Money Marketing
24 September 2003

  • 'Incompetence offers planners an opportunity'

    25 Sep 2003

    The financial services market is rife with failure, incompetence and ignorance and this situation offers financial planners a key opportunity to increase their business, Seven director Justin Urquhart Stewart told this year's Institute of Financial Planning annual conference. He believes that the public now has an innate distrust of the Government, regulators, the markets, banks and providers, coming from across-the-board failure and incompetence from debacles such as pension misselling ...

  • 'Iron out protection problem'

    25 Sep 2003

    Scottish Provident's Nick Kirwan is calling for a "wrinkle" in proposed protection regulation to be ironed out. He says the problem could mean advisers and clients having to use two different sets of regulation for the same product. Kirwan, who is head of marketing and product development at ScotProv, says current regulations mean term insurance, income protection or critical-illness contracts that run over the age of 70 are treated as an investment product for regulation purposes ...

  • 'Most fixed-rate mortgages are overpriced'

    25 Sep 2003

    The majority of fixed-rate mortgages are currently overpriced, says The MarketPlace at Bradford & Bingley. Head of product operations David Bitner says, despite the drop in the bank base rate in July, fixed rates have risen dramatically in the last month with the City expecting rate rises. He says there are still some cheap deals, such as Britannia's two-year fix at 3.64 per cent, and Coventry's five-year fix at 4.39 per cent, but borrowers should move fast before they ...

  • 'The focus should be on raising standards'

    25 Sep 2003

    Re-establishing consumer trust is not a realistic goal and the focus needs to be on lifting standards, says Aegon corporate development director Laurie Edmans. Speaking on consumer trust, he said the problems are not about re-establishing consumer trust, as that is something the industry has always struggled with because of the nature of the products it sells. Edmans said the industry must stop making itself an easy target for criticism, with Raising Standards being a step in that ...

  • A consumer's view

    25 Sep 2003

    Another disaster is looming and, unless IFAs move fast to advise clients, they could be in trouble. Just at the worst possible time, investors are pouring into corporate bond unit trusts at nearly double the rate of five years ago. As any good adviser knows, you buy bonds - including corporate bonds and gilts - when interest rates have peaked so that you enjoy a high yield and the prospect of rising capital values as interest rates decline. You sell bonds when interest rates have bottomed ...

  • A place in the funds

    25 Sep 2003

    Overseas property is proving more popular than ever with UK buyers but there can be funding flow problems. Many advisers have had reservations about recommending their clients to use a bridging facility to fund the purchase of an overseas property. However, bridge finance or short-term funding is probably the most underused form of financing and can provide your clients with fast access to funding with minimal formalities. Bridge finance is mainly used to assist purchasers to buy ...

  • Abbey launches wrap

    26 Sep 2003

    Abbey has launched what it believes is the UK's first comprehensive and scaleable wrap service. It is available through Abbey for Intermediaries, and is said to deliver a "completely new model for client portfolio administration" The bank says its Abbey Wrap is designed to help intermediaries arrange transactions and report and manage clients' investment and pension portfolio from a single entry point.The Abbey Wrap has an ISA, PEP and a SIPP wrapper, plus an ...

  • Abbey Nat opens multi-manager

    25 Sep 2003

    Abbey National for Intermediaries this week launches its multi-manager operation, run by the same team behind its wealth management arm and manager of manager provider Inscape. The operation, which will sell through IFAs, its forthcoming wrap account and branch network, will offer a retail Oeic with five sub-funds - equity, growth, balanced, cautious and bond monthly income. They will be run on a manager of manager basis by com- panies including Schroders,JP Morgan Fleming, Merrill ...

  • Abbey revamp

    24 Sep 2003

    Abbey National has re-launched its business in what it calls a "radical shift" in customer service. The new line for the bank is "helping people get on top of their money" and it believes this will "turn banking on its head". The revamp includes grouping its savings accounts into three types: Easy Reach, Put Aside and Lock Away, and similarly regrouping its mortgage offerings into Easy Start, Sure and Freedom. It will also replace its six current accounts with one account, ...

  • ABI draws up guidelines to update HIV statement

    25 Sep 2003

    The ABI's updated code of practice for HIV and insurance is beginning to take shape with its first consultation document published this week. Last updated in 1997, the statement covers the treatment of applications for life and protection insurance where HIV can be an issue. The ABI has consulted with the insurance industry and groups such as the Terrence Higgins Trust and Pink finance.com and is now looking to extend that. The proposed update includes standard questions for ...

  • Accord checks out self-cert sector with broker groups

    25 Sep 2003

    Yorkshire Building Society's intermediary lending arm Accord Mortgages is testing self-certification mortgages with a view to launching them across the board if the trial is successful. Accord is working with a group of brokers looking into the pros and cons of offering self-cert mortgages across its range. It plans to clone its existing products and add a self-cert clause. It is offering this range exclusively to the broker group at first. Managing director Linda Will is keen ...

  • All Fof and no substance?

    25 Sep 2003

    The M&G Cazenove fund of funds operation has failed to break the £15m barrier in its first eight months despite a high-profile advertising campaign. Yet Credit Suisse - with comparable marketing spend - saw more than £40m pour into its Fof in the months following launch two years ago. It would appear that M&G and Cazenove have failed to fire investors' imagination. Or is the huge influx of companies into multi-management creating an over-broked market where entrants ...

  • APCIM warns threat to execution only not removed

    26 Sep 2003

    Despite an EU vote to preserve execution only share trading this week the Association of Private Client Investment Managers warns the threat has not been removed.APCIMS Chief Executive Angela Knight says: "It will still be six months and several votes before these issues are resolved. The fat lady hasn't sung yet; this is just the overture to Act Two."

  • APCIMS paper focuses on EU financial single market

    29 Sep 2003

    The Association of Private Client Investment Managers and Stockbrokers is publishing a discussion paper outlining six steps towards harmonisation of financial services markets across Europe.

  • Apparently, Peter

    25 Sep 2003

    Apparently, Peter Stringfellow's current squeeze is none other than a former TMB employee, Lucy Carr, who took the career move from banking to lapdancing a few years ago. Lucy's website tells us: "After working for a bank for four years, I craved a bit more excitement from life." How can this be? The move seems to have paid off, however. Carr has since had a top 10 single with Missing You and enjoys the affections of the mahogany-skinned love god to this day. But Carr has ...

  • Artemis - Multi-Manager Ethical Fund

    30 Sep 2003

    Type: Unit trust fund of fundsAim: Growth by investing in a portfolio of ethical fundsMinimum investment: Lump sum £1,000Investment split: Standard Life UK ethical 17.3%, Friends Provident stewardship 15.4%, Credit Suisse fellowship 14.6%, Henderson ethical 14.3%, Isis stewardship international 12.1%, Aberdeen ethical world 10.5%, Legal & General ethical 10.2%, cash 1.6%Isa link: YesPep transfers: YesCharges: Initial 4%, annual 1.25%Commission:

  • Artemis - Multi-Manager Fixed Interest Fund

    29 Sep 2003

    Type: Unit trust fund of fundsAim: Income by investing in a portfolio of fixed-interest fundsMinimum investment: Lump sum £1,000Investment split: Newton international bond 18.1%, Old Mutual corporate bond 16.2%, Threadneedle strategic bond 15.1%, Insight global monthly income 14.9%, Thames River high income 11.9%, Isis strategic bond 10.9%, Baring global bond 7.5%, cash 5.4%Isa link: YesPep transfers: YesCharges: Initial 4%, annual ...

  • Artemis - Multi-Manager International Growth Fund

    29 Sep 2003

    Type: Unit trust fund of fundsAim: Growth by investing in a global portfolio of fundsMinimum investment: Lump sum £1,000Investment split: GAM star American focus 17.7%, Artemis European growth 14.5%, Cazenove European 13.5%, Atlantis Asian recovery 11.9%, BDT Invest Asia 11.4%, Legg Mason US smaller companies 9.7%, Thames River gold emerging markets 5.6%, Merrill Lynch gold and growth income 4.3%, S&F Hiscox insurance 3.9%, cash 7.5%Isa link: YesPep ...

  • Artemis - Multi-Manager UK Equity Income Fund

    26 Sep 2003

    Type: Unit trust fund of fundsAim: Income and growth by investing in a portfolio of UK fundsMinimum investment: Lump sum £1,000Investment split: DWS UK equity income 14.3%, Liontrust first income 13.8%, Artemis income 13.4%, Perpetual income 13.4%, Newton higher income 13.3%, Rathbone income 12.1%, Credit Suisse income 9.4%, Invesco Perpetual income and growth 7.1%, cash 3.2%Isa link: YesPap transfers: YesCharges: Initial 4%, annual ...

  • Artemis - Multi-Manager UK Growth Fund

    26 Sep 2003

    Type: Unit trust fund of fundsAim: Growth by investing in UK fundsMinimum investment: Lump sum £1,000Investment split: Lazard UK alpha 14.3%, Schroder UK alpha plus 14.2%, Gartmore UK focus 13.7%, Threadneedle limited issue 13%, J O Hambro UK growth 12.3%, Newton higher income 9.9%, BWD aggressive income 9.7%, Neptune UK equity 9.6%, Cash 3.3%Isa Link: YesPep transfers: YesCharges: Initial 4%, annual 1.25%Commission: Initial ...

  • Artemis opens ethical door

    24 Sep 2003

    Artemis has made the funds of funds within its Artemis Premier Funds Service available directly to IFAs due to increased demand for multi-manager products.One of the funds, multi-manager ethical, is aimed at investors who do not want to compromise their strong ethical views while investing. Its objective is capital growth by investing in ethical funds such as Friends Provident stewardship, Henderson ethical and Aberdeen ethical world.The fund of funds approach eases the ...

  • Artemis opens funds of funds to individual investors

    24 Sep 2003

    Artemis is opening up its individual funds of funds directly to investors from October 1. Previously, the funds - three portfolio funds and five multi-manager funds - were only available through Artemis' premier funds service, head by Aidan Kearney. All the funds are Isable and can be accessed with a minimum investment of £1,000.

  • B&B goes North with Aitchison & Colegrave buy

    25 Sep 2003

    Bradford & Bingley has acquired the biggest IFA in Scotland, Aitchison & Colegrave, in a bid to extend its geographic coverage and weight in the high net worth market. A&C was believed to be in talks with Skipton and other suitors recently. It will come under B&B's Charcol brand as Charcol Aitchison & Colegrave, and will slot into the group's new wealth business, complementing Holden Meehan, bought by B&B in July. The deal sees Aitchison & Colegrave's ...

  • Bangkok firm offering online dealing in traded life policies

    25 Sep 2003

    Bangkok financial services firm Water-mark Capital Management is setting up a platform that allows firms and experienced investors to buy traded life policies online. Tradelife.com is an execution-only platform that allows online trading in TLPs and access to real time fund prices and information on products and the market. The site also includes an income calculator that shows how income can be derived from an investment in the traded life policy fund. The Tradedlife.com site ...

  • Beachcroft Wansbroughs appoints head of financial services

    29 Sep 2003

    Commercial law firm Beachcroft Wansbroughs has appointed former Scottish Amicable legal director Nigel Frudd to head up its financial services division.Frudd, who has also worked for St James' Place International and chartered accountants Robson Rhodes, will be charged with further developing Beachcroft Wansbroughs' financial services arm.Frudd says: "There is a clear opportunity for legal advisers to the financial services industry. It has seen unprecedented change ...

  • Billions too late to define misselling

    25 Sep 2003

    It is a bit late to define misselling now isn't it? How many billion pounds have been paid out in compensation? How much money has been spent on professional indemnity insurance that does nothing but give us a licence to trade? Define misselling? Ask the people who started the pension compensation campaign, not the people who have had to suffer the results of their stupidity. Terence O'Halloran Lincoln

  • Buy a solution - not a problem

    25 Sep 2003

    Over the last three years, during the longest bear market since the 1930s, many of you have focused more on protection. This has been a means of generating income in a market that has sometimes been difficult for investment business. In many segments of the market, volumes have been heavily influenced by price but there are other important differentiators which enable you to add even more value to your clients. Let us consider one part of this market - the market for whole-of-life ...

  • Charcol Holden Meehan recruitment drive boosts management

    24 Sep 2003

    Bradford & Bingley IFA Charcol Holden Meehan, has recruited a regional sales director and three new sales managers to manage its expanding adviser teams. The company is aiming to double its advisory force within the next 12 months.

  • Coffey takes on role as RLAM head of equities

    25 Sep 2003

    Royal London Asset Management has appointed Jane Coffey as head of equities, a new position created to support Andrew Carter, who takes over as chief executive this week. Coffey, who joined RLAM to manage UK equity port-folios in March 2002, will take charge of the UK desk and also help Carter, who was promoted from chief investment officer - a position he will retain - earlier this month. Coffey has 15 years' experience of managing continental European portfolios, notably as director ...

  • Correspondent's week

    25 Sep 2003

    A memory man, a life skills coach, a motivational speaker and the president of the LIA on a trip to India was always going to be interesting. Flight BA139 touches down at Mumbai airport just after midnight and we are met by our hosts, the organisers of the 16th Life Insurance Round Table Convention for the top 400 out of India's one million insurance agents. India's insurance industry, a monopoly until three years ago, is now being opened up. Its insurable population of 240 ...

  • Coventry Building Society - 4.95% Flexx

    25 Sep 2003

    Type: Self-certified flexible tracker mortgageTracker term: Life of loanTracker rate: 2% above Bank of England base rateMinimum loan: £1,500 or 5% of purchase priceMaximum loan: 85% of valuation subject to a maximum of £350,000Income multiples: Up to 3.5 times principal income plus second or 2.75 times jointRedemption fee: NoneFlexible features: Overpayments, payment holidays, interest calculated dailyArrangement ...

  • Don't put your money on these views of debt

    25 Sep 2003

    Reading Andrew Verity's piece in MM last week on the importance of debt counselling in the spectrum of services provided by IFAs, I cannot help but think that his approach is somewhat naive and unrealistic. First, people with severe debt problems hardly represent very lucrative prospects for any business, irrespective of the remuneration basis on which an IFA may make available his services. A member of the public with debt problems is unlikely to have available any money to ...

  • Ellis says qualifications framework fails the test

    25 Sep 2003

    LIA head of public affairs John Ellis has criticised the Financial Services Skills Council's new framework for industry qualifications. Ellis says the proposals are disappointing and do little to extend the qualification structure outlined in the FSA's CP157. Writing in Money Marketing this week, Ellis says the new structure relies too heavily on employers and does not properly answer the question of whether exams and continuing professional development should be required ...

  • Employers are key for pension future

    25 Sep 2003

    Industry figures believe that working in partnership with employers is the key to the future of pensions. Aifa director general Paul Smee said employers have a key role to play in bolstering pension uptake and it is important they are given the feeling that they are part of the solution, which is dependent on incentives. Smee said: "If we do not engage employers in making pensions accessible in the workplace then there will be a gaping hole in the strategy." Scottish Widows head ...

  • Equitable directors' hearing complete

    30 Sep 2003

    The judge hearing a request by nine former Equitable Life non-executive directors asking for the case against them to be thrown out, has reserved his decision.The hearing was completed on Friday afternoon and follows on from Equitable's announcement last year it was launching a £3.3bn lawsuit against 15 former directors for negligence and breach of duty in the lead up to the insurer's collapse.

  • Euro vote on directive could send Sandler suite crashing

    25 Sep 2003

    A leading MEP has warned that a vote on amendments to the European Union investment services directive could decide the future of the Sandler suite of products. Conservative MEP Theresa Villiers believes if proposed changes to the ISD are not adopted by the EU parliament in Strasbourg this week, the UK Government could face a major setback on Sandler. British MEPs have lobbied for changes to the directive to make it possible for execution-only business to continue to be conducted ...

  • Exam answer is needed

    25 Sep 2003

    The LIA is correct to raise concerns that the Skills Council's plans for a move from approved to appropriate examinations will lead to a patchwork of standards across different firms. In reality, different standards probably already exist. But the LIA is concerned that a regime of qualifications that puts the onus on firms concerned to come up with a standard of training appropriate for the advice being given will be a step too far in terms of devolving responsibility for qualifications. Whil

  • Former Equitable directors in court

    24 Sep 2003

    The nine former non-executive directors of Equitable Life being sued for damages by the failed insurer have appeared in court to request the case be thrown out. The hearing, which started on Monday, is expected to last four days. The directors face a £3.3bn lawsuit with Equitable alleging negligence and breach of duty by the directors in the lead up to the insurer's collapse.

  • FOS now expects 50,000 endowment complaints

    24 Sep 2003

    The Financial Ombudsman Service says it now expects to receive 50,000 mortgage endowment related complaints during the 2003/2004 year, up from the 20,000 it had predicted in the Spring. The increase is due to a sudden surge over the last two months in the number of endowment complaints received by the FOS. It now says it expects 98,000 overall complaints, up from its original forecast of 60,000.

  • Frame academy misses its cue

    25 Sep 2003

    I have spent a great deal of the last 20 years lobbying for standards of knowledge and skills in the financial services sector. It has always seemed to me that the reputation of financial advisers and, indeed, of our entire sector should rest on a firm foundation of independently tested knowledge and skills which demonstrates to the public that we are able to do a good job for them. The effects of these standards need to be evident in our day-to-day activities to ensure the public ...

  • FSA will name and shame IFAs on capital adequacy

    25 Sep 2003

    The FSA has issued a stark warning to the industry that it should be prepared for the regulator to name and shame IFA firms which fall foul of its capital adequacy rules. FSA director of investment firms David Kenmir said at Money Marketing Live in Manchester this week that the regulator does not feel that capital adequacy is being taken seriously by some IFAs. He said it is important for the industry that these firms are reined in. Regulations stipulate that IFAs must retain ...

  • FSA's big two looking at future of retail market

    25 Sep 2003

    The two new chiefs at the FSA are to publish a report early next year on how the FSA sees the retail investment market shaping up in the future, it was announced at the Money Marketing Live conference in Manchester on Tuesday. FSA director of investment firms David Kenmir said that new FSA chief executive John Tiner has been working on a document that examines how regulation and reform is changing the face of IFAs and the retail investment market. He said recently appointed FSA ...

  • Gartmore up for partial sale or merger

    29 Sep 2003

    US giant Nationwide Mutual Insurance is reportedly planning to merge or partially sell its subsidiary Gartmore just three years after buying the fund manager for more than £1bn. Nationwide is believed to have come to its decision, which may involve a joint initiative with another UK fund manager, after conducting a strategic view of Gartmore, which has £44bn under management, earlier this year. It is not believed to be considering an outright sale.

  • Gary Withers

    25 Sep 2003

    After university, Gary Withers went travelling, walking around volcanoes, which has stood him in good stead since taking over as Norwich Union Life chief executive in some of the most explosive times ever seen by the industry. He became chief executive last year and believes the insurance industry has "turned the corner". He says: "I think we needed to have a cooling-off period. You cannot run forward at 20 per cent a year forever. It defies the real world." Withers says a lot ...

  • Govett appoints new CIO

    29 Sep 2003

    Fund manager Govett has appointed Peter Kysel as chief investment officer.Kysel, manager of Govett's European strategy fund and its European enhanced investment trust, had been acting CIO since May.Chief executive Noel McEvoy says: "Peter's credential's are impeccable and he is keen to reinforce what is already a very compelling investment proposition."

  • Hargreaves Lansdown wins giant pension contract

    25 Sep 2003

    Hargreaves Lansdown has clinched a deal to provide pension services to global oil giant BP in the latest stage in a drive into the traditional territory of employee benefits consultants. The IFA will provide annuity services for additional voluntary contributions held by BP's 28,000 active and deferred final-salary scheme members and all money purchase employees. BP is the latest in a string of blue-chip companies to sign up with HL for annuity service, including J Sainsbury, ...

  • Healthcare insurance trends set for U-turn

    25 Sep 2003

    The number of people with individual private medical insurance has fallen by more than 12 per cent between 1997 and 2002 but group PMI has grown and critical-illness cover has steamed ahead but this trend could soon be reversed, says Datamonitor. It puts the decline in individual PMI sales down to the cost of the average policy rising by 54 per cent in five years. Sales of individual CI policies topped one million in 2002, up by 29 per cent on 2001. But Datamonitor predicts ...

  • HNWs shifting away from advisers

    25 Sep 2003

    An increasing proportion of high-net-worth individuals expect to dispense with the services of advisers and run their own portfolios, a major new survey reveals. Fifty-eight per cent of millionaires use IFAs at present but only 49 per cent expect to be using them in five years time as increasing numbers take control of their own financial affairs, according to the research from IBM. Twenty per cent of millionaires are self-reliant for advice and that number could rise to 37 per ...

  • Horlick set for move

    25 Sep 2003

    Nicola Horlick, the high-profile former chief executive of SG Asset Management, is believed to be leaving to run a fund management business in Hong Kong for Australian insurer AMP. Horlick, who announced in July she was stepping down as chief executive to become a special adviser to SGAM Group president Philippe Collas, is thought to be taking over AMP's Far East fund management business. This could include its Australian business, which is undergoing an extensive restructuring. Horlick, ...

  • IFAs lacking employment law knowledge

    30 Sep 2003

    UK businesses are increasingly turning to IFAs for advice about health & safety and employment law issues according to specialist solutions provider Peninsula. But, it says recent research shows IFAs themselves confess to being uncertain about employment law issues.Peninsula reveals 89 per cent of IFAs have been approached by their clients for advice concerning employment laws. Of those questioned, 75 per cent admit to being uncertain on what employment ...

  • IFAs urged to help set agenda for Treasury review of the FSA

    25 Sep 2003

    The Treasury is drawing up the agenda for its two-year review of the FSA but is not formally consulting with the industry on what should be included in the review. The review is required by the Financial Services & Markets Act of 2000 and is scheduled to begin by December. Although the Treasury is expected to have the agenda fixed by November, at which stage it will be unalterable, there has yet to be any consultation with the industry on what the age-nda should be. It ...

  • Implement wp reform now says FSA

    24 Sep 2003

    It is critical that companies begin immediately implementing the FSA's new with-profits reforms, according to FSA director of insurance firms division David Strachan. Speaking at the Insurance Reporting and Regulation conference in London this week, Strachan said an immediate priority for firms should be to consider the FSA's Principles and Practices of Financial Management requirements. The rules stipulate that boards and senior management must ...

  • Independent view

    25 Sep 2003

    Why have we as an industry got it in for the Consumers' Association? I was at a meeting of compliance officers recently and someone suggested arranging a speaker from the CA for a future event. "They should be paid danger money", "they will need to bring tin hats" were the tone of the comments made (we compliance officers can be such wags). I cautiously raised my hand and commented that I would mostly be on the CA's side. I think most people were too shocked to comment. I ...

  • Ingledew lambasts wrap deals

    25 Sep 2003

    Berkeley Berry Birch group chief executive Stephen Ingledew said at Money Marketing Live that none of the wrap products presently available in the UK is a true wrap product. He said the wave of wraps stems from the success of such products in the US and Australia but he said so far no one has come up with anything like these products. Ingledew believes it will be some time before a true wrap arrives in the UK. Ingledew criticised providers and the Government for putting a ...

  • Inside edge

    25 Sep 2003

    The ability to provide quality customer service has been the Achilles heel of many providers and yet, as far as advisers are concerned, it is a key area where insurers can make a difference to their business efficiency and the service that IFAs in turn provide to clients. Shortcomings in service cause instant dissatisfaction among IFAs and Money Marketing regularly reflects the latest problems that are brought to its attention. But no one in the insurance industry should ever feel ...

  • Investment trusts to get buyback powers

    25 Sep 2003

    Investment trusts will be able to buy back their shares and hold them for potential future sale under new Government rules giving boards greater control over their capital structure. From December 1, company law will for the first time permit ITs to buy back their shares and hold them in treasury, effectively eradicating the lack of liquidity that has long dogged the sector. Previously, ITs had to cancel any shares they repurchased, often denting their appeal to larger advisory firms. The ...

  • Investment view

    25 Sep 2003

    My journeys around the country give me an insight into what investors and their advisers are thinking. Take last week. London, Ipswich, Nottingham and Birmingham all featured. Seminars and meetings abounded and the feelgood factor appeared to be holding well among financial advisers. Yet the take-up of portfolio management services still lags the expectations we had at the beginning of the year. With markets looking generally healthier and economic numbers on course, why are people reluctant? Tw

  • Isle of Man finance appoints business development manager

    26 Sep 2003

    Isle of Man Finance has appointed Brian Donegan to the new post of business development manager.

  • Jackman quest for demarcation line

    25 Sep 2003

    Skills Council for Financial Services chief executive David Jackman has enlisted the help of the Institute of Financial Planning in defining the financial services marketplace. Speaking at the Institute of Financial Planning annual conference in Telford last week, Jackman said it was essential to have a clear demarcation between planning and advice in order to help develop ISO standards for the industry. One of Jackman's main lines of thought is to come to an understanding of ...

  • Julian Gibbs

    25 Sep 2003

    I have just been looking at long-term trends of the major unit trust sectors. One particularly interesting feature is that UK equity income trusts have outperformed the UK all companies sector over five, 10, 15 and 20 years. UK equity income is the best performing unit trust sector of all over 20 years, having turned £1,000 into £10,122. Over five, 10 and 20 years, UK smaller companies have outperformed UK all companies trusts, as well as UK equity income trusts over ...

  • Keydata plan uses capital gains allowance

    25 Sep 2003

    Keydata is setting up a structured product offering investors higher than average returns by allowing them to take advantage of their capital gains tax allowances. The five-year alternative income plan is linked to the FTSE 100 and is partially comprised of five bonds, with each bond maturing at 12-monthly intervals throughout the plan's lifespan. This structure gives an income of 5 per cent, which is net for most investors as they can use their capital gains allowance instead ...

  • Leeds & Holbeck - Flexible three-year discount

    25 Sep 2003

    Type: Discounted rate flexible mortgageDiscount: 1.1%Discounted term: Three yearsPayable rate: 4.39%Minimum loan: £25,000Maximum loan: Up to 95% of valuation subject to a maximum loan of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £500,000Income multiples: Up to 95% of valuation - ...

  • LibDems want compensation fund for pensions that have already been lost

    25 Sep 2003

    The Liberal Democrats are calling for the Government to set up a compensation fund for workers who have already lost their pension pots in occupational scheme wind-ups. At the LibDems' annual conference in Brighton this week, pensions spokesman Steve Webb said he has written a letter to Work & Pensions Secretary Andrew Smith urging the Government to admit its failings and offer compensation. The Government's proposed Pensions Protection Fund only promises protection for ...

  • Life offices press for an end to LPI rule

    25 Sep 2003

    Life offices are lobbying the Government for the relaxation of the requirement for defined-contribution pensioners to buy a limited price index annuity. Product providers argue that LPI annuities are poor value because the shortage of index-linked gilts means that the cost of providing the inflation protection exceeds the benefits. Figures from Standard Life show that a 60-year old male buying an LPI-linked annuity with 5 per cent inflation protection would have to live to 114 ...

  • Lighthouse turnover up 20 per cent

    25 Sep 2003

    Lighthouse Group increased its turnover by a third to £9.5m from just under £7m in the first six months of 2003, compared to the previous six moths.Gross profit grew 20 per cent to £1.6m in the first half of 2003 from £1.3m in the previous six months, but pre-tax losses rose 10 per cent to £1m from £900,000.Lighthouse chairman David Hickey says: "The recent Temple transaction means Lighthouse now has a full range of IFA offerings ...

  • Lloyds TSB hit with £2m misselling fine

    25 Sep 2003

    Lloyds TSB has been hit by the FSA with a £1.9m fine for the misselling of structured products and told to set aside a further £98m for expected compensation payments to investors over 22,500 sales of the product.The fine, which had been widely expected, comes the same week as the Group replaced Scottish Widows chief executive Mike Ross with Lloyds man Archie Kane.The disciplinary action stems from the sales of a high income equity-linked ...

  • Lloyds TSB response to FSA

    25 Sep 2003

    In response to the £1.9m fine Lloyds TSB group has issued a statement saying it has taken measures to tackle the problem.It added: "We recognise that while the product (Extra Income Growth Plan) was appropriate for some investors it did not provide staff with sufficiently in depth training on how much of a customer's available funds should be invested in this particular product."It estimates the overall compensation package will cost £98m.

  • Loan business still strong for societies and banks

    25 Sep 2003

    Lending by building societies rose in August compared with the same month last year but showed a fall from July this year. Building Societies Association's seasonally adjusted figures show society gross advances totalled £3.6bn in August, a rise from £3.2bn in August 2002, but down on this July's total of £3.8bn. Net advances were £1.4bn, up from £1.1bn last year. Approvals for loans increased to £4.3bn from £3.2bn last year. In ...

  • Loan star raises more interest than pop star

    25 Sep 2003

    No one was more confused at Imla's annual dinner than the guest speaker, impressionist Alistair McGowan. When invited to make requests, the assembled mortgage luminaries asked for Michael Bolton - the one from Chester, that is. McGowan looked bemused, wondering whether he had just received some bizarre challenge. It would seem that, so far, the fame of the BM Solutions director of mortgages has spread less far than that of his namesake, the flaxen-haired singer. "That's like ...

  • Lowering the hurdles

    25 Sep 2003

    What do you think of the FSA's plans to reduce professional indemnity insurance and capital-adequacy requirements for some mortgage brokers? Batchelor: We felt that to impose a capital resource requirement on some mortgage intermediaries who have already had to cater for increased PI premiums could prove overly oppressive, particularly if they are not holding client money, and result in a reduction in the number of mortgage intermediaries operating after Mortgage Day. These ...

  • M&G axes fund managers in reshuffle

    25 Sep 2003

    M&G is overhauling its equity team in a move which sees some fund managers made redundant, including UK growth and strategic growth manager Sam Morse. Head of equities David Jane has wielded the axe after a year-long review which will result in M&G analysts assuming greater control of some funds, including the £250m UK growth and £120m strategic growth funds portfolios, which will be managed - based on the analysts' ideas - by institutional manager Peter Knapton. Morse, ..

  • M&G's Bond ambition

    25 Sep 2003

    As another Isa season is fast approach-ing, so is an important anniversary which M&G does not want anyone to forget. October 16 marks the fifth anniversary of the M&G high-yield corporate bond fund and the company wants to give you the opportunity to join in the celebration. It is offering two luxury weekends for two people in Mayfair's exclusive Bond Street. M&G launched the first unit trust in 1931 and has continued its innovation over the past 70 years. As ...

  • Maintain high exam standards

    25 Sep 2003

    It was remarkable to see that the pass mark in the July 2003 sitting of the savings and investments exam was 70 per cent. Clearly, the exam is proving popular, with many IFAs keen to sit it. Having sat the exam in July, my only concern is that the multiple-choice nature of the exam makes it less credible than other AFPC exams. While the exam had a handful of very difficult questions, overall, the multiple-choice format makes it easier and perhaps more profitable for the CII to mark. I ...

  • Malone fixes it for charity

    25 Sep 2003

    Now then, now then. The Diary hears that Prudential Premier Mortgage Services supremo John Malone was recently mistaken for eccentric veteran DJ Sir Jimmy Savile while on the streets of Glasgow. Turns out the silver fox of the mortgage world was out in his shellsuit to train for his up and coming 100m race against Mortgage Express's Louisa Sedgwick in aid of children's charity Dreamlight. Good luck John but leave the cigar.

  • Market Harboro' and GMAC take loan steps

    25 Sep 2003

    Market Harborough Building Society and GMAC-RFC are using through lending to launch a stepped lifetime discount mortgage. Through lending entails GMAC-RFC marketing the product while Market Harborough acquires the mortgage assets the day after completion. The loan has a rate of 2.99 per cent for the first year, a discount of 2.5 per cent from GMAC-RFC's standard variable rate, currently 5.49 per cent. A discount of 1.50 per cent is offered in the second year and 1 per cent discount ...

  • Mentor aims to lure IFAs from networks

    25 Sep 2003

    A new consultancy service for IFA practices based in Manchester is targeting firms looking to leave their networks. IFA Mentor has negotiated special professional indemnity insurance terms to make a move away from networks easier for IFAs, in addition to a funding deal to help them bridge any cashflow gaps because of potential commission hold-ups. The company has been working closely with brokers and underwriters prior to its launch to enable it to offer a PI risk management and ...

  • Mistrust is biggest stumbling block - Adair Turner

    30 Sep 2003

    How to recreate trust is the greatest issue facing the industry according to, pensions commission head Adair Turner speaking last night at an ABI fringe meeting at the Labour Party conference in Bournemouth.He said with complex products such as pensions consumers find it hard to buy because they do not trust the industry. This in turn means pensions are ultimately sold and not bought, he said.Turner said: "People have to be persuaded to buy these products. They ...

  • Mix marriages

    25 Sep 2003

    In my last few articles, I have looked at issues relating to the projection of investment returns and volatility from with-profits funds (including Equitable Life and the AMP companies) and managed funds. I have centred this discussion on the asset allocation within these funds, with particular attention to the fact that the higher the proportion of cash and gilts, the lower must be the projected returns. However, I have had a few phone calls from IFAs who have interpreted my comments ...

  • Mixed message from Smith on misselling definition

    30 Sep 2003

    Secretary for state for work and pensions Andrew Smith has given an equivocal response to industry demands for a Government definition of misselling at a fringe meeting at Labour Party conference in Bournemouth. Asked whether the Government would do more to ease employer and intermediary fears over future pensions misselling Smith said it was an issue he wanted to look at. Smith said: "We will look at this issue but without infringing common sense ideas of what was financial ...

  • More people will leave money to charity in their wills - Mori

    30 Sep 2003

    In less than a year the number of people 'very likely' to leave money to charity in their will has doubled according to consortium Remember a Charity. The figure has increased from 7 to 8 per cent and represents £100m to charities according to Mori.

  • Morgan Stanley - FTSE 100 Income Plan

    24 Sep 2003

    Type; Capital protected bondAim: Income linked to the performance of the FTSE 100 indexMinimum- maximum investment: £5,000-no maximum, Isa £3,000-£7,000Term: Three yearsGuarantee: Original capital returned in full provided index does not fall by 30% or more at any time during the termReturn: 6.5% income a yearClosing date: October 31, 2003, Isa/Pep transfers October 17, 2003Commission: Initial 3%Tel: 020 ...

  • Network jungle

    25 Sep 2003

    The FSA is telling mortgage brokers not to rush into joining networks until they are confident they fully understand the new regulatory regime and their options. The warning comes as some IFAs voice their own concerns that the coming of N4 next October - when mortgage brokers must decide if they want to be directly authorised or become an appointed representative of a network is just the latest issue that networks are manipulating in order to scare advisers into submission. Syndaxi ...

  • New Winterthur sales director

    26 Sep 2003

    Winterthur Life UK Limited has appointed a new director. Former Winterthur Life head of individual sales David Thompson has been promoted to sales director, with responsibility for Winterthur's distribution in the UK market.Winterthur Life chief exectuive Mike Kellard says: "David has made a tremendous impact on the company's sales strategy over the last four years. I believe his depth of knowledge, understanding of the market and his readiness to embrace new ...

  • Newcastle offers release at 6.5%

    25 Sep 2003

    Newcastle Building Society is offering a new equity-release product at 6.5 per cent, a significant reduction from its previous rate of 7.5 per cent. The lifetime equity-release plan is designed for homeowners aged 60 and over. Minimum property value is £40,000. Minimum loan is £8,000 and maximum is £500,000. There is a completion fee of £400. There is a redemption penalty in the first five years of 2 per cent of the advance amount. Newcastle is keen ...

  • Not such a Bright idea?

    25 Sep 2003

    The Diary has learned that mortgage processor Optoma's managing director Matthew Bright has taken charge of planning his company's stand at this year's Mortgage Business Expo. His self-belief buoyed by a previous life in a design agency, Matt began constructing a 3D scale model of the floorspace the company had booked. Cardboard panels, corporate colours and even miniature logos appeared as his ideas took form. But his son's toy cowboys to illustrate the Optoma ...

  • Offshore white-label deal set to boost annuities

    25 Sep 2003

    Three major product providers are set to offer offshore annuity products that give control over investment and return of fund on death through a tie-up with annuity firm Open Annuity. Open Annuity is in advanced negotiations with three providers to white-label its London & Colonial Gibraltar-based product, previously marketed through Challenger, for a launch in the New Year. The firm believes a link with a strong provider brand will transform perception of the product from ...

  • One in four to retire comfortably says JPMF

    24 Sep 2003

    Only one in four working adults in the UK can expect a comfortable income in retirement according to the JP Morgan Fleming Pension Map of Britain 2003 published this week. Research shows that 3.4 million less people will enjoy a comfortable retirement - defined as retirement income of 50 per cent or more of their final salary - compared to figures released in 1996.

  • Opening up the annuity market

    25 Sep 2003

    UK savers may be about to gain access to a plan that will allow them to derive an annuity-style income and also leave some of their savings to their children if they die early. A Gibraltar-based scheme has been in existence for more than a year but it has only been available to the wealthy and not through any high-street names. The firm, Open Annuity, which offers the product, says it will be available to onshore, less well-off investors through big domestic UK players. The move ...

  • Out of context

    25 Sep 2003

    •"They are flooding in in droves of three." - Sofa managing director Brian Lawless comments on Chartered Insurance Institute conference delegates arriving at a breakout session he was chairing. •"You have, of course, disclosed one secret I hoped would remain private. I am an actuary." - Swiss Re chief executive John Coomber at the CII conference. •"I could feel you vibrating in my pocket but I was in a meeting." - Whitechurch Securities chairman Kean Seager. •"I ...

  • OUutside edge

    25 Sep 2003

    The life industry's attempts to deliver decent customer service are as laughable as Basil Fawlty's bid for the Hotelier of the Year award. It is a dismal reflection of where we are that an annual statement (where available) is considered a pinnacle of achievement for many. This is not customer service, it is merely the equivalent of being told how much you have to pay when you get to a supermarket checkout. Before the industry even begins to consider the way in which it interacts ...

  • Pension performance better than property, says Standard

    25 Sep 2003

    Pensions have performed better than residential property over the last 25 years despite poor equity returns and the recent surges in house prices, according to analysis by Standard Life. The company says pensions have provided better returns than property because of their tax advantages. Its research shows that the average low-rate taxpayer investing £120,940 in buy to let would have achieved an annualised rate of return of 10.1 per cent over the last 25 years compared with ...

  • Pensioned off

    25 Sep 2003

    In last week's article on the importance of wrapper choice in determining pension alternatives, I highlighted the importance of the tax treatment of the various retail investments that can be used in this decision-making process. The tax implications of the various product wrappers are relatively well known among advisers. For many of their more affluent investors, a non-pension pension strategy may involve a mix of product wrappers if the tax benefit and access balance is to be ...

  • Pensions deficit could disappear if investment conditions right - Standard Life Investments

    26 Sep 2003

    A 20 per cent increase in the global equity markets over the next two years combined with a 1 per cent increase in corporate bond yields would eliminate the pension deficit as an investment concern says Standard Life Investments chief investment officer Keith Skeoch.Skeoch says: "Clearly, rising equity markets are part of the solution. However, a further rise in bond yields would be more beneficial. Estimates from credit rating agencies such as Moody's or ...

  • Philbin sells Gartmore European Selected Opportunities fund

    26 Sep 2003

    Isis fund picker Richard Philbin has sold his holding in the Gartmore European Selected Opportunities fund. Philbin says the move is a shift towards more focused funds designed to capture stock specific returns rather than broader portfolios which are likely to be more correlated to the index.

  • Pink Home Loans joins AMI

    29 Sep 2003

    Pink Home Loans has announced it is joining the Association of Mortgages Intermediaries in the face of the impending regulation of the mortgage market in October, 2004.Pink says it will offer comprehensive compliance solution to its customers post-regulation and its decision to join has been influenced by the necessity that its regulatory offering meet the needs of brokers.With this latest signing, the AMI now boasts more than 2,000 members. Pink ...

  • Platinum turns to distressed securities

    26 Sep 2003

    The Platinum Turnberry fund is a hedge fund from Platinum Capital Management that invests in distressed US corporate debt.The fund invests in distressed securities through a US based hedge fund called the Turnberry master fund. This in turn invests in the distressed debt of large US companies across a range of industrial sectors. It will look for companies that have issued bonds but which are in trouble - although this does not necessarily mean companies facing bankruptcy.When ...

  • Playing piggy in the middle

    25 Sep 2003

    While I agree that it is important that we get some kind of definition on misselling from the FSA, I believe they need to take a step back and ask them-selves just what they are regulating. If you go right back to the original regulators, we have seen problems over home-income schemes, pension transfers, FSAVCs, endowments and, by implication, anything in with-profits, high-income bonds and zeros. Of course, we do need to make sure we know what we are advising clients on but surely ...

  • Principals have principles and are not scaremongers

    25 Sep 2003

    I refer to the article headlined, Brokers told not to rush into networks, and would like to offer the view of my company, which is committed to becoming a principal and establishing an appointed representative network. A number of firms have announced their intention to become principals and establish AR networks. None, to my knowledge, has been scaremongering. In fact, I am quite impressed by the honesty of most of the would-be principals, who are genuinely explaining the choices ...

  • Product matters - equity release

    25 Sep 2003

    The Newcastle has joined a handful of other lenders in entering the equity-release market. The majority of the players in this market are smaller societies perhaps looking for a niche but there are some big brands entering so even this niche may be denied in the long run. Newcastle has come into this market with a competitively priced product with one or two nice features. The rate is fixed at 6.5 per cent for the life of the mortgage. Even so, with current 15 and 20-year swap ...

  • Property freedom for Sipps could transform UK economy, says Ritchie

    25 Sep 2003

    Allowing Sipps to invest in residential property could be as significant a policy move as Margaret Thatcher's decision to sell council properties to tenants in the 1980s, says pension guru Stewart Ritchie. Speaking at Money Marketing Live in Manchester this week, Scottish Equitable director of pensions development Stewart Ritchie said if rumours that the Inland Revenue is intending to bring residential property within Sipp investment were true, there would be huge implications for ...

  • Protection outspent by Pot Noodles

    25 Sep 2003

    Protection providers have spent less advertising their wares than Pot Noodles has according to financial services marketing agency CCHM chairman Lucian Camp. At last week's Chartered Insurance Institute conference in London, Camp said protection is a part of the industry that is in particularly good shape, but could be doing better if "there was a bit more noise and excitement out there". Camp believes the lack of promotion is the result of something he believes the insurance ...

  • Prudential Assurance - Capital Protected Growth Plan

    24 Sep 2003

    Type: Capital-protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £500-£1m, Isa/Pep transfers £7,000Term: Six yearsReturn: Option one - Up to 100% growth in index subject to a maximum of 65% at end of term. Option two - up to 85% growth at end of termGuarantee: Original capital returned in full regardless of performance of indexClosing date: November 7, 2003, Isa/Pep transfers ...

  • Prudential chief Wood says sorry for critical blunders

    25 Sep 2003

    Prudential UK chief executive Mark Wood has apologised to IFAs for the company's decision to raise premiums and withdraw guarantees for pipeline critical-illness business in March. Wood made his apology in a presentation to IFA delegates at this week's Money Marketing Live conference in Manchester, which was attended by over 900 IFAs. Prudential incurred the wrath of IFAs when it withdrew cover terms for thousands of pipeline critical-illness cases. Some of the business had ...

  • Public don't know the true costs of private operations

    25 Sep 2003

    Legal & General says more than two-thirds of people intend to pay for private healthcare directly rather than through an insurance policy but underestimate how much it will cost. Consumer research from L&G shows that 70 per cent of people intend to pay for private healthcare on demand rather than through a PMI policy. But the survey reveals serious underestimation of the cost of private treatment, with 57 per cent estimating the cost of a knee replacement operation at under ...

  • Purchase lending hits record

    25 Sep 2003

    There was a record level of house purchase lending in August, according to the Council of Mortgage Lenders' latest figures. The CML results show a swing towards house purchase away from remortgaging. Lending for house purchase reached £11.5bn in August, the highest figure CML has ever recorded, accounting for 48 per cent of total lending. This was an increase from£11bn in July and £10.8bn in August last year. Remortgaging was still strong at £9.4bn, 40 ...

  • Regulator relents over investment trust rules

    25 Sep 2003

    The FSA has watered down its proposed rules for investment trusts after facing stiff industry opposition to its consultation paper on changes to listing rules. In January, the regulator said it planned to overhaul existing rules and impose harsh restrictions on ITs in an effort to ensure that a "magic circle" of providers does not develop. Although its intentions were welcomed, the FSA's tough requirements and constraints led to a campaign being waged - spearheaded by the AITC - ...

  • Ross ousted at Widows

    25 Sep 2003

    Scottish Widows chief executive Mike Ross has been ousted in a shake-up which sees Lloyds TSB man Archie Kane take his place. The news comes the same week the FSA is expected to hit Lloyds with a hefty fine for misselling structured products. Ross leaves Widows after nearly 40 years, having led it to become one of IFAs favourite life and pensions providers. His replacement, Kane, spent more than a decade with TSB before its merger with Lloyds in 1995. He was the project manager ...

  • Sales of investment funds fall in August

    30 Sep 2003

    New retail sales of investment funds fell in August to £766m from £867m in July but were still 39 per cent higher than at the same point last year, according to the IMA.The trade body's monthly figures reveal that sales were up from August 2002's level of £549m although net Isa sales fell to £235m, down from £279m in July and £268.4m at the same time last year.The biggest surprise was that gross retail sales of UK All Companies ...

  • Schroders builds on alpha fund success

    25 Sep 2003

    Schroders is launching a European alpha plus fund modelled on its UK version which returned 8 per cent in its first year under Richard Buxton. The fund, managed by Adriaan de Mol van Otterloo, will be a best ideas' portfolio of 40-80 stocks, focusing on companies with hidden value and growth potential. Like its UK counterpart, the European fund will not be constrained by sector allocations within the benchmark - the FTSE Europe exc UK index - and can be invested 10 per cent in cash ...

  • ScotEq opens up tax window on insurance bonds

    25 Sep 2003

    Scottish Equitable has highlighted a tax discount window for higher-rate taxpayers who want to cash in their insurance bonds. It says higher-rate taxpayers cashing in insurance bonds, including with-profits bonds, have to pay 18 per cent additional tax until April 2004 compared with 20 per cent thereafter. The tax discount window came into being as a result of policyholder taxation legislation announced in this year's Budget but ScotEq says it has largely been overlooked. The ...

  • ScotProv caps critical sum assured

    25 Sep 2003

    Scottish Provident is to limit the maximum sum assured on its stand-alone critical illness policies to £500,000. Head of marketing and product development Nick Kirwan says IFAs will be getting letters telling them of the change. The company will still offer higher amounts for life cover and critical illness with life cover on a combined basis. The change comes into effect from October 1, with pipeline applications still being accepted. Lifesearch senior technical manager ...

  • Scottish Equitable International offers redemption

    29 Sep 2003

    SCOTTISH EQUITABLE INTERNATIONAL (DUBLIN)Private Client Portfolio Capital Redemption BondType: Unit-linked bond Aim: Growth by investing in Scottish Equitable International funds and external Oeics or unit trusts from any mainstream fund manager Minimum investment: £75,000 Fund links: Choice of 26 Scottish Equitable International funds and external Oeics or unit trusts from any mainstream fund manager Options: Initial costing, five-year ...

  • Skandia diversifies from Mom

    25 Sep 2003

    The development and recent launch of Skandia's Investment Management arm is a response to other life offices targeting its traditional space of multi-manager investment offering, says the firm. Managing director Nick Poyntz-Wright told delegates at the Money Marketing Live event in Manchester that the entry of other life offices and fund managers into the multi-manager arena has made the sector more competitive. Skandia has added two new options to its hybrid manager of manager ...

  • Standard cals for universal pension

    30 Sep 2003

    Standard Life says the current State Pensions system should be replaced with a single pension benefit for all because the current state pensions system is too complex and discourages people from savings.Speaking at a fringe event at the Labour Party conference this week Standard managing director, marketing Simon Douglas said: "State Pensions reform is essential if we are going to make any impression on the savings gap. We need a state system that is clear, ...

  • Striking Accord

    25 Sep 2003

    Despite being less than six months old, Yorkshire Building Society's intermediary lending arm Accord has already snapped up 99 per cent of its parent's broker business and is buzzing with new ideas for the broker market. First up is managing director Linda Will's plan to test self-cert mortgages. She says: "We are in the process of setting up a self-cert experiment with a group of brokers. We are going to clone our existing products as an exclusive for them, adding a self-cert ...

  • Student lessons

    25 Sep 2003

    Investment in property continues to be a popular alternative to equities, fuelled by low interest rates, a housing market that continues to astound us in its capacity for growth and controversy, suspicion and fear over the effectiveness of our pension planning. Buying to let, which five years ago was considered to be a risky enterprise - even a little shady, perhaps - has gained a respectability that has made it the fastest-growing sector in the mortgage market. Now everybody's ...

  • Surrey tops UK house price league

    29 Sep 2003

    Surrey tops the county house price league according to an analysis of the last 10 years of house price data by Halifax Estate Agents.The research shows Surrey currently has the most expensive homes in the UK up 170 per cent with an average price of £281,451 in 2003 compared to £104,373 in 1993.The largest increase over the last decade is in Dorset where prices have risen by 218 per cent to £197,318 from £61,999 compared to the ...

  • Talkback

    25 Sep 2003

    "Yes, I think the regulators have realised that regulations are beginning to strangle and consumers having access to IFAs is a good thing, professional indemnity insurance has been a runaway train and realism is beginning to settle in." Harry Humphrey,Harry Humphrey Financial Services "It depends on what happens what with the PI issue. Five years ago, you could earn a respectable amount of money in any aspect of the business, whereas now it seems to be more focused on mortgages ...

  • Thames River Capital - Thames River Global Bond Fund

    30 Sep 2003

    Type: UcitsAim: Income and growth by investing globally in government and government agency bondsMinimum investment: £7,500, $10,000, euros 10,000Place of registration: DublinInvestment split: 100% government and government agency bondsCharges: Initial 5%, annual 1%Commission: Initial 3%, renewal subject to negotiationTel: 020 7360 1270

  • The big brand sound

    25 Sep 2003

    As I said last week, when it comes to distribution brands, our cross-section of senior decision-makers in distribution and manufacturing businesses are oddly schizophrenic. In theory, many believed that we are moving into an era of rapidly growing "retailer power", in which large new consolidated retail businesses will rapidly emerge, many of them multi-tied. But in practice, many simultaneously believed that most distribution businesses - from the biggest bank to the smallest IFA ...

  • The big match for critical cover

    25 Sep 2003

    Critical-illness insurance needs a major shake-up because insurers do not understand the customers' needs, says Munich Re general manager Martin Werth. He told Money Marketing last week that the market is failing to address consumers' needs, focusing instead on insurers' perception of their needs. He rejects the notion that income protection should be viewed as the "poorer cousin" of CI, Werth and says for most people it is a more appropriate product. Werth says: "The ...

  • The flexible future

    25 Sep 2003

    Most IFAs are reviewing their business strategy against the background of a changing regulatory environment, with CP121 and CP166, the change in remuneration with falling commission levels and the spectre of Sandler's suite of investment products on the horizon. As an IFA running a business which is committed to independence, I am interested to see how the product providers are approaching the challenge to their businesses with a view to securing future distribution. Some, such ...

  • The hedge of reason

    25 Sep 2003

    I have just inherited a lump sum, for which I have no immediate need. Where can I invest to get real returns? I already have a balanced portfolio of shares, bonds and equities. Why invest? As you know, the main purpose of investment and financial planning is to create financial independence. This is when you own the properties in which you live and have guaranteed income after tax that is greater than your budgeted expenditure. Having protected your finances should you die, ...

  • The lookalikes are out there

    25 Sep 2003

    Thanks to Skipton's Jennifer Holloway for sending in these Separated At Birth pics of herself and Helen Hunt, star of blockbuster Twister - appropriately, just as Hurricane Isabel was battering the eastern seaboard of the US. In fact, Jennifer is unhappy that her colleagues have made the link and claims that, since dying her hair red, she looks more like sci-fi sex bomb Dana Scully from the X-Files. If you think you look like a gorgeous film star, send your pictures to the Diary ...

  • The prophet of profits

    25 Sep 2003

    This month's financial services sector report from investment bank Durlacher might be some of the best news that the IFA market has heard for quite a long time as long as you are a plc or a big network player. For the first time this year, the bank is talking profit and increased demand for financial services and has changed its sector rating from sell to buy/hold. It is a stark difference from the bank's January report, in which it spoke of doom for listed IFAs. Even since January, ...

  • Thinktank aiming for money's 'human side'

    25 Sep 2003

    A new thinktank has been set up to develop financial planners' understanding of the 'human side of money'. The Nazrudin Project has been launched by American founder, Kinder & Co president George Kinder and UK founder Norton Partners chief executive David Norton. It is open to all financial planners and the project is setting the aim of helping planners better understand their clients' financial goals and to provide a more holistic service. The rationale behind ...

  • Threadneedle appoints Backhouse to fixed income team

    24 Sep 2003

    Threadneedle Investments is appointing David Backhouse to its fixed income team as an investment analyst in investment grade credit. Backhouse joins from Gartmore where he was a credit analyst working on investment bonds and crossover credits.Threadneedle head of fixed income Robert Stirling says: "We have a highly regarded fixed income team of 30 investment professionals and an excellent record of outperformance across our funds. David's appointment ...

  • Threadneedle serves up flavour of the month

    26 Sep 2003

    THREADNEEDLE INVESTMENTSThreadneedle UK Mid 250 FundType: Oeic Aim: Growth by investing in UK mid caps and small caps Minimum investment: Lump sum £2,000 Investment split: 100% in UK mid caps and small caps Isa link: No Pep transfers: No Charges: Initial 3.5%, annual 1.5% Commission: Initial 3%, renewal 0.5% Tel: 0800 068 4000Threadneedle Investments' UK mid 250 fund, aims for growth by investing ...

  • Tiner says life companies are using regulation as an excuse

    25 Sep 2003

    FSA managing director John Tiner says the suggestion that regulation is standing in the way of the insurance industry is just an excuse. At the annual Chartered Insurance Institute Conference in London last week, Tiner said the FSA has set in place high-level principles that are difficult to argue with. The claim by the industry that the "box-ticking" required stands in their way is "an excuse by and large", Tiner said in response to a question. His comments came during a panel ...

  • Treasury minds the gap

    25 Sep 2003

    The Treasury is investigating ways to prevent consumer complaints falling through the gaps created by the FSA taking on mortgage and general insurance regulation. The gap was identified by the MCCB, which raised concerns that during the period before handing over to the FSA, consumer complaints may drop "through the cracks" with no body to deal with them. Responses to the consultation must be received by November 21.

  • UCB fixes buy-to-let

    25 Sep 2003

    UCB HOME LOANSBUY TO LET - 5 YEAR FIXEDType: Fixed-rate buy to let mortgageFixed rate: 5.29%Fixed term: Five yearsMinimum loan: £25.001Maximum loan: Up to 80% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £400,000Income multiples: Up to 3.25 times principal income, 2.75 times joint, or rental income must be at least 6.5 times mortgage amountRedemption ...

  • What's so professional about fees?

    25 Sep 2003

    I came to page 13 of the September 11 edition of Money Marketing and the angels sang and heavenly light poured out as I read the article about fees and commission - Professionals prefer impartial fee-based advice. What is wrong with these people? First, the implication is that we thousands of honest and hard-working IFAs who are paid by commission are not giving independent advice. Are we outraged? Second, I suspect that the questions were loaded to give the required answer as ...

  • Wood warns Government on Sandler plan

    25 Sep 2003

    Prudential UK chief executive Mark Wood has told the Government its proposed with-profits product will not sell if it adopts Sandler's 100/0 proposal because life offices have insufficient capital to make it work. Speaking at Money Marketing Live in Manchester this week, Wood said that a 90/10 model was better for consumers because, unlike the 100/0 model, it has enough capital to withstand the tests of volatile markets. Woods' comments come ahead of a major national marketing ...

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