer understanding of the product. At a recent health insurance conference in London, Lifesearch senior technical adviser Kevin Carr said claims fail because policyholders do not qualify as being totally and permanently disabled. He said some policyholders have made claims for conditions such ...

  • Fast track for FSA complaints

    30 Mar 2004

    The FSA is proposing a 'fast track' complaints mechanism for investigating complaints against the regulator. Presently its "stage one" investigation into each complaint involves appointing a senior member of staff not previously involved in the matter, to investigate. However the FSA plans to sit the fast track mechanism ahead of stage one in an attempt to assess whether the complaint can be "put right promptly by the area most closely involved".

  • Fee defiance

    25 Mar 2004

    We have been operating a Legal & General group personal pension for seven years and most of our 35 employees are members. Our IFA wants to start charging us fees. What are our options? A number of group personal pension providers responded to increased pressure on their profit margins by reducing the commission paid to IFAs. Legal & General was one of the first to introduce this change and the commission generated from a new GPP member fell sharply with effect ...

  • Fine individuals for endowment misselling, says consumer panel

    25 Mar 2004

    Individuals responsible for endowment misselling should be fined as well as their firms, according to the Financial Services Consumer Panel. Responding to the Treasury select committee report on endowment mortgages, panel member Dave Watts argues that while the FSA has fined firms for endowment misselling, individuals should also be made accountable. His views have been echoed by former Gartmore chairman Paul Myners, who told the select committee last month that an analogy ...

  • Firms plan to offer cash to beat the pension limit for executives

    25 Mar 2004

    Employers will turn to increased cash payments in lieu of pensions for those hit by the lifetime limit ahead of increased flexible benefits, according to a survey by Mercer HR Consulting. The research reveals that 81 per cent of respondents say they would offer cash to senior executives hit by the cap while 55 per cent would use flexible benefit arrangements to allow a choice from a range of pay and benefit options. The survey of 90 employers found that 41 per cent expect ...

  • First time lucky

    25 Mar 2004

    Buying a first home is 33 per cent less affordable now than it was 10 years ago, according to Shelter. The popularity of buy-to-let mortgages during the stockmarket slump has helped to crowd first-time buyers out of the market. This has led to a fall in the number of FTBs and an increase in their average age. For some people, the solution is to delay buying a home until they have a deposit, which could take them into their mid-30s. However, putting off buying a home runs ...

  • Flexible option bond offer from Scottish Widows

    26 Mar 2004

    Scottish Widows has introduced a 1% enhanced allocation on its Flexible Options Bond. The offer is available from 1 April 2004 and will run for 3 months until 30 June.The Flexible Options Bond, launched in July 2002, gives access to around 80 internally and externally managed funds including multi-manager funds through Russell Investment Group. Scottish Widows marketing director Peter Jordan says: "This is a very fast moving and competitive market which has witnessed a ...

  • Friends Hammers out a deal

    24 Mar 2004

    Friends Provident has signed an agreement with West Ham United to offer its services to the club's employees, club members and supporters.

  • FSA brings in new plan for FOS and FSSC levies

    25 Mar 2004

    Firms will have to tell the FSA what percentage of their business is derived from mortgages and general insurance to determine their ombudsman and compensation scheme levies. The proposals come as the FSA looks at how to extend funding for the Financial Ombudsman Service and the Financial Services Compensation Scheme to mortgage and general insurance intermediaries. It plans to charge intermediaries for FOS and the FSSC levies in the same way it will set regulatory fees ...

  • FSA says market timing not hitting long-term investors

    25 Mar 2004

    There is some evidence of market timing in UK-authorised collective investment schemes but it has had little impact on long-term investors, according to an FSA investigation. Its probe into almost 10,000 transactions found that most occurrences of market timing were short-lived, with fund managers acting swiftly to end relationships where clients have tried to time funds. The FSA calculates that funds have collectively lost less than £5m but it wants companies - ...

  • FSA's 30-month process to cover offloading

    25 Mar 2004

    The FSA has a 30-month procedure for IFA firms wanting to offload their liabilities which ensures that client needs are not compromised, Money Marketing can reveal. IFAs set up as limited liability companies to get rid of their liabilities can do so by transferring their assets to a new company and winding up the old one, provided they remain within company law. Any liabilities then arising for the advice given by the wound up firm will fall on the Financial Services ...

  • Fund firm aims to create a Bollywood blockbuster

    25 Mar 2004

    Media Vision Management is launching an offshore fund which aims to generate growth through investment in Bollywood films. The Bollywood media and entertainment Oeic will work with major Indian production companies to finance the production of a variety of films chosen by an advisory board. Returns are based principally on films' profits, royalty rights and merchandising. The fund will invest in three or four films at a time but is expected to generate returns on previous ...

  • Godfrey warns firms not to snub FSA's splits' scheme

    25 Mar 2004

    AITC director general Daniel Godfrey has warned firms embroiled in the FSA's splits' investigation that they may be shooting themselves in the foot by shunning the regulator's collective compensation scheme over fears of litigation. Speaking at the AITC's conference for directors in London this week, Godfrey said the argument that admitting wrongdoing would expose firms to ceaseless legal action could turn out to be "something of a red herring". He said if a fair compensation ...

  • Greenspan says fixed rates are expensive

    25 Mar 2004

    US Federal Reserve Board chairman Alan Greenspan says variable-rate mortgages could have saved tens of thousands of dollars for US homeowners stuck in long-term fixed-rate mortgages. The US model of longterm fixed-rate mortgages has been held up as a solution to the problems of volatility that the UK property market has suffered. Greenspan told delegates at the Credit Union National Association governmental affairs conference on understanding debt obligations that recent ...

  • Hambro lure Newton's Beagles

    29 Mar 2004

    J O Hambro has appointed former Newton higher income fund manager Clive Beagles to head up a major new income fund launch planned for the autumn.Beagles has over 14 years investment experience. The £1.5 billion Newton Higher Income Fund he managed has attained consistent performance as one of the top selling equity income funds.The announcement follows last month's hiring of veteran Japan manager, Scott McGlashan, who will head up the new JOHCM Japan Fund to be launched ...

  • HBOS rethink prompts new talks with Sesame

    25 Mar 2004

    HBOS and Sesame are renegotiating the basis of their mortgage relationship, says a source close to the two groups. Sesame recently said it had signed up HBOS as one of the first lenders for its new mortgage proposition but it is believed that negotiations are looking at the relationship again. Sesame is understood to have asked lenders for fees of up to £150,000 each for marketing to be on its Mortgage Select panel, which off-ers enhanced procuration fees to brokers. ...

  • Held to Ranson

    25 Mar 2004

    At least the FSA can sleep easy at night knowing that Mr Ranson was not the author of a textbook used to educate a whole generation of actuaries. Simon Jeffery Northlake, Devon

  • IFA Campaign of the Year

    29 Mar 2004

    Recognising the work that has most successfully managed to engage IFAs in 2003, the strength of this year's entries reflects the skill and commitment agencies have employed to get over product providers' messages. From a strong field of 28 entries, the four shortlisted campaigns impressed judges with their clear sense of an overall message and the high quality of their execution these campaigns all had something to say and knew how to say it.

  • IFA Campaign of the Year

    29 Mar 2004

    Recognising the work that has most successfully managed to engage IFAs in 2003, the strength of this year's entries reflects the skill and commitment agencies have employed to get over product providers' messages. From a strong field of 28 entries, the four shortlisted campaigns impressed judges with their clear sense of an overall message and the high quality of their execution - these campaigns all had something to say and knew how to say it. Delaney Lund Knox Warren ...

  • IFA demanding right of appeal over decisions by ombudsman

    25 Mar 2004

    An IFA has branded the Financial Ombudsman Service's procedure as unfair because all the documents submitted with a complainant's case were not disclosed to him. The adviser, who has asked to remain anonymous because he has outstanding complaints, is also calling for a right of appeal against FOS decisions where compensation is so high that it is likely to damage a firm's chances of survival. The FOS says consultation on an appeals process will be launched next ...

  • IFA of the Year

    29 Mar 2004

    1st Advisory & Brokerage Services2nd Cavanagh Group3rd Hargreaves Lansdown

  • IFA Professional Development Award

    29 Mar 2004

    1st Chartwell Investment Management2nd Advisory & Brokerage Services3rd NHFA

  • IFA Professional Development Award

    29 Mar 2004

    1st Chartwell Investment Management 2nd Advisory & Brokerage Services 3rd NHFA...

  • IFAP upgrade website

    29 Mar 2004

    IFA Promotion has upgraded its www.unbiased.co.uk website to provide an improved service for consumers and businesses seeking local independent financial advisers.The front page of the new-look website offers visitors product specific searches to channel them quickly through to local IFAs focusing on particular product areas. People can also download product specific guides and factsheets as well as a range of consumer-friendly ...

  • IFAs don't need to feel threatened by employment law

    25 Mar 2004

    I read with interest news of Peninsula's survey pointing out the increase in tribunal applications and suggested increase in time employers are spending on dealing with red tape (Money Marketing, March 11). We feel that perhaps the 80 per cent of IFAs surveyed who suggested that red tape has restricted their growth are applying a lame excuse to a wider management and resourcing issue. Yes, there are currently 80 reasons why an employee may go to seek redress at an ...

  • IFAs wanted to take part in skills council advice pilot

    25 Mar 2004

    The Financial Services Skills Council is rolling out a pilot for its advice skills assessment proposals among IFAs and direct-sales advisers, with participants getting up to £20,000 for their efforts. The council has already signed up big direct-selling operations such as Standard Life, Abbey and Zurich Advice Network to take part in the pilot and is negotiating with Nationwide, HSBC and Lloyds TSB. It is now turning its attention to the independent sector, looking ...

  • Iimia buys planning firm Solace

    25 Mar 2004

    Fund manager iimia has acquired financial planning firm Solace Associates, boosting the group's assets under management to more than £200m. Midlands firm Solace, which was established in 2001 by four practices of accountants and solicitors, will join iimia's financial planning division which provides holistic advice under the names Eveleigh & Huckle and Compton House. The move is part of iimia's drive to extend its reach in the Midlands following its ...

  • Income-protection set for boom

    24 Mar 2004

    Premium income from group income protection schemes is predicted to grow by around 60 per cent between 2003 and 2007 reaching a total value of just under £900m, according to new research by Mintel.

  • Independent view

    25 Mar 2004

    In my view, there are three types of companies currently servicing the IFA market - those which give you too much information, those which give you too little and those which do not give a damn. All of them seem to have one thing in common - the standard of service they provide is not very good. You end up spending more time solving problems than actually dealing with clients. Some companies seem to have become very adept at not being able to process business quickly and effectively. Let

  • Industry Personality of the Year

    29 Mar 2004

    Winner: Steve BeeAlso nominated: Gordon BrownJohn DuffieldBill Mott Stewart RitchiePaul Smee

  • Industry Personality of the Year

    29 Mar 2004

    Winner: Steve Bee Also nominated: Gordon Brown John Duffield Bill Mott Stewart Ritchie Paul Smee

  • Insight revamp creates multi-manager Oeic

    25 Mar 2004

    Insight Investment Management has streamlined its offshore multi-manager funds, creating a multi-manager Oeic which in turn will have four sub-funds offered in a variety of currencies. The Guernsey-registered Oeic replaces Insight's current international wealth builder and international wealth management offerings, compiling 10 different funds and 10 different strategies. Multi-manager managing director Nigel Whittingham says the changes to the international wealth ...

  • Investment analysis

    25 Mar 2004

    After the bombings in Madrid the previous week, the thought of further international acts of terrorism continued to send reverberations through financial markets last week and high oil prices raised questions about the durability of a global economic recovery. However, that said, stockmarkets were pretty resilient last week, with some, most notably Japan posting gains. The benchmark FTSE World Index edged up by 0.3 per cent over the week. Japan's Topix index closed at its highest ...

  • Investment view

    25 Mar 2004

    My memory for names is appalling. I have even called my wife by the wrong name (an easy mistake to make if you are a serial aisle-traipser, like me). Recently, I succeeded in attaching the wrong name to an investment manager from our Edinburgh office while addressing a group of IFAs in Inverness the other week. Inverness has not featured often in my itinerary. I once paid it a fleeting visit en route to finding a vet. Staying on the west coast of Scotland, I was amazed to find that the ...

  • JPMF buoyant on Continental drift

    25 Mar 2004

    JP Morgan Fleming's European team raised $2bn in the first two months of this year and the rapid inflows are expected to persist as its funds continue to outperform rivals. European chief investment officer Chris Complin says he has not been surprised by the mountain of money his team has attracted, with a host of its style funds firmly entrenched in the first or upper-second quartiles. JPMF's core European fund has rocketed from around $300m in 2001 to $1.9bn as ...

  • Julian Gibbs

    25 Mar 2004

    Barings, like Credit Suisse and Jupiter, is rather negative about corporate bonds because of upward pressure on yields in most areas of the world which could lead to negative total returns. It has therefore launched the Baring directional global bond trust which takes advantage of new Ucits legislation to offer UK investors an actively-run absolute-return global bond fund which aims to deliver returns of 4 per cent above the three-month sterling Libor rate after charges. At current ...

  • Keep pace with change

    25 Mar 2004

    This year's Fund Strategy Live will once again provide intermediaries with access to the leading experts from the investment fund management industry. The event, taking place at London Olympia on May 6, brings together an unprecedented number of presentations, workshops and seminars. Key figures from leading investment companies, including Jupiter, Fidelity and Invesco Perpetual, will be speaking at the event as well as Seven Investment Management co-founder Justin ...

  • Kreis Cod EIS makes a splash

    30 Mar 2004

    KREIS CONSULTINGTOMAHAWK PUBSType: Enterprise investment scheme Aim: Growth by investing in pubs within the M25 area Minimum investment: Lump sum £3,300 Closing date: April 5, 2004 for 2003/2004 tax year, June 30, 2004 for 2004/2005 tax year Charges: Initial 6% Commission: Initial 3% Tel: 0141 564 1529 Tomahawk Pubs in an enterprise investment scheme which invests in pubs located in ...

  • L&G features cover for spouses on group life

    25 Mar 2004

    Legal & General has extended its range of benefit products with a group life scheme for the spouses or partners of employees. This is a formalisation of L&G's previous bespoke service with the extension of the existing voluntary life insurance plan of the insured employee to cover their spouse or partner, who will be able to benefit from the rates and entry conditions associated with group arrangements. The benefit payable is a lump sum on the death of a spouse ...

  • Leap of faith

    25 Mar 2004

    Trust in companies and their products has been dealt a hammer blow. The report into Equitable Life by Lord Penrose laid the blame for the debacle fairly and squarely on the company. He asserted that "the society was the author of its own misfortunes". He went on to describe how a culture of manipulation and concealment on the part of some of the company's previous senior management all-owed a bonus policy to develop that led to the society's financial weakening - a policy ...

  • Legal & General - Capital Protection Plus 3

    24 Mar 2004

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £500-no maximum, Isa £3,00-£7,000Term: Six yearsGuarantee: Original capital returned in full at end of term plus 22% growth regardless of performance of indexReturn: Between 22% and 50% growth at end of termClosing date: April 16, 2004, Isa/Pep transfers April 2, 2004Commission: ...

  • Lending rethink urged to help FTBs

    25 Mar 2004

    The MarketPlace at Bradford & Bingley is calling on lenders to review their current lending criteria to help firsttime buyers get on the property ladder. Research from The MarketPlace shows that a quarter of Britons have to wait almost six years before being able to buy their first home. Fifty-four per cent of prospective buyers are struggling to buy a home because of the rises in house prices while 50 per cent are still paying off debts while trying to raise a deposit. Seve

  • LIA firms set to back restructure

    25 Mar 2004

    The LIA is expected to have passed its proposals to go ahead with a complete restructuring of the organisation at an EGM this week. It held the meeting after a consultation with members to gauge whether they would support the move which aims to strengthen the LIA's position as an upholder of professional practice. The process is expected to take some four years to complete. There could be a change in designation for members, with each requiring a certain level of qualification. ...

  • LIA members approve transformation

    24 Mar 2004

    The LIA has received majority support for a board restructure that will see it move to the second phase of its five-year plan to redefine the organisation as a professional association.LIA director general Mark Ommanney says: "We take enormous heart from our members' appetite to take the Association to this exciting new stage in its evolution and now begin a wide search for our new chairman."

  • LIA's view

    25 Mar 2004

    The Miles review recognises the strengths of the mortgage industry. It also recognises that intense competition poses challenges for borrowers in assessing the merits of the numerous mortgage products on offer in the market today. The recommendations focus on improving borrower information and promoting "fairer pricing." There are also recommendations for enhancements to longterm funding. The majority of the recommendations in the Miles report are likely to be acceptable to the ...

  • Lifetime rates cut by Express

    25 Mar 2004

    Rates for lifetime mortgages have been cut at Mortgage Express to 6.74 per cent, fixed for the term of the loan . The firm claims the loan has the highest LTV on the market, with 25 per cent for 60-year-olds and 55 per cent at 90. The fee is expressed as a percentage of the loan for mortgages redeemed in the first five years, 5 per cent within the first two years, 4 per cent in the third and fourth year and 3 per cent in the fifth year. Head of business development ...

  • Lord Abbett - CF Lord Abbett UK Growth & Income

    30 Mar 2004

    Type: OeicAim: Growth and income by investing in larger UK companiesMinimum investment: Lump sum £1,000, monthly £50Investment split: 23.57 financials, 11.92% energy 11.63% consumer staples, 11.57% healthcare, 11.56% telecommunication services, 10.09% consumer discretionary, 8.98% utilities, 4.2% materials, 1.85% information technology, 4.63% cashIsa link: YesPep transfers: YesCharges: Initial ...

  • Lord Abbett - CF Lord Abbett UK Growth & Income Fund

    29 Mar 2004

    Type: OeicAim: Growth and income by investing in larger UK companiesMinimum investment:Lump sum £1,000, monthly £50Investment split: 23.57 financials, 11.92% energy 11.63% consumer staples, 11.57% healthcare, 11.56% telecommunication services, 10.09% consumer discretionary, 8.98% utilities, 4.2% materials, 1.85% information technology, 4.63% cashIsa link: YesPep transfers: YesCharges: Initial 5%, annual ...

  • LTC plans have tax-exempt status confirmed in Budget

    25 Mar 2004

    Older people drawing an income from an immediate-needs plan to pay for their long-term care have had their tax-exempt status confirmed by a detail in last week's Budget. The Nursing Home Fees Agency says the Inland Revenue has for some time questioned the tax-free treatment of income from immediate-needs care plans. But it says the exemption has now been confirmed by a measure in last week's Budget. This introduced new legislation which will ensure that ...

  • M&G gets direct with property

    25 Mar 2004

    M&G has established the M&G Property Fund, a Guernsey-domiciled unit trust that will be fully invested in a £95m property portfolio from day one.The fund will hold 21 UK commercial properties. John Cartwright, head of retail funds at Prudential Property Investment Managers (PruPIM) - a subsidiary of M&G - will manage the fund, assisted by 30 analysts and surveyors. Cartwright has been a property fund manager since 1988 and has 30 years' property investment experience ...

  • Mark Chilton on mortgages

    25 Mar 2004

    The lingering thought left from the Budget is that next time I fly into the UK I will be greeted by an Inland Revenue inspector at Heathrow. Not because I owe any tax but as a combination of the merger of the Revenue with Customs & Excise and the savage Civil Service job cuts. In essence, the keynote of this Budget is that the Chancellor has found a new source of funding. No longer will he need to raise taxes to pay for spending increases, he just fires a bunch of civil servants ...

  • Mark Ommanney

    25 Mar 2004

    After a year at the helm, LIA director general Mark Ommanney has found himself in the middle of a shake-up.With the grandfather of financial services industry bodies to restructure, Ommanney has been thrust into the spotlight as all eyes focus on the organisation's next moves. The LIA held an extraordinary general meeting to vote through the proposed schedule of changes and the members' votes looked to be in favour of the actions that will dramatically change the face of ...

  • McFall complains about life companies' customer service

    25 Mar 2004

    Treasury select committee chairman John McFall is calling for the FSA to crack down on financial services companies which fail to offer consumers an adequate service for handling complaints. McFall believes that far too many financial companies have "flawed" complaints' handling processes that deny consumers redress if they believe they have been missold. Writing in Money Marketing this week, he says the level of complaints upheld by the Financial Ombudsman Service ...

  • Miles could prove as unworkable as stakeholder

    25 Mar 2004

    May I quote some recent headlines from Money Marketing Online: "CML calls Miles a sensible package of measures", "BSA agrees long-term fixed rates needs balanced approach" and "Barclays and Woolwich throw support behind Miles." I recall reading similar comments when stakeholder pension plans came on the scene. I especially remember the very enthusiastic noises which could be heard coming from some of the larger providers of pension products. Two in particular come to my mind who ...

  • Mix and match

    25 Mar 2004

    Should more clients be looking to apply the same approach to their mortgage debt as they do to their investment portfolio? Clients are persuaded to take a balanced approach and split their cash between assets that perform more strongly at different stages of the economic cycle, most mortgages are not managed with the same consideration. Most pundits expect interest rates to creep up but there will always be uncertainty about which way rates will go. This means the choice ...

  • Morley's Jones to chair ABI investment committee

    24 Mar 2004

    Morley Fund Management chief executive Keith Jones has been appointed to become the new chair of the ABI investment committee and will join the ABI board. Jones takes over from Sandy Crombie, who recently became chief executive at Standard Life and will remain on the ABI board. Friends Provident chief executive Keith Satchell becomes regulation and taxation committee chair.

  • Mortgage 2000 -Mortgage Express 105% Fixed 2007

    29 Mar 2004

    Type: Fixed-rate mortgageFixed term: Until June 3, 2007Fixed rate: 5.64%Minimum loan: £25,001Maximum loan:Up to 105% of valuation subject to a maximum of £250,000Income multiples: Up to 3.75 times principal income plus secondor 2.75 times jointConditions: No higher lending fee, six months' free mortgage payment protection insuranceArrangement fee: £375Redemption fee: ...

  • Mortgage edge

    25 Mar 2004

    The Miles review recognises the strengths of the mortgage industry. It also recognises that intense competition poses challenges for borrowers in assessing the merits of the numerous products on offer. The recommendations focus on improving information and promoting fairer pricing. There are also recommendations for enhancements to long-term funding. The Treasury believes that significant macroeconomic benefits would accrue from the growth of fixed-rate lending. In practice, there ...

  • Mortgage edge

    25 Mar 2004

    The Miles report has been received by the industry with great interest and has created much discussion. Professor Miles believes that if special deals for new customers are stopped and every customer is offered the full range of products, this, combined with better consumer information, will increase demand for longer-term fixed rates. This view has been supported by the Building Societies' Association, which says its members are sympathetic to the idea that the market ...

  • Mortgage Express joins equity release trading platform

    30 Mar 2004

    Mortgage Express has joined the industry's first Equity Release trading platform on Exweb, The Exchange's intermediary portal. The portal enables IFAs to research, quote and buy products for customers who would like to release the equity in their homes. It will provide fast and accurate comparisons of products in the market, and establish which ones meet customers' criteria. The system also has the capability to limit searches to Safe Home Income Plans (SHIP) member ...

  • Mortgage Next sells majority shareholding to Freedom Finance

    25 Mar 2004

    Mortgage Next has sold a majority shareholding to Freedom Finance in a deal which values Mortgage Next at £22m.Mortgage Next founders Martin Maynard and Justine Tomlinson have retained a 43.5 per cent shareholding and will continue to run the business.Freedom Finance founder and group chief executive Rupert Webb and three other directors Tony Machin, Colin Snowdon and Mark Chadwick will join the Mortgage Next Board, and Stephen Atkins will become group compliance ...

  • National Savings bond offers 110% of index

    25 Mar 2004

    National Savings & Investment's guaranteed equity bond is offering 110 per cent of any FTSE 100 growth over five years with no risk to capital. The seventh issue of the bond will be available from March 24 to May 20 but NS&I says it may close earlier if it is fully subscribed. Investments will earn annual interest of 3.25 per cent during the eight-week application period. Minimum investment limit has been dropped from £2,000 to £1,000 and maximum ...

  • New accounting standard is set to slash turnover for Millfield

    25 Mar 2004

    Millfield will see millions of pounds cut from its projected turnover figure this year because a new accounting standard bans the practice of booking revenue when work is submitted. The new rules, which affect any IFA that has been booking revenue when cases are submitted to providers rather than when they are accepted, mean Millfield will lose £6m from its revenue figure for the year to March. Millfield will now have to reduce its turnover from £55m to £49m, ...

  • New Life on board Ship

    24 Mar 2004

    New Life Mortgages, a dedicated mortgage lender focused on the lifetime mortgage market, has been accepted as a member of Safe Home Income Plans. New Life Mortgages has been formed to work with authorised intermediaries in designing and retailing lifetime mortgages.

  • New performance-related fee rules good news for investors

    26 Mar 2004

    Bestinvest Brokers believes that Tuesday's FSA publication detailing more flexible rules for UK authorised collective investment schemes is good news for investors, especially the new rules allowing straightforward performance related fees.Until now the rules governing investment fund performance related fees have been draconian. Fund managers wishing to offer such fees have had to first levy the maximum annual management fee they could earn before making a rebate, if applicable, ...

  • Newcastle Building Society launches two year discount loan

    29 Mar 2004

    Newcastle Building Society is offering a 2-year discount of 2.24 per cent on its Standard Variable Rate until 31 May 2006, giving a current rate of just 3.80 per cent.For a minimum loan £15,000 and a maximum loan £250,000 - although larger amounts will be considered on an individual basis.Newcastle Building Society chief executive,Robert Hollinshead says: "This 2-year discount product is one of the most competitive on the market today. Newcastle Building Society ...

  • Newcastle revamps offset loan to offer drawdown option

    25 Mar 2004

    Newcastle Building Society has relaunched its variable offset mortgage to offer a drawdown facility. Drawdown can be up to 75 per cent LTV and the initial discount rate on the mortgage is 3.84 per cent, 2.2 per cent below its standard variable rate, which is currently at 6.04 per cent. After six months, the rate reverts to a1.5 per cent discount from the SVR for the duration of the mortgage and is guaranteed never to rise more than 1 per cent above the Bank of England ...

  • No exclusions on Burns Anderson PI

    25 Mar 2004

    Burns Anderson has negotiated significant improvements to its professional indemnity cover and has secured compliant cover with no exclusions at a time when many IFAs are struggling to find cover. BA has secured a policy excess of £5,000, increasing to £7,500 for a small number of high-risk pieces of business. There have been small rises in premiums but nowhere near as much as the firm anticipated. Three weeks ago, Money Marketing revealed that Sofa chairman ...

  • Northern Rock- 2 Year Fixed (Flexible)

    26 Mar 2004

    Type: Flexible fixed-rate mortgageFixed term: Until June 1, 2006Fixed rate:Up to 95% of valuation - 5.69%, up to 85% of valuation - 5.39%Minimum loan: £1Maximum loan: Up to 95% of valuation subject to a maximum of £250,000, up to 90% of valuation subject to a maximum of £1m, up to 85% of valuation subject to no maximumIncome multiples: Based on affordability calculationArrangement fee: £495Red

  • Norwich Union gets third Raising Standards accreditation

    26 Mar 2004

    Norwich Union has been accredited under the Raising Standards quality mark scheme for the third time.Norwich Union Life sales and marketing director Peter Hales says Raising Standards demonstrates that the industry has the "will and ability" to improve its performance and rebuild consumer confidence. He says it is committed to the initiative.Raising Standard accreditation body the Pensions Protection Investments Accreditation Board says the fact this is Norwich Union's second ...

  • Norwich Union - Solutions

    24 Mar 2004

    Type: Group private medical insuranceMinimum-maximum ages: 16-no maximumMinimum group size: 10Maximum benefit: NoneCover provided: Core cover - inpatient and day patient benefits - hospital charges, specialists' fees, diagnostic tests, radiotherapy, chemotherapy, outpatient benefits - specialist consultations, physiotherapy, chiropody treatment, osteopathy psychiatric treatment up to £1,000 a year, additional benefits ...

  • Norwich Union - Trustee Investment Product

    25 Mar 2004

    Type: Trustee investment planSpecial offer: No plan management charge, no early encashment charge, 100% allocationOffer period: Until further noticeTel: 01603 202500

  • OFT could put the bite on the menu

    25 Mar 2004

    The Office of Fair Trading has warned that it may take action over the FSA's menu if it finds it is anti-competitive. Industry representatives who met the OFT at the FSA this week say OFT director of competition enforcement Justin Coombs told them the OFT would be watching carefully to make sure the pricing system does not interfere with competitive forces. Under the menu-based system of payment, IFAs will have to offer comparisons of their commission against the market ...

  • Old Mutual Asset Managers - US Select Equity Fund

    30 Mar 2004

    Type: Unit trustAim: Growth by investing in US equitiesMinimum investment: Lump sum £1,000Investment split:100% US equitiesIsa link: YesPep transfers: YesCharges:Initial 4%, annual 1.5%Commission:Initial 3%, renewal 0.5%Tel: 0808 100 2715

  • On the level

    25 Mar 2004

    Doom and gloom for the housing market was predicted in the recent Durlacher report, with analyst David Pannell forecasting a 30 per cent drop in house prices within the next two years. But providers believe the prediction, although not outside the realms of possibility, is not likely to come true. The report differs vastly from forecasts made by providers and big IFA firms at the start of the year. Most agree that the rise in property prices cannot be sustained at the ...

  • Optimism at FSA as 11,000 firms apply

    25 Mar 2004

    Over 11,000 general insurance and mortgage firms have registered for authorisation since the process began in November last year. FSA chairman Callum McCarthy says the regulator has received about 6,000 registrations from the general insurance sector and from 5,000 firms primarily described as mortgage brokers. McCarthy told Finance and Leasing Association members in London last week that the FSA has been encouraged by what it sees as the "generally high level" of alertness, ...

  • Out of context

    25 Mar 2004

    •"I feel very naked." - Lifesearch's Kevin Carr after losing his mobile phone. •"I may be five years older than Justin Leonard but I have not been in nearly as many compromising positions as him." - Zurich PR Jon Atkins. •"Umbrellas are like underwear. They are over-rated." - Mainland PR Kat Milne. Any Out of Contexts or Diary stories? Send them to Diary editor Alison Bone, email: alison.bone@centaur.co.uk or tel: 0207 943 8037

  • Panel fears overseas exodus

    25 Mar 2004

    Increasing numbers of financial services companies could move their core operations overseas in reaction to the growing burden of red tape in the UK, warns the Financial Services Practitioner Panel. The panel, chaired by Prudential group chief executive Jonathan Bloomer, says in its annual report published this week that the likelihood of UK companies moving offshore needs to be closely monitored by the FSA. It says with politics and regulation moving towards a common ...

  • Park Row boasts biggest number of certified planners

    25 Mar 2004

    Park Row Corporate & Private Clients says it leads UK firms by having most certified financial planners among its advisers. Since launching three months ago, 11 PRC&PC advisers have got the CFP qualification, which is more than any other firm in the UK. Park Row head Peter Sprung says the 11 advisers are the first team at the firm to go through the programme and more advisers will follow. Sprung says: "Our advisers were already very experienced and highly ...

  • Pension investment in residential property to bring buy-to-let boom

    25 Mar 2004

    Buy to let could get a boost with residential property becoming a permitted asset class for pension investment. Advisers are predicting a boost for the buy-to-let sector as new rules announced in the Budget will allow pension schemes to invest in all types of investments, including residential property. A statement from the Inland Revenue issued with the Budget says when the single pension regime is introduced - scheduled for April 2006 - a single set of investment rules ...

  • Pink Home Loans- Crystal Medium Adverse Buy-to-Let

    25 Mar 2004

    Type: Discounted rate adverse credit buy-to-let mortgageDiscounted term: Until August 31, 2005Payable rate: House purchase 5.7%, remortgages 5.95%Minimum loan: £25,001Maximum loan: Up to 80% of valuation subject to a maximum of £500,000Income multiples: Rental income must be at least 130% of mortgage repaymentsConditions: CCJs up to £5,000 allowed, up to two months arrears in last 12 months, ...

  • Pride comes before a fall

    25 Mar 2004

    Pensioners rebelling against council tax rises is front page news. Some of them are threatening to go to jail rather than let the bailiffs in. How has it come to this, especially under a Labour government which has set its stall out to improve living standards for the elderly poor? As usual, the Pensions Policy Institute has a timely and analytical publication on the subject. PPI briefing note seven can be downloaded from its website at www.pensionspolicyinstitute.org.uk. It is ...

  • Profits for plodders

    25 Mar 2004

    The life industry has seen a mix of winners and losers in this year's 2003 results and latest bonus declarations. Aviva was so sure its results were going to please that it put out a trading statement in early February advising the industry that it was ahead of expectations. The firm's operating profits rose by 11 per cent from £1.72bn in 2002 to £1.91bn last year. Total UK life and pension business from Norwich Union dropped from £1.23bn to £1.07bn ...

  • Pru forms contract enquiry link with HL

    29 Mar 2004

    The Prudential has forged a contract enquiry link with IFA Hargreaves Lansdown, allowing its advisers and support staff to get immediate updates on Pru policies.The link, used instead of using the Pru Contact Centre is intended to reduce costs and improve efficiencies, providing information such as current fund and surrender value and a full fund breakdown. It will also remove the need for regular monthly downloads of fund values.Pru e-business development manager Ronnie ...

  • Release clause

    25 Mar 2004

    What do you think of the Pension Annuity Friendly Society's plans to launch an equity-release product that will allow elderly people who are infirm or who have bad medical histories to release more equity from their homes? Clifford: If the client is absolutely clear about their obligations and the enormity of the transaction, then the product may be a useful tool for those who need to release money from their property, for essential home improvements, for instance. Such clients ...

  • Remortgage slump for CML but societies see an upturn

    25 Mar 2004

    Gross lending fell to its lowest level in 11 months in February as remortgaging slumped, according to the CML. But lending through building societies continued to rise, with gross advances at £3.4bn in February, up from £3bn in February 2003. The CML figures show that gross lending in February was £20.1bn, which was 15 per cent higher than February last year but 6.5 per cent lower than January this year. Director general Michael Coogan says the ...

  • Rising prices to boost returns in buy-to-let sector

    25 Mar 2004

    Rising property prices will boost the buy-to-let market for landlords as rental incomes increase, says Paragon Mortgages managing director John Heron. The results for Paragon's buy-to let index for March show another rise in the prices that landlords are paying. Property values increased by 3 per cent in February following a 0.6 per cent rise in January. Heron believes rising house prices mean that the overall return to the long-term investor, taking into account both ...

  • Sandy Stewart retiring from Pru

    24 Mar 2004

    Sandy Stewart, former chairman of Scottish Amicable is to retire from the Prudential board. Stewart was appointed as a non-executive director in 1997 and is to be replaced by James Ross from May 6, who is currently deputy chairman of National Grid Transco.

  • Schroders sets sail on large cap ocean

    25 Mar 2004

    SCHRODERSSCHRODER UK LARGE CAP FUNDType: Unit trust Aim: Growth by investing in UK large caps Minimum investment: Lump sum £1,000, monthly £50 Investment split: 100% in UK large caps Isa link: Yes Pap transfers: Yes Charges:Initial 5.25%, Isa 3.25%, Pep transfers up to 4%, annual 1.5% Commission: Initial 3%, renewal subject to negotiation Tel: 0800 718 ...

  • Scottish Mutual criticised over tardiness of bonus information

    25 Mar 2004

    Barnet IFA Hightree Financial Services has criticised the lack of support that Scottish Mutual gives to intermediaries, claiming it does not inform advisers or clients when it changes its market value adjusters. The IFA also says ScotMut takes too long to inform clients about bonus rate announcements. Although its rate was declared as zero at the beginning of March, Hightree says it has taken the provider three weeks to inform clients of the decision. Abbey says it wrote ...

  • Sesame to work with Paymentshield and CETA

    29 Mar 2004

    Sesame has signed agreements with Paymentshield and CETA to provide general insurance to its members.Commercial director Martin Davis says: "Paymentshield and CETA have developed very efficient business submission processes and offer a range of products that are particularly well suited to the mortgage market. We will also be delivering an integrated solution that minimises re-keying and enables multiple product sales to be conducted efficiently, helping advisers to grow the value ...

  • Skandia makes debut in s32 bond buyout market

    25 Mar 2004

    Multi-manager pioneer Skandia is offering its first section 32 buyout product. IFAs will be able to get quotations and literature from March 29, with new business being accepted in the final week of April. First revealed in Money Marketing in January, the Skandia buyout bond features commission up to 3 per cent initial and 0.5 per cent trail or the option to create a bespoke fee arrangement Annual charges will be 0.25 per cent for fund values of £50,000 or more and ...

  • Skipton Building Society -Flexible 5-Year Fixed Rate

    29 Mar 2004

    Type: Flexible fixed-rate mortgageFixed term: Until June 30, 2009Fixed rate: 5.19%Minimum loan: £5,000Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000,Income multiples: Up to 3.5 times principal income plus second or 2.75 times jointFlexible features: Overpayments, ...

  • Sole trader in battle to beat Euro ultimatum over PI

    25 Mar 2004

    A Surrey sole trader is vowing to fight a European directive that gives him nine months to choose between joining a network or closing his business. Strathayre Associates proprietor John Knox has been told by his professional indemnity insurance broker he has no chance of getting the £1m cover that all firms will need from January 15, 2004 when the insurance mediation directive takes effect. Knox is one of thousands of smaller IFA firms that the FSA admits will not ...

  • Talkback

    25 Mar 2004

    "No. There were many things Brown could have done for savers but there was nothing on pensions or Isas or anything that would help savers." Neil Haworth, Neil Haworth "No. The savings ratio is falling all the time and I do not think that the Government did anything to help that."Bernard Scully, Bernard Scully Independent Financial Services "No, I do not think it was. The Government should be introducing more tax breaks to encourage people to save into pensions." Colin Fell, Colin Fell ...

  • Target has been hit

    25 Mar 2004

    Two days after the select committee report, a projection statement for a Friends Provident endowment (which my firm did not recommend upon at outset) was received, showing a target amount of £35,000 at maturity and projected values of £27,300 at 4 per cent, £28,400 at 5.5 per cent and £30,200 at 8 per cent. The statement (rather more helpfully than in previous years) also showed that the sum assured plus the declared bonuses attaching to date totalled £32,371.09.

  • Tenet takes over 188 RIs as Interlink calls in receivers

    25 Mar 2004

    IFA group Tenet has swooped for the 188 Interlink Premier Network RIs as the South Wales group officially went into receivership last week. Interlink is the first IFA network to fold since Classic Financial Solutions Network in 1996. The company has had financial difficulties over the last 12 months which members attribute to a £600,000 investment made by the directors in computer software in April. Many members are owed substantial amounts of commission, ...

  • Tep into the light

    25 Mar 2004

    Mention the word endowment and you are likely to strike a sensitive chord with homeowners and provoke the financial press to sharpen their pencils. For the last two years, we have become sensitised to the media coverage of the with-profits market and stories of mortgage shortfalls. Yet despite this, some endowment policies shine like beacons in the gloom of falling stockmarkets, low interest rates and mortgage endowment shortfalls. These policies are traded endowment ...

  • That's life

    25 Mar 2004

    Surely Scottish Equitable is quite within its rights to refuse to pay indemnity commission on an IFA's own life cover policy (Money Marketing, March 4)? I think it is absolutely equitable that it would reduce the premium and not pay a large chunk of commission, which does seem rather odd written on one's own life. That does not seem to me a reason to excommunicate Scottish Equitable which, in my experience, is generally a good company. I must admit that the only ...

  • The big freeze

    25 Mar 2004

    This week, I will continue my look at unapproved pensions in the light of pension simplification. Let us look first at existing funded unapproved retirement benefit schemes. Two key questions are: •Whether to make further contributions and •Whether to leave benefits in the scheme or, if possible, remove them. Under the proposed transitional provisions, broadly speaking, the current tax regime will be maintained. This means that, provided contributions into ...

  • The rattle of a simple plan

    25 Mar 2004

    The Chancellor of the Exchequer has a style all his own, so the way in which pension simplification has received his blessing should not surprise anyone. It may have involved a little brinkmanship by the occupant of Number 11 and a detour to the National Audit Office but reform of the pension regime has been given the go-ahead, limits have been raised and reviews have been put in place to increase that limit. Pension simplification has not foundered on the rocks of a ...

  • Time to divorce ourselves from earmarking

    25 Mar 2004

    Running a technical support line, I continue to be amazed by the amount of cases recounted to me by advisers where solicitors still seem to be stuck in the dark ages in relation to pensions and divorce. The pension-sharing legislation (renamed at the last minute from the harsher splitting) came into force in December 2000. Divorcees have been able to make use of this procedure since then but many solicitors seem oblivious to this change. Clients are still being pushed down the ...

  • Tiner warns on mutual shortfalls

    25 Mar 2004

    FSA chief executive John Tiner says mutual life offices have limited options when it comes to facing capital shortfalls but has welcomed the diversity they bring to the market. Speaking at the NAPF investment conference in Edinburgh last week, Tiner said he believes the diversity of choice provided by mutuals fits with the FSA's statutory obligation to have regard for innovation and competition in its work. But he warned that insurers need considerable capital to back ...

  • Tories aim to put Equitable in poll position

    25 Mar 2004

    The Conservatives plan to make compensation for Equitable Life policyholders a general election issue. Shadow Chancellor Oliver Letwin has tabled an early day motion, backed by 103 cross-party signatories, including Shadow Treasury chief secretary Howard Flight and Liberal Democrat Treasury spokesman Vincent Cable, calling for compensation. Conservative spokesman Henry Macrory says the party will continue to raise the matter of compensation up to and during the election ...

  • Treasury laying foundations for property funds

    25 Mar 2004

    One of the most promising proposals to emerge from the Budget was the introduction of a UK version of real estate investment trusts. Hugely popular in the US, the trusts offer private investors the opportunity to invest in property without having to buy a house. More important, as far as the Government is concerned, they provide an alternative to the highly-geared buy-to-let market. The Government last week launched a consultation paper alongside the Budget seeking the industry's ...

  • Weighty concerns

    25 Mar 2004

    Peter French is right to highlight the fact that many with-profits funds are now heavily invested in bonds and will not see the full benefit of any longerterm recovery in equity markets (Money Marketing, March 4). A successful with-profits strategy relies on the company having sufficient financial strength to maintain an appropriate weighting in equities throughout all market conditions. Success also depends on a disciplined approach to long-term investment. A contracyclical, ...

  • Wheel done, Richard

    25 Mar 2004

    Birmingham IFA Richard Usmar has just finished cycling around Ireland and raised £20,000 for the Artificial Heart Fund. The chief executive of Premier Money (right) has been cycling from Cork to Kerry every year for the last decade and has totted up over £100,000 for charities in that time.

  • Why term beats whole of life for critical illness

    25 Mar 2004

    Two criticisms of the critical-illness market were made in this newspaper last week. The first was an attack on brokers who replace existing policies with cheaper new ones. LifeSearch agrees absolutely. There is not a broker in the land who should be rebroking old-style CI business on price alone, given the definition changes in recent years. That said, unless you are quoting the very cheapest reviewable rate, I cannot see how anyone could rearrange it more cheaply anyway. The ...

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