Money Marketing
27 August 2003

  • 'Employer compulsion could bring job losses'

    28 Aug 2003

    Introducing compulsory employer contributions on pension schemes would be a mistake, which would lead to the loss of thousands of jobs, says the Society of Pension Consultants. The SPC is warning Adair Turner's compulsion commission that the additional cost of contributing to an occupational scheme could be enough to push many companies into liquidation. It says comparisons should not be drawn with Australia just because its economy resembles the UK. The SPC says the ...

  • 'Keep clients up to date on savings endowment performance'

    28 Aug 2003

    Providers and advisers alike need to take responsibility for keeping clients informed of the progress of their savings endowment policies, according to Sofa chairman Nick Bamford. Product providers are required to provide regular illustrations for all pension policies and mortgage-linked endowments but they do not have to do so for savings endowments. Bamford says that in recent market conditions some people with savings plans may be unaware that their policy could pay ...

  • 'Risky' reverend

    28 Aug 2003

    Allow me to set the scene. A retired vicar and his wife, both aged 85, move into a Church of England nursing home on full nursing care. They have an existing Standard Life investment bond. They need to make a further share exchange investment in agreement with their accountant who has enduring power of attorney. Standard Life does not require to see the power of attorney document again and so does not require a money-laundering certificate for the accountant. However, ...

  • 'Stockmarket falls force many workers to delay retirement'

    28 Aug 2003

    A quarter of older workers intend to retire later than they planned two years ago because their savings have been hit by stockmarket falls, according to research by Watson Wyatt. Its survey of 4,500 workers aged between 50 and 64 reveals there is a strong relationship between those who are delaying their retirement plans and those whose savings have fallen in value in the last few years. Forty-nine per cent of respondents said their savings have declined a lot over the ...

  • A consumer's view

    28 Aug 2003

    The whole point of mutuality is that the members are supposed to have a say and take part in major decision-making within the comp-any. Sadly, far too few members of mutuals, whether it is an insurance company or building society, take an interest in the affairs of the business, unless they can see some sort of cash windfall from demutalisation. The debate about whether with-profits funds ought to be wound up is somewhat academic since the FSA only has powers to force a wind-up ...

  • A mutual merger

    28 Aug 2003

    With the history of carpetbagging seeing many mutuals forced into the plc domain and Standard Life being stalked by baggers, it is heartening for their supporters to find two mutuals joining together and pledging their future to mutuality. Staffordshire and Portman Building Societies' respective chief executives Bill Snaith and Robert Sharpe are both looking forward to their societies' mutual merger. Details for the proposed merger are through and it looks like it will be ...

  • Abacus looks at wrap

    27 Aug 2003

    Financial services consultants Abacus is part of a group preparing to launch a new venture that it believes has the potential to put life companies out of the picture. The business model involves offering wrapper products direct to investors without involving providers in the distribution model and without the costly IT overheads of the traditional range of products. The new firm is expecting to announce in four weeks time. It has confirmed to Money Marketing the core management will ...

  • Abacus wrapper deal cuts out providers

    28 Aug 2003

    Financial services consultancy Abacus is part of a group preparing to set up a venture that it believes has the potential to challenge life companies. The business model involves offering wrapper products direct to investors without involving providers in the distribution model and without the IT overheads of the traditional range of products. The firm is expected to announce details next month. It has confirmed to Money Marketing that the core management will be former UK Skandia ...

  • ABI and GISC in dispute As PMI code is delayed

    28 Aug 2003

    A row has developed between the ABI and the General Insurance Standards Council over delays to the implementation of a statement of best practice for the private medical insurance industry. Each organisation is blaming the other for the hold-up. Last year, the GISC decided it wanted to design and run the code. As it was then unclear whether the body would remain following statutory regulation of general insurance in January 2005, the ABI said it had no objections. But ...

  • ABI draws up action plan for stakeholder

    28 Aug 2003

    Eighty-two per cent of the 350,000 employer-sponsored stakeholder pensions are empty boxes and overall long-term saving is down by 17 per cent, says the ABI. Its figures show that just 4,550 or 13 per cent of workplace-based schemes have employer contributions. Since launch in April 2001, 1.5 million stakeholder pensions have been sold. Sales of new regular-premium pensions in the second quarter of 2003 were down by 19 per cent to £530m from £654m in the same ...

  • Aegon set to add to IFA holdings with Tenet stake

    28 Aug 2003

    Aegon is looking to join Friends Provident and Norwich Union in taking a stake in IFA network The Tenet Group. It is understood that Aegon is in the early stages of negotiations to take around a 10 per cent stake in the group, similar to that of Norwich Union and Friends Provident, which both paid £9.5m last year for just under 10 per cent each. It is believed that Scottish Widows and Skandia have also shown interest in the group. The deal would add to the string ...

  • American Express aims to wrap up IFA market

    28 Aug 2003

    American Express is planning to enter the UK IFA market with an extensive business solution proposition which could involve the US giant taking stakes in advisory firms in return for help with PI cover. It would initially involve a wrap platform offering Peps, Isas, individual equities, bonds and offshore products but could evolve to include deals which help IFAs overcome mounting regulatory and insurance difficulties. It is believed that such agreements would involve Amex pledging ...

  • AMI gains 2000 members

    2 Sep 2003

    The Association of Mortgage Intermediaries has announced it now has 2000 members.

  • Axa 'in talks to buy Swiss Life's individual book'

    28 Aug 2003

    Axa is believed to be in talks to acquire Swiss Life's individual protection book with a view to reopening it and selling new products to an established market. As revealed in Money Marketing three weeks ago, Axa is developing products to enter the protection market although it refuses to give details. A senior industry source says it is now talking to Swiss Life about a possible deal. It is thought Axa is seeking an established customer base to tap into rather ...

  • Bankhall poaches DBS training head

    27 Aug 2003

    Bankhall has poached Misys executive Jackie Ison to become its director of training and technical support. Ison leaves her role as head of products and marketing for Misys subsidiary DBS to head up Bankhall's training and product support services programme.  

  • Bristol & West increase introductory rate on Easylife account

    29 Aug 2003

    Lender Bristol & West is increasing the six- month introductory rate on its Easylife guaranteed account from 3.5 per cent to 4 per cent. After this initial period the rate reverts to base rate linked.

  • Britannia Intl to sell bonds via IFAs

    28 Aug 2003

    Britannia International, the offshore arm of Britannia Building Society, is widening its reach in the IFA market following the success of products sold by its own IFA arm. For the last eight years, the provider's structured products have only been available directly or through its two RIs. The first product to be distributed through IFAs is its optimum growth bond, a structured product offering 105 per cent of the growth in the FTSE 100 over five-and-a-half years. The ...

  • Causing offence

    28 Aug 2003

    I was absolutely fascinated by the letter from the "non-churning IFA". It seems to me to be thoroughly unethical for so-called IFAs to take large chunks of commission on policies which are then going to be converted without penalty. In any event, I think it is obscene to take 5 per cent commission on the drawdown case plus, as many well-known firms do, a fee and trail as well. As for the client urged to switch his SSAS, then the IFA paying half the £65,000 in commission ...

  • Charcol Holden Meehan staff sacked for sexual and violent emails

    27 Aug 2003

    A 37-year old personal assistant has received £10,000 compensation from Charcol Holden Meehan after finding out her colleagues were sending emails of a violent and sexual nature about her. The firm has sacked one male and one female member of staff for sending the offensive emails and disciplined seven other staff members who received them. 

  • Cheviot Capital - CF Cheviot Managed

    2 Sep 2003

    Type: Unit trust Aim: Growth by investing in UK and international equities fixed interest and cash Minimum investment: Lump sum £5,000 Investment split: 85% equities, 10% fixed interest, 5% cash Isa link: Yes Pep transfers: Yes Charges: Initial 5%, annual 1.5% Commission: Initial 3%, renewal 0.5% Tel: 020 7566 4040

  • Cheviot Capital rolls out first unit trust

    29 Aug 2003

    Stockbroker Cheviot Capital has introduced a unit trust for the IFA market to be run along the same lines as its discretionary and advisory portfolio management services. Cheviot Capital was established in 1993 as the investment arm of chartered accountants Kingston Smith. It currently runs a discretionary portfolio service and an advisory portfolio service, which have a combined value of £100m.The CF Cheviot managed fund will aim for growth by investing initially ...

  • Chris Batten

    28 Aug 2003

    After a career in the army with spells in Northern Ireland, the Falklands and Guatemala, Group 300 chief executive Chris Batten is marching for victory in the financial services industry. His background with two years in the RAF police and 12 years as an infantry soldier comes through in his attitude as a highly focused and driven and intense businessman determined to make things happen. "The military had a huge impact. It taught me confidence, communication skills, to ...

  • Clerical Medical buys in bulk

    27 Aug 2003

    Clerical Medical has brought out a S32 bulk buy-out plan to take advantage of opportunities within the pension transfer market as a result of the trend for the winding up of final salary schemes. Clerical Medical says final salary scheme wind-ups are being driven by factors such as restructuring within companies, mergers and takeovers, management buy-outs and insolvencies. It believes the long-term trend towards defined contribution schemes is unlikely to stop and has designed ...

  • Co-operate to save the industry

    28 Aug 2003

    I have recently started to question our future in relation to the increasing costs and the ability to obtain cover. If Inter-Alliance, RJ Temple, Millfield and Lamensdorf have closed or are losing money because of the downturn in the market and increasing procurement costs, what hope does that leave for the small and medium-size IFAs? The recent announcement of a reduction of 1,800 in the number of RIs by the Sesame network suggests that some qualified experienced IFAs ...

  • Co-Operative Bank and B&W weave index basket

    28 Aug 2003

    Co-Operative Bank and Bristol & West have both introduced five-year guaranteed equity bonds that are linked to a basket of four indices. Both products provide a full capital return at the end of the term, regardless of the performance of the FTSE 100, S&P 500, Nikkei 225 and Swiss Market Index, which each carry an equal weighting. While this means investors are not pinning their hopes on one region, returns could also be diluted if one index performs badly compared with another. Under ...

  • Credit Suisse waives initial charge on FOF range

    2 Sep 2003

    Credit Suisse Asset Management is temporarily waiving the initial charge into its funds of funds to mark the two-year anniversary of the multi-manager range. CSAM's standard 4 per cent initial charge is falling to 0 per cent until November 28 or until the 11 funds hit £100m. IFA commission will fall to 1 per cent from 3 per cent during this period although standard terms including full commission remain available.

  • Crossed lines

    28 Aug 2003

    The article headlined, IFAs could save £5m on phone bills (Money Marketing, August 21) misreported BT's research. Deloitte & Touche found that BT's business customers would save £144m a year if they switched from the average best rates of BT's competitors to BT Business Plan, which could mean IFAs saving £5.4m. D&T's point was that plans "on the open market" are mostly more expensive than BT's best rates, despite the misleading ...

  • Dedication

    28 Aug 2003

    Dedication can be taken one step too far and the Diary wonders if one adviser realises he may have taken this step. One of Pink Home Loans' Premier members Steven East (pictured above) set off on one of the most challenging races in the world, covering 350 miles overland to reach the North Pole. Steven was weighed down on his trip by the Pink application form. He says: "It seemed only natural to see how far I would be prepared to carry a real pink application over the most amazing terrain."

  • Derbyshire Building Society to offer sub prime mortgages

    1 Sep 2003

    Derbyshire Building Society has expanded its mortgage service to include the self-cert and subprime markets. It has entered an agreement with specialist lender Kensington Mortgages to provide non-standard mortgages to its customers. Both self-cert and subprime mortgages will be offered by the Derbyshire by making introductions to Kensington Mortgages.

  • EC must not dilute rules to allow Sandler suite, says CA

    28 Aug 2003

    The Consumers' Association is telling the European Commission not to heed Government calls to water down consumer protection in the draft investment services directive to allow Sandler products. CA senior policy adviser Mick McAteer is writing to the EC, arguing that the FSA's guided self-help solution for Sandler light-touch regulation falls foul of the know your customer requirements and suitability tests contained in the investment services directive. McAteer ...

  • Equity-release business booms

    28 Aug 2003

    Equity-release lending shot up by 121 per cent in the first half of this year compared with 2002. The figures from the Council of Mortgage Lenders, based on returns from 21 lenders active in the equity release market, show that £498m was borrowed by older homeowners in equity-release mortgages - more than double the total of £225m recorded in the first half of 2002. The CML says around 11,700 equity-release loan were taken out at an average value of £43,000. Th

  • Eurozone looks healthy for 2004

    1 Sep 2003

    F&C Management is linking its website to Europe's largest stockbroker comdirect to give investors an alternative to buying shares through its saving scheme, Pep or Isa wrappers.

  • Franklin Templeton sets sights on UK market

    1 Sep 2003

    Franklin Templeton Investments has unveiled four Oeic funds as part of its plans to attract more business from UK investors. Until recently, the main focus of the company's fund range was Luxemburg but it acquired a Dublin base in 2000 when it acquired Fiduciary. However, the company decided the best way to attract UK business was to set up the UK Oeic umbrella rather than rely on the Dublin Oeic. Four funds within the Dublin-based umbrella with similar strategies to the new ...

  • FSA offers keynote view on credit risk

    28 Aug 2003

    How lenders manage credit risk along with how investors and rating agencies reward good credit risk management are topics up for discussion at the credit risk management workshop being held at the Landmark Hotel in London next month Organised by the CML/GEMI for September 18, the keynote speech will be given by FSA deposit takers' division director Philip Robinson. Other issues to be discussed are mortgage insurance and the future of credit risk management. The seminar will ...

  • Future is bleak unless common sense prevails

    28 Aug 2003

    "I am a well-qualified, well-paid manager and a member of a good pension scheme. I am ambitious and want to make my mark, and am prepared to work hard to achieve this. "I often work late and my spouse complains that I don't see enough of the children. I don't get any credit for just making sure that my department is running well - that's just taken for granted. If I want to get ahead and impress my superiors, I must come up with new ideas and new plans. "This ...

  • GE Life adds fund management big guns to its pension arsenal

    28 Aug 2003

    GE Life is enhancing the external fund links available on its single-premium pension plans. It is including a range of flagship funds from Fidelity, Invesco Perpetual, Liontrust and Newton. The 14 new fund links include Fidelity special situations, Invesco Perpetual high income, Liontrust first income and Newton higher income. They are added to funds already available from State Street, Goldman Sachs, Schroders and Credit Suisse Asset Management. Annual ...

  • HL set for equity release

    28 Aug 2003

    Hargreaves Lansdown is entering the equity-release market with a team of three specialist advisers and plans to increase the team rapidly. The IFA believes it is the right time to launch into the market, saying the sector is gaining credibility as more lenders launch products. Hargreaves will initially consider products from all lenders but says it could look at a specially designed product in the future. Head of mortgages Ian Jordan says equity release will ...

  • IMA's Clare Arber leaves communication role

    1 Sep 2003

    Clare Arber, head of communications at the Investment Management Association, has left the trade body. She joined the IMA just under five years ago as PR manager before being promoted in December 2001. She had previously worked at CGU. The IMA says she has left to pursue other interests but it is not known whether she is seeking employment within the industry.

  • Independent view

    28 Aug 2003

    I was letting my fingers do the walking through Yellow Pages the other day when I noticed that after hi-fi manufacturers and wholesalers was the intriguing category of high commission. Then I saw that underneath it said: "See embassies and consulates." Proving, once again, that things are not always what they seem. I recently read that every maturing Norwich Union endowment paid off the home loan amount last year. My colleagues and I have seen similar results from a variety of ...

  • Inside edge

    28 Aug 2003

    Compliance, compliance, compliance. By common consent three of the most frustrating and stifling issues threatening the development of the IFA industry in the UK today. But compliance is but three, well OK, possibly just two, of the factors that will affect the successful organisations. One thing is certain -the IFA market has no special right to survive in the future. The same applies to product providers, fund managers or anyone operating within an industry that is being subject ...

  • Intermediaries are going

    28 Aug 2003

    Intermediaries are going to the end of the Earth this week and on top of the world, well almost, was Millfield IFA George Petry (pictured above), flying the corporate flag. George ascended the 18,005ft to Everest base camp and raised over £1,000 for the Sir Edmund Hillary Himalayan Trust and the Tom Hughes School for Orphaned Nepali Children. George had some strange bedfellows on the return leg of his two-week trek, sharing his tent with a half-wild dog and a yak. ...

  • Investment analysis

    28 Aug 2003

    Global bourses continued to take part in the summer rally, with most gaining ground over the week. An unexpected decline in US consumer confidence failed to deter, with investors focusing on good jobs' data from the US, which showed a strengthening employment market. In the US, Hewlett Packard provided the market with a reality check in midweek after reporting disappointing results with the figures from the computer group casting fresh doubts on the sustainability of the recent ...

  • Investment view

    28 Aug 2003

    Well, we managed to hold on to the 4,200 level at the beginning of last week. Inevitably, there was a little profit-taking but as the holiday weekend approached we seemed to be holding our own. Sufficient excitement was generated to have a number of commentators talking this market up by another 15 per cent for the year end. Much as I would love to think that possible, it is perhaps time to take a more realistic view of what investors might expect for the rest of 2003. Cast ...

  • Is the price right for stakeholder?

    28 Aug 2003

    The arrival of stakeholder over two years ago created a new low-cost benchmark for the industry but some providers have found it difficult to adapt to its charging structure. Where providers have collected all their charges up front, it has been relatively easy to say that plans will remain stakeholder-compliant in the future. For others which have given extra allocations at the beginning of the contract, the situation is not so easy. Friends Provident, Scottish ...

  • Julian Gibbs

    28 Aug 2003

    At last, most world stockmarkets are recovering and, along with good economic news from the US, confidence is beginning to return. As we all know, the financial services profession has suffered more than most, due partly to poor stockmarkets but also to the FSA and the ombudsman using hindsight to assess investors' worries. However, the FSA is becoming more realistic and it looks unlikely that most of the Sandler report's contentious recommendations will be implemented ...

  • July sees increase in mortgage lending

    29 Aug 2003

    BBA figures show that gross mortgage lending increased to £16.9 billion in July, up 13 per cent from June and 16 per cent from July last year. The BBA says that there were 281,500 mortgage loans approved in July, 10 per cent more than in June and 19 per cent more than in July last year. The number of loans approved for equity withdrawal was 35 per cent higher than a year ago while the number approved for remortgage was 23 per cent higher.

  • Kensington Mortgages offers fixed rate for adverse credit borrowers

    1 Sep 2003

    Kensington Mortgages is offering a three year fixed rate mortgage for adverse credit borrowers. It says it is the first specialist lender to offer such a deal. Rates on the mortgage start at 5.75 per cent and are valid until November 30th 2006. There are no early repayment charges after the first three years of the loan. Kensington has also extended the end dates for its one-year fixed and discounted interest rates which start from 3.90 per cent until November 30th 2004.

  • Keydata locks in growth

    2 Sep 2003

    Keydata Investments has unveiled the second issue of the FTSE growthbuilder plan, a guaranteed equity bond that locks in 20 per cent growth for each 20 per cent rise in the FTSE 100 over six years. The bond is identical to the maximum growth option that was available on the first issue of the product. It has maximum growth potential of 100 per cent and the original capital will be returned in full unless the index falls by more than 50 per cent without bouncing back to its initial ...

  • Kick out churners

    28 Aug 2003

    The letter from a "non-churning IFA" struck a chord with me (Money Marketing, August 7). I expect that most of your readers will know of at least one adviser that has been churning in the 1 per cent world. Presumably, most product providers have been funding such behaviour from their with-profits reserves, which must now be all but depleted. Why insurers have indulged some advisers in this way is difficult to fathom. It is an extremely expensive way of increasing market share. However, ...

  • Kingsbridge set to sell its last two IFA firms

    28 Aug 2003

    IFA group Kingsbridge Holdings is in talks to sell its two remaining IFA subsidiaries, Benson McGarvey and Kingsbridge Advisers. Nottingham-based Benson McGarvey managing director Peter McGarvey is pursuing an MBO, which has six RIs. McGarvey has resigned as a Kingsbridge director. Kingsbridge Holdings says it is in talks that may lead to the sale of the other subsidiary, Kingsbridge Advisers, a Scottish firm with three RIs. Kingsbridge Holdings says it is also ...

  • L&G ponders principal status

    28 Aug 2003

    Legal & General says it hopes to take principal status under mortgage regulation if final details from the FSA in September are favourable for it to consider this route. The mortgage club says it is looking at a number of ways to help brokers planning to become appointed representatives under mortgage regulation. This could be by L&G taking principal status although it is not ruling out a different route, for example, another party taking principal status on L&G's ...

  • L&G wins mortgage protection deal with major independent estate agent

    28 Aug 2003

    Europe's biggest independently owned estate agency group Spicerhaart has picked Legal & General to handle its mortgage protection business. Spicerhaart signed the long-term deal with L&G after entering into a short-term arrangement with the insurer in March following Britannic Assurance's withdrawal from the market. Spicerhaart operates 250 branches of Haart, Spicer McColl, Felicity J Lord, Darlows and Bailys. It will use L&G's Launchpad e-commerce ...

  • Life offices face a distribution fight

    28 Aug 2003

    Whatever the FSA may or may not decide on menus, disclosure and the rest, it is clear that new "distributor" models are already emerging. Although we have known for at least a year that American Express was interested in buying into distribution long before the Threadneedle deal, we now know it involves a wrap account of some sort, a PI deal and one which involves taking stakes in IFA businesses although it is also hoping to attract fund management backing. It is early ...

  • Loanbook sales to grow

    28 Aug 2003

    One of the pioneers of correspondent lending GMAC-RFC predicts that the sale of mortgage books is set to grow. It says this market is becoming particularly appealing to small building societies and lenders which can use it to increase their assets without adding infrastructure. Mortgages plc has just completed its first £50m sale of mortgage assets to Derbyshire Home Loans, a subsidiary of Derbyshire Building Society. Mortgages plc says this will be the first of ...

  • Master Adviser drops Invesco for Millfield investment

    28 Aug 2003

    London IFA Master Adviser has criticised Invesco Perpetual for pumping money into loss-making national IFA Millfield Group. The firm has suspended all dealings with Invesco Perpetual, saying it will not place any of its clients' money in Invesco funds as it cannot trust an investment process which views Millfield as a solid investment. Misys member Master Adviser has 14 RIs and had a turnover of £1.8m in the last financial year. The attack follows Invesco's ...

  • Millfield stockbroker in dispute with analyst

    28 Aug 2003

    Millfield's stockbroker Collins Stewart is embroiled in a row with its former analyst James Middleweek who has accused the broker of insider dealing in relation to a media firm. Collins Stewart has acted as Millfield's broker since it floated on Aim in 2001 and has presided over three tranches of fund-raising for the IFA. Middleweek was not involved in Millfield's raising of £8.85m from City investors in July. Millfield chief executive Paul Tebbutt says: ...

  • Millward and Strauss seeking 30 RIs for 'quality' national IFA

    28 Aug 2003

    More than 30 RIs are being sought by Ian Millward and Toby Strauss for an ambitious national IFA business they aim to launch by the end of autumn. Millward, who left RJ Temple three months ago, says he hopes to have recruited most of the advisers by Christmas, when the as yet unnamed company has been established. Unusually, the business, which will target high-net-worth clients, will feature its own range of Sipps, Ssass, Isas, Peps and offshore bond wrappers. Millward ...

  • Move towards savings for long term

    1 Sep 2003

    Lender Abbey National's latest research shows a move away from short term goals for saving like holidays towards long term reasons like old age, property and children.

  • Nationwide launches new fixed rates

    2 Sep 2003

    Nationwide has launched a new range of fixed rate mortgages following recent movements in the money markets. The building society is now offering a two-year fixed rate mortgage from 4.39 per cent up from 4.09 per cent. Also available is a three-year fixed rate from 4.69 per cent up from 4.39 per cent and a five-year fixed rate from 4.89 per cent up from 4.59 per cent. Nationwide is withdrawing its current range of fixed rate mortgages from close of business on September 2nd.

  • New addition to PPML marketing team

    29 Aug 2003

    Third party pensions administrator Personal Pension Management has appointed Helen Webb to its marketing team as marketing promotions manager.

  • New business development manager for Winterthur Life

    2 Sep 2003

    Winterthur Life UK has announced the addition of David Beacham to its sales team in the role of business development manager.Beacham has 13 years experience in the financial services industry, formerly working at GE Life and Prudential as well as working as an IFA for two years.

  • NU boosts sector share to 45%

    28 Aug 2003

    Norwich Union has increased its share in the equity-release market to 45 per cent in the first half of 2003, according to figures from trade body Safe Home Income Plans. The life office says its equity-release sales totalled £252m in the first six months of 2003 out of total Ship sales of £560m- which cover both reversion and mortgage providers. Closest rival Northern Rock, which has partnerships with Legal &General and Prudential, took 37 per cent of ...

  • NU structures income bond

    28 Aug 2003

    NORWICH UNIONMONTHLY FIXED INCOME PLANType: Guaranteed equity bond Aim: Income linked to the FTSE 100 index Minimum-maximum investment: £3,000-no maximum, Isa £3,000-£7,000 Term: Five years Guarantee: Original capital returned in full provided the FTSE 100 does not fall by more than 30% and returns to at least its starting level Return: 0.47% income a month, Isa 5.75% income a year, 31.28% rolled up income at end ...

  • nvesta - Selecta Plan

    1 Sep 2003

    Type: Guaranteed equity bond Aim: Income or growth linked to the FTSE 100 and S&P 500 indices Minimum-maximum investment: Lump sum £3,000-£2m, Isa £3,000-£7,000 Term: Five years Guarantee: Original capital returned in full provided indices do not fall by more than 30% and return to at least their starting levels Return: Cautious option - 6.1% income a year, 0.47% income a month, 33% growth at end of term. Dynamic ...

  • Ouside edge

    28 Aug 2003

    Being asked to predict changes in the IFA market is a tricky business - I think I would rather have a stab at the end-2006 level of the Nasdaq. The IFA sector has endured a particularly torrid time over the last few years and, while some of the pressures may have been unfair or have seemed heavy-handed, it is undeniable that some changes have arisen as a direct result of the shortcomings of some practitioners. So how will the sector evolve over the next three years? Whatever ...

  • Out of context

    28 Aug 2003

    •"He can't come to the phone now - he's on the internet." - Inland Revenue receptionist on the unavailability of a press officer. •"They're not anoraks, they are highly talented and skiled individuals who are also great company." - Abbey National for Intermediaries press officer Christine McAllister on the company's technical department. •"I will have to adjust to shopping at Oxfam again." -Nikki Lundy, pr at Britannic Asset Management on returning ...

  • Phone of contention

    28 Aug 2003

    What do you think of FSA plans to force mortgage brokers to conduct a fact-find before offering rate quotes over the phone? Clifford: It is highly questionable and a piece of bureaucracy which threatens to add cost, disjoint the advisory process and is unlikely to add any significant consumer benefit. Thoroughly assessing clients' needs and circumstances is, of course, critical but needs to be applied at the appropriate point in the buying process. Too early in the process ...

  • Plan Invest in tie-up with Leek solicitor

    28 Aug 2003

    Plan Invest's general advisory arm Plan Insure is entering a joint venture with Leek-based solicitor Bowcock & Pursaill to provide financial advice to its clients and the local community. Based in the adjacent building to B&P, Plan Invest Financial Solutions will offer advice on pensions, mortgages, life insurance and investments to potential customers from the area, which has only a small number of IFAs. The business will be staffed with eight existing Plan ...

  • Portal at the double with deal for Aaron and Bates

    28 Aug 2003

    The Money Portal, the acquisitive UK retail fund distributor, has bought David Aaron Partnership and Bates Investment Services in a double swoop which boosts its funds under management to £2bn. The deal, which TMP believes elevates it into the top three distributors of UK retail funds, will see the companies retain their senior management and branding, with their respective founders Graham Bates and David Aaron joining TMP's board. Both will seek new advisers for their ...

  • Portman open to merger interest

    28 Aug 2003

    Staffordshire Building Soc-iety's acquisition by Portman Building Society could become the blueprint for future purchases as Portman seeks continued growth. Portman snapped up Staffordshire at the end of June. The deal is due to go before Staffordshire's members at a special general meeting on September 22. Portman bought specialist lender Sun Bank from Sun Life of Canada in September 2001 for £95m and it is widely reckoned that it is only a matter of time before Portman ...

  • Pru appoints yet another sales director

    27 Aug 2003

    The Prudential has taken on its third new sales director in the last two years with Axa's Chris Traynor picking up the reins as intermediary sales director. Due to start in October, Traynor had been with Axa, and Sun Life premerger, for 20 years, holding various sales and sales management roles within IFA distribution. He took over as head of IFA sales at Axa last year and was replaced in July by Keith Atkinson. 

  • Pru extends extra 2 per cent allocation offer on Prudence Bond

    27 Aug 2003

    Prudential is extending its incentive to those considering investing in with-profits continuing its extra 2 per cent allocation offer on new 100 with-profits investments made to the Prudence Bond.Valid until the end of October, the Pru says the offer comes on the back of the recovery in the FTSE index, which has increased demand for the with-profits bond. It says the offer has helped promote sales for IFAs and the move follows requests from them to extend the offer.

  • Pru updates life and critical illness rates

    27 Aug 2003

    The Prudential is again updating its life and critical illness rates effective from August 25. It says the changes, which follow a revision announced in July, will see increases and some decreases on a case by case basis and is in reaction to market changes, particularly changes in reinsurance terms, which is expected to cause other insurers to do the same. Before this the Pru's rates were increased retrospectively in April. New rates will be given to all applications received on ...

  • Purchase lending recovers as multiples rise

    28 Aug 2003

    The Council of Mortgage Lenders says mortgage lending saw another big rise in July with gross advances totalling £25bn, 12 per cent higher than in June. The CML says there appears to be signs of recovery in lending for house purchase, which reached its highest since August last year. It totalled £11.6bn in July from £9.7 bn in June, a rise of nearly 20 per cent. Remortgaging stayed strong in July at £10.7bn, 5 per cent higher than in June, despite ...

  • Rationale thinking

    28 Aug 2003

    I wrote in these pages last month about the need for the financial adviser sector to take ownership of its reputation by a determined effort to improve its practice and performance. Obviously, to take this forward, there would need to be organisation. The big question is whether any of the existing representational or educational bodies have this focus. I leave aside the question of the regulatory body (which, of course, does have a key interest in this area) because success depends ...

  • Regulatory fines are based on your bank balance

    28 Aug 2003

    I would like to refer to the editorial in the August 7 issue of Money Marketing regarding, PI questions that need answering. There is quite a severe backlash to the comments that small IFAs should go for professional indemnity opt-outs, provided they have the capital to meet potential claims -if you have a lot of money in the bank, then we can be free of the PI requirements. No, this is not necessarily true because in terms of what one has to pay out. Let us ...

  • RLAM gets Carter

    2 Sep 2003

    Royal London has announced it has appointed Andrew Carter as chief executive of Royal London Asset Management (RLAM). The move will be effective from 22 September. Andy Carter replaces Chris Phillips who will be moving to Scottish Widows Investment Partnership later this year. Carter is currently the chief investment officer (CIO) of RLAM and will retain this role as well as picking up the new position. Phillips was key in helping establish RLAM through the integration of the United ...

  • Schroder's Humphrey van der Klugt to retire

    1 Sep 2003

    Humphrey van der Klugt, manager of the flagship Schroder UK equity and Schroder income funds, is to retire in January after nearly 22 years with the group. The £621m equity fund will be taken over by senior UK equity manager Christopher Metcalfe while the £475m income fund will be run by Nick Purves, Schroders' most senior equity income manager. Both will take over the funds on October 1.

  • Scot Prov sets up intermediary support centre for large protectioncases

    1 Sep 2003

    Scottish Provident has set up a team at its Edinburgh-based intermediary support centre to manage large protection cases with sums assured of £500,000 and over. Scottish Provident says this will mean cases are processed as smoothly and efficiently as possible and intermediaries are kept up to date with their progress.

  • Scottish Equitable International offers redemption to cash rich companies

    27 Aug 2003

    Scottish Equitable International has created a capital redemption version of its Dublin private client portfolio.The capital redemption private client portfolio differs from the company's existing portfolio bond in that no lives are assured. The capital redemption structure is more appropriate for businesses and corporate trustees because the death of an individual will not automatically result in the payment of benefits. Instead, the bond can be held over a term of ...

  • SEI adds bond to corporate range

    28 Aug 2003

    Scottish Equitable International is targeting IFAs advising the corporate market with the capital redemption bond. The bond is the latest in a series of Dublin-based products from ScotEq International since August 2002. SEI says the bond structure makes it popular with corporate investors because, with no lives assured, there is no compulsion to take benefits on the death of an individual. The plan can be held without interruption over a fixed term of 99 years. This ...

  • Societies hit 14-year loan high

    28 Aug 2003

    Building society gross advances hit £4.2bn in July -the highest figure since August 1988. The figures represent a substantial rise from June's gross advances which totalled £3.94bn and £3.6bn in July last year. Net advances were £1.58bn in July, up from £1.22bn a year ago, while approvals rose to £4.29bn from £3.79bn. Net inflows remain low, totalling £155m in July, up from last month's £65m but down ...

  • Stakeholder architect

    28 Aug 2003

    Stakeholder architect Paula Diggle is now involved in the Hutton Inquiry into the death of arms specialist Dr David Kelly. The civil servant is clearly seen as the person for the tough job, cutting her financial teeth forcing through the pension review, pivotal in the creation of the Isa and having helped set up Cat-standard mortgages. The Diary hears she is now giving advice to civil servants who have to go before the inquiry.

  • Stakeholder suite to fail if no advice costs - IFA survey

    29 Aug 2003

    The Government's stakeholder proposals must contain provision for advice if they are to increase consumer demand, according to an overwhelming 96 per cent of IFAs.

  • Standard Life carpetbagger has request quashed

    1 Sep 2003

    Standard Life carpet bagger David Stonebanks has had his hopes for assistance from the insurer in drafting resolutions for a special general meeting to vote on demutualisation squashed. The provider has written to Mr Stonebanks saying it would be unreasonable to expect the board to help with the drafting of a proposal which it believes would damage the company. It has also said there is no basis for his request for a judicial review of its decision to dismiss his last request for a ...

  • Summer fund sales stay hot with buoyant July

    28 Aug 2003

    Investment fund sales rose by more than 50 per cent in July compared with the same month last year. Investment Management Association figures show that net retail sales hit £863m last month, slightly down from £870m in June which had seen a big rise but significantly up on the £567m reached in July 2002. Net sales of Isas fell to £279m from £294m in June. The UK corporate bond and all companies sectors remained the most popular with investors ...

  • Survey shows widespread ignorance of IHT liability

    28 Aug 2003

    Over two-thirds of people have no idea where they stand on the issue of inheritance tax, according to research from Alliance & Leicester. Its quarterly wealth tracker index found that despite rising property prices which means that many people face potential IHT liabilities, 61 per cent of people had no idea what the current IHT threshold was. A further 16 per cent who hazarded a guess were nowhere near the correct figure of £255,000. A&L found that women ...

  • T Bailey Asset Management - Fortress Foundation Fund

    2 Sep 2003

    Type: Unit trust fund of funds Aim: Growth by investing in global equities through a portfolio of onshore and offshore funds Minimum investment: Lump sum £3,000 Investment split: UK 46.8%, US 19.1%, Europe 10.9%, Pacific Basin 5.5%, Emerging markets 15.8%, other 1.1%, cash 0.8% Isa link: Yes Pep transfers: Yes Charges: Initial 5%, annual 1.25% Commission: Initial 3%, renewal 0.5% Tel: 0115 9888200

  • Talkback

    28 Aug 2003

    Do you think that Abbey National can mount a significant challenge to HBOS's dominant position in the mortgage market? "I don't think they would succeed in becoming number one - they have a lot of problems which they are resolving slowly and their image has been affected by this." Michael Freedman, Bruce & Partners "They are going to struggle, to be honest. HBOS is so far in front." Clive Stainton, Reid & Co "I agree with that. I think that ...

  • The gilt complex

    28 Aug 2003

    In my last article, I started to look at the importance, for advisers and their clients, of identifying asset allocation within with-profits funds to help estimate likely future sustainable rates of bonus. I looked specifically at the important example of Equitable Life, whose with-profits fund, at least until recently, consisted of around 80 per cent Government bonds (gilts) and 20 per cent commercial property. I suggested that this asset allocation could be expected to yield ...

  • The lines

    28 Aug 2003

    As the consultation period for the FSA's mortgage regulation paper CP186 draws to a close this week, the Association of Mortgage Intermediaries has voiced its concern over a plan that would oblige intermediaries to conduct fact-finds before they can offer rate quotes over the phone. The FSA is proposing that intermediaries should conduct suitability assessments - effectively a fact-find - before offering quotes over the phone to consumers. Brokers get a lot of rate ...

  • The peak districts

    28 Aug 2003

    The housing market bubble is still showing no signs of bursting. Figures flowing in for July seem to point more towards the market stabilising, with some reporting no change in average asking prices between June and July. Property portal Rightmove believes the standstill is encouraging buyers back into the market. If this continues, it suggests brokers will be in for a busy autumn. In its house price index report for August, Rightmove says: "An element of this trend is ...

  • Thinc Group sets out multi-pronged strategy

    28 Aug 2003

    Zurich Advice Network franchisee Thinc Group is to launch a fee-based IFA, a multi-tie operating under the Zan umbrella, a mortgage broker and a commercial lender as part of its depolarisation plans. The London-based firm, which has 60 RIs spread across its five divisions, aims to grow to 500 by 2005. It is one of the first organisations to provide full details publicly of its proposition for a depolarised world. The IFA arm, branded Independent Solutions, will offer ...

  • Tiner pledging clampdown on record-keeping

    28 Aug 2003

    The FSA has criticised IFAs' record-keeping in a letter to industry leaders, including chief financial ombudsman Walter Merricks, and pledged to give full weight to record-keeping standards as part of proposals for enforcement on misselling. In a letter circulated to attendees of a June misselling round table and seen by Money Marketing, FSA consumer investment and insurance managing director John Tiner raises concerns that the industry is leaving itself open to misselling ...

  • UK workers miss out on over £745m in stakeholder pension contributions

    27 Aug 2003

    One and a half million UK workers have missed out on over £745m in stakeholder pension contributions since October 2001, according to HSBC. The bank says the missing millions are the result of a lack of significant incentives to encourage employer contributions, along with red tape facing employers who wish to run staff pension schemes.

  • Will others follow Templeton path?

    28 Aug 2003

    Franklin Templeton believes its decision to stop offering Isas and Peps could trigger a rash of similar moves from rival fund managers. Although it admits it is only a small player in the UK market, Templeton says the rationale behind its decision - that rocketing third-party business is increasingly rendering obsolete its status as a plan manager - applies to most companies. There is no question that many groups are enjoying rising levels of business from life companies, ...

  • Win a mountain bike

    28 Aug 2003

    You can win a top-quality mountain bike in our competition in support of Aegon Asset Management analyst John Smelt's ride to Rome for the Multiple Sclerosis Society In not quite as cold temperatures nor at such high altitudes as today's other intrepid financial services hardmen, Aegon Asset Management investment analyst Smelt is covering the furthest distance. Cyling from Edinburgh to Rome, he will cover 1,800 miles through four countries with no back up to raise at least £22,000 ...

  • Winterthur Life reports growth

    1 Sep 2003

    Winterthur Life has bucked the poor market conditions recording growth in new single premium pension business through IFAs of 21 per cent, increasing to £329m from £272m in the first half of the year.Trustee investment plans also increased, up 122 per cent to £92m. Income drawdown is up 10 per cent to £47m, group stakeholder up 261 per cent to £5m and defined contribution pensions up 169 per cent to £9m.

  • Yorkshire Guernsey - Equity Linked Bond

    1 Sep 2003

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £10,000-£500,000Term: Five yearsGuarantee: Original capital returned in full regardless of performance in indexReturn: 100% growth at end of termClosing date: September 23, 2003Commission: NoneTel: 0044148 1710 150

  • Yorkshire Guernsey - Equity Linked Bond

    1 Sep 2003

    Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £10,000-£500,000 Term: Five years Guarantee: Original capital returned in full regardless of performance in index Return: 100% growth at end of term Closing date: September 23, 2003 Commission: None Tel: 0044148 1710 150

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