Money Marketing
25 August 2004

  • 'Industry must consider impact of multi-tying on consumers'

    26 Aug 2004

    Liverpool Victoria is warning that the industry must put the interests of consumers above their own balance sheets when considering multi-ties. The mutual life office, which has an IFA arm, is bullish about keeping its intermediary offering for consumers independent. Group director (sales) Mike Newton says Liverpool Victoria is consulting with members about offering a multi-tied arm after depolarisation but so far members are not demanding a limited panel. He ...

  • 'M-Day rush may leave brokers out of business'

    26 Aug 2004

    Mortgage brokers could be blocked from trading for months because of a regulatory bottleneck, warns Optoma Interpartners Network. It is concerned there will be a stampede of brokers rushing to be processed as appointed representatives of networks before mortgage regulation comes in at the end of October. Compliance director Richard Palmer says brokers are putting off registration because of pressure of work and to avoid paying compliance fees. But he warns that ...

  • 'Women struggle to get top roles in mortgage sector'

    26 Aug 2004

    Mortgage firm Cartel claims some rival companies still refuse to take women seriously at senior management level. Recruitment director Andrea Brammer says women face huge obstacles getting jobs in the mortgage sector and those who do then hit a glass ceiling when looking for promotion. Brammer claims many women do not even think of applying to the sector because it is so male-dominated. The Salford firm has around 100 advisers and is looking to recruit 150 more ...

  • 35 per cent of IFAs support distribution funds - AXA

    27 Aug 2004

    Over a third (35 per cent) of IFAs back distribution funds as a core investment for investors' portfolios, according to research from Axa.The research shows 44 per cent of IFAs feel distribution funds are either very attractive or attractive as a key component of an investor's portfolio.Fifty one per cent of IFAs expect their distribution funds to increase by 6 per cent or more over the next twelve months.Investment marketing manager Mike Mumford says: "Distribution ...

  • 4,500 advisers sign up for Sesame loan and insurance arm

    26 Aug 2004

    Sesame has 4,500 advisers signed up to its mortgage and general insurance arm ahead of industry regulation on October 31. The company was aiming for 5,000 advisers ahead of M-Day but says it is more than happy with the take-up so far, with two months to go. The majority of the adv-isers were already Ses-ame members while many previously used mortgage clubs. The network says these members will now place their business through Sesame to take advantage of enhanced ...

  • A Consumer's View

    26 Aug 2004

    Nobody is certain how many homebuyers still have their mortgage interest calculated annually but the CML reckons it is around two million homebuyers. Although the banks, which calculate interest daily, are now the major players in terms of new business, the small and medium-sized building societies, which traditionally calculate interest annually, still account for a substantial proportion of older loans. But these homebuyers, on "annual rest" mortgages, probably one-sixth ...

  • Abbey offers protection sales coaching for IFAs

    26 Aug 2004

    Nearly half of advisers want more information on how regulation of protection sales will affect them from January 2005 and how they should prepare, according to a survey by Abbey for intermediaries. Abbey's survey shows that 49 per cent of advisers want more information on protection regulation. The firm is offering intermediaries a free online coaching session providing guidance on regulation, decision roadmaps and tips for intermediaries. It will also focus ...

  • American Express Financial Services Europe - Adviser Service Sipp

    31 Aug 2004

    Type: Full SippMinimum investment: No minimumInvestment choice: Unit trusts, Oeics, individual shares traded on the London Stock Exchange and Aim markets, cashCharges: Set up fee £200, annual £340, drawdown annual charge £120Special offer: Set up charge reduced to £150, annual charge reduced to £250Offer period: Until April 30, 2005Commission: NoneTel: 0845 355 5563

  • American Express wraps up Sipp

    26 Aug 2004

    American Express Financial Services Europe has established a self-invested personal pension for its wrap account.The adviser service Sipp provides access to a range of investments including Oeics, unit trusts, shares traded on the London Stock Exchange and Aim, plus cash awaiting investment. It also has a phased retirement option where the investment is divided into segments which can remain invested or be used for income drawdown.There is no minimum investment for the ...

  • Amvescap and Invesco raise Millfield holdings

    26 Aug 2004

    Amvescap and subsidiary Inv-esco Perpetual have increased their holdings in Millfield to almost a quarter of the firm. Last week, Invesco bought 100,000 shares in Millfield, increasing its holding to 19.06 per cent. Amvescap owns 5.05 per cent, giving a total group holding of 24.11 per cent. Owning such a big percentage of the distributor means the better than best rule - which prevents IFAs placing business with provi-ders owning more than 10 per cent of their firm unless ...

  • Asking prices falling as more properties stay on the market

    26 Aug 2004

    The average asking price for a house in the UK fell by 2 per cent in the past month, according to data from market analyst Rightmove. The company says the fall is likely to have been caused by the series of int-erest rate rises. The average property price fell from £196,198 on July 10 to £192,335 on August 15. The trend of more properties coming on to the market than coming off continued through July, with 110,000 homes coming on the market while only 100,000 ...

  • Autumn almanac

    26 Aug 2004

    IFAs are scanning the markets to see how equities will perform over the next six months. The FTSE 100 index continues to trundle along,with no significant moves, making it difficult for advisers to judge how to balance client portfolios. So what is the view on equities as we head towards autumn? Bates Investment Services head of investment strategy James Dalby says that alth-ough the FTSE 100 seems to be struggling to make headway, he believes the finances of some of ...

  • B&B tries on ties

    26 Aug 2004

    Bradford & Bingley has taken a step towards its aim of leaving the independent advice sector with last week's sale of investment IFAs Charcol Holden Meehan and Charcol Aitchison & Colegrave. The departure of high-profile former chief executive Christopher Rodrigues in April led to a strategic review by replacement Steven Crawshaw in May, when he announced he would be disposing of B&B's IFA business, which he described as "non-core assets", and multi-tying The ...

  • B&B writes protection short list

    26 Aug 2004

    Bradford & Bingley is close to finalising its protection multi-tie offering after asking providers to tender to be on its panel in March. The former building society is believed to have received tenders from players such as Standard Life, Legal & General, Norwich Union and Scottish Widows as well as smaller providers Liverpool Victoria and Bright Grey. It is understood to have shortlisted providers it is keen to have on its panel. Group financial services director ...

  • Balancing the redress

    26 Aug 2004

    Compensation schemes such as the Financial Services Compensation Scheme are based on a recognised principle that the majority pay for the failures of the minority, thereby reducing the impact of a failure on individuals. The existence of the FSCS helps to satisfy the FSA's sta-tutory objectives of maintaining confidence in the sector and providing protection for consumers. Under the sch-eme, firms authorised to conduct business by the FSA pay for the cost of claims against ...

  • Bankhall agrees 'most competitive PI terms on the market' for members

    26 Aug 2004

    Bankhall has agreed terms for PI cover with broker NCG Professional Risks which it says will be the most competitive on the market. Bankhall says in a quote for a four-RI IFA firm, the new cover cut premiums from £18,375 plus 5 per cent insurance premium tax last year to £15,250 plus 5 per cent IPT for the year from September. The excess was down from £36,500 to £20,000 for investment-related business and £10,000 for non-investment-related activities ...

  • Bloom or doom?

    26 Aug 2004

    It is thought that many lenders will restrict access to their products to tied brokers and big networks. Do you think this will happen? What will be the effect on small brokers? Mountney: This has yet to ratified and frankly it would be a dangerous game for a lender to play. At this stage, we still have no idea as to the final split of brokers on DA or AR and, as importantly, how many existing advisers will switch to introducers or simply leave. We will not know for some ...

  • Broker in libel action after FSA dismisses claim

    26 Aug 2004

    Stockbroker Collins Stewart says it will press ahead with its £240m libel claim against the Financial Times after the FSA cleared it and its parent Collins Stewart Tullett of market abuse allegations. Last week, the FSA concluded its investigation into allegations made against Collins Stewart by former employee James Middleweek and says it will not be taking the matter further. Middleweek, who was sacked by Collins Stewart last year, made the allegations in a dossier ...

  • Buy-to-let growth slows in first half

    26 Aug 2004

    The growth in buy-to-let lending slowed in the first half of this year as lenders react to tighter market conditions according to the Council of Mortgage Lenders. Advances rose by 3 per cent to £12bn in the first half from £11.6bn in the second half of 2003 and £7.6bn for the first half of 2003. The number of loans rose by 6 per cent to 119,000 from 113,000 over the previous halfyear. But growth was slower than over the preceding six-month period when both ...

  • Buy-to-let investors turn to commercial property

    31 Aug 2004

    Narrowing yields in the residential lettings market are leading buy-to-let investors to look at commercial property as the next investment hot-spot, according to the Property Investor Show.Research from Mortgages for Business shows that 89 per cent of investors who currently do not invest in commercial property have plans to widen their portfolio to include commercial properties.Mortgages for Business managing director David Whittaker says: "The residential buy-to-let market ...

  • Buy-to-let landlords see rise in July returns after first-half dip

    26 Aug 2004

    Returns for buy-to-let landlords on their initial investments rose in July after a dip in the first half of the year, according to Paragon Mortgage's August index. Average returns on initial investment rose from 24.7 per cent in June to 25.2 per cent in July. The increase follows significantly higher returns in a number of regions. In the North, returns increased from 59.5 per cent to 72.4 per cent. In the West Midlands, returns increased from 25.4 per cent to 43.4 ...

  • Cancer charity says firms misleading public on PMI

    26 Aug 2004

    Private medical insurance providers are misleading consumers about the extent of cancer care they offer and could face a wave of misselling claims, says a leading cancer charity. Charity Cancer BACUP wants clearer information from providers on PMI policies to make consumers aware that the policy they are buying may not cover them throughout the course of their illness if they develop cancer. Of the companies surveyed, BACUP found that only Bupa will cover cancer patients ...

  • Chelsea Building Society - Prospect 3 Year Fixed Rate

    27 Aug 2004

    Type: Fixed-rate adverse credit mortgageFixed term: Until October 1, 2007Fixed rate: 6.39%Minimum loan: £25,000Maximum loan: Up to 85% of valuation subject to a maximum of £250,000Income multiples: Up to 3.75 times principal income plus second or 2.8 times jointConditions: Maximum £3,000 in CCJs, current and satisfactory IVAs allowed, discharged bankruptcy and past repossessions consideredArrangement ...

  • Clarkson Hill teams up with Mortgage Alliance

    25 Aug 2004

    The Clarkson Hill Group is teaming up with The Mortgage Alliance to create a new white label mortgage club.Clarkson Hill Gold will be open to Clarkson Hill's 120 mortgage advisers who can access a range of services including a whole of market option of more than 40 lenders from leading firms, conveyancing services and access to a version of Trigold, the mortgaging outsource system.

  • Clerical comes in with improved look

    27 Aug 2004

    Clerical Medical has improved its income drawdown product by introducing a flexible charging structure and adding external fund links.The retirement options plan provides alternatives to buying an annuity, such as income drawdown, phased annuity purchase and partial self-investment. It offers 21 Clerical Medical funds,14 external funds from Newton, Schroders and UBS plus balanced, cautious and defensive fund collections which contain a mix of internal and external funds. A self-invested ...

  • Clerical Medical - FTSE 100 Tracker Fund

    25 Aug 2004

    Type: OeicAim: Growth by tracking the performance of the FTSE 100 indexMinimum investment: Lump sum £10,000, monthly £400, Isa lump sum £3,000, monthly £200Investment split: 100% in UK equitiesIsa link: YesPep transfers: YesCharges: Initial 4%, annual 1%Commission: Initial 3%, 0.5% renewal, Isa/Pep transfers 0.5% initial, 0.5% renewalContact: https://ifa.clericalmedicalsecure

  • Clerical Medical - Retirement Options Plan

    27 Aug 2004

    Type: Income drawdown planMinimum investment: £100,000Minimum age: 50Investment choice: Choice of 21 Clerical Medical funds,14 external funds from Newton Schroders and UBS, balanced, cautious and defensive fund collectionsOptions: Self-investment, phased retirementAllocation rates: 95%-100%Charges: Annual up to 1. 8%, annual 1.25%-1.6% for external funds, additional charges for self-investmentCommission: ...

  • Clerical Medical - Retirement Options Plan

    31 Aug 2004

    Type: Income drawdown planMinimum investment: £100,000Minimum age: 50Investment choice: Choice of 21 Clerical Medical funds,14 external funds from Newton Schroders and UBS, balanced, cautious and defensive fund collectionsOptions: Self-investment, phased retirementAllocation rates: 95%-100%Charges: Annual up to 1. 8%, annual 1.25%-1.6% for external funds, additional charges for self-investmentCommission: ...

  • Consumer question

    26 Aug 2004

    Sesame's latest protection offering makes for interesting reading for intermediaries. The whole-of-market solution offers less commission than the multi-tie and for the first time, a super-multi-tie is suggested, offering what we might describe as super-commission. Who are we to criticise? The FSA is depolarising the market and such incentives may become commonplace. But one question is still to be answered before the national newspapers stick their collective boot in. We can ...

  • Correspondent's Week

    26 Aug 2004

    It is the middle of August so it must be the silly season which is why I found myself spending most of a bright Monday writing about what you should do if you are lucky enough to win the Lottery. (Chance would be a fine thing.) If you do not decide to invest your Lottery win in property or equities, you could always splash out on breast enlargement - a suggestion which I am impressed to say got past the scrutiny of both Mr Prosser and the subs unedited. It is not often that we get such ...

  • Coventry Building Society - 1.55% Discounted Rate Buy-to-Let

    26 Aug 2004

    Type: Discounted-rate buy-to-let mortgageDiscounted term: Until December 31, 2008Discount: 1.55%Payable rate: 5.24%Minimum loan: £25,001Maximum loan: Up to 85% of valuation subject to a maximum of £300,000Income multiples: Rental income must be at least 130% of mortgage repaymentsConditions: Free mortgage valuation up to £680, capital repayments of up to 5% a year allowed without penaltyArrang

  • Doorbells hit a sour note for buyers

    26 Aug 2004

    The National Anthem, Jingle Bells and Nirvana's Smells Like Teen Spirit ringing out bell-fashion from elegant front doors may be mildly amusing but could cost you the sale of your home, according to a report by Cheltenham & Gloucester. The Diary agrees with 92 per cent of the country that novelty bell tunes are rather bad taste. Squeaky front gates, pebble dashed walls and eau-de-dog are all also offputting to prospective buyers so get your Laurence Llewelyn Bowen ...

  • Dripfeed

    26 Aug 2004

    Nearly every financial adviser has been brought up on the theory that making an investment in instalments can produce benefits compared with investing a lump sum. Unfortunately, one cannot know in advance whether it is better to invest a lump sum immediately or spread it over a period. In this series of articles, I will examine various scenarios and comment on the effectiveness of pound-cost averaging. I will bring into question whether pound-cost averaging works always, sometimes ...

  • Edwards takes protection to another level

    26 Aug 2004

    Walking through the mean streets of Edin-burgh, there is a strange presence lurking in the shadows. No, it is not a loony student from the Edinburgh fringe festival trying to be com-ical. It is none other than Bright Grey's Roger Edwards, Edinburgh's lycraclad caped crusader, newly qualified as a professional body combat instructor. Protection products director by day, he protecting damsels in distress by night. He lives and dies by the protection code. His only ...

  • Exclusive - Destini rescues Lifeboat

    27 Aug 2004

    IFA consolidator Destini is buying the core infrastructure of stricken IFA and non-reg network Lifeboat in a deal that will see outstanding pipeline commission paid in full.Around 100 RIs will join Destini and between 300 and 400 full time Lifeboat mortgage and protection brokers will move across to form the basis of Destini's multi-tie offering which will launch in September.Destini was introduced to the deal by its banker Bank of Scotland, which is also the banker ...

  • Fears over Mortgage Express margins

    26 Aug 2004

    Difficult times could lie ahead for Bradford & Bingley's specialist lender Mortgage Exp-ress as pressure builds on margins, says Merrill Lynch. Analyst Christina Marzea says she is concerned with MX's balance growth, saying that as the book matures, the higher redemption profile of this type of lending - buy to let, self-certification and equity release - will become evident, with negative implications for book growth and margins. Marzea says MX redemptions ...

  • Fines loom for 90% of IFAs over unpaid fees

    26 Aug 2004

    Almost 90 per cent of IFAs have not paid their FSA fees and are one week away from fines and interest for late payment. FSA managing director David Kenmir says 3,627 invoices for a combination of Financial Services Compensation Scheme, FOS and FSA fees have been sent out since July but only 388 IFAs have paid. The deadline for payment is the end of August. IFAs who do not pay in time face a one-off admin charge of £250 coupled with interest payments of 5 per cent ...

  • First faller at M-Day fence

    26 Aug 2004

    So, a lender has failed to make the grade as far as M-Day is concerned. The first faller, owned by no less than the mighty Royal Bank of Scotland, is Direct Line although some might argue Sainsbury's Bank had shown the way. The telephone bank says it is better that customers are sold a mortgage on the new KFI-compliant computer system rather than on the old system so there will be no Direct Line mortgages until M-Day. It may, of course, not be the last. But intermediaries ...

  • Follow the trail

    26 Aug 2004

    I have read quite a bit about the proposal to stop trail commission. However, no one has ever thought to ask life companies what they do with their trial commission? On leaving a tied position, all of my renewal commission that I had built up stayed with Abbey Life. It was not paid to another adviser, IFA or rebated to the client. Would the life companies like to reply? Michael Broadwood By email

  • Friends set to make another cut in payouts for with-profits policyholders

    25 Aug 2004

    Friends Provident has cut pay-outs for with-profits policyholders for the fifth time in two years. Friends is cutting bonus rates on some unitised with profits policies, which will be reduced by 0.25 per cent. Final bonus rates on some unitised and conventional with profits policies will also be reduced. As a result of the review payouts on maturing with profits policies will reduce by on average 3 per cent compared to those in February 2004.

  • FSA fines Shell £17m for market abuse and breaching of rules

    25 Aug 2004

    The FSA has fined Anglo-Dutch oil giant Shell £17m for market abuses and breaching the listing rules when misstating its reserves. The FSA says the penalty would have been significantly higher were it not for Shell's cooperation with the investigation. When Shell first announced it had misstated its reserves its share price fell by £2.9bn, approximately 7.5 per cent of its market capitalisation on that day.

  • FSA moves nearer to reattribution of orphan assets

    26 Aug 2004

    The FSA has moved a step further to creating a structure for reattributing billions of pounds of orphan assets with its proposals for the fair treatment of with-profits policyholders. Last week, the FSA issued revised proposals on with-profits, which will also require providers to issue consumer-friendly principles and practices of financial management. The new proposals will allow firms with excess inherited capital to consider a reattribution of surplus as an alternative ...

  • Fund firms join online forum for networks

    26 Aug 2004

    Tenet Group is starting an online investment forum for M&E and Interdependence network members in partnership with Fidelity, Jupiter, Invesco and Gartmore. The forum will offer investment reports and analysis, fund prices and news, provided through fund supermarket FundsNetwork. Workshops and regional development meetings will also be held for members. Jupiter Unit Trust Managers director of strategic alliances Simon Hynes says: "Jupiter is committed to the ...

  • Get into training

    26 Aug 2004

    I recently visited some clients to discuss options for constructing a broadly-based portfolio of investments for mediumto long-term growth but, eventually, for income. Their risk profiles ranged from two to nine on our notional scale of one to 10, so I thought it might be appropriate to consider a with-profits bond for some of the total amount to be invested. It would also represent an opportunity for me to update myself on the current terms on offer and also to update our standard ...

  • Get ready for mortgage change

    26 Aug 2004

    Mortgage intermediaries in the North will have the chance to discuss the impact of forthcoming regulatory change at Mortgage Strategy Live in Manchester next month. The event is sponsored by Sesame and takes place on September 28 at the G-Mex Centre as part of Money Marketing Live. With the advent of regulation just around the corner, visitors will be able to put their questions to the leading mortgage experts about the future of the industry. In a special panel ...

  • Harry Katz

    26 Aug 2004

    Harry Katz feels like a newcomer to financial services even though next year marks his 20th anniversary as an IFA but he is the first to admit that times have changed. He had a very different life before financial services. In 1968 he set up a plastics factory in Darwen in the North-west, which he ran for 16 years before training as a financial adviser with Samuel Hill. It was easier to quantify what you did for the week, he says, when you saw masses of plastic containers ...

  • Howells quits as BBB network chief

    26 Aug 2004

    Berkeley Berry Birch network division chief executive Richard Howells has resigned from his role at the listed IFA group. Howells will be replaced by co-founder of Berkeley Independent Advisers group Martin Banbury. Banbury, currently BIA executive chairman, will take on Howell's role temporarily until a replacement is appointed. Howell's departure follows the resignation of group chief executive Stephen Ingledew in March after the firm entered into merger ...

  • IFAP appoints first technology sponsor

    25 Aug 2004

    IFA Promotion has appointed IFA portal Webline as its first technology sponsor. Webline follows London Mortgage Company, GMAC and Mortgage Express as the latest addition to IFAP's list of sponsors. IFAP says the move is evidence of growing industry confidence in a strong IFA sector post-depolarisation.

  • iimia announces restructired fund management team

    25 Aug 2004

    iimia Investment Group, which began trading on Aim last week, has announced its restructured fund management team. The firm, with close to £500m in funds under management, has recently been formed from the merger of the original iimia business with Exeter Investment Group. The team of five will be led by iIG chief investment officer Nick Greenwood, who has been running the iimia accelerated fund and the iimia investment trust, assisted by fund manager Daniel Lockyer.

  • Independent view

    26 Aug 2004

    What makes a good adviser? It is quite a hard question to answer because it is not a tangible and uniform attribute. What makes an adviser successful with a particular client group may not translate to success in another. Turning back the clock and recalling how it was in early days when you have been in the industry as long as I have is both a trip down memory lane and a good reminder of how hard things can be when you first set out. When I started over a quarter of ...

  • Investment analysis

    26 Aug 2004

    World equity markets made up some good ground last week despite the deteriorating situation in Iraq, which send crude oil futures prices to record highs. Corporate newsflow was generally positive, helping the benchmark FTSE World index gain 2.4 per cent by Friday's close. In the UK, bid speculation provided support and helped the FTSE 100 make a weekly gain of 1.6 per cent. Shell, which rose by 2.7 per cent on the week, was linked with a bid approach from French oil company ...

  • Investment view

    26 Aug 2004

    After what seems far too long a period of leading a somewhat introspective life, last week found me back on my feet addressing a group of IFAs. On this occasion, I was part of a double act, with Baring chief investment officer Michael Hughes providing the serious meat for consumption. Needless to say, I was on my mettle as a consequence. In preparation, I consulted Gerrard chief economist Simon Rubinsohn. Perhaps it was because he had only just returned from holiday but he was ...

  • John Scott moves to seal tie-ups for HNW business

    26 Aug 2004

    John Scott & Partners is talking to mortgage brokers and other high-net-worth introducers about potential tie-ups. JS&P approached Hamptons International Mortgages about a potential tie-up and is now keen to talk to other firms whose business models do not overlap with its own such as mortgage brokers, solicitors and accountants. Although it offers holistic advice to high-net-worth individuals, JS&P says it has no desire to create or acquire a mortgage brokerage, ...

  • Kensington market

    26 Aug 2004

    Wider distribution channels have always been the holy grail for mortgage lenders but never so much as now. In a time where consolidation and changes in the regulation of brokers seems to be putting the squeeze on much of the industry, deals between lenders are keenly in the spotlight. Enter Kensington Mortgages, who last month struck a deal that bought them a minority shareholding in Money Partners Limited, which it has launched as a new sub-prime lender. Kensington says the deal ...

  • Kevin Duffy on mortgages

    26 Aug 2004

    Deadlines are such that this piece had to be written before B&B announced who its preferred Charcol buyer might be so, at the risk of making some clumsy predictions, here is what my crystal ball tells me. One sure thing is that an MBO can be discounted. I sense an unwillingness on the part of the vendor to surrender the business to its management at what might be a wholly unattractive price. A cooling agency market, potential and unknown endowment-related liabilities and unconcluded ...

  • Legal & General - Capital Protection Plus 6

    26 Aug 2004

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment:£500-no maximum, Isa £7,000Term: Six yearsReturn: The greater of 26% of original investment or 50% growth in indexGuarantee: Original capital returned in full along with 26% growth at end of term regardless of index performance Closing date: October 22, 2004Commission: Initial ...

  • LIA's view

    26 Aug 2004

    It has been interesting to read letters in Money Marketing about the proposed merger between Sofa and the LIA. It was suggested in one of the letters that size is not that important when it comes to representation. I just do not accept that size is not a factor. If any association is able to unify representation in its sector, provided that it presents cogent and well argued views and solutions, it is likely to have far more influence than a multiplicity of competing voices. It ...

  • Lighthouse in bid to rescue Lifeboat

    26 Aug 2004

    Lighthouse Group is believed to be in advanced negotiations with the administrators of Lifeboat to acquire the stricken IFA and mortgage broker. Sesame and Destini have both been in talks with Lifeboat about buying all or parts of the business but negotiations have not progressed. Tenet Group pulled out of talks a week ago after it was unable to come to a deal with administrator BDO Stoy Hayward. Any deal would need to meet three criteria - paying off sums due ...

  • Lloyds TSB tops list of 1,000 most surfed financial websites

    25 Aug 2004

    Lloyds TSB tops the list of the 1,000 most surfed financial websites in the UK says internet research provider Nielsen//NetRatings. Second in the list is Paypal and third is HSBC. The MarketPlace is the highest placed IFA in 60th place.

  • Menu on a mission

    26 Aug 2004

    One of the biggest changes to the financial services marketplace will be the introduction of the FSA menu of commission charges in January 2005, setting out advice costs and how they compare with the market average - the industry figure calculated by the FSA, against which advice costs will be benchmarked. The menu is designed to help consumers choose between different suppliers of financial products as well as increase competition in the financial services marketplace. However, ...

  • Money Marketing holds Sway

    26 Aug 2004

    Investment conference organiser Sway has appointed Money Marketing and sister Centaur Communications publication Fund Strategy in place of its previous media partner, Financial Times Business. Sway has also appointed three new members to its conference division. Chris Wade joins as head of media, Beatrice Hammill as event management support and Lulu Keyzar as head of third-party events. The Senate Programme - Sway's flagship IFA asset management conference ...

  • More charity, vicar?

    26 Aug 2004

    Solihull IFA Adrian Smith & Partners is calling on the Government to give tax relief to charities on company donations. Registered charities can claim back tax on individual donations made under the Gift Aid scheme and AS&P believes the same concession should be made on company donations as well. The IFA recently celebrated its fifth anniversary with a balloon race across the UK which raised £370 for the Guardians of St Alphege Church in Solihull. It also ...

  • N&P grows green grass of home

    27 Aug 2004

    NORWICH & PETERBOROUGHGreen Mortgage - 4 Year Fixed Rate Without IncentivesType: Ethical fixed-rate mortgageFixed term: Four yearsFixed rate: 5.64%Minimum loan: £25,000Maximum loan: Up to 90% of valuation subject to a maximum of £250,000, up to 85% of valuation subject to no maximumIncome multiples: Up to four times principal income plus second or 2.9 times jointConditions: Capital ...

  • New cars popular choice for lifetime mortgage customers

    31 Aug 2004

    Norwich Union Equity Release says buying a car is one of the main reasons older people take out a lifetime mortgage.Twenty eight per cent of people releasing equity from their home are spending at least some of the money on a new car according to NU.Director Mark Kelly says: "Having a car is the key to independence for many people. However, buying a new car can be a huge financial burden for older or retired people and we have found that many of our customers use a lifetime ...

  • New Star appoints Dossett to manage property portfolio

    25 Aug 2004

    New Star is appointing former Estates & General managing director Roger Dossett to manage the property portfolio of its property unit trust. New Star expects Dossett to take over the running of the property portfolio from Capital & Counties later this year. At the same time New Star UK growth fund manager Stephen Whittaker will take over the management of the property unit trust's equity portfolio. Money Marketing apologises for any confusion in last week's reporting of this ...

  • Old Mutual Asset Management - Old Mutual Dynamic Bond Fund

    27 Aug 2004

    Type: Unit trustAim: Income and growth by investing in fixed-interest securitiesMinimum investment: Lump sum £1,000, monthly £250Investment split: 100% in fixed-interest securitiesIsa link: YesPep transfers: Yes:Charges: Initial 3.5%, annual 1.25%Commission: Initial up to 3%, renewal up to 0.5%Tel: 0808 100 2715

  • Opra renews fight against cash scams

    26 Aug 2004

    The Occupational Pensions Regulatory Authority has stepped up its campaign to warn consumers against pension liberation scams. Opra has updated its guides to members and trustees to highlight the dangers that pension liberation poses for consumers looking for a means to free up cash from their pension schemes quickly. Pension liberation or "trust busting" is obtaining a cash sum for pension benefits following a transfer contrary to Inland Revenue requirements. Opra is ...

  • Out of context

    26 Aug 2004

    • "It's very exciting sitting beside a rock star, breathing the same air as him. Sometimes I even swap cups so I can drink from his." - Very excited Lansons PR discusses rock star Richard Winder. •"He's already so huge, I reckon he'll be driving by the age of one." - Birmingham Midshires PR Matt Grayson as the ultimate proud dad. •"Did you know that badminton was introduced to the Olympics in 1992? I know lots of facts like that, I just don't ...

  • Pender joins Paymentshield after MBO

    26 Aug 2004

    The management team of protection and general insurance provider Paymentshield have completed a management buyout of the company's founder shareholders. Former Bankhall commercial director Stuart Pender is joining Paymentshield to lead the buyout team as chief executive of the holding company. The buyout team also includes marketing director Gareth Riding, chief executive Paul Evans and managing director Graham Boulger. Founder shareholders Richard Riding ...

  • Pension Edge: Christine Hallett

    26 Aug 2004

    Although the Inland Revenue restricts the types of investments available to self-investment personal pensions, holders can still choose from a wide variety when building up a pension fund. The range of investments which can be sheltered within a Sipp is so wide that it includes some fairly exotic investments. Once investors choose a Sipp, the key attraction is that they retain control of their investment programme. This implies that they have come to terms with taking full responsibility ...

  • Pension edge: Michael Fairweather

    26 Aug 2004

    A self-invested personal pension gives you a much greater choice of investments than can normally be offered by a packaged pension. A Sipp separates the role of pension provider and investment provider, allowing you to take personal control of the investment of your fund. Just like personal pensions, Sipps offer tax relief on contributions at 40 per cent for higher-rate taxpayers. The fund will grow free of capital gains tax and 25 per cent of the fund can be taken as a tax-free ...

  • Price slump may bring shock for fixed borrowers

    26 Aug 2004

    A property slump could cause mortgage repayments to double for some borrowers, warns consultancy In2Perspective. The consultancy points to the many homeowners who took out fixed-rate loans last year when the base rate was 3.5 per cent and who are still benefiting despite base rate rising to 4.75 per cent. It says many of these borrowers will be looking to refinance at the end of the fixed term, typically two to five years. But if house values fall, these borrowers ...

  • Product Matters

    26 Aug 2004

    It seems the Pru is trying to tempt investors out of cash and back into with-profits-style investments with the launch of the PruFund investment plan. Now, I respect Pru as a financial institution. Indeed, it is one of the few with a good level of financial strength behind it. But on this occasion, I must question its sense of timing and lack of sensitivity to existing clients. The plan looks a good offering - 5 per cent expected growth rate, a smoothing formula to reduce ...

  • Pru aims to woo advisers with cut in CI rates

    26 Aug 2004

    Prudential has cut its critical-illness cover rates in a move it says is designed to re-establish its reputation with IFAs as one of the top protection providers.Head of protection Paul Cowman says Prudential is not aiming to be at the top of the tree for protection but he believes the price change will set it firmly in the top five.A male smoker aged 40 with £100,000 sum assured will now pay £69.68 a month for a life and critical-illness policy compared with £101.33 ...

  • Pru in £1.5m push for smoothed plan

    26 Aug 2004

    Prudential is launching a £1.5m marketing campaign to convince consumers to switch to its smoothed investment plan rather than keeping their money in cash. The firm says its PruFund investment plan - first revealed in Money Marketing earlier this month - will target the £107bn which Prudential bel-ieves consumers have tucked away in deposit accounts. The plan, which is broadly an investment in a retail life fund under a bond wrapper, will offer smoothed returns ...

  • PruFund clears with-profits fog

    25 Aug 2004

    The PruFund investment plan is a single premium with-profits investment plan with a choice of two funds. The PruFund growth fund aims for growth by investing in global equities, property, corporate bonds, alternative assets such as convertible bonds and hedge funds, and cash. The PruFund growth and income fund invests in the same asset classes but has a higher proportion of corporate bonds and less in equities.Volatility is reduced by gradually increasing the unit price of the ...

  • PYSS to administer MW Pensions Sipp

    27 Aug 2004

    Pointon York Sipp Solutions has been appointed to administer pension consultancy and independent trustee company MW Pensions' Sipp.MW Pensions will be targeting the corporate and property Sipp marketplace in the run-up to A-day.PYSS managing director Christine Hallett says: "We are delighted to be working with a team of professional individuals who have the same work ethics and vision as ourselves. The venture has got off to an excellent start with many new clients ...

  • RBS calls temporary halt to loan business

    26 Aug 2004

    Royal Bank of Scotland subsidiary Direct Line is the first lender to pull out of the mortgage market temporarily in the run-up to mortgage regulation. Direct Life has been forced to stop trading because its IT system is unable to deal with an FSA requirement that it lay out key facts illustrations in the regulator's standard format. The FSA wants KFIs set out uniformly so that easy comparisons between lend-ers can be made, with new rules coming into effect from M-Day. RBS ...

  • Release business to hit £1bn

    26 Aug 2004

    Over £1bn of equity will be released from homes this year, according to the Key Retirement Solutions UK equity-release monitor report. The value of equity-release plans rose by 7 per cent to £289m in the second quarter of this year, from £270m in Q1. The total value of plans sold in the first half is £559m. KRS forecasts that equity release will hit £1.15bn by the end of the year. Equity-release business has been growing strongly across the North. ...

  • Revenue tax warning over endowment compensation

    26 Aug 2004

    Victims of endowments misselling could face further costs for failing to pay tax on their compensation packages, acc-ording to the Inland Revenue's latest update. In its August monthly rev-iew, the Revenue says it wants to make it absolutely clear to consumers and their accountants that interest received as part of misselling compensation will be subject to tax. Compensation for pension misselling is protected from income tax by a clause in the Finance Act 1996 but ...

  • Rising rates bring surge of applications for fixes

    26 Aug 2004

    Lenders say fixed-rate mortgages are increasing in popularity, with new offers from Nationwide and Barclays. Barclays says the recent string of interest rate rises has seen the number of applications for fixed-rate mortgages double from 11 per cent in January this year to 21 per cent in July. It predicts that the level of applications for fixes will increase to at least 26 per cent this month. Barclays is offering a two-year fixed rate at 5.29 per cent at 95 per cent ...

  • Santander in product and price pledge on Abbey bid

    26 Aug 2004

    Santander Central Hispano says if its bid for Abbey is successful, it will introduce new mortgage and investment products to the UK market and will reduce costs with its technology. Speaking to Money Marketing, Santander director Juan Inciarte says a successful bid would see the introduction of platform All Funds Bank - which sells third-party funds in Spain - to the UK. Inciarte says the bank is keen to launch new products and will compete with the UK's big banks ...

  • ScotLife adds online fund switching for Solutions

    26 Aug 2004

    Scottish Life is offering online fund switches for members of its Retirement Solutions range of group pensions. Users can switch current fund values, redirect future payments or both. Retirement Solutions offers a range of external funds within a 1 per cent cap. The system allows entrants to existing schemes to be added online. There is also a facility that allows the investment of additional voluntary contributions separately from the main fund and the option to view ...

  • Sesame's protection proposition will give best rates for narrowest choice

    26 Aug 2004

    The narrowest of Sesame's multi-tied protection offerings will offer Lautro commission rates of up to 37 per cent more than its whole-of-market option. Sesame's protection multi-tie proposition has three tiers ranging from its Select Plus panel with six providers to its bigger Select panel as well as a whole-of-market offering. Opting for a wider market spread will bring lower rates for advisers. The Select Plus panel consists of products from Abbey/Scottish Provident, ...

  • SHIP warns of confusion over taxation of home reversion

    27 Aug 2004

    Professional standards body Safe Home Income Plans says reports in the press of a heavy tax on income from home reversion plans may be misleading. SHIP believes the Government legislation on pre-owned asset tax is not intended to penalise elderly people. The body is currently in talks with the Inland Revenue to discuss the exemption of home reversion plans from schedule 15 of the Finance Act and is confident the issue will be resolved in favour of reversion policyholders.

  • Short-sighted view

    26 Aug 2004

    While by no means a big supporter of endowments, nor wishing to cross swords particularly with Philip Milton (Money Marketing, August 5), I do have a problem with a non-committal approach to financial planning (the "Why sign up for a 25-year product if..." argument). None of us knows where we will be short term, let alone long term, but if we based all our planning in life on that basis, I wonder where that would take us? Why bother with life cover if you are unlikely ...

  • SimplyBiz throwing out lifeline to firms

    26 Aug 2004

    SimplyBiz is targeting members of beleaguered intermediary Lifeboat, describing it as a sinking ship that members need to flee. The service provider, which has grown to over 600 member firms after just over 18 months, is contacting Lifeboat members with a fast-track service aimed at helping them set up as non-regulated agencies, with a view to eventually becoming directly authorised. SimplyBiz is holding an emergency meeting at Solihull Moat House next Tuesday in a bid ...

  • Single minded

    26 Aug 2004

    Why don't you have a poll of readers and ask them if they would vote for a merger of Money Marketing and Financial Adviser? The advantages, as I see them, are many. Instead of having to read two weekly trade papers, busy IFAs would only have to read one to get all the news. Product providers and others would save a fortune by only having to advertise in one paper. Job hunters could find all the available jobs in one place. The cost savings would be astronomical, only ...

  • Societies' advances and inflows increase

    26 Aug 2004

    Building society gross advances rose by 9 per cent to £5.12bn in July from £4.69bn in June and £4.24bn a year ago. Net society advances were £2.218bn, up from £1.661bn in June and £1,580bn a year ago while approvals - loans agreed but not yet made - fell to £4.76bn in July from £4.849bn in June and £4.09bn a year ago. The BSA says this may indicate that people are looking to remortgage. Society net inflows in the savings ...

  • Special offer from NU on Portfolio bond

    27 Aug 2004

    Norwich Union is increasing allocation rates by 1 per cent for new customers investing in its Portfolio investment bond.The new allocation rate for an investor aged 74 and under with a £50,000 premium is now 103 per cent.Portfolio offers a choice of 31 internal funds and more than 50 external funds managed by 12 fund managers. Management charge is 1 per cent to 1.95 per cent depending on funds selected with administration charges of 1 per cent a year on funds up to £10,000 ...

  • Stakeholder proposition has stalled

    26 Aug 2004

    I am amused by the story that actuaries have their sums wrong over stakeholder (Money Marketing, August 19). Yes, of course they have, but as things stand at the moment, no matter how high the annual management charge, this will always be the case. By removing front-end loads and surrender penalties, it is like a car manufacturer giving away new models for free and hoping to make money by adding a little bit on to the cost of servicing the vehicle. At any time, the person who ...

  • Super-rich face call for 50% IHT

    26 Aug 2004

    Inheritance tax should be raised to 50 per cent for the wealthiest people, says the Institute for Public Policy Research. The thinktank believes the inheritance tax system needs to be made fairer. It is recommending that tax is cut for middle-class families, with extra revenues being raised from the wealthiest. It suggests these should be invested for poorer children through the child trust fund. A flat rate of 40 per cent is currently paid on estates over £263,000. ...

  • Swip bonds globally

    31 Aug 2004

    SCOTTISH WIDOWS INVESTMENT PARTNERSHIPSWIP Global Bond Plus FundType: OeicAim: Income and growth by investing in fixed-interest securitiesMinimum investment: Lump sum £25,000Investment split: 37.5% US, 34.7% Europe excluding UK, 23.6% Japan, 4.2% UKIsa link: YesPep transfers: NoCharges: Initial 3.75%, annual 1%Commission: Initial 3%Tel: 020 7203 3329The ...

  • Talkback

    26 Aug 2004

    "Yes. In the Eighties and Nineties, getting a mortgage endowment was the done thing to do but now that the problems are clear, everyone has had plenty of time to complain." Malcolm Morris, Premier Independent Investments UK "No. It is not a particularly open and transparent way to behave. It is not the right thing to do." Antony Ransom, IFA "Yes. The complaints that are coming in now are likely to be fuelled by adverse advertising in the local papers. It should ...

  • Tech firm aids advisers with data service

    26 Aug 2004

    Technology provider Financial Express is offering a data service designed specifically for intermediaries. The service will be available through the TrustNet website, which offers the UK collective investment fund data. TrustNet is aimed at private inv-estors but is also used regularly by 10,000 IFAs. The TrustNet Adviser service will target IFAs and feature a client fund profiler tool which will allow advisers to research and select funds which are appropriate to a client's ...

  • The BTL ground

    26 Aug 2004

    There is a myth across the UK that the buy-to-let market is full of cowboys and amateur landlords and Paragon chief executive Nigel Terrington wants to set the record straight. The myth, says Terrington, is sending the wrong message to investors who are looking to increase their holdings in what he believes is a burgeoning sector of the industry. Statistics from the Office of the Deputy Prime Minister show that 30 per cent of landlords hold only one property - which would ...

  • The MTA

    26 Aug 2004

    Life company networks that have received their MTA letter Friends Mortgage World, Legal & General, MGM Assurance. Life company networks that have not yet received their MTA letter Axa Assurance, Zurich. IFA networks that have received their MTA letter or VOP letter Bankhall, Banking-Insurance Services, Berkeley Wodehouse Associates, Burns Anderson, Enable,IN-Partnership, Interdependence, Lighthouse IFA, Mint, M&E Network, Park Row, Personal Touch Insurance, ...

  • This happy breed

    26 Aug 2004

    A new breed of homeowner is emerging in the UK - 30-somethings who are using the equity in their homes to give up the corporate rat race and do something more meaningful with their lives. Armed with the equity in their property and flexible mortgages, this generation is turning its back on institutions and corporates in favour of new career paths, organic lives, risk and adventure. This new breed presents significant opportunities for the savvy adviser. Shifting ...

  • Vive la revolution

    26 Aug 2004

    Having already expressed a view on the proposed merger of the LIA and Sofa from the perspective of being an LIA member, I feel that, as a full member of Sofa, a comment is needed with regard to what I consider to be the disgrace concerning voting rights. If we were flies on the wall, we would have probably have heard the following conversation at a past Sofa council meeting: Member 1: "I say, our membership looks pretty thin. We are not even half the size of those oiks ...

  • When is a guarantee not a guarantee?

    26 Aug 2004

    When is a guarantee not a guarantee? The slick response is: "It depends what you mean by guarantee." But the honest answer is : "In virtually all circumstances in which it is used." Comments reported in the press of a meeting between the FSA and pension consultant Ros Altmann about the Turner & Newall pension scheme crisis makes interesting reading. Altmann is reported to have brought up the wording of FSA consumer booklets on occupational pension schemes, in particular, the ...

  • Wolves IFA buys up firm

    26 Aug 2004

    Wolverhampton IFA Newell Palmer & Associates is buying three-RI firm Collinge Rayner for an undisclosed sum. Seven-RI Newell Palmer says the acquisition of Birmingham-based Collinge marks a big step forward and is one of a series of planned purchases. Corporate specialist Newell Palmer assists private and business clients in tax-free property purchases. The deal is its fourth acquisition in 18 months and it recently appeared on the Inner City 100 list, which locates ...

  • Woolwich and Barclays - Two Year Discount Mortgage

    25 Aug 2004

    Type: Discounted-rate mortgageDiscounted rate: Two yearsDiscount: 1.6%Payable rate: 4.94%Minimum loan: £5,000Maximum loan: Up to 95% of valuation subject to a maximum of £250, up to 90% of valuation subject to a maximum of £500,000,up to 80% of valuation subject to a maximum of £1mIncome multiples: Up to 3.25 times principal income plus second or 2.5 times jointConditions: ...

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