Money Marketing
26 May 2004

  • 'Charcol has room to grow'

    27 May 2004

    Charcol general manager Ricky Okey says the last four years have seen mutual benefits both for the mortgage broker and B&B. B&B bought mortgage broker and advisory business Charcol in February 2000 for £100m. Okey says Charcol brought mortgage broking expertise to B&B and helped launch The MarketPlace while B&B brought growth opportunities. He says there will be many opportunities for Charcol to progress as a free-standing business. Okey ...

  • 'Parliamentary watchdog is best chance of redress'

    27 May 2004

    Equitable Life is increasing pressure on the Parliamentary Ombudsman for a fresh investigation into maladministration by the Government in the period before the FSA took over regulation of the industry. Chairman Vanni Treves told policyholders at the AGM that Parliamentary Ombudsman Ann Abraham is the best chance of compensation because she is not required to establish blame to the same standard as a court of law. She also has the power to investigate all Government departments, ...

  • 'Pensions Bill will discourage saving'

    27 May 2004

    The Association of Consulting Actuaries is warning that the Government's proposals to encourage occupational pensions are more likely to discourage provision and add to employers' costs. An ACA survey found that of the 459 responses from smaller firms, only 8 per cent said the Pensions Bill would increase occupational pension schemes in individual businesses. The ACA's report, entitled, 2004 Smaller Firms Pensions Survey: A Divided Nation, says those working ...

  • 'Third of advisers will be wiped out by EU'

    27 May 2004

    A third of adviser firms will be forced to close in January next year because of professional indemnity requirements imposed by the European Union. IFA Thomson's Group chief executive Douglas Gardner, a member of the FSA's practitioner panel, speaking at the London Professionals dinner last week, said he believes that the combined imp-act of impending EU directives will wipe out a third of the estimated 26,000 advisers trading today. Gardner predicts that the financial ...

  • 90% of loan advisers to carry on after M-Day

    27 May 2004

    Mortgage advisers say they feel comfortable about regulation, with 90 per cent of introducers confident that they will continue to offer advice after October, according to research from Imla. The survey also found that intermediaries think more than half of their customers are not familiar with key mortgage issues. Intermediaries say their customers could not understand fundamental aspects of the mortgage market, including the implications of remortgaging, the effect ...

  • A new look at old news

    27 May 2004

    At Taxbriefs, we were astonished to be taken to task in the Diary (Money Marketing, May 13) for giving delegates to the excellent Money Marketing Live exhibition sample previous editions of our newsletters - in particular, the January edition. Your Diary's bizarre complaint was that we should have rewritten our January 2004 newsletter - with all its pre-Budget and year-end tax planning comments - to take account of the the pension changes in the March Budget. Very ...

  • A question of ethics

    27 May 2004

    Despite their socially responsible credentials, ethical funds have largely failed to capture the imagination of IFAs and their clients. Although there are dozens of ethical funds in the market, few funds are big enough to command attention and their performance in general - with notable exceptions - has been distinctly underwhelming. One of the exceptions has been Friends Provident's pioneering Stewardship growth fund which celebrates its 20th anniversary next month. Friends, ...

  • A&C wants its views heard

    27 May 2004

    Aitchison & Colegrave director Brian Aitchison admits he was surprised by B&B's announcement that it intends to sell off its subsidiary IFAs. He says he hopes B&B will find a buyer which will mesh with A&C's plans for growth and not just sell to the first company that shows up with an offer. Aitchison says he can understand B&B's course of action. He says: "I want to be absolutely clear that we had and still have ambitious growth plans and ...

  • Abbey for Intermediaries goes for lock-in

    28 May 2004

    Abbey for Intermediaries has entered the IFA market for structured products following estimates that IFAs had a 60 per cent share of the structured product market in 2003.The Abbey Growth Options Plan Issue 1 is a guaranteed equity bond linked to the performance of the FTSE 100 index for a six-year term. It has two options that investors can choose. Under option one, investors get all the average growth in the index up to a maximum of 60 per cent. This is calculated by comparing ...

  • ABI mystery shopping to probe commission

    27 May 2004

    The ABI is to conduct its first-ever mystery shopping exercise of IFAs, focusing on how commission affects the way in which long-term savings are sold. Consultancy Charles River Associates will be working with polling organisation NOP to conduct the research, which is part of a drive by the ABI to promote greater public confidence in the long-term savings industry. CRA will be looking at how the sales process will develop in the light of regulatory and commercial changes, and ...

  • Age Concern could set up a national IFA network

    27 May 2004

    Age Concern is considering a plan to launch a national network of IFAs to service the retirement market for financial services. The charity is believed to be preparing a business plan that will be considered at its June board meeting, where a decision will be made whether to go ahead with a national advisory presence. Age Concern Financial Partnership already distributes Norwich Union long-term care and equity-release products on an appointed-representative basis. The ...

  • Aifa should set out its plans for future

    27 May 2004

    It is time for IFA trade and representative bodies to ask themselves and their members some difficult questions. This week sees the Money Marketing Virgin One State of the IFA poll suggest that not all IFAs are happy with Aifa's status as a representative organisation for IFAs, multi-ties and mortgage intermediaries. Many believe that independent advisers may need their own organisation. Clearly Aifa consulted upon changes which allowed it to set up the AMI, which ...

  • Aifa's view

    27 May 2004

    There are two European directives which potentially affect IFAs in the area of PI. The insurance mediation directive and the markets in financial instruments directive. The IMD covers insurance business and the Mifid covers investment advice. The IMD requires all intermediaries to have cover of euro1.5 million from January next year. The text is inflexible and does not envisage waivers or a payoff between PI and the capital available to a firm. The Mifid requires additional cover ...

  • Altmann calls for FSA to be probed on pension leaflet

    27 May 2004

    The FSA should be investigated by the Parliamentary Ombudsman for giving misleading information on the security of occupational pensions, says independent consultant Ros Altmann. Altmann says the FSA should be held responsible for leaflets aimed at consumers that described final-salary schemes as "guaranteed". She is campaigning for the Government to compensate employees of solvent employers who accepted reduced pensions to stop their employers going into liquidation. The ...

  • Appointed reps 'set to take 75% of the market'

    27 May 2004

    Legal & General sales and marketing director John Cupis told delegates at the Mortgage Business Expo in Manchester last week that he believes 75 per cent of business volume will be carried out by networks' appointed representatives after M-Day on October 31. Cupis looked at "how things will land" for the industry's 36,000 intermediaries, 50 clubs and networks and 115 lenders. Based on data from the Mortgage Finance Gazette, Cupis said he expects there to be ...

  • BAM appoints new chief executive

    26 May 2004

    Britannic Asset Management has appointed chief operating officer Gavin Stewart as its new chief executive.He replaces Leslie McIntosh, who is leaving to pursue other opportunities after less than three years in the role.Britannic Group chief executive Paul Thompson says: "Looking ahead, Britannic Asset Management now faces new opportunities in a different investment market environment and we believe Gavin is the ideal person to take the company forward."

  • Bank of Scotland providing cash backing for Thinc expansion

    27 May 2004

    Multi-distributor Thinc Group has revealed that Bank of Scotland is the institution providing the backing for its major expansion drive, setting up a commercial financing facility for the firm to draw down from. As revealed in Money Marketing earlier this month, Thinc has arranged significant institutional backing to finance its acquisition spree as it aims to reach 220 advisers by the end of the year. The financing, thought to be for an initial amount of £6m, has ...

  • BM Solutions launches new product range

    1 Jun 2004

    BM Solutions has unveiled a new range of sub-prime, buy to let and self-certification products to be launched in June.A stepped sub-prime tracker and a five year fixed buy to let product are among the highlights of the new range.A mainstream large loan range is being introduced for loans up to and more than £2m. These are fully flexible two-year deals with a one-year tie in period.BM Solutions PR Manager Matt Grayson says: "This is a very competitive range ...

  • Bolton says Pifs are set to transform property sector

    27 May 2004

    Fidelity Investments' star stalwart Anthony Bolton believes the Treasury's proposed property investment funds have the potential to transform the quoted property sector in the UK. Speaking at the Thomson's Group London Professionals dinner last week, Bolton, who manages £3.5bn for Fidelity, tipped the Government's property investment vehicle for success. Pifs are likely to follow the Reits model used in the US where there is no effective tax charge within ...

  • Brokers expect business as usual at Mortgage Express

    27 May 2004

    Mortgage brokers say they do not expect that B&B's move will have much impact on the level of business at subsidiary Mortgage Express. Hamptons broker Jonathan Cornell says Mortgage Express is obviously still a core part of B&B and he expects it to be "business as usual". Cornell describes the lender as "excellent, with fantastic service", especially in the buy-to-let market. He says brokers using Mortgage Express will continue to do so. Mortgageforce ...

  • Capita buys PPML from Winterthur

    27 May 2004

    Capita has bought Winterthur Life's Sipp administrator Personal Pensions Management after negotiations which were exclusively revealed by Money Marketing in March. Capita has been appointed as a strategic partner by Winterthur Life to provide third-party Sipp admin services and, as part of this contract, will also be buying the entire share capital of Winterthur's subsidiary PPML. Once regulatory approval has been granted, all 400 PPML employees are expected to ...

  • Chancellor's scheme will not impress SMEs- Lib Dems

    1 Jun 2004

    Liberal Democrat small business spokesman Brian Cotter has hit out at Chancellor Gordon Brown's latest scheme to encourage SMEs to access finance through a new US-style funding programme. Cotter says this scheme will not mask the problems faced by small businesses being 'strangled' by Labour red tape and changes to the tax system.

  • Charcol may bid for MBO

    27 May 2004

    Bradford & Bingley's decision to put its IFA businesses up for sale could lead to a management buyout at Charcol, according to general manager Ricky Okey. Speaking to Money Marketing, Okey said an MBO is definitely an option but stressed that there is no time limit on the sale as it is more important to B&B that Charcol finds the right home. His comments came as B&B moved to quash speculation that multi-tying The MarketPlace would prompt an exodus of IFAs. B&B

  • Chase fee-free loan service aiming to be the top player

    27 May 2004

    Chase de Vere Mortgage Management is setting up a mass-market fee-free mortgage intermediary firm which it believes could be the dominant player in the mortgage market. The new business, which is still to be branded, is partly funded by GMAC-RFC and managed by Savills Private Finance founder Mark Chilton. It will be a national phone-based advisory service operating from a call centre on the South coast. It will open for business in the summer with 20-25 brokers but Chilton ...

  • Chelsea Building Society - Two-Year Fixed Rate

    27 May 2004

    Fixed term: Until August 1, 2006Fixed rate: 4.94%Minimum loan: £25,000 Maximum loan: Up to 95% of valuation subject to a maximum of £350,000Income multiples: Up to 95% of valuation - up to 3.5 times principal income plus second or 2.75 times joint, up to 90% of valuation - up to 90% of valuation - up to 3.75 times principal income plus second or 2.8 times joint, up to 75% of valuation - up to four times principal income ...

  • Consumers' Association appoints new chief executive

    28 May 2004

    The Consumers' Association has announced the appointment of Peter Vicary-Smith as its new chief executive. Vicary-Smith has been commercial director at Cancer Research UK since 2002 and was previously director of fundraising and communications at Imperial Cancer Research Fund from 1996. He will join the CA at the end of August.The appointment comes after the death in January of Sheila McKechnie who led Consumers' Association for nine years.Vicary-Smith says: "For ...

  • Correspondent's week

    27 May 2004

    I awake on Monday at 6am with aching limbs suffering from a hard-fought football match on Saturday. The early hour is because I need to finish an advertorial on equity release for The Mirror. I should have completed it on Friday but I got more involved in trying to find out gossip about Piers Morgan's sacking from the paper. Monday is my day for looking after the children, George, four, and Freddie, one, so I finish the copy by 7am, when they emerge shouting from their ...

  • Coventry Building Society - Altogether Better

    1 Jun 2004

    Type: Offset tracker mortgageTracker term: Until May 31, 2009Tracker rate: 0.75% above Bank of England Base RatePayable rate: 5%Minimum loan: £1Maximum loan: Up to 95% of valuation subject to a maximum of £500,000Income multiples: Based on affordability calculation and credit scoreConditions: Free valuation up to £650Flexible features: Overpayments, payment holidays up ...

  • Coventry offsets the pace

    1 Jun 2004

    COVENTRY BUILDING SOCIETYAltogether Better Offset +0.75% Base Rate TrackerType: Offset tracker mortgageTracker term: Until May 31, 2009Tracker rate: 0.75% above Bank of England Base RatePayable rate: 5%Minimum loan: £1Maximum loan: Up to 95% of valuation subject to a maximum of £500,000Income multiples: Based on affordability calculation and credit scoreConditions: Free valuation ...

  • Crawshaw takes B&B into multi-tie arena

    27 May 2004

    Bradford & Bingley is ending its IFA status and moving towards multi-ties in a major reversal of strategy following a wide-ranging review led by new group chief executive Steven Crawshaw. Just three years after it launched The MarketPlace, heralding B&B's transformation into an independent retailer, the group is tendering multi-tie contracts to "all the usual" potential providers. When depolarisation regulations are finalised, it will multi-tie for the majority ...

  • Discount brokers are target in new Money Portal spree

    27 May 2004

    Discount brokers Bestinvest and Garrison Investment Analysis are expected to be acquisition targets for retail fund distributor The Money Portal once its latest round of funding comes through. The brokers, both major players, are understood to be among nine firms that TMP plans to approach as soon as it secures its next - and biggest - tranche of financing. TMP is already believed to be targeting Chelsea Financial Services, which admits to a preliminary approach by the group late ...

  • Dramatic effects

    27 May 2004

    Until now, the Treasury select committee has focused its attention on product providers. Split caps, endowments and personal pensions have all been analysed by chairman John McFall's committee. But now attention has turned to IFAs, sending out shockwaves through the industry. It has to be said that the select committee's handling of the hearing attended by Aifa director general Paul Smee, deputy chairman Roger Sanders and Charcol Holden Meehan director Amanda Davidson has ...

  • Edinburgh Partners on value quest

    27 May 2004

    Edinburgh Partners has brought out a Dublin-domiciled Oeic with three sub-funds - UK opportunities, European opportunities and global opportunities.The company was founded in 2003 by former Scottish Widows Investment Partnership duo Sandy Nairn and Graham Campbell. Its first product, the EP global investment trust, appeared at the end of 2003. It focuses on undervalued stocks and the Oeic sub-funds will be managed along the same lines.The UK opportunities fund contains ...

  • Enable network offers free PI deal

    27 May 2004

    Enable Mortgage and Insurance Network says it will not charge its network members extra for offering professional indemnity insurance cover as part of its intermediary package. The network, owned by Skipton Financial Services subsidiary Direct Life & Pensions, will charge just a £500 excess on any claims made on the insurance scheme, significantly undercutting rivals. It also says it will cover fees payable to the Financial Ombudsman, a package which it says ...

  • Euro PI shock could be the end

    27 May 2004

    I am one of three IFAs at Paragon Financial Consultants. We have all been in the industry for 25 years, 13 years as independents. We are directly regulated by the FSA. We have seen our market shrink year on year. Our PI cover has, I admit, been low in comparison to other IFAs we know - £6,000 last year. However, we have now been asked for £13,300. How can this be? To read that the good old EU is to force premiums up by a further 50 per cent is I fear the death ...

  • Euro review could bring early respite on PI rules

    27 May 2004

    A review of the crippling European Union professional indemnity insurance requirements for IFAs is under way and is scheduled to be completed by April 2005. As things stand, the insurance mediation directive, requiring firms to have £1m in professional indemnity cover, comes into effect in January 2005, to be followed in April 2006 by the market in financial instruments directive, requiring firms to have £500,000 extra cover, set aside £30,000 capital or have a ...

  • Excise steps up VAT review

    27 May 2004

    HM Customs and Excise has contacted several more IFA networks to discuss their situation as part of its review of the way IFAs pay VAT. As revealed in Money Marketing last week, networks are not being singled out for special treatment. Instead they are being contacted individually as part of a national review of IFA operations. Customs has confirmed that it intends to apply any ruling to the trade nationally and as far as possible contemporaneously. It remains ...

  • Exclusive Connections - Ten to Let

    1 Jun 2004

    Type: Flexible buy-to-let tracker mortgageTracker term: Lifetime of loanTracker rate:1.6% above Bank of England base ratePayable rate: 5.85%Minimum loan: £1Maximum loan: Up to 85% of valuation subject to a maximum of £1m, up to 80% of valuation subject to a maximum of £2m, up to 75% of valuation subject to a maximum of £2.5mIncome multiples: Rental income must be at least 125% of mortgage ...

  • Express delivery

    27 May 2004

    At the time of going to press, Money Marketing had not been handed back its Headline Money Team of the Year award. Avid Diary readers may remember last week that Esther Shaw, a young up and coming personal finance reporter for The Express - until she crossed the Diary, that is - took the award home for "safe-keeping". Now we feel we must give readers an insight into the mind of a nasty national newspaper hack and explain why they are so much more deranged than the lovely, cuddly ...

  • Fear that exams will kill LTC market

    27 May 2004

    Industry experts fear the long-term care market will die out as FSA rules compel people already advising on the product to take an exam to prove their competence. The rules were published this week and come into force on October 31 when LTC comes within the scope of the FSA. They stipulate that all advisers, including those who are currently competent to advise on LTC, will need to pass an exam within two years of regulation. Experts predict that advisers will continue ...

  • Financial Services Compensation Scheme board appointments

    1 Jun 2004

    The FSA has appointed two new non-executive directors to the board of the Financial Services Compensation Scheme.Richard Pratt and Kate Williams will join the board with current members Michael Blair QC and Luke March who have been re-appointed for a further one year term.Pratt writes and lectures on combating money laundering and other regulatory issues and was the director general of the Jersey Financial Services Compensation from 1999 to 2003.Williams is a licensed ...

  • First Direct is raising LTVs for offset loan

    27 May 2004

    First Direct is setting up an offset mortgage for borrowers with lower levels of equity or relatively small deposits. Previously, First Direct has only offered an offset mortgage to customers with a maximum loan to value ratio of 80 per cent but borrowers with an LTV of 81-95 per cent will now have access to offset loans. All First Direct offset mortgages taken out before September 30 get an introductory three-month discount at 1.01 per cent off its SVR - currently 5.25 ...

  • First State's small cap aiming to fit a mixed market

    27 May 2004

    First State's British smaller companies fund manager Paul Jourdan hopes that inflows into the £40m portfolio will accelerate as performance continues to outstrip the stockmarket and rival firm. Jourdan says he would be comfortable managing up to £100m with his small-cap focused process, which has returned more than 30 per cent over the past three years. But although inflows have begun to pick up - he says the fund only really became marketable 12 months ago - they ...

  • Forget the cost and focus on value

    27 May 2004

    I read the front-page article, Outcry as FSA tells IFA its fees are too high (MM, May 13) with some disbelief. Obviously, I am not aware of the full facts, and I hope there are some extenuating circumstances or perhaps some important information that was not disclosed to your paper. If not, this stance by the FSA appears to be inconsistent with its thoughts on this matter to date. The debate about excessive charging has largely centred on commission-based advisers, and this is ...

  • Former YRA management set to buy firm

    27 May 2004

    Surrey IFA Young Ridgway & Associates is expected to be bought out within days by its former management after going into receivership on the advice of the FSA. The firm, which has 20 RIs, went into receivership last week after the FSA expressed concerns - refuted by YRA - that it could not meet potential compensation claims relating to the sale of structured products. Former compliance director Idris Nagaty claims the company has nearly £1m to cover around £500,000 ...

  • FSA and ABI get tough on endowment complaints

    27 May 2004

    The FSA and the ABI have toughened up their rules on endowment complaint handling, triggering industry fears that a fresh wave of complaints is set to follow. The regulator is requiring firms which impose time limits on endowment complaints received to make clear to policyholders that they have three years from their first red letter to complain. Firms must also issue a warning at least six months in advance of the date from when the customer would be time-barred from ...

  • FSA announces major financial capability strategy

    27 May 2004

    The FSA has announced a major national strategy for improving financial capability. The Financial Capability Steering Group has identified seven key project areas; schools, young adults, work, families, retirement, borrowing and advice. Each of these projects will have its own working group. The FSA says it will also carry out a national benchmark survey to measure consumer confidence and understanding of financial matters.FSA chief executive John Tiner says: "We need to build ...

  • FSA calls off settlement discussions with split cap firms

    26 May 2004

    The FSA has called off talks with a group of split cap firms after preliminary settlement discussions failed to reach agreement.The FSA believes that a payment of £350m in compensation would be appropriate in light of the discussions, however the amount the firms have indicated they are prepared to make available is so far short of what is necessary that the FSA does not intend to continue with the discussions.The FSA is continuing with its enforcement investigations ...

  • FSA denies the number's up for smaller brokers

    27 May 2004

    Small mortgage and general insurance intermediaries have been given a veiled warning to concentrate on customer services or they will not get authorisation from the FSA. Sarah Wilson, director of the FSA's high-street firms division, admits that regulation poses an issue for advisers but says there is no agenda by the regulator to force them out of business when it formally takes on its powers on October 31 for mortgages and January 15 for general insurance. Wilson ...

  • FTBs landing in debt as they overlook costs

    27 May 2004

    First-time buyers are failing to budget for additional costs when buying a home, says Yorkshire Bank. Research by the bank reveals that more than one in three FTBs overlooked costs such as legal fees, arrangement fees and survey charges. As a result, many are having to consider personal loans in addition to their mortgages. On average, a first-time buyer will have to pay an extra £3,155 when buying a home, which is made up of £1,380 in stamp duty, £500 ...

  • Fund for your wife

    27 May 2004

    My company is cash-rich and I want to explore ways of extracting money that do not involve increasing my own substantial pension provision. What would you advise? You have a substantial executive pension fund in your own right. There is scope to add further contributions but the potential corporation tax and National Insurance savings that this route offers your company are, to a certain extent, offset by the certainty that you will be unable to increase the amount of tax-free ...

  • Gareth Marr

    27 May 2004

    In three years time, there will be only four or five advisory and distribution companies in the UK. This is the bold prediction of Gareth Marr, chief executive of newly launched IFA Origen. Marr says there will undoubtedly be more consolidation, citing the usual industry bugbears such as PI, poor public perception and a heritage of misselling within many firms. But he goes one step further than most, including multi-ties in these four to five companies. Marr has more than enough ...

  • Godfrey hails age of the composite intermediary

    27 May 2004

    The business split between general insurance, mortgage and life and pension intermediaries will come to an end as advice firms turn to offering one-stop shops, according to Bankhall group sales director Shaun Godfrey. Godfrey told delegates at last week's Mortgage Business Expo in Manchester last week that: "The composite intermediary is here." He predicted that the intermediary of the future would be offering a full range of financial products, bringing mortgages ...

  • HBOS gets blame for poor service

    27 May 2004

    Equitable Life has responded to complaints about its poor service standards by blaming third-party administrator HBOS. At last week's AGM, chairman Vanni Treves faced repeated complaints of poor service by policyholders but said Equitable is powerless to improve poor delivery from HBOS. He said Equitable is unable to vary the terms of a 10-year outsourcing deal signed with HBOS in 2001. HBOS provides administration services on a non-profit basis as part of the 2001 ...

  • Help the Aged seals equity-release deal with NHFA

    27 May 2004

    Help the Aged has set up an equity-release advice service which will see it refer enquiries from pensioners to specialist IFA Nursing Home Fees Agency. As exclusively revealed by Money Marketing in April, the move will extend Help the Aged's existing relationship with NHFA, which until now has only involved long term care insurance. It will see NHFA expanding its services as it aims to become an across-the-board retirement planning company offering advice on issues ...

  • High repurchases hit fund sales

    27 May 2004

    Net Isa sales rose in April from the previous month but overall retail fund business slumped by a third from April last year as repurchases continued at high levels, says the IMA. The IMA's monthly statistics reveal that retail fund sales fell to £702m from £1bn in April 2003 and from £853m in March this year. Net Isa sales reached £587m in April, up by 19 per cent from £495m in March but down from £681m in April last year. However, ...

  • Holden Meehan urges quick deal

    27 May 2004

    Charcol Holden Meehan director Amanda Davidson says the high-networth IFA has never been part of Bradford & Bingley's core business activities. She has urged Bradford & Bingley to find a buyer as soon as possible so as to keep any period of disruption at the London IFA to a minimum. Davidson says she is surprised that B&B has decided to sell its subsidiaries, given that it only acquired Holden Meehan, which has a total of 34 RIs, 12 months ago. She ...

  • IFA 'jewels' are up for sell-off

    27 May 2004

    Bradford & Bingley's bid to become the first high-street multi-tie will see its IFA empire sold off as part of plans to cut £40m from annual costs. The strategy U-turn by the board engineered by chief executive Steven Crawshaw will see it dispose of its clutch of IFAs. Advisory and mortgage business Charcol with 215 advisers, Charcol Holden Meehan, which has 34 RIs, and Aitchison & Colegrave, with 22 RIs, are all being sold. B&B says the businesses ...

  • IFACare says new FSA rules offer greater protection for OAPs

    27 May 2004

    Association for long term care advisers IFACare says the new FSA regulation of LTC advice, products and regulation will bring greater protection for elderly people. IFACare chairman Graham Fidoe says the increased retired population will restrict the amount of help that Government and the local authorities can provide. He welcomes the new rules will help elderly people and their families who are considering the need to plan for present or future LTC fees.

  • IFAP offers net deal in return for higher fees

    27 May 2004

    IFA Promotion members are to be given the option of paying higher membership fees to enhance the potential benefits they receive through the body. Last week, Money Marketing reported that chief executive David Elms is urging advisers to recognise the value that IFAP offers to their businesses and be willing to pay for it. For a regular flat fee, a member firm's entry will be placed in a coloured box on the list presented to enquirers in a bid to draw in more business. Users ...

  • Independent view

    27 May 2004

    Prime Minister Tony Blair recently announced a reverse gear change and wants to offer us a referendum on the European Union constitution. I am too old in the tooth to take this promise as anything but a political move. It is at times like this that your mind becomes more concentrated on the whole EU debate. Now forgive me if I am being ignorant about all this but can anyone truly give me an overwhelming argument in favour of the UK's continuing membership of the European ...

  • Industry responds to FSA's report

    28 May 2004

    The industry has largely endorsed the FSA's update report "Building Financial Capability in the UK". The ABI has confirmed its dedication to improving people's financial knowledge and IMA says aiding people's understanding in investment is key to this strategy. The AITC is also supportive of the FSA's financial education strategy but warns that adequate resources and funding need to be dedicated to it, to ensure success. It hopes the Government ensures sufficient ...

  • Inept Government has discouraged people from saving

    27 May 2004

    Open letter to Eric Forth, MP Thank you for your letter dated April 22 enclosing a reply to some of the items raised in my letter to Baroness Hollis, for which many thanks. In Ms Ruth Kelly's reply, she states that the intention of the Government was to ensure that tax relief was distributed as fairly as possible and closely targeted those without substantial savings. It is, therefore, difficult to understand how this objective was met by the launch of investment ...

  • Inside edge - Andy Young

    27 May 2004

    It is hard to think of an industry that has gone through the same turmoil as financial services and each week there seems to be another issue about to turn the industry upside down. Mortgages are certainly one of the hot topics right now as everyone jockeys for position ahead of regulation in October. What pedigree do IFA networks need to compete and offer the right solutions for mortgage brokers? Contrary to suggestions made by certain commentators, some IFA networks, ...

  • Investment analysis

    27 May 2004

    It was a volatile week for global equity markets with concerns over events in the Middle East, high oil prices as well as the prospect of higher US interest rates continuing to unsettle investors. However, prices recovered towards the end of the week and by the close of Friday, the FTSE World index was trading 1 per cent higher. It now seems that UK interest rates may have to rise more than most economists had anticipated following the release of the latest MPC Board minutes which ...

  • Investment view

    27 May 2004

    The chairman of Betelgeuse Investment Funds closed the door of his office behind him and wearily rested his back against the wall. So many meetings these days involved compliance and information technology, there was little wonder his head was spinning. The demand for new systems was keeping him on his toes and his finance director was constantly warning him about the consequences for bottom line. As fund management groups poured more resources into management information systems ...

  • Is a new wave breaking?

    27 May 2004

    Are you concerned that another wave of endowment complaints may be about to hit the industry, as a significant number of consumers are currently facing shortfalls but have done nothing about it, as principal ombudsman (banking and loans) David Thomas has suggested? Barrett: Endowment complaints are a huge issue for the industry. Extensive media coverage has resulted in a large majority of consumers having already submitted their endowment complaints. However, there is bound to ...

  • JO Hambro Capital Management - JOHCM Japan Fund

    27 May 2004

    Type: OeicAim: Growth by investing in Japanese equitiesMinimum investment: Lump sum £1,000Investment split: At least 25% in Japanese small caps, at least 50% in mid caps, remainder in large capsPlace of registration: DublinCharges:Initial up to 5%, annual 1.25%Commission: Initial 3%, renewal 0.5%Tel: 020 7747 5678

  • Julian Gibbs

    27 May 2004

    The problem with UK property unit trusts is that they have to hold at least 20 per cent in cash or property shares. M&G has overcome this problem by launching a property fund in Guernsey with the property assets managed by Prudential Property Investment Managers, the biggest property company in the UK with over £12bn under management. Its past performance is outstanding and the property portfolio of its with-profits life fund has outperformed the property sector average ...

  • Kafka quits Fidelity for Stock Exchange

    26 May 2004

    Fidelity's executive director Paul Kafka is joining the London Stock Exchange as director of corporate communications and public policy in August. He is being replaced by Joerg Moberg, who joined Fidelity in 1999 as director of corporate communications in Frankfurt before becoming director of IFA sales in Germany in 2001.

  • L&G contests FSA endowments fine

    27 May 2004

    Legal & General is taking on the FSA to contest a £1.1m fine for endowment misselling. L&G is challenging a ruling by the FSA that it missold higher-risk products to riskaverse savers from 1997-1999. At a preliminary hearing of the Financial Services and Markets Tribunal last week, L&G's solicitor said the company does not believe the FSA had enough evidence to justify its fine. The FSA reviewed a random sample of customers and claimed that ...

  • Lay down foundation for fees

    27 May 2004

    Looking to move to a fee-based model but don't know how? Enter Winterthur Life's Fee Based Advice competition in association with Money Marketing and we will help show you the way. Over the last few years, we have seen the traditional remuneration model under threat. Commission incomes have been on a downward trend while the cost base of running an IFA practice has been going in the opposite direction. IFA practitioners have to consider how they can work in an environment ...

  • LIA calls on FSA to move all advisers to fee basis

    27 May 2004

    The LIA is calling on the FSA to consider a radical proposal which would move advice away from commission to a fee-charging structure. In its response to the FSA's consultation paper CP04/3: Reforming Polarisation - A Menu For Being Open With Consumers, the LIA asks if the entire advisory sector could be moved to a new fee-charging basis as it believes this would remove any suspicions that advisers are biased by commission. The LIA advocates drawing up a fee-charging ...

  • Lipper revamp aims to boost comparisons

    27 May 2004

    Rating agency Lipper is developing a new fund classification structure based on analysis of underlying holdings in a bid to offer IFAs and investors more detailed performance comparisons. The structure should allow IFAs to compare the funds in Lipper's UK, European, global and North American equities categories using style and market capitalisation considerations. It could, for example, break down the UK All Companies sector by cap size - small, mid, large, micro and ...

  • M2 Financial sets up dedicated loan arm

    27 May 2004

    IFA M2 Financial is to launch dedicated mortgage arm M2 Financial Mortgages. The new division, which aims to complement its expanding financial advisory service, will be headed by founder and managing director Mark Howard and operations director Chris Regan. Day-to-day running will be carried out by Stuart Johnstone, who will develop the business in line with M2's holistic approach to financial planning. The mortgage business has evolved as part of M2's continued ...

  • Man blends style with protection

    1 Jun 2004

    Man Investments has created Man Global Strategies diversified series 2, a capital-protected fund of hedge funds that provides income or growth.This product provides access to the Man Global Strategies diversified portfolio through capital bonds and income bonds in three different currencies - Euros, dollars and Swiss francs. Man Global Strategies constructs and manages hedge fund portfolios for Man Investments and other international institutions including banks. The investment ...

  • Matrix creates futuristic product

    26 May 2004

    Matrix Money management has created a capital-protected hedge fund that invests in futures via the Winton Trading Strategies Fund.The Matrix Ascension Plan is available to investors with at least £5,000 and has a seven-year term. Investors will get 100 per cent of the growth in the underlying funds and a 96 per cent capital return after the initial 4 per cent charge is deducted.The Winton Trading Strategies Fund is a mirror fund of the Winton Futures Fund, which was ...

  • Matrix Money Management - Unicorn Income Fund

    28 May 2004

    Type: OeicAim:Income and growth by investing in UK smaller companiesMinimum investment: Lump sum £2,500, monthly £100Investment split: 100% in UK smaller companiesIsa link: YesPep transfers: YesCharges: Initial 5.5%,annual 1.5%Commission: Initial 3%, renewal 0.25%Tel: 0207 292 0825

  • Media rate frenzy is condemned by CML

    27 May 2004

    The CML has attacked national media reports which it says misrepresent its views on the housing market and future interest rates. The Sunday Telegraph ran an article last weekend saying that the CML predicts that interest rates will double to slow down the booming property market. The Sunday Telegraph quotes CML director-general Michael Coogan as saying it was too late to control the market with small rate rises and "aggressive interest rate hikes are necessary". The ...

  • MEP bids to hold back Euro tide

    27 May 2004

    Conservative MEPs will make cutting the potential PI burden on IFAs imposed by two European Union directives one of their next major campaigns, according to MEP Theresa Villiers. In the run-up to next month's European Parliament elections, Villiers believes there has never been a more important time for the financial services sector to focus on Europe. She estimates that around two-thirds of the rules coming from Brussels at the moment have a direct impact on the financial ...

  • Mortgage Next - Platform Buy-To-Let

    26 May 2004

    Type: Buy-to-let tracker mortgageTracker term: Lifetime of loanTracker rate: 1.35% above Bank of England base ratePayable rate: 5.6%Minimum loan: £25,001Maximum loan: Up to 85% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £500,000Income multiples: Rental income must be at least 130% of mortgage repaymentsArrangement fee: £395Redemption

  • Mutual trends

    27 May 2004

    Being a big player ordinarily makes it hard to keep your head down, yet amid an industry upheaval spurred by depolarisation, the onset of mortgage regulation and warnings of the death of mutuals, Nationwide, the world's biggest building society, has so far managed to avoid the turbulence endured by many of its competitors. As Standard Life meets the inevitable fate of demutualisation, Nationwide continues quietly to sing the praises of its mutual status and while firms such ...

  • Nationwide says it will consider equity release

    27 May 2004

    Nationwide Building Society has tempered its hands-off approach to the equity-release market, saying it will consider it in the future when it sees how the market develops. The society has not been shy to voice its concerns about equity release, saying the product could become the next misselling scandal. But speaking to Money Marketing, chief executive Philip Williamson revealed that Nationwide would be looking at equity release again once it sees how the market develops. ...

  • New non-exec for regulator's board

    26 May 2004

    The FSA has appointed Hugh Stevenson, chairman of Equitas and of Merchants Trust, as a non-executive director to its board. He will be on the board from June 1 for a three-year term. Stevenson was previously chairman of Mercury Asset Management Group, and prior to that was SG Warburgs managing director.

  • New Star hits back at FSA claim

    26 May 2004

    New Star is reportedly threatening to sue the FSA for defamation after a newspaper quoted an FSA press spokesman saying the 21 firms embroiled in the split-cap debacle had "ripped off consumers". New Star is understood to have exchanged letters with FSA, which argues that it has not named any of the firms or passed comment on any them individually or collectively.

  • New Star shows off special effects

    27 May 2004

    NEW STAR INVESTMENT FUNDSNew Star UK Special Situations FundType: Oeic Aim: Growth by investing in UK equitiesMinimum investment: Lump sum £1,000, monthly £100Investment split: 37.7% large caps, 34.4% small caps and unlisted, 27.9% mid capsIsa link: YesPep transfers: YesCharges: Initial 5.25%, annual1.5%Commission: Initial 3%, renewal 0.5%Tel: 0845 6088702The ...

  • Number of occupational schemes fall

    26 May 2004

    The number of live occupational schemes fell 6 per cent as at March 31, 2004 to 94,000 from 100,000 a year earlier, according to figures from OPRA. The number of money purchase schemes fell 6 per cent to 77,300 from 72,700 over the period.

  • Out of context

    27 May 2004

    •"The ABI's main driving force is to stay off Watchdog.'" - ABI life and pensions media relations Emma Quantrill. •"I had to say to the commission that I was really quite irritated which in European terms means I was quite mad." - Netherlands Authority for the Financial Markets chairman Arthur Docters van Leeuwen. •"Greece's civil servants were unavailable for comment - probably working on a sliding roof for the Olympics" - Pricewaterhousecoppers ...

  • Outside edge - John Ellis

    27 May 2004

    The FSA will be aware that, in our comments on CP121, we advanced the view that the initial disclosure at the outset of the advice process should contain some generalised paragraphs on the way in which advice, order taking and arranging is paid for. Subsequently, of course, Aifa and product providers developed the concept which lies behind the current menu proposals. Our general view about the menu proposed in CP 04/3 is that it is too complex and that it is unlikely ...

  • Paragon closes £900m securitisation

    28 May 2004

    Paragon has completed its largest securitisation to date, a financing totalling £900 million backed by prime buy-to-let mortgages. This is the first time Paragon has included loans originated by Mortgage Trust in a securitisation.Finance director Nick Keen says: "This transaction continues the development of the Group's securitisation programme, bringing the Paragon name again to investors in the US, as well as to investors in Europe and the UK. Investor interest was ...

  • Pink extends BTL loan

    28 May 2004

    Pink Home Loans has extended the expiry date on the buy-to-let mortgage funded by Royal Bank of Scotland.The loan, which allows the purchase of up to five properties, offers a rate of 4.79 per cent from June 1 with the £150 discount extended until August 1 2006.The total portfolio limit is £2.5m with no redemption penalty. Maximum loan to value is 80 per cent up to £500,000. Pink says the annual gross rental income should be at least 10 per cent of the loan.

  • Prestbury issues profit warning

    26 May 2004

    Non-regulated network Prestbury Holdings has issued its second profit warning of the year and has raised £500,000 through a placing of £1m of new convertible loan stock.The company says the marketing joint ventures trialed by its Moneybrain division have failed to deliver the results that had been expected.Prestbury chairman Francis Maude says: "Prestbury's half year and full year results will fall significantly short of market expectations."Durlacher ...

  • Price cap move is delayed

    26 May 2004

    The Treasury is believed to have postponed for two weeks the announcement of its decision on raising the 1 per cent stakeholder price cap. The decision, which is thought to have been made, will now be unveiled in two weeks time when Parliament reconvenes.

  • Product matters

    27 May 2004

    The introduction of CPPI to funds is slowly taking off as providers look for a modern version of with-profits. Friends Provident is the latest provider to launch a fund using this protection tool through its Stewardship fund. This fund is available through its investment bond wrapper and offers investors exposure to the Stewardship fund while providing protection of 80 per cent of the highest price at any one time. This means that, with a launch price of £1, the lowest selling ...

  • Pru chief Bloomer sets out 401(k) plan to MPs

    27 May 2004

    Prudential chief executive Jonathan Bloomer has submitted plans for an American-style 401(k) savings product to the Treasury select committee in a bid to encourage more people to save for retirement. Speaking at a committee meeting this week, which was also attended by Aviva chief executive Richard Harvey, Legal & General chief executive David Prosser and Standard Life chief executive Sandy Crombie, Bloomer said he feels that customers need a flexible vehicle which does not ...

  • Pru Intl pondering Ailo campaign on money laundering

    27 May 2004

    Prudential International is refusing to commit to Ailo's campaign to create a level playing field for anti-money-laundering procedures. Dublin-based Prudential International says it is considering the proposals but Ailo chief executive Stuart Fairclough says the plan was put on the table last October and all member offshore life offices have been updated on the discussions ever since. The new standards are designed to protect against the reputational risk to the offshore ...

  • Quality recruits under wraps

    27 May 2004

    Everything is a brand these days. Even a product as benign as water can be branded. The brand of independence should be one of the easiest to build. It is not a product but a powerful service that gives you access to the very best of other people's products. From this starting place, it is an achievement to devalue independence so much that in many people's eyes, it is tarnished. There are some great firms and great practitioners of advice but the odds of finding them are ...

  • Rents still on the rise, says Paragon poll

    27 May 2004

    Rental incomes continued to rise in May for the third consecutive month, according to Paragon Mortgages' monthly buy-to-let index. The index shows that average rents rose to £9,953 in April from £9,651 in March, giving an 11 per cent increase over the past three months. This translates into an increase in landlord yields to 7.27 per cent in April from 7.22 per cent in March, which Paragon says is the highest level since December last year. Paragon says that ...

  • Richard Verdin on Protection

    27 May 2004

    It has been quite a while since I read an insurance company's terms of business agreement but, as one landed on a desk near me recently, I thought I would read it to try to understand why changes were needed to the previous agreement. It turned out that the changes were necessary to accommodate ebusiness, particularly the use of the provider's eprotection application and underwriting tool. Here are some extracts that I have just read. The intermediary shall ensure all data ...

  • Rough with the smooth

    27 May 2004

    Arguments abound that with-profits have had their day and that we need to search for new alternatives. The sins of the father have cast us to search among his progeny for a new alternative "default" investment strategy. Necessity being the mother of invention, portfolio insurance (or constant protection portfolio insurance)is being hyped by many marketing departments as the heir apparent to the mantle of with-profits funds. However, beyond the sound and fury of the marketing ...

  • Sainsbury's Bank launches 5.4 per cent one year fixed rate savings account

    1 Jun 2004

    Sainsbury's Bank is launching a one-year risk-free savings account at 5.4 per cent guaranteed gross return.The account is only available until stocks run out and investors can invest £3,000 or more and be paid interest upon maturity in July 2005.Sainsbury's has devised a first-come first-served booking system to ensure allocation is as fair as possible. Those that miss out will be prioritised for the bank's next fixed rate savings offer.The account ...

  • Saving pensions

    27 May 2004

    Our private pension industry has been a cornerstone of our economy for decades and the pension industry has generated billions for investment in UK and world stockmarkets. Our private pension system has been the envy of our EU partners but there are cracks appearing and private pensions are under pressure, in serious danger of being undermined unless the Government makes the right moves and quickly. Leading product providers have reported heavy falls in sales of individual ...

  • Savings on bond transfers

    27 May 2004

    The personal investment and pension markets are now more difficult places in which to be an adviser. However, it is important that you do not forget the enormous opportunities that still exist for your clients. Some of your clients, who have existing single-premium insurance bonds, will be dissatisfied with the opportunities for future returns offered by their current provider. There seem to be two main reasons why this might be so. First, perhaps your client holds a ...

  • Self serving?

    27 May 2004

    FSA chief executive John Tiner has told mortgage lenders that they cannot be complacent about self-certification mortgages, even though the regulator's investigation has not turned up any evidence of widespread impropriety. The investigation, prompted by BBC allegations of abuse, concluded that systems and controls were adequate to counter the risk of financial crime but Tiner has made it clear that there is no cause for the industry to be smug. Last October, The Money ...

  • Silver service

    27 May 2004

    Tax planning ideas are communicated most effectively when they are targeted at the group for whom the ideas are most likely to be relevant. Obvious, really, isn't it? Client segmentation is something which advisers should be doing on a regular basis to ensure they secure the best payback on their investment of time and funds in constructing the tax planning strategy in question. When considering those clients for whom their tax planning messages are relevant, advisers ...

  • Sipp guide from PYSS

    1 Jun 2004

    Pointon York Sipp Solutions is publishing a free guide to self-administered personal pensions for IFAs to use with their clients.The guide explains the structure of a Sipp, its tax privileges and investment flexibility.PY Sipp Solutions managing director Christine Hallett says: "There are currently 80,000 Sipps in place and industry experts predict that this will grow to 500,000 within five years. To support IFAs in their own marketing we have put together this guide which thy ...

  • Sixteen lenders to take part in Marlborough mortgage benchmarking study

    28 May 2004

    A total of sixteen lenders have indicated they will take part in the Marlborough Stirling 2004 benchmarking study, developed in conjunction with the CML.The study, in its second year, enables lenders to analyse their competitive position within the mortgage industry. This year's study will include further topics including intermediary lending, advance processing and management of redemptions. The aim is for lenders to be able to identify areas of competitive advantage and increase ...

  • Sofa to offer student membership

    28 May 2004

    Trade body Sofa will offer student membership for those studying for the FPC exam. It will offer a complete range of events to support students in their studies as we ll as encouragement to achieve their full potential.

  • Spouse approval is urged for single-life annuities

    27 May 2004

    Spouses could be forced to get written consent from their partners before buying single-life annuities under a rule change called for by the Equal Opportunities Commission and Age Concern. An EOC-sponsored amendment to the Pensions Bill was withdrawn by Labour MP Vera Baird last week after the Government said it would look at ways of getting round the technical problems raised by the proposal. If the Government fails to take action, the EOC says it will attempt to readdress ...

  • Stakeholder slumps as focus shifts

    27 May 2004

    The number of people taking out stakeholder pensions fell by 22 per cent to 58,000 in the first quarter of the year from 74,000 in the first quarter of 2003, according to ABI figures. Stakeholder premiums fell by 8 per cent from £131m to £120m but total new individual regular-premium pension sales rose by 3 per cent from £837m to £862m. The poor sales figures follow major pension providers moving commission focus away from low-premium stakeholder pension ...

  • Standard drops s32 contract from range

    27 May 2004

    Standard Life is dropping its s32 contract from its product range next month, saying it is not economical to keep writing the business. But the firm, which is currently reviewing its mutuality, denies the move is to cut exposure to its with-profits fund from guaranteed minimum pension obligations. Standard says it is dropping its s32 because it does not meet Raising Standards requirements and would cost too much to make compliant. It was among the first firms to offer ...

  • Standard Life Investments - Global Index Linked Bond Fund

    28 May 2004

    Type: OeicAim: Income and growth by investing globally in government bonds, investment-grade corporate bonds and other fixed-interest securitiesMinimum investment: Lump sum £500, monthly £50Investment split: 100% in government bonds, investment-grade corporate bonds and other fixed-interest securitiesIsa link: YesPep transfers: YesCharges: Initial 3%, annual 0.95%Commission: Initial ...

  • Stewart takes over top role at BAM

    1 Jun 2004

    Britannic Asset Management's chief operating officer Gavin Stewart has been appointed chief executive following the departure of Leslie McIntosh. McIntosh was appointed less than three years ago but BAM's board believes the company is entering a phase of development which requires a "different set of skills". It says Stewart's experience of developing business opportunities is ideally suited to the chief executive role.

  • Sting in the tail

    27 May 2004

    Scottish Life's Steve Bee was upstaged by a real live bee at his latest roadshow in Northampton, the Diary learns. There was a real buzz in the auditorium when the pension guru rose to deliver his latest pension roadshow. At first, Bee thought that the projector was humming until he realised that another bee had flown in and was hovering around the projector screen. Stung by criticism that he prefers to work alone on stage, Bee protested that he made his visitor ...

  • Stockbroker firm fined £0.5m

    26 May 2004

    The FSA has fined stockbrokers Carr Sheppards Crosthwaite £500,000 for serious compliance failings. The FSA says CSC failed to keep fully up to date with regulatory developments after the creation of the FSA. The financial penalty would have been much higher had CSC not cooperated with the FSA and moved quickly to agree the facts of the case and to settle the matter.

  • Survey reveals split over Aifa

    27 May 2004

    The IFA population is split over whether Aifa is the correct body to represent IFAs, multi-ties and mortgage brokers, the Money Marketing and One Account IFA Poll 2004 has revealed. The annual poll indicates that 50 per cent are against Aifa representing different types of advisers while 47 per cent support it. Of those who do not believe their interests would be best represented by an all-embracing trade body, 86 per cent believe their own body, not one speaking for ...

  • Swansong for one-man bands

    27 May 2004

    Broking is a cottage industry, if ever there was one. MCCB registration data tells us that around 10,000 broker firms have a total of 30,000 advisers. As many as 8,000 firms are sole traders. The future for a high number of small firms looks seriously bleak unless their operating models change. To help us second-guess the future, let us remind ourselves of the way that lenders' relationships with brokers have worked in the last 10 years or so. For many years, ...

  • Talkback

    27 May 2004

    "No, they should be better at doing what they do anyway." Michael Jones,Michael Jones Independent Financial Services "No I really don't think they should charge any more.I pay for the service already through my network." George Love Financial Services,George Love "Absolutely not. IFAs are under pressure from all areas with regard to fees and charges and we need to have support from bodies such as IFA Promotion rather than additional charges squeezing us even ...

  • The Children's Mutual welcomes Government CTF regulation

    1 Jun 2004

    Children's savings specialist The Children's Mutual has welcomed the Government's publication of the final Child Trust Fund regulations, allowing them to finalise the preparations for the launch of its CTF system and products.The provider is finalising its processes and systems in lieu of the distribution of 500,000 CTF vouchers in January.Chief executive Dave White says: "We're less than five months away from applying to the Inland Revenue in October for our ...

  • Tiner attacks EU over Mifid speed

    27 May 2004

    FSA chief executive John Tiner has hit out at the European Commission for bringing in the Market in Financial Instruments directive too quickly, describing the move as "insensitive" to firms' needs. As revealed in Money Marketing two weeks ago, Mifid - also known as ISD2 - could mean that the vast majority of IFAs have to increase their PI cover by around 50 per cent by April 2006. Speaking at the EU Financial Services Action Plan: Implementation in Practice conference ...

  • Tory plan for shared equity

    26 May 2004

    The Tories are proposing to introduce "shared equity" plans to help first time buyers get on the property ladder. Buyers would pay half or two-thirds of the total cost while the remainder would be borne by the mortgage lender or developer. The company would then retain that proportion of the value of the home, with an option of possibly selling the stake back to the owner over time.

  • Towry Law closes international business

    27 May 2004

    Towry Law announced today that it is closing Towry Law International to new business in the light of difficult market conditions. TL says this will have no impact on its operations in the UK.Subject to regulatory approval, the TLI offices in Bahrain, Dubai and Japan will close and the TLI office in Hong Kong will become the client servicing centre for all of TLI's international business.Money Marketing revealed at the beginning of May that clients in Cyprus, the Middle ...

  • Treves in attack on Emag leaders

    27 May 2004

    Equitable Life chairman Vanni Treves has launched an astonishing vitriolic attack on the leaders of the Equitable Members' Action Group, describing them as "vicious, volatile, venomous and vindictive". The attack came at the life office's AGM in London last week as Emag lost its bid to force Equitable to pay £2m to a fighting fund to sue the Government for regulatory failings. Policyholders overwhelmingly rejected the Emag resolution by 79 per cent of votes. Emag ...

  • Vanni's rum do

    27 May 2004

    Equitable chairman Vanni Treves earned his corn at the stricken society's AGM last week, opening a gift from a policyholder at the University of the West Indies - a bottle of Jamaican rum. Treves spent a rum morning fielding questions from disgruntled retired colonels, no doubt wondering whether the ordeal was worth £125,000 a year. But after Treves gave a lengthy tirade against the leadership of the Equitable Members' Action Group, he blew it by voting (inadvertently) ...

  • VAT out of hell

    27 May 2004

    As top Government members continue to chew over the Labour leadership in various restaurants, the FSA, the Treasury and HM Customs and Excise are preparing for a summit meeting on VAT for intermediaries. Officials from these three bodies are unlikely to be dining on oysters at Loch Fyne but the implications of their discussions will be far more significant for the financial services sector than Labour Party in-fighting. Moves by Customs and Excise could see IFA networks ...

  • Verity's view

    27 May 2004

    Should Andrew Smith be praised or attacked for the dramatic last-minute amendments to the Pensions Bill? This is not, of course, a question for a journalist who is obliged to be politically neutral to decide. So I will simply put the views of his backers and his critics and readers can then make up their minds. The most prominent of those amendments is the decision to extend help to those who have already lost some or all of their occupational pension. In the view of those who ...

  • What would the FSA make of surveyor's fees?

    27 May 2004

    Money Marketing (May 13) highlights the case of an IFA who has been told that his fees are too high at £150 an hour. By coincidence, I have just had my house valued for insurance purposes by a Midlands-based chartered surveyor. My wife tells me he spent no more than 20 minutes at my house and I have received a one-and-a-half page letter of which eight sentences are specific to this property. The bill? £150 plus VAT. Given the level of responsibility ...

  • Who cares wins

    27 May 2004

    The extension of FSA regulation to the general (including health) insurance and mortgage sectors is set to change the shape of the financial services market which means it is a good time to look at the opportunities this presents and assess how IFAs and insurers can work together for a brighter future. The current upheaval in the financial services market resulting from the extension of FSA regulation presents huge opportunities for IFAs. While other intermediaries focus on their ...

  • Women IFAs say Menu is a positive step

    28 May 2004

    The FSA's planned "Menu" of renumeration has been welcomed by the Women's IFA Group who believe it is a positive step for the industry.More than two-thirds of those questioned said explaining or justifying their fees in the context of the menu would not be a problem. Only 10 per cent thought the menu would pose a problem.WIG chairperson Fiona Price says: "It is refreshing that WIG members are accepting change and pragmatically adapting to yet another raft of regulation."

  • Women outlive men - it's a fact

    27 May 2004

    First of all, congratulations on a good piece "Sold on solutions" (Comment, April 22). It is good to read some common sense. Such sense was also exhibited by John Morris in his excellent letter to the Treasury select committee and, of course, by Harry Katz (Money Marketing, April 22). I couldn't have put it better myself, Harry. We then move on to Bob Bullivant's piece on annuities and it just awoke the spirit of despair when I think of a Greek MEP looking for unified ...

  • Women understand remortgaging better than men

    1 Jun 2004

    New research from The MarketPlace at Bradford & Bingley claims that women understand the remortgaging process better than men. The research says 48 per cent of women think the remortgaging process is straightforward, while only 39 per cent of men believe the process is easy.Only a third of women (34 per cent) believe the process too complicated, in comparison with almost half of all men (46 per cent) who are confused by the process.Mortgage development manager Elliot Nathan ...

  • Woolwich Plan Managers - The Woolwich Accelerated Growth Plan

    26 May 2004

    Type: Capital-protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £3,000-£500,000, Isa £7,000Term: Six yearsReturn: 3.5 times growth in index up to a maximum of 63%Guarantee:Original capital returned in full provided index does not fall by more than 50% and returns to at least its starting valueClosing date: July 23, 2004, July 9, 2004 for Pep/Isa ...

  • Wrap fails the test

    27 May 2004

    Just because you have a superior product it does not necessarily follow that you will be successful. The technology world is littered with examples. The solutions that were adopted were the ones that got their message across effectively to customers. The last time that I wrote about wrap in this column was in June of last year. I then questioned if the approach being taken by many wrap providers might result in wrap being the next big thing that never actually happened in the ...

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