Money Marketing
27 October 2004

  • 'IFA firms opting for independent TVAS providers'

    28 Oct 2004

    A big number of IFA groups are already asking advisers to use independent transfer value analysis systems and more will do so in the future, says TVAS provider O&M Systems. Director Graham Miller says most networks, including Sage Financial Services, Inter-Alliance and Burns Anderson, are already suggesting that advisers use independent reports for pension transfers. He says there is still a role for life offices' TVAS reports which are often used by advisers to ...

  • 'Income products best for protection'

    28 Oct 2004

    Income-based protection products are more suitable for the vast majority of consumers than lump-sum products, according to protection IFA LifeSearch. It says that although over 95 per cent of all protection products bought are lump-sum-based, nearly all consumers would find better value in an income-based product such as income protection or family income benefit. LifeSearch's fourth protection report says consumers feel more comfortable buying lump sum life cover ...

  • 'Multi-tie commission gap will be unsustainable'

    28 Oct 2004

    Falcon Group chief executive Allan Rosengren has questioned the sustainability of a future distribution system where multi-ties receive higher commission than IFAs. He was speaking at a debate on the future of the IFA at Money Marketing Live in Bristol this month. Rosengren was joined by other leading IFAs from the South west - Kilminster Financial chairman Malcolm Kilminster, White-church Network chairman Kean Seager and Akumulus managing director Steve Kelland - in ...

  • A new zeal for pension saving

    28 Oct 2004

    New Zealand retirement commissioner Diana Crossan has a message for the likes of Adair Turner who would advise politicians on pension reform: "You have to say it over and over again - people need to know it is happening." Crossan will be outlining her views at the ABI Saver Summit in London on November 2. She heads the Retirement Commission, an independent body set up by the New Zealand government to inform the public of the need to prepare for retirement. She says her ...

  • Abbey pulls two more mortgage products ahead of M-Day

    29 Oct 2004

    Abbey has had to pull two more mortgage products ahead of M-Day. The mortgages temporarily available are the deal for life and reward mortgages.This follows on from Friday October 22 when Abbey pulled its flexible mortgage products. Sales are therefore restricted to core mortgages only which are trackers and fixed rate mortages.Abbey press officer Helen Tochel says: "Our plan has always been to start with a restricted mortgage range and phase in the rest in the near future. ...

  • Accord changes criteria post regulation

    29 Oct 2004

    Accord Mortagges wil no longer seek proof of income for cases where the LTV is 75 per cent or less, under£500,000 and where the broker has given the client advice.A series of sense checks will still apply when the case is submitted and random sampling will take place where Accord will approach the employer or accountant directly for evidence of income.If the income has been exagerrated, Accord reserves the right t change the interest rate to SVR +1 per cent.Accord ...

  • Advantage Home Loans launches online KFI service for its brokers

    2 Nov 2004

    Advantage Home Loans has launched its online KFI production service covering all the products on offer from its branded lending partners. Head of sales Peter Bass says: "Being placed on so many mortgage panels it is imperative that we have a system which enables all our Brokers to access accurate and compliant KFIs for their client."

  • Advisers to be examined on LTCI

    27 Oct 2004

    New requirements for long-term care insurance come into effect on October 31 making all LTCI policies subject to FSA regulation. The new rules ensure an enhanced level of protection of all LTCI products including insurance-only pure protection and investment-based products. The changes include pre and post sale requirements, risk warnings and enhanced training and competence requirements for all LTCI advisers Existing advisers who are already deemed competent to advise on LTCI will ...

  • Aid for brokers who have left it late to register

    28 Oct 2004

    I refer to the recent article in Money Marketing regarding the fast-track system for assessing appointed representatives. At First4Brokers, we have devised a system that allows brokers to register with the network so that an initial assessment can be carried out and responded to quickly. In no way does it try to replace a formal assessment/ application that meets the full requirements of the FSA. What we have attempted to do is help brokers who for a variety ...

  • An added interest in saving tax

    28 Oct 2004

    The European Council directive on the taxation of savings income is intended to apply from July 1, 2005.

  • Analysts' fears over departures from Isis

    28 Oct 2004

    Fund analysts are concer-ned that the departures of James Foster and Mike Felton could be symptomatic of internal strife in the newly merged F&C and Isis. Analysts from Rowan & Co Capital Management say that while the merger of the two firms has created a fund manager with an imp-ressive track record, sudden departures were often signs of internal strife. F&C director of communications Jason Holl-ands says Foster accepted redundancy but the company found Felton's ...

  • Aquera rolls out next stage of its distribution software

    28 Oct 2004

    Software provider Aquera is launching the latest stage of its £8m distribution and admin software for financial services companies. The module will offer control over which users see which information on the platform. It can also produce real-time audit reports which meet compliance requirements. The software already allows users to do aggregation and valuations, new business compliance monitoring and complaints handling. Aquera is designing its system to ...

  • Axa Investment Managers - Capital Protected Fund Series 2

    2 Nov 2004

    Axa Investment ManagersCapital Protected Fund Series 2

  • B&W forms triple solution

    27 Oct 2004

    Bristol & West has established the portfolio bond, a capital-protected bond that is invested in three different elements to provide income and growth over a term of six years.Investors will need to have at least £30,000 to invest in this product. One third of the capital is invested in the guaranteed income account, a fixed-rate savings account which provides income of 7 per cent a year. Another third of the capital goes into the guaranteed FTSE account and will provide a ...

  • Bankhall Mortgages appoints head of mortgages

    1 Nov 2004

    Bankhall Mortgages announces the appointment of its first head of mortgages Richard Howells.The Bankhall mortgages division includes Premier Mortgage Service and Norwich Unionj Mortgage Club, both acquired by Bankhall along with Point One and Intermediary Mortgage Direct.Howells will work closely wih John Malone and will report to group business development director Peter Mann.Howells says: "Integrating our acquisitions with the existing mortgage operation will ...

  • Bond failings cost Capita £300k fine

    28 Oct 2004

    The FSA has hit Capita Trust Company, formerly Royal & Sun Alliance Trust Company, with a £300,000 fine for misselling precipice bonds. It says the company advised a total of around 500 clients to invest in a variety of precipice bonds between June 1997 and September 2002 and these clients suffered losses which totalled around £3.5m. In all 60 of the files reviewed by the FSA, it says the firm failed to take reasonable steps to ensure its customers understood ...

  • Boulger on Mortgages

    28 Oct 2004

    Compliant financial promotions for mortgages will look very different after regulation. This will affect not only advertisements in the press but also other media such as TV, radio, the internet, leaflets, etc. However, ads in publications with a long shelf-life, such as directories, will not have to comply with the new regulations immediately. If the business is FSA-authorised, an appropriate person in the business must approve all the promotions. If the business is not authorised, such ...

  • Bradford & Bingley enters into partnership with Legal & General

    1 Nov 2004

    Bradford & Bingley and Legal & General have announced today that they are entering into a new business partnership subject to final agreement. Under the arrangement, Bradford & Bingley will offer a range of Legal & General investment and protection products to its customers.It is anticipated that around 200 of Bradford & Bingley's wealth advisers and other staff will transfer to Legal & General from 3rd December 2004. The advisers, who will continue to be based in Bradford ...

  • Brand stand

    28 Oct 2004

    Most investment companies have cut their advertising budgets over the last four years. Findings from ad agency MMS showed that national press advertising by fund firms sank from £37.9m in 2000 to £6.9m last year following the implosion of Isa sales. New Star has bucked the trend, continuing with advertising since its launch in July 2001 regardless of unforgiving market conditions. Industry sources suggest its spend for 2004 will be around £3m. Marketing director ...

  • Bristol & West - Guaranteed Portfolio Bond - Issue 1

    1 Nov 2004

    Type: Capital-protected bond and high-interest savings account

  • Bristol & West launches new mortgage products

    1 Nov 2004

    Bristol & West will be launching the following products on Wednesday 3rd November 2004.STANDARD Discount 5.05% (variable) equal to 1.79% discount off SVR until 31/03/2007. Reverts to SVR. Max LTV 95%. Fees assisted. No extended tie. £299 arrangement fee. No legal fees (for remortgagers only) and valuation fee. MIG paid by Bristol and West Mortgages. Early Repayment Charge - 2% until 31/03/2007. Product code K7S Fixed 5.25% fixed until 31/03/2007. Reverts ...

  • Bristol & West launches new mortgage products

    1 Nov 2004

    B&W will be launching new products on November 3 2004.The products include a standard discount and standard fixed mortgage and self-certification opens.Bristol & West's Don Toller says: "We are very pleased to be able to lauch these in the same week as the start of mortgage regulation. We are very confident about M-Day."

  • Buckles Investment Services - Snowdonia Balanced Fund

    28 Oct 2004

    Type: Oeic fund of fundsAim: Growth by investing in UK and overseas equities, fixed interest and cashMinimum investment: Lump sum £3,000, monthly £50Investment split: 46% UK equities, 25% overseas equities, 25% fixed interest, 4% cashIsa link: YesPep transfers: YesCharges: Initial 5.27%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 01745 345 131

  • Buckles investment Services - Snowdonia Growth Fund

    28 Oct 2004

    Type: Oeic fund of fundsAim: Growth by investing globally in equity funds, fixed interest and cashMinimum investment: Lump sum £3,000, monthly £50Investment split: 51% UK equities, 26% US equities, 11% European equities, 5% Japanese equities, 4% Far East equities, 3% cash and fixed interestIsa link: YesPep transfers: YesCharges: Initial 5.27%, annual 1.5%Commission: Initial 3%, renewal ...

  • Buckles Investment Services - Snowdonia Income Fund

    27 Oct 2004

    Type: Oeic fund of fundsAim: Income and growth by investing in UK bond funds, UK equity funds, property and cashMinimum investment: Lump sum £3,000, monthly £50Investment split: 52% UK equities, 40% UK fixed interest, 5% property, 3% cashIsa link: YesPep transfers: YesCharges: Initial 5.27%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 01745 345 131

  • Buckles ties up with Premier

    28 Oct 2004

    IFA firm Buckles Investment Services is targeting other IFAs and their clients with its Snowdonia fund of funds range.The snowdonia Oeic consists of three funds - snowdonia income, snowdonia balanced and snowdonia growth. The management of the funds will be outsourced to different investment managers.The snowdonia income fund will be managed by Premier investment director David Hambidge, who joined Premier in 1987. He was part of the investment team which established ...

  • Buoyant Baronsmead

    28 Oct 2004

    The Baronsmead 2 VCT has taken almost a quarter of all money invested in the sector in the last month. Since its C-class share issue following the publication of a prospectus in September, 22 per cent of all new cash raised by venture capital trusts has gone to Isis-owned Baronsmead. At the first close on October 15, 2004, the Baronsmead 2 VCT had raised £6.15m of the £20m that it sought. This compared with the total of around £28m that was taken by VCTs ...

  • Cafe society has taken savings off the menu

    28 Oct 2004

    According to the recent report by the Pension Commission, the need to incentivise people to save and the cost of advice appear to be incompatible. The report also recognises that most people need to be motivated to save. After a working lifetime, if one person has a given sum for their retirement and the other has none, who is better off? The answer you might say is self-evident - the one who has the money. Quite so. In the early 1970s, like many others, I was ...

  • Call for finance to be part of main school curriculum

    28 Oct 2004

    A new qualification in financial services is unlikely to improve financial literacy, says Chelsea Financial Services managing director Darius McDermott. The Government is introducing the new AS level as it attempts to boost the level of financial education in the UK. But McDermott claims the exam will have little impact on financial knowledge unless it is backed up by a place on the national curriculum. A study by the Institute of Fiscal Studies found eight out ...

  • CBI calling for a moratorium on financial services regulation

    27 Oct 2004

    The CBI is calling for a moratorium on financial services regulation. Companies are being battered by a tidal wave of regulation, which threatens to undermine the sector's contribution to the economy according to its latest report. The CBI reveals widespread industry concern over how European regulation is implemented. The FSA responded that its approach is not to impose obligations beyond European directive requirements.

  • Charcol arranges morgage offer under statutory regulation

    1 Nov 2004

    Charcol has arranged its first mortgage offer under statutory regulation with BM Solutions online service.Charcol senior technical director Ray Boulger says: "Statutory mortgage regulation has caused the industry a lot of angst and many lenders were burning the midnight oil last night to make sure they were ready for the big day. This demonstrates that with the right approach and planning it's business as usual with the right broker and the right lender."

  • Chilton warns on outsourcing

    28 Oct 2004

    Contracting out regulated activities such as compliance services will cause unnecessary confusion for brokers after M-day, warns Purely Mortgages chief executive Mark Chilton. He says brokers which farm out compliance will be sending mixed messages to consumers. Under the new regulatory regime, brokers will have to disclose which company they are an authorised representative for. However, it is unclear whether this will be their parent group or the company that oversees ...

  • Clerical Medical launches pre A-Day guide for IFAs

    29 Oct 2004

    Clerical Medical is launching a printed guide to help financial advisers in the run up to, and through the resultant changes of A-Day.Clerical Medical says that with A-Day taking place in April 2006, this is an ideal time for financial advisers to be reviewing their client base to identify customers that may benefit from taking action on their pension arrangements now.Marketing manager pre-retirement planning Martyn Nethercott says: "Financial advisers are telling us they ...

  • Comment: Multi-Tie Edge

    28 Oct 2004

    MULTI-TIE EDGE: Ken Davy The future for the genuine IFA is becoming more positive by the day and rather than fearing the multi-tied dealmakers, IFAs in networks should use depolarisation as an opportunity to take control of their own destiny On reading in last week's Money Marketing that Prudential expects to take about a quarter of Sesame and Millfield/Inter-Alliance business I could not help but wonder whether they really have any idea of what they are talking about or ...

  • Confidence in BTL still high despite rate rises

    28 Oct 2004

    Landlords still have confidence in the buy-to-let property market despite slowing house prices and an increase in the cost of borrowing, according to research by Mortgage Trust. The research, based on 350 replies from residential landlords, found that 90 per cent would not consider selling their investment property because of rising interest rates. Forty-nine per cent say they will stay with their existing lender while 22 per cent will consider changing lender. The ...

  • Confusion over declaration of fees on KFIs says Paradigm

    29 Oct 2004

    Paradigm Consulting consultatnt Chris Fleetwood says there is some confusion over the declaration of commission on KFIs.He says, packagers with a branded-lending arm will have to show the whole fee on the KFIs. But pure packagers, which are not regulated wont have to show the fee.Fleetwood says: "This potentially could be very confusing."

  • Constructive approach

    28 Oct 2004

    I wanted to respond to Mark Dampier's letter (Money Marketing, October 21). The Bates analysis that MM used to write the story aimed to point out that even during periods where stockmarkets were flat, there are funds in both the UK all companies and UK equity income sectors that have demonstrated the ability to deliver returns of at least the equivalent of 5 per cent a year. The research took in four flat periods and it identified a number of funds which met the 5 ...

  • Consumer will benefit from regulation- Moneynet

    2 Nov 2004

    FSA regulation of the mortgage market will bring greater transparency for consumers says data comparison service Moneynet. Chief executive Richard Brown said the new rulings should clarify many areas which were previously slanted in the lender' and brokers' favour.

  • Countdown conundrum

    28 Oct 2004

    Ray Boulger,senior technical manager, Charcol The concerns of distinguished chartered accountants surfacing over the weekend that anyone who has taken out a home-reversion scheme could be caught by the new tax on pre-owned assets as set out in this year's Finance Act, resulting in some cases in their income tax liability increasing by thousands of pounds per annum, should be a concern to all financial advisers as well as those with a home-reversion plan. In future, in order ...

  • Critical problems for principals

    28 Oct 2004

    With days to go before statutory mortgage regulation, we cannot but think we told you so. As long as two years ago, we the undersigned constantly told our lender panels, the industry and journalists of the likely outcome as to the number of firms becoming directly authorised (that is, 70 per cent of mortgage intermediary firms) but still requiring the help and support of a mortgage club. Amazingly, some very big lenders have been predicting - and still are - the absolute opposite, ...

  • Davy slams 'multi-tie madhouse'

    28 Oct 2004

    DBS founder Ken Davy has slammed providers for creating a "multi-tie madhouse" ahead of depolarisation. Simply Biz chairman Davy has hit out at reports that Prudential plans to take 25 per cent of Sesame and Inter-Alliance's business after depolarisation. He says the last thing IFAs need to be told is that they will be "expected" to advise a quarter of their clients to take out a Pru policy. But Sesame commercial director Martin Davis says the industry is ...

  • Delays on the feeway

    28 Oct 2004

    But many investment companies say they would not replace annual management charges with performance fees as a trade-off for access to multi-ties. With the date for depolarisation now set, debate has grown over what will be the best way for fund firms to get on multi-tie panels. An increasing number of asset managers are doing research into the relative costs of performance fees and AMCs so it seems likely that more funds will make the transition. It is a tough ...

  • Destini sets out strategy after stress

    28 Oct 2004

    Over 150 Destini IFAs met last week at the group's first conference after what a spokeswoman for the firm described as a "stressful" period for the IFA sector. Intermediaries and senior managers met in Coventry for the company's first annual conference to hear about business plans and updates on the business model. Destini, which was formed in November 2002, has made 22 acquisitions in the last two years and has more in the pipeline. It achieved a £27m turnover. Desti

  • Direct Life tries to simplify life cover questions

    28 Oct 2004

    Direct Life has set up a new underwriting system based on the US model which it says will transform life cover in the UK. Express Underwriting presents customers with a single-page application form requiring no medical or family history detail. Once this is received by Direct Life, an adviser will take the customer through more detailed questions, helping them to understand the nature of the questions fully. All conversations will be recorded. Direct Life believes the ...

  • Don't get hurt in network crash

    28 Oct 2004

    The network has been a very convenient model through which to do business. Ever since the Financial Services Act 1986 came into being, the opp-ortunity to "network" has been exploited. The best way to describe a network is a "regulatory principal and agent relationship". The appointed representative model makes absolute sense to the smaller financial services business. The tradeoff involves the agent (network member) giving up control of their business. The cost of running ...

  • Enterprise Homeloans receives FSA authorisation

    29 Oct 2004

    Enterprise Homeloans announces it has received formal authorisation from the FSA to be an arranger.Enterprise is a private company specialising in the marketing and packaging of non-conforming morgages for the Zurich Advice Network and the Zurich Mortgage Network.Enterprise chief executive Michael Clapper says: "In light of the sentients throughout the industry, it would have been foolish to continue to plan for an unregulated future and swim against the tide. Our customers ...

  • Ernst & Young say settlement with Equitable possible

    27 Oct 2004

    Ernst & Young UK chairman Nick Land says an out of court settlement with Equitable Life is possible ahead of the April high court trial. Speaking at an analyst conference, Land says an out of court settlement would save both parties costly legal fees. Equitable Life chairman Vanni Treves says it will listen to any offer, but such is the strength of its case against Ernst & Young, any settlement would need to be 'sincere, serious and substantial.' Treves says: "If E&Y ...

  • Fidelity chief aims to develop new thinking on emerging markets

    28 Oct 2004

    IFAs need to stop thinking of India and China as emerging markets and rename them developing markets, says Fidelity fund manager Arun Mehra. Mehra, head of investment strategy for the Fidelity India focus fund, thinks investor mentality towards India and China needs shifting. He says it would be more helpful for investment opportunities if the countries were referred to as developing markets rather than emerging markets. Fidelity's fund is a bottom-up portfolio of ...

  • Fidelity hopes for Indian summer

    2 Nov 2004

    FIDELITY INVESTMENTSFidelity Funds India Focus FundType: Sicav Aim: Growth by investing in Indian companies and companies deriving their income from India Minimum investment: Lump sum £1,000, monthly £50 Investment split: 100% in Indian companies and companies deriving their income from India Place of registration: Luxemburg Charges:Initial 3.5%, annual 1.5% Commission: Initial ...

  • Financial services to be more hostile to fraudsters - FSA

    27 Oct 2004

    The regulator intends to make the financial services sector a more hostile environment for fraudsters according to FSA financial crime sector leader Philip Robinson. The FSA is launching a fighting fraud in partnership initiative pledging to look more closely at how firms address and manage their fraud risks. It will crack down on criminals posing as legitimate financial businesses and encourage companies to make it easier for employees to report with confidence any wrongdoings within ...

  • Firms failing authorisation can trade on for a year

    28 Oct 2004

    Mortgage firms which fail the FSA authorisation process can continue trading for another 12 months while they wait for an appeal. Under a Treasury ruling, mortgage firms applying for authorisation which are turned down by the regulator will be able to continue trading as interim authorised while they wait for a tribunal hearing. Although firms will have to disclose their interim-authorised status to consumers, some industry figures are concerned that this may lead consumers ...

  • First State compelled by China

    28 Oct 2004

    FIRST STATE INVESTMENTSFirst State Greater China Growth FundType: Ucits Aim: Growth by investing in companies based in or which derive their income from the People's Republic of China, Hong Kong and Taiwan Minimum investment: Lump sum $1,500 Investment split: Hong Kong 45.1%, Taiwan 26.5%, other 28.2%, cash 0.2% Place of registration: Dublin Charges: Initial 5%, annual 1.5% Commission: Initial up to ...

  • First State looks East

    28 Oct 2004

    First State will offer UK investors access to three Irish variable-capital company funds through a new sterling share class in its global umbrella fund. Changes in the definition of offshore funds, introduced by the Finance Act in July, allow individual sub-funds of umbrella funds and share classes to be granted UK distributor status in their own right. Previously, UK distributor status could be granted only to the umbrella fund, which meant all sub-funds and share classes had ...

  • Friends gives access to Activ platform via trustee plan

    28 Oct 2004

    Friends Provident is introducing a trustee investment plan aimed at defined-benefit schemes which offers access to its Activ funds platform. The New Generation plan will enable trustees of big corporate pension schemes to invest in a range of external funds from 12 fund managers as well 20 in-house portfolios. The Activ platform, launched earlier in the year as the group's open architecture proposition, houses 48 funds. Aside from the Friends Provident range, advisers ...

  • FSA cuts mortgage firms' FSCS levy by nearly half

    28 Oct 2004

    Mortgage intermediaries' contributions to the Financial Services Compensation Scheme will be almost half the amount originally proposed. When statutory mortgage regulation starts next week, mortgage intermediaries will be subject to FSA, Financial Ombudsman Service and FSCS fees, just as IFAs currently are. The FSA says the levy that the FSCS will take from mortgage intermediaries has been cut from 1.5 per cent to 0.8 per cent of a firm's annual income. The same ...

  • FSA fears see smoothed fund ditched from suite

    28 Oct 2004

    A smoothed with-profits-style fund has been dropped from the stakeholder suite of products because of the FSA's concerns over comparisons with unsmoothed products. The regulator will implement the basic advice regime to support stakeholder products from April next year but although it is confident that investors can understand the concept of smoothing, its consumer testing revealed difficulties in comparing smoothed and unsmoothed vehicles. This is expected to preclude them ...

  • Fund firms urged to adopt active lifestyle

    28 Oct 2004

    Fund managers need to offer investors better lifestyle products that reduce risk over time, says Bates Investment Services. Research from the IFA company shows that passive lifestyle products can lead to investors losing out since the investment can move out of equities without regard to what the wider economy has done. The analysis from Bates concludes that actively managed lifestyling, rather than a sca-ling down of equities in fixed periods, is needed to make the most ...

  • Fund looks to capitalise on rising commodities prices

    28 Oct 2004

    One of the first UK funds to offer direct exposure to commodities has been launched by Dawnay Day Quantum. The protected commodities accelerator runs for four years and gives full capital protection. It has a minimum investment of £15,000 for retail investors, who can gear their holding by 1.6 times their original investment. The investment period closes on November 12. The fund is split equally between investment in crude oil, heating oil, natural gas, aluminium, ...

  • Gang of four

    28 Oct 2004

    Last week, I summarised four main points for financial advi-sers emerging from the consultation on trust taxation reform: •The proposed anti-avoidance provisions in respect of capital gains made by trustees of bare trusts for minors. •The proposed common definition of a trust. •The proposed definition of settlor-interested trusts and •The proposed common trust residence definition. Bare trusts for minors The most important point ...

  • Gartmore and Schroder put Fots on Funds Network

    28 Oct 2004

    Four multi-manager funds from Gartmore and two from Schroder have been put on FundsNetwork. The Gartmore funds, managed by Bambos Hambi, are the active, cautious, global high alpha and UK high alpha funds, all launched last month. The Gartmore portfolio balanced strategy was already available on the platform. Schroder's funds, managed by Andrew Yeadon, are the S&P high alpha portfolio and strategic balanced portfolio. FundsNetwork was launched in June ...

  • GE bids to enhance annuity sales

    28 Oct 2004

    Up to 40 per cent of people qualify for an enhanced annuity but take-up is less than 10 per cent, according to research from GE Life. A total of 330,000 annuities were sold last year but only 100,000 were bought on the open market despite FSA comparative tables revealing that the difference between best and worst annuity rates can be as high as 30 per cent. ABI figures show that 75 per cent of annuities are sold through advisers and 46 per cent of individuals using advisers ...

  • Generalist angle from Downing Electra

    1 Nov 2004

    Downing Corporate Finance is raising up to 40m for the Electra Kingsway VCT 2, a generalist venture capital trust managed by Electra Quoted Management, a subsidiary of Electra Partners.

  • Go by the rulebook

    28 Oct 2004

    Chris Cummings, director,Association of Mortgage Intermediaries The FSA has a wonderful phrase - policing the perimeter - to describe the activities of catching the bad guys. Many firms which fell at the regulation fence will accept their lot and become introducers until approval comes through or go into the truly unregulated markets but others may be tempted to buck the system and carry on in the mortgage market. The FSA has said it is a priority to catch miscreants, ...

  • Hay aims for a simpler policy

    28 Oct 2004

    James Hay has reintroduced its Select Sipp to the market with a new simplified application process. The Select Sipp has been off the market for seven months and is being sold as a low-cost alternative to the traditional Sipp charging structure. It has a 0.75 per cent annual charge that covers all the fees typically associated with a Sipp with the exception of commercial property. Clients get access to more than 150 institutional and retail funds provided by a range of ...

  • IFAs shunning mortgage-sourcing systems

    28 Oct 2004

    Under half of intermediaries are using mortgage-sourcing systems, according to consultancy Huntswood. Speaking at a Huntswood Outsourcing round table meeting, Council of Mortgage Lenders director general Michael Coogan expressed concern that more intermediaries were not using sourcing technology. He said the FSA would pay attention to concentrations of applications after M-Day and could track whether advisers were placing a lot of business with a particular provider. ...

  • Independent view

    28 Oct 2004

    I have just finished presenting at a series of roadshows for Scottish Widows on the twin subjects of pension simplification and the effect of depolarisation on the IFA community. Hundreds of IFAs attended what was a superbly well organised series of events and Scottish Widows head of market development Ian Naismith provided an incisive insight into the planning issues in the runup to A-Day. There is a lot of work to be done. My job was to give my opinion on the impact ...

  • Infinity Mortgages chief executive says lenders have no excuses

    29 Oct 2004

    Infinity Mortgages chief executive Matt Gilmour says lenders have no excuses not to be ready for mortgage regulation on Monday November 1.Gilmour says those lenders who have not tested their systems for an extended period before M-Day may face up to two weeks' worth of chaos.Infinity Mortgages has been ready with its KFIs for brokers to view and get used to since September 23.Gilmour says: "A lot of our competitors are not ready. And to be completely honest, ...

  • Investment view

    28 Oct 2004

    While relaxing in sunnier climes than those available to us in these rain-sodden shores the other week, I found myself reading a local English language newspaper aimed at both expatriates and tourists. The expatriate focus was very clear. There was an article by an IFA on how those living on this particular island might invest for income and this was no offshore specialist, at least so far as I could tell. Perhaps it would be fairer to say that the name at the foot of the article ...

  • It'll be all white on the night

    28 Oct 2004

    Combating money laundering has become a world issue, especially since 9/11. Anyone operating in the financial services sector can feel its creeping impact, from having to produce client ID to receiving training on the principles and processes of anti-money laundering regulation. Understandably, many of the intermediary firms we speak to view the recently tightened monitoring and reporting requirements as an added strain on already stretched resources and, therefore, an unwelcome ...

  • Johnson faces CBI clash on pensions

    28 Oct 2004

    The CBI is on a collision course with the Government over pension compulsion. At the CBI pensions conference, Work and Pensions Secretary Alan Johnson said: "We are focusing our attention on compulsion and there are things we could and should do on compulsion in the short to medium term." Johnson said the DWP will look at the different ways that compulsion could be carried out between now and Pension Commission chairman Adair Turner's second report, expected next year. But ...

  • Johnson to speak at ABI summit

    27 Oct 2004

    Minister for Work and Pensions Alan Johnson will be the main speaker at this year's ABI Saver Summit. Johnson will lead debate on Saving for Retirement: Today's Problem, Tomorrow's Solution at the QEII Conference Centre, London on Tuesday, November 2. Other speakers include New Zealand's retirement commissioner Diana Crossan and Professor John Hills from the pensions commission.

  • Julian Gibbs

    28 Oct 2004

    Cautious investors, trustees and the elderly are always looking for cautiously managed funds which show good returns. In my opinion, the best of these is the Ruffer income fund managed by Henry Maxey (AAA-rated by Citywire) and John Wong, with the help of Jonathan Ruffer and Steve Russell. Ruffer has over £1bn funds under management and is privately owned by the founding shareholders and management. This fund, which was launched in 2000, aims to provide a dependable ...

  • Key fits for Midshires

    28 Oct 2004

    Birmingham Midshires is feeling pretty proud of itself as, three weeks before regulation, it had its key features information ready for brokers to view and trial. Head of product strategy Steve Sandiford says: "We have been planning for this for two years. Essentially, everything had to go online and the sheer complexity of getting ready had to take this long but we are ready to go." One of the main issues with KFIs is to make it easier to submit changes when, for example, ...

  • Klonowski follows in Australian's footsteps

    28 Oct 2004

    An IFA is changing his business model following correspondence with an adviser from Australia who appeared in Money Marketing. Sole trader Francis Klon-owski will outsource all his investment advice after reading about the success of Australian David Haintz. Klonowski and Haintz have been writing to each other ever since the Australian had an article published in MM describing how he had abandoned fund picking for his clients and was focusing on advice. After ...

  • L&G/FSA judgement expected in new year

    28 Oct 2004

    A judgment in the Financial Services and Markets Tribunal between Legal & General and the FSA is expected in the New Year. After six weeks in court the tribunal hearing, in which L&G is contesting a £1.1m fine for endowment misselling, drew to a close last week. The three-man tribunal panel, headed up by chairman David Mackie, are now considering all the evidence.

  • Lagging behind on marketing

    28 Oct 2004

    I was not surprised to hear IFAs criticise the marketing methods adopted by financial services companies in H2B's latest research. Too many companies in int-ermediated industries persist in the belief that brand adver-tising is the be all and end all of expanding the customer base. Although brand building through mass advertising is an essential component of the marketing mix, establishing and nurturing relationships directly with consumers and with the IFA community is arguably ...

  • Legal contracts from lenders are too late says Genesis

    29 Oct 2004

    Genesis business development director Nigel Gardner says legal contracts from lenders are only now arriving on his desk to be signed.Lenders have been revising packaging agreements but seem to have left it too late according to Gardner.Lenders have been asking for the contracts to be signed and sent back by November 1. But Gardner says he has been receiving contracts as late as last week and one even arrived on Friday October 29. Gardner says: "There is no way ...

  • Legal threat to FSA over Network 300

    28 Oct 2004

    Group 300 chief executive Chris Batten says the firm could bring a case against the FSA over its treatment of collapsed IFA network Network 300. Network 300 was placed into administration when the FSA removed its authorisation, blaming insufficient resources. Batten says the FSA would not allow £1.2m spent on developing new technology to be counted as an asset, affecting the network's solvency and forcing it into administration. The FSA says N300 dec-lined ...

  • Lending library

    28 Oct 2004

    Doing a reasonable imitation of Shere Khan from the Jungle Book, the FSA has put itself forward as a user-friendly regulator, suggesting there is no need for mortgage advisers to have a third party in the regulatory relationship. This might have been vaguely believable were it not for the fact that this is the same FSA that one IFA firm has recently appealed to the European authorities over its excessive zeal. Just as the onset of regulation in the investment market made networks ...

  • LIA's view

    28 Oct 2004

    So, at last, the LIA and Sofa will merge. Members had the last word, and it was overwhelmingly yes. Despite the underlying support for the merger, the last few months have seen an interesting upsurge of comment from a few people who emphasise disunity. It seemed to me throughout the sometimes furious questioning and debate that there was a mismatch between the anti views expressed and the views of the vast majority of advisers. That creating a single body to achieve professional ...

  • Life companies are split on extending IFA levy subsidy

    28 Oct 2004

    Product providers are split over increasing their IFA subsidy for the Financial Services Compensation Scheme levy. A first vote on extending the levy subsidy is understood to have been inconclusive as not all members responded. This vote saw four major players support an increase, four vote against and four abstain. A second letter has been sent to providers asking them to vote again on increasing this year's subsidy. Money Marketing under- stands ...

  • Life companies struggle for IFA repeat business

    28 Oct 2004

    Some life insurers are finding it harder to get repeat business from IFAs, according to data from financial research company Henry Samuels Marketing Services. Most life companies gain high penetration levels within the intermediary sector, with some product providers used by 90 per cent or more of the IFA population. But only a small number of these advisory firms give these providers regular repeat business. A study of 300 IFAs shows that three out of 10 major life offices ...

  • Liontrust seeks safety in gilts

    28 Oct 2004

    The Liontrust distribution fund will favour gilts over corporate bonds to avoid default risk. The portfolio, set to launch in early December, is targeting a 65/35 per cent asset split in favour of gilts, with the balance invested in a mirror portfolio of the Jeremy Lang-managed Liontrust first income fund. Liontrust believes the lower risk profile of such a portfolio, which qualifies for Isa investments, will differentiate it from rival firms' distribution portfolios, ...

  • Lipper acquires Fitzrovia International

    27 Oct 2004

    Fund information providers Lipper has acquired research specialist firm Fitzrovia International for an undisclosed fee. Lipper, a wholly owned subsidiary of Reuters, bought Fitzrovia for its abilities in providing information on total expense ratio analysis for funds outside the US. The combined business will aim to provide clients with a global fund expense and data service in its software, datafeed and consulting products.

  • Merrill Lynch Investment Management - Merrill Lynch Greater Europe Investment Trust

    27 Oct 2004

    Type:Investment trustAim: Growth by investing in European companies including emerging European marketsMinimum investment: Lump sum £1,000, monthly £50Investment split: 29% financials, 10% resources/energy, 9% non-cyclical consumer goods, 8% cyclical services, 7% telecommunications, 7% cyclical goods, 5% basic industries, 5% technology, 4% utilities, 16% otherTypes of share: Ordinary sharesIsa link: YesPep ...

  • Miton targets advisers with special sits fund

    28 Oct 2004

    Multi-manager specialist Miton Investments is planning to establish itself in the IFA market with its fourth fund of funds. The firm, which was founded in 1986, provides funds of funds and bespoke portfolios to UK and overseas investors, including discretionary portfolio managers. Its investment team wanted to build up a track record before rolling out its funds to the wider IFA market. The new CF Miton special situations fund is based on a pension fund that ...

  • Money Portal sets up fund admin platform service

    28 Oct 2004

    The Money Portal will launch a fund admin platform service designed to compete with the admin services of a major international bank. TMP has appointed three leading investment experts to run the business which provides distribution and admin services for fund management companies. It has recruited John Ellis from JP Morgan Fleming Asset Management as head of the service and executive director on the board. At JPMFAM, he developed strategic links with major banks and ...

  • Mortgage brokers concerned with paperwork for customers says AMI

    29 Oct 2004

    Association of Mortgage Intermediaries policy officer Ben Stafford says there are concerns with the amount of paperwork being given to customers.The single consistent issue being brought up by intermediaries according to Stafford is the consumer may be "weighed down" with paper IDDs, KFIs and additional specific paperwork.Although Stafford applauds the positive affect this will have on the industry, several brokers have been voicing their concerns.Stafford says: ...

  • Mortgage Express unable to accept online business

    1 Nov 2004

    Mortgage Express is unable to accept online applications for the next week or so.Mortgage Express warned brokers it may not be ready for M-Day due to the immensity of the task.Mortgage Express media relatins officer Daniela Conte says: "We have fully compliant KFIs ready but not our online service. We hope to have online applications up and running by Monday next week. Until then, any business has to be submitted in paper format."

  • Mortgage Express' KFIs may be temporarily unavailable on Nov 1.

    29 Oct 2004

    Mortgage Express has written to brokers warning them that their KFIs may be temporarily unavailable on November 1 when M-Day kicks in.Mortgage Express hopes this will not be the case but wrote to the brokers as a precaution. Mortgage Express media relations officer Daniela Conte says: "We have had double the pressure as we have also been introducing a new processing system."

  • Mortgage holiday is labelled as arrears

    28 Oct 2004

    Lenders' IT systems can recognise mortgage payment holidays as mortgage arrears,leaving customers with poor credit ratings, warns a Wolverhampton IFA. Kingstons IFA Andrew Clothier says the issue came to light when Woolwich refused his client a mortgage despite the client having never missed a payment with her mortgage with Halifax. Woolwich refused her application because in the previous 12 months only 11 payments had been made on her mortgage. The client had taken ...

  • Multi-Manager View

    28 Oct 2004

    The wisdom of taking bets on asset allocation is a frequent topic of conversation with financial advisers. We take the conservative view that the neutralisation of asset allocation risks is the most appropriate approach for our products and market. If a multi-manager is taking big bets on behalf of clients, there are three possible outcomes. If he consistently gets them wrong, he will detract a great deal of value from clients' portfolios. If he gets some right and ...

  • Networks with Part IV authorisation from the FSA

    27 Oct 2004

    The following networks have received their part IV, full authorisation from the FSA in readiness for mortgage and general insurance regulation:Arden CourtBDS Mortgage GroupBest Advice Mortgage NetworkBlue PearlBurns-Anderson Independent NetworkCartelClassic Network SolutionsCompassComplete Mortgage and Loan ServicesComplete Mortgage & Loan ServicesDestini Network ServicesDirect Life & PensionsEthical Mortgage SolutionsEnable Mortgage ...

  • New Star merges £8m growth fund

    28 Oct 2004

    New Star has merged its £8m UK growth fund of funds into its balanced £152.7m fund of funds portfolio. Shareholders approved the merger of the UK growth fund a fortnight ago after a disappointing performance. It had pure equity exposure while the portfolio has 50 per cent in equities, 15 per cent in fixed interest and the rest spread across international equities. Investors were told in a letter that they would have the option of reallocating their investments ...

  • Nick Kirwan

    28 Oct 2004

    Nelson Mandela once said: "Education is the most powerful weapon which you can use to change the world." Inspired by such words from his idol, Scottish Widows cover and protection marketing director Nick Kirwan is passionate about rebuilding consumers' faith in financial services. He is regularly working with the ABI to try to help the industry avoid the banana skins that have left the reputation of financial services battered and bruised. Over the course of his 26-year career ...

  • Nikko sells Mortgages plc shareholding to Merrill Lynch

    1 Nov 2004

    Nikko Principal Investments, the majority shareholder and management shareholder of Mortgages plc has sold its shareholding to Merrill Lynch.Mortgages plc, the specialist non-conforming mortgage lender will retain its name and continue to operate as a wholly-owned subsidiary of Merrill Lynch. The terms of the deal were unavailable.Nikko acquired a majority shareholding in Mortgages plc in December 2001.Mortgages plc chief executive officer Trevor Pothecary says: ...

  • November 1 - mortgage regulation is finally here.

    1 Nov 2004

    November 1 means mortgage regulation is finally here.The FSA takes over responsibility for regulating mortgage lending, administration, advice and arranging.From November 1, customers will be able to check whether a broker is authorised or an appointed representative by looking at the FSA website.If you have any interesting experiences in the first week of the mortgage regulated environment, or would like to express your views on regulation, please let us have your ...

  • NU back with plan pledging 20% return over six years

    28 Oct 2004

    Norwich Union is offering a second tranche of its guaranteed growth plan featuring a minimum return of 20 per cent. The plan has been designed to provide a return of 20 per cent after six years, regardless of what happens in the FTSE 100. Alternatively, it will return 60 per cent of the growth of the FTSE 100 - averaged over the last six months of the plan - whichever is higher. The plan is a six-year single-premium product and will be available for six weeks from 1 November. ...

  • Nvesta - Secure Multi Tracker Plan 2

    29 Oct 2004

    Type: Guaranteed equity bond

  • One-sixth of children give money to parents

    28 Oct 2004

    Sixteen per cent of children help their parents with money, according to research carried out by Mori for Norwich Union. Twenty per cent of children said they regularly advise their parents on financial matters and 11 per cent help their parents by paying bills. Eighteen per cent of under35s give their parents financial assistance compared with 15 per cent of over-35s. The Mori survey, which was carried out in March, questioned 300 children aged between 21 to ...

  • Package deal

    28 Oct 2004

    Some packagers will be falling outside the regulatory net after October 31. What regulatory risks are posed for lenders and intermediaries who use them? Webb: It is true that some packagers will be regulated by the FSA and some will not. Those which will not are ref-erred to as pure packagers. A pure packager is one which does not undertake an activity requiring regulation. Lenders and intermediaries alike must satisfy themselves that any packager with which they deal will add ...

  • Park Row says lenders should have been more open

    29 Oct 2004

    Park Row managing director of mortgages Kevin Paterson says lenders should have been more open with their information in the lead up to M-Day.Paterson says sourcing systems are suffering because of the attitude of lenders. Paterson says: "The whole industry should be more open as standard."Paterson also says Park Row will not be doing business with Alliance & Leicester as the lender has said it will be restricting the amount of business it does with individuals and firms ...

  • PFS looks to develop identity after merger gets go-ahead

    28 Oct 2004

    The Personal Finance Society is developing its corporate identity and branding following the overwhelming yes vote to the merger between the LIA and Sofa. As well as a new logo, work has started on creating a membership register through the merging of the LIA and Sofa databases. The PFS aims to send out membership cards as soon as possible. The distribution of membership cards, including members' new designations, derived from the national qualifications framework, ...

  • Platform launches online pre-sales KFI

    1 Nov 2004

    Platform has launched its online pre-sales key facts illustration, accessible via the Platform website.Platform has pre-registered over 3000 users. Those who are notpre-registered can visit Platform's website and follow a number of simple steps to register for the service.Platform says completion of the pre-sale KFI takes only five minutes, and is produced as a printable pdf document.Sales and marketing director Guy Batchelor says: "We fully support the ...

  • Popular choice from Universal

    1 Nov 2004

    UNIVERSAL BUILDING SOCIETYTwo Year DiscountType: Discounted-rate mortgageDiscounted term: Two yearsDiscount: 2%Payable rate: 4.79%Minimum loan: £20,000Maximum loan: Up to 95% of valuation subject to a maximum of £150,000, up to 90% of valuation subject to a maximum of £200,000, up to 85% of valuation subject to a maximum of £225,000, up to 80% of valuation subject to a maximum ...

  • Positive rating in poll

    28 Oct 2004

    Berkeley Independent and Positive Solutions are the IFA service providers most highly rated by members, according to research from Henry Samuels Marketing Services. Highest-rated networks are Berkeley Independent and, although not strictly a network, Positive Solutions, tying for first place with a rating of 4.3 out of five. Burns Anderson is second with 4.1 and Bankhall Investment Strategies third on 4. Clerical Medical tops the IFA satisfaction table with 4.3 followed ...

  • Premier Mortgage Services md says be positive on regulation

    29 Oct 2004

    Premier Mortgage Solutions md John Malone says the industry should take the positive view on regulation.He says anything that promotes such a big change is bound to create some problems - especially with the new technology systems. Malone says the market looks as if it is slowing down and the lenders and inermediaries will not be doing the same volumes.Malone also says the FSA "has not been wonderful in assisting the market to transactt business."Malone says: "Some ...

  • Pressure points for M-Day

    28 Oct 2004

    Mortgage Day is upon us and the last frantic efforts to comply with the FSA regime are under way. What is clear is that some organisations are in a much better state than others. The pressure points are obvious - key facts illustrations, pressure on sourcing systems and new broker networks which may not achieve the required membership. No doubt, many lenders and the already regulated intermediary businesses are also concerned about that FSA knock on the door. It is very ...

  • Prestbury shares surge as it reveals sale talks

    28 Oct 2004

    The share price of IFA network Prestbury more than doubled last week as the firm announced that it is in sale talks with a major company. Prestbury told the Stock Exchange last week that it was considering putting itself up for sale as part of a strategic review. Last week, the share price climbed to 30p from around 12p before falling back again. At the time of going to press, the share price stood at 23p. In June, the firm was forced to issue a second profit ...

  • Product Matters

    28 Oct 2004

    One thing that continues to surprise me about small boutique firms which genuinely offer true growth potential is that they get overlooked by the majority of the market. One such firm is Saracen Fund Managers. The firm is based in Glasgow and was set up in March 1999 with the launch of its growth fund. To date, the fund is a little under £14m in size. This is the only fund it manages but because it is small in size, this generally deters people from investing. This should ...

  • Pru multi-tie will launch pension return

    28 Oct 2004

    Prudential will use its multi-tie operation to launch back into the personal pension market after a two-year absence. The firm is launching a stakeholder-friendly basic personal pension in the first half of 2005 and a stakeholder price-buster in the second half of the year. Pru has been focusing on group personal pensions, inc-luding stakeholder, during its absence from the personal pension market but says the economics of a 1.5 per cent price cap are attractive. Despite ...

  • Pru on a winner with callback

    28 Oct 2004

    I have had my first experience of Prudential's callback phone procedure and would like to make the following comments: I am overjoyed that the company has chosen to install such a system. You keep your position in the queue and can get on with your work until Prudential calls you back. The result is no more overdosing on Vivaldi (or other musak), huge reduction in frustration, massive increase in the feelgood factor among IFAs such as myself for Prudential and in ...

  • Pru points to perks for multi-ties

    28 Oct 2004

    Prudential says multi-ties will get more commission, may have their FSCS levy paid and could get cheaper PI than independent advisers. Outlining its vision of the depolarised world, Prudential told Money Marketing how it envisages entrepreneurial intermediaries operating joint whole-of-market and multi-tied businesses. These advisers would be able to swap hats in mid-conversation with clients between offering a whole-of-market or multi-tied service. It is also thought ...

  • Pru polarises views

    28 Oct 2004

    Prudential has shown its hand on its multi-tie strategy in dramatic fashion with its move to add Millfield to Sesame in its list of strategic partners. Pru says it will offer more commission and multi-ties could get better deals on PI and compensation scheme levies. The numbers may begin to tempt many advisers. Others are having none of it. SimplyBiz's Ken Davy warns this week of multi-tie madness. Falcon Group's Allan Rosengren suggests that a system of higher commission ...

  • Prudential plans compensation for poor service

    28 Oct 2004

    Prudential is planning a system where it could make payments to advisers if service standards are not met. As part of a major service overhaul, the company says firms could receive compensation for poor service in the same way that pizza delivery operations give free pizzas where deliveries are late. As part of its preparation for depolarisation, Prudential is doubling the size of its IFA salesforce, is recruiting 30 per cent more front-office customer service staff and ...

  • Purely Mortgages chief executive on M-Day

    29 Oct 2004

    Purely Mortgages chief executive Mark Chilton says the FSA should have given the industry a transitional period to prepare for M-Day.As a result of the problems that are likely to occur, Chilton says the FSA may be more relaxed towards those suffering difficulties.But Chilton says it is quite extraordinary that several lenders have not tested their systems yet in the "real world".Chilton says: "What amazes me is we haven't had millions of pounds to spend on programmes. ...

  • Rate of Exchange

    28 Oct 2004

    A group of four product providers, including Norwich Union, Standard Life and Aegon, are understood to have been in talks to buy the portal, a move that would mark a step-change for the business. All three firms have refused to comment on whether there is any deal and Prudential says it is not the fourth provider in the consortium. After Marlborough Stirling bought The Exchange FS Group in 2001 for £87.2m, the portal did not attach itself to any IFA affinity groups, preferring ...

  • Santander chief set to replace Arnold at Abbey

    28 Oct 2004

    Grupo Santander chief financial officer Francesco Gomez-Roldan is set to replace Luqman Arnold as chief executive of Abbey once the acquisition is approved by the FSA. The appointment of Gomez-Roldan is expected to take effect from November 15 subject to FSA approval on November 12. Arnold will continue to work with Santander as a senior adviser on general issues while Lord Terry Burns will stay as chairman of the Abbey board of directors. Arnold has been Abbey chief executive ...

  • Scottish Provident International - Select Offshore Bond

    29 Oct 2004

    Special offer: 1% bonus and no initial charge on investments into Abbey multi-manager fundsOffer period: Until December 31, 2004Contact: www.spila.com

  • Select & Protect selected by Whitechurch

    29 Oct 2004

    Slect& Protect has been appointed as one of the providers being used for home and mortgage payment protection insurance to The Whitechurch Network's members.Select & Protect chief executive Simon Hood says: "Whitechurch has been successful in maintaining their approach to the choices the market offers by being flexible and offering compliance expertisek secong to none. Coupled with our strategy and our partnership with Norwich Union, we look forward to what promises to be a ...

  • Selestia agrees tie-up with Quay Software

    27 Oct 2004

    Selestia has agreed a tie-up with Quay Software enabling the latter's IFA users to import details of their client's fund holdings direct into their back office. This works with Quay's Client Care Desktop back office system and follows on from similar partnerships between Selestia and 1st Software, Fairs and Wealth Management Software.

  • Several lenders' websites not operational says Chilton

    1 Nov 2004

    Purely Mortgages chief executive Mark Chilton says the main issue on the first day of mortgage regulation has been several lender websites are unavailable.This means KFIs cannot be accessed on-line and KFIs cannot be validated against the lenders' by cross referencing.Also, some lenders are taking longer than usual to answer the telephone and deal with enquiries.Chilton says: "We are very calm. But it seems a lot of lenders are still not prepared."

  • Simply Biz makes a will deal

    28 Oct 2004

    Estate Preservation Services, a firm backed by Graham Bates and Helen Peace, is linking up with Simply Biz to provide a will-writing service for the group. EPS will be Simply Biz's preferred will-writing and estate administration service for its 660 member firms. EPS is based in Leeds and specialises in devising and implementing IHT planning strategies, including minimising IHT while safeguarding the survivor's security. It also offers will services where IHT is ...

  • Sipp specialist does 2000th Sipp

    1 Nov 2004

    SIPP & SSAS Specialists, Wolanski, have celebrated the opening of their 2000th SIPP account this week. The account was introduced by IFA, Hoyland Financial Management, who has offices in Walton-on-Thames and Weybridge.

  • Skandia planning to axe re-registration

    28 Oct 2004

    Skandia is planning to dump re-registration as a means of asset gathering on its fund supermarket because the process is too expensive. Regarded by the group as a loss leader, re-registration has been a key battleground for fund supermarkets in the fight for assets. Cofunds has taken approaching £1bn through re-registration while FundsNetwork has taken more than £500m. Cofunds says that last year re-registrations comprised 75 per cent of inflows while ...

  • Skipton Building Society - Flexible 3 Year Stepped Discount

    1 Nov 2004

    Type: Flexible stepped discounted-rate mortgage

  • Small wonder

    28 Oct 2004

    It has been evident for quite some time that life companies have been getting serious about investments. The days of with-profits bonds being the mainstay of a life insurer's investment sales have well and truly gone and their investment products are now more comparable with those available from traditional retail investment professionals such as Invesco Perpetual and Jupiter. This change effectively means that life companies now have to be incredibly focused on the ...

  • SPML launches new fixed rate on its light averse range

    2 Nov 2004

    Southern Pacific Mortgage Limited has announced the launch of new fixed rates on its current light adverse range, for full status applications only.

  • Standard caps Sipp link charges at 1%

    28 Oct 2004

    Charges on all discretionary investment management within the Standard Life Sipp will be capped at 1 per cent. The life office has signed up 11 business partners, including six discretionary investment management groups, an execution-only stockbroker and three property specialists to its Sipp offering. The six discretionary managers linked to Standard Life's Sipp offering are Brewin Dolphin Securities, Cazenove Fund Management, Gerrard, Morgan Stanley Quilter, Tilney ...

  • Standard Life Bank and IFA clash over 'back-door' selling

    28 Oct 2004

    Standard Life has apologised for its subsidiary Standard Life Bank poaching business from an IFA. Derek Williams Partnership director Derek Williams discovered that his client had been approached by Standard Life Bank offering him a capital-protected product which is only available direct to investors. Williams says his only option was to recommend the plan to his client as he says it is a superior product to those available through the IFA channel. The client was looking ...

  • Standard Life Bank cuts proc fees to pay for regulation

    1 Nov 2004

    Standard Life Bank is cutting the commission band structure for all mortgage business by 0.02 per cent across all bands. Mortgage trail commission will be removed from new business and trail for both business and personal savings will be phased out and replaced by a flat fee structure for business savings only. The changes are in response to regulation.

  • Statutory regime benefits sub-prime market says BM Solutions

    1 Nov 2004

    BM Solutions director of mortgages Michael Bolton says the sub-prime market, for those with impaired credit records will particulary benefit from statutory mortgage regulation.He says years ago, the sub-prime market was particularly dominated by hiigh charging and unfair practices.Bolton says: "It is now up to all parts of the mortgage market to embrace the spirit of regulation. The statutory regime puts the consumer at the heart of the process. Every good business should ...

  • Steve Bee on Pensions

    28 Oct 2004

    The Pensions Commission report highlighted the fact that we face hard choices in dealing with the consequences of an ageing population. It seems that society must choose between poorer pensioners, higher taxes, working longer and saving more. The report acknowledges that accepting poorer pensioners is unlikely to be an attractive option and that a mix of the other three options will help to avoid comparative pensioner poverty in the years to come. Some of the key facts ...

  • Sub-continental drift

    28 Oct 2004

    Fidelity Investments has added a sterling share class to a Sicav fund that invests in India. The India focus fund mainly holds shares listed in India but also invests in companies deriving most of their income from the region. Factors affecting growth in the region are different from other emerging markets, which is why Fidelity is offering investors a pure Indian fund. The fund will invest in 60 to 80 stocks and will have a bias towards small and mid-caps. The fund is ...

  • Survey finds IFA portals will continue to play major role

    28 Oct 2004

    Most IFAs will stay independent after depolarisation, according to technology solutions provider Focus Solutions. Eighty-two per cent of 840 IFAs questioned by Focus in August said they will stay independent and are ready to take on the new distribution challenge set by the FSA. Only 17 per cent of IFAs will adopt a combined independent and multitied structure. The results indicate that 87 per cent of IFAs intend to continue using their existing portals for getting comparative ...

  • Survey picks premier league providers after depolarisation

    28 Oct 2004

    Standard Life's position in the premier league of product providers after depolarisation has been called into question by a Datamonitor survey. Datamonitor analyst Annabel Gorringe, the author of the UK IFAs 2004 - Post-depolarisation Strategies report, puts Norwich Union and Prudential in the premier league and says Friends Provident and Legal & General are likely to be there, with specialist players such as Clerical Medical and GE Life also featuring. But she ...

  • Talkback

    28 Oct 2004

    Should the FSA grant an authorisation grace period if an IFA's network collapses to allow the adviser to carry on trading? "No. Everyone should have a contingency plan. If you join a network, you are basically a glorified emp-loyee. I am not in a net-work and if something happened to me tomorrow, no one would give me a grace period." John Stevenson, J S Financial Advice Service "Yes. I would have thought that was only fair and I think a couple of months' grace ...

  • Talkback

    1 Nov 2004

    Is mortgage regulation a good thing for consumers?

  • Tax changes hit Isas with first net outflow

    28 Oct 2004

    Isa sales slumped in Sept-ember to show a net outflow for the first time since their introduction in 1999, according to IMA figures. A net Isa outflow of £23.5m followed the lowest recorded inflow of £25m in August. Isas saw a net inflow of £259.5m in September last year. Gross sales fell from £442m in September 2003 to £349m last month. The IMA says the outflow is due to tax benefits removed from Isas in the last Budget. It is matched ...

  • The cost crunch

    28 Oct 2004

    M-Day will be upon us in under a week and the biggest upheaval seems to have been with the lenders where the changes could mean higher costs and changes in service levels. Figures on just how costly regulation will be after M-Day are providing an insight into just how much of an upheaval regulation has been for lenders. A survey from financial services compliance outsourcing company Huntswood has shown that 66 per cent of lenders have reported an increase in compliance ...

  • The numbers game

    28 Oct 2004

    On the eve of mortgage regulation, the most important questions that mortgage intermediaries are asking is whether or not they can do business. After the arduous and time-consuming task of getting authorised through the FSA - whether as a directly authorised broker or as an appointed representative of a network - the next big question is, once I have done business, will I get paid? In the appointed rep world, there is concern over whether lenders are ready to make the ...

  • The underwriting stuff

    28 Oct 2004

    The underwriter's role requires a range of skills including a good knowledge of medical disorders and other issues which affect the chances of people dying or being disabled. In simple terms, the underwriter's job is to decide whether any risk presented to them is acceptable to the insurer they work for. Each application form received by the insurer represents a risk. The process of dec-iding whether a risk is acceptable is called risk selection. This process is ...

  • Toby Walne

    28 Oct 2004

    My freelance career begins with a trip to the pawnshop nervously clutching my wife's £2,000 engagement ring. The news isn't good. The high-class pawnbroker on The Mall stops his assistant from taking the ring round to Christie's for a valuation. He only offers me £150. Well how about some of my prized comics? Poker-faced, I am informed that classical art paintings are more their cup of tea. Sniffily, I am informed that perhaps I should try ...

  • Universal Building Society - Two year Discount

    2 Nov 2004

    Type: Discounted-rate mortgage

  • Verity's view

    28 Oct 2004

    There was something conspicuously absent from Adair Turner's weighty tome on everything that is wrong with pensions in this country. Please excuse the hackneyed way of phrasing it - but it was more interesting for what it didn't say than for what it did. The headline was that we would all see our real incomes as pensioners drop by an average of 30 per cent over the next few decades if nothing was done. As someone who has been reporting pensions and what we might do about ...

  • Whitechurch will not write to clients over precipice bonds

    27 Oct 2004

    Whitechurch Securities chairman Kean Seager says the firm will resist any attempt by the FSA to make it write to 1,000 clients inviting them to claim compensation over precipice bonds sold by liquidated direct mail arm Whitechurch Investment Services.

  • Who is deemed to be doomed on M-Day?

    28 Oct 2004

    Mortgage Day is almost upon us and brokers, introducers, networks and lenders are thinking through their regulation plans and asking themselves how it could go wrong. Charcol technical director Ray Boulger is warning the FSA to be on the alert for chaos as some lenders and intermediaries are yet to prove they are ready. The MCCB estimates that 71,000 mortgage professionals will be joining the regulatory regime on October 31. Boulger says: "The closer to M-Day we get, ...

  • Wicks' claims just don't figure

    28 Oct 2004

    Pensions minister Malcolm Wicks told delegates at the recent Labour Party conference that stakeholder was a resounding success. Speaking at a fringe meeting, entitled, Pay Now Spend Later: Is The Gov-ernment Savings Policy Going To Bridge The Savings Gap?, Wicks was asked by Money Marketing if he would acknowledge that stakeholder pensions have failed to engage their demographic target and what lessons had he learned that could be applied to the Sandler suite of products. The ...

  • Wilson pledges market balance

    28 Oct 2004

    FSA director of high-street firms Sarah Wilson says the regulator will do all it can to maintain an innovative marketplace for mortgages after M-Day. Wilson told Money Marketing that the new regime - which takes effect from November 1 - would endeavour to balance the need for consumer protection with the maintenance of a wide range of providers, delivery channels and products. She estimates that 2.75 million new mortgages a year will come under FSA control. Wilson ...

  • Witan to keep its divi in line with inflation

    28 Oct 2004

    Giant investment trust Witan says its dividend policy will stay in line with inflation following its much-hyped relaunch. The £1.35bn investment trust, which switched to a new mandate last month, revealed that its dividend would not change this year. After a year-long worldwide search, Witan recently revealed a mandate with five new managers based in Asia, UK and the US, to join Henderson Global Investors in managing the portfolio. The current Witan yield ...

  • Work on longer and die earlier

    28 Oct 2004

    Figures showing that for each year worked after 55, workers lose two years of their possible lifespan will give the Government an uphill task to convince people to work longer. Data from the Boeing US pension scheme reveals workers who retired at 55 lived on average until 83. The reduction in lifespan for those who carried on working beyond 55 is such that those retiring at 65 on average die by the age of 66.8 years, effectively only surviving less than a year and a half after ...

  • WPA in call for insurers to reveal service details

    28 Oct 2004

    Western Provident Associ-ation wants life companies to disclose details of their service standards. WPA Protocol corporate business director Adrian Humphreys says there is an abundance of information available on pricing and products but relatively little clarity on life companies' service. He suggests that a third party such as the BSI - which is responsible for kitemark service awards - could act as an independent auditor in the process. Life companies would ...

  • Yorkshire BS and Accord on business since October 31.

    1 Nov 2004

    Yorkshire Building Society and Accord Mortgages have been receiving KFIs since Sunday.YBS corporate affairs manager David Holmes says the society has received 100 optional and 15 compulsory KFIs, while Accord has received 38 optional and 29 compulsorty KFIs already.

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