Money Marketing
27 September 2006

  • Find buys Defqto parent company

    28 Sep 2006

    Consumer portal Find has bought Defaqto’s parent, The Independent Research Group, in full

  • FSA tests resilience over avian flu

    28 Sep 2006

    The FSA is to lead a six-week exercise to test the resilience of financial institutions in the event of an avian flu pandemic starting on October 13. The regulator will work with 60 organisations to test the potential impact on the UK financial sector.

  • 100 Stocks and 10 managers for UK best ideas fund

    28 Sep 2006

    Skandia has released the final line-up of the UK best-ideas fund, complete with an indication of the asset allocation based on a model portfolio.The fund will comprise 100 stocks and feature the best 10 ideas of 10 UK managers.Axa Framlington has two managers in the fund - George Luckraft and Roger Whiteoak, plus Schroders' Richard Buxton, Jupiter's Tony Nutt, Merrill Lynch's Richard Plackett, Rathbones Carl Stick, Artemis's Mark Tyndall, New Star's Stephen Whittaker, Old Mutual's ...

  • 1st launches training service

    29 Sep 2006

    1st is launching a new training and consultancy service for advisers, to be called Clientsfirst.

  • 25% Growth emerging

    28 Sep 2006

    Martin Currie fund manager picks out Brazil and Turkey

  • 40 per cent of IFAs focus on providers' financial strength when recommending an annuity

    27 Sep 2006

    Over 40 per cent of advisers look at the financial strength of a provider when recommending an annuity for their client, according to new research from Prudential.

  • 75 per cent of first time buyers have outstanding debts while saving for deposits

    28 Sep 2006

    Research from Alliance and Leicester has revealed that 75 per cent of first time buyers hoping to buy a property in the next two years are almost 6,000 in debt.

  • AA sets up IHT planning operation

    28 Sep 2006

    The AA has set up an IHT planning operation and will offer advice on wills and trusts.The motoring giant is also launching a conveyancing arm as part of its wider drive to build on the legal services operation it started earlier this year.The move means that the AA's huge brand appeal is likely to come into direct competition with advisers.The IHT service is run by Skipton Financial Services, the conveyancing by Hammonds Direct and the wills and trusts advice by law firm ...

  • ABI wants Turner-type probe for LTC

    28 Sep 2006

    Long-term care should be the next subject of a Turner-style inquiry to tackle future welfare problems, says the ABI.Speaking at the FSA asset management conference, ABI director general Stephen Haddrill said the issue needed to be tackled with the same amount of effort that the Government has put into pensions.Earlier this year, a review into LTC by former Government adviser Derek Wanless called for an end to means-testing and a new universal funding scheme split between the ...

  • Adviser in court fight with Woolwich

    28 Sep 2006

    Woolwich is being taken to court by a mortgage adviser seeking compensation for a series of alleged service blunders.Strategic Financial Solutions joint managing director Henri Berest has applied to the county court to recover over 2,000 in expenses after he says Woolwich sent plans for a new-build property to a borrower's old address.Woolwich, which has compensated the client, has admitted its mistake but is only willing to refund 200 to the broker as it claims in a letter ...

  • Advisers' anger at Prudential's campaign to root out churners

    28 Sep 2006

    Prudential will next month start approaching advisers it believes are carrying out unusually high levels of transfer business.It wants to have face-to-face discussions with a list of advisers it is compiling to find out why their business persistency rates are so low but its campaign to root out churners has been met with anger by some advisers.Professional Investment Management Services partner Glynn Downton says switching products is often best both for the client and the ...

  • Aifa and FSPP welcome FSA paper

    29 Sep 2006

    Aifa and the Financial Services Practitioner Panel have both welcomed the FSA’s discussion paper clarifying the responsibilities of providers and distributors.The discussion paper calls on providers to design products with greater care, provide higher quality information, monitor distribution channels more effectively at a high level and undertake better post-sale analysis of product performance.Aifa director general Chris Cummings says the trade body had long been very concerned ...

  • AITC calls for improved disclosure of CFDs

    27 Sep 2006

    The Association of Investment Trusts has called for improved disclosure of contracts for difference (CFDs) to protect investors and ensure a fair market.

  • AMI backs regulator in provider/distributor debate

    3 Oct 2006

    The Association of Mortgage Intermediaries has announced its support for the Financial Service Authority’s stance on provider/distributor relationships, after the publication of its discussion paper last week.

  • Are all the extras worth the cost?

    28 Sep 2006

    The wrap round table discussions in last week's issue of Money Marketing have been thought-provoking. As attractive and flashy as wrap services might appear to be, how do they match up with client demands? Might it be the case that for 95 per cent of clients, a wrap will far exceed their demands? How many clients regularly check their portfolio over the internet? If most clients do not need or want all the extra bells and whistles, then whose benefit are they for and are they worth ...

  • Automatic for the people

    28 Sep 2006

    Property valuations: Mortgages plc deputy chief executive Peter Beaumont explains the usefulness of automated valuation models but doubts their widespread adoption by lenders in the near future

  • Axa increases with profits rates

    2 Oct 2006

    Axa has increased its regular bonus rates by up to 0.75 per cent on its two with profits funds.

  • Bereft chasers switch to Serps and PPI

    28 Sep 2006

    A downturn in revenue from endowment complaints and the end of the flood of complaints is forcing claim management companies to look at other areas, says the Claims Standards Council.CSC spokesman Andy Wigmore says some unscrupulous claim companies believe that they can convince the consumer that "anything with financial services on it" has been missold and are repositioning themselves.Wigmore says that he has seen an increase in advertising from claim handlers offering services ...

  • Best intentions

    28 Sep 2006

    The contrasting approaches taken by Skandia and Rensburg in compiling best ideas portfolios will add interest when comparing performance. Will the long-term relationship between Rensburg's managers give it the edge?

  • Big increase in sector concentration in UK stock market says Fidelity

    2 Oct 2006

    Sector concentration in the UK stock market has increased dramatically over 10 years while global markets have remained consistently more diverse according to research from Fidelity International.

  • Bolton says FSA will probe high proc fees

    28 Sep 2006

    Edeus chief executive Michael Bolton says he expects the FSA to start querying high procuration fees and improve disclosure.DB Mortgages is offering up to 2.75 per cent for fully packaged business while Advantage is going up to 3 per cent, higher than other lenders such as BM Solutions and Edeus.Bolton says the FSA will question the size of these fees and also the fact that they do not have to be disclosed if they are paid to a packager rather than direct to a broker.He ...

  • Borrowers demanding more flexibility on loans

    3 Oct 2006

    Research conducted among 1400 intermediaries has revealed increasing demand for mortgages with flexible features.

  • Broker bidding system launched for mortgage leads

    2 Oct 2006

    Mortgage brokers will now be able to bid for leads under a scheme developed by Paaleads.com.

  • Broker Talkback

    28 Sep 2006

    Is FSA chairman Callum McCarthy right to say that the current life and pension distribution model is broken?

  • 'Brokers still in nappies on equity release'

    28 Sep 2006

    The equity-release market should not be worried by the lack of intermediaries selling the product, says Equity Advice head Stuart Wilson.In recent months, the market has been plagued by concerns that a lack of advisers is hindering growth but Wilson insists that the main priority is getting more providers with consumer-facing arms into the sector to build consumer confidence and brokers can then follow.He also believes that direct players are more advanced in terms of their ...

  • BT slashes equities in hedge move

    28 Sep 2006

    BT's decision to slash the equity exposure of its 36bn pension scheme has met with a mixed reaction from investment specialists.The firm is cutting a third of its UK equity allocation, valued at 3bn, and doubling its exposure to alternative assets, including hedge funds and private equity from 7 per cent to 15 per cent of the portfolio. The shift away from UK equities is understood to be an attempt by BT's pension fund manager Hermes to achieve higher investment returns and reduce ...

  • Building a challenge

    28 Sep 2006

    Our panel assess the impact of the Nationwide-Portman merger and how Posos will take off and make other firms follow

  • Bupa launches flu pandemic service

    29 Sep 2006

    Bupa has launched a pandemic flu treatment service which will help companies to protect their employees against the effects of pandemic flu.

  • Burns-Anderson on sale for 12m

    28 Sep 2006

    Burns-Anderson is looking for a provider or providers to buy the business from its shareholders for 12m.The network's manage-ment, which aims to continue at the firm, intends to use the money to pay off shareholders and invest the surplus in upgrading its technology and in-house IFA.Burns-Anderson says some of its 450 shareholders - the biggest being former chief executive Steve Kelland - have supported the company for almost 20 years without seeing a return. As the network ...

  • Business surges for Resolution

    28 Sep 2006

    Resolution saw a 150 per cent growth in its asset management business in the first half of this year.The company recorded profits of 14.5m in its asset management business compared with 5.8m in the six months to December 31, 2005.Overall operating profits rose by 35 per cent to 116m compared with 86m in the last half of 2005 on a European embedded value basis.The interim dividend rose by 15 per cent to 6.64p per share from 5.77p in 2005.Group chief executive Paul Thompson ...

  • Call for reversion applications

    28 Sep 2006

    The FSA will open its doors to applications for home-reversion regulation from November 6 in anticipation of the new regimes starting on April 6, 2007.

  • Care tactics

    28 Sep 2006

    'Cosy working party chats just delays decisions on taking care planning action'

  • Carry on churning, says ABI chief Haddrill

    28 Sep 2006

    Association of British Insurers director general Stephen Haddrill says churning is essential to drive competition and financial services is the only industry where a degree of churn is not seen as positive.Speaking at a Labour party fringe event in Manchester on Tuesday, Haddrill hit back at FSA chairman Sir Callum McCarthy's claims that the financial services business model is failing because of too much churning caused by the lure of commission.He said churning can foster ...

  • Change slows for mature market

    28 Sep 2006

    The buy-to-let market is unlikely to see any significant future innovation because it is mature and has already undergone its metamorphosis.

  • Charged debate

    28 Sep 2006

    When I wrote about mortgages a few weeks ago and asked for your views, I did not expect the email response that followed.More than 20 emails have pinged their way into my inbox about a subject that, while personally irritating, I would never have guessed could be as important to many IFAs. It is probably a reflection of the importance of mortgage business to so many intermediaries.To give you a flavour, I have selected some of the more representative emails for this column. ...

  • Cofunds losses hit 19.5m

    28 Sep 2006

    Cofunds made a further loss of 19.5m last year but the platform is upbeat about take-up of its investment bond, which attracted 670m since it launched in April.The company's retained losses for its first five years total 120m.Finance director Andrew Harris says 9bn in assets are held through the platform and revenue was up by 60 per cent to 15m last year from 9m in 2004.He expects revenue growth to strengthen and exceed 26m next year driven by asset inflows of 1bn a month ...

  • Compulsion is only way

    28 Sep 2006

    People without a pension will never get around to it unless they are forced

  • Contractual conundrum

    28 Sep 2006

    Advising on contracting out has become a real burden

  • Core values

    28 Sep 2006

    Matt Goodburn assesses HSBC's switch of UK fund management

  • Correspondent's Week

    28 Sep 2006

    This week by The People money editor and freelance writer Simon Read

  • Coup de grace

    28 Sep 2006

    Helen Pow considers the economic impact of last week's military takeover in Thailand

  • Cummings warns on policing problems

    28 Sep 2006

    Aifa director general Chris Cummings says providers checking the quality of advice could lead to confusion over responsibility for misselling.

  • David Ferguson and Philip Martin

    28 Sep 2006

    The duo behind new platform Nucleus say they want to create the gem of the wrap market by shifting power away from product providers and developing a 'symbiotic relationship' with advisers so that the platform and advisers work in each other's interests. Interview by Sam Shaw

  • Dawn risers

    28 Sep 2006

    Jelf Group organised a charity event last weekend to mark the next phase in its growth strategy. It hopes that the New Dawn Ridgeway Walk will have raised 20,000 for the National Deaf Children's Society.Staff from the group's 20 locations to do the walk (pictured above right). The challenge follows the success of last year's 24-Peaks Challenge when Jelf raised 15,000 for the NDCS.

  • Delegates told IHT should stay but be made fairer

    28 Sep 2006

    The LibDems will not advocate scrapping inheritance tax but are looking at measures such as axing the gift rules in an attempt to make the tax fairer.Speaking at a tax commission debate in Brighton, Shadow Chancellor Vince Cable said the basic principles of IHT were "hard to quarrel with" but he would be looking at measures to ensure the richest could not escape the tax.Cable said IHT policy was a conspicuous hole in current LibDem thinking and the party needed more time to ...

  • Disclosure delusions

    28 Sep 2006

    Aegon Scottish Equitable head of underwriting Matt Rann says people do not understand how critical-illness cover works and advisers and providers must educate them on what details must be disclosed

  • Dual strategies to recover Millfield advisers' £5m debts

    28 Sep 2006

    The 1,000 former Millfield advisers that owe the firm over £5m from advance commission paid will be split into two different classes.Former Millfield advisers that joined Bates Millfield will receive help, with the firm having agreed to pay off advisers' debts up front and let them pay back on a monthly basis.Advisers that left Millfield before The Money Portal acquired the rump of the business face being chased by administrators PricewaterhouseCoopers and having to potentially ...

  • DWP looks to lift all restrictions on protected rights

    28 Sep 2006

    Aim is to remove administrative burden of tracking two types of benefit

  • Emphasis on long term as yields tighten

    28 Sep 2006

    Consumer body Which? has come under fire after it said earlier this month that people would be better off putting money in the bank rather than investing in buy to let.Lenders and brokers say the Which? statement was an attempt to grab headlines but there is an admission that yields are down in some areas.Which? claimed that while BTL is increasingly popular, would-be landlords need to weigh up the pros and cons carefully to ensure they are making a sound investment rather than ...

  • Ex-BBN chief Harrison fined 15,000 by FSA

    28 Sep 2006

    Former Berry Birch & Noble Insurance Brokers chief executive Paul Harrison has been fined 17,500 by the FSA for serious failings at the firm.The regulator found Harrison guilty of failing to ensure that the firm had proper systems and controls in place to protect customers' money held by the firm.BBNIB was authorised as a general insurance broker between January 14, 2005 and May 8, 2006 but is no longer trading after selling its assets earlier this year. In July 2005, the firm's ...

  • F&C aims to keep distribution fund ahead of increasing competition

    28 Sep 2006

    F&C Asset Management is confident that its multi-manager distribution fund has a competitive advantage over other companies which are entering this market as an alternative to with-profits.The distribution fund recently hit the £250m mark at around the same time as Fidelity set up its multi-manager distribution fund.F&C concedes that the market is competitive but believes that its fund size, track record and other distinguishing features will keep it ahead of the growing competition.The ...

  • F&C to close AIM growth fund

    3 Oct 2006

    F&C Asset Management is set to close its AIM growth fund on October 30 due to lack of investor demand.The £7m fund was launched in September 2001, and has been run by Catherine Stanley since October 2004. Stanley also runs the group's UK smaller companies fund.

  • Fat premiums for thin people

    28 Sep 2006

    Skandia is rewording its client annuity letters to stress the open market option rather than its tie-up with L&G following IFA criticism.The company signed an annuity deal with L&G this year. On letters sent out to IFAs with clients nearing retirement, the first option was to complete an acceptance form and return it to Skandia which then arranges the annuity with Legal & General and get 2 per cent commission from L&G with the IFA getting nothing.Alternatively, Skandia invites ...

  • Field urges bravery to speak out on pensions

    28 Sep 2006

    Former welfare minister Frank Field has continued his onslaught against Government pension reforms by calling on the industry to be more vociferous in criticising the plans.At the Merseyside Life & Pensions Society, Field said the apparent developing consensus around reforms was dangerous.He brought up the Dangerous Dogs Bill as an example of a policy that commanded overwhelming support but was "one of the worst thought through pieces of legislation ever to become law".Speaking ...

  • First steps

    28 Sep 2006

    First-time buyers: Scottish Widows Bank head of product and market development Murdo McHardy assesses some of the measures being suggested to get new buyers on the housing ladder and finds that more simplicity and awareness are needed

  • FSA fines Langtons IFA 63,000

    28 Sep 2006

    The FSA has fined Langtons IFA Limited 63,000 for failing to properly apportion roles and responsibilities to its senior management, putting consumers at risk. The firm is also accused of not having systems in place to ensure its advisers were trained and competent.

  • FSA gives itself a thumbs-up over mortgage regulation

    27 Sep 2006

    The Financial Services Authority says regulation has helped consumers shop around.

  • FSA tells providers to monitor the quality of advice

    28 Sep 2006

    The FSA has called for product providers to take more responsibility for the quality of distribution and monitor the quality of advice provided by advisers.Speaking at the FSA's annual asset management conference, chief executive John Tiner said although providers need not necessarily proactively monitor individual distributor behaviour, they should analyse what aggregate statistics say about the quality of sales.Tiner said a consultation paper to be published this week will ...

  • 'Get off the commission drug'

    28 Sep 2006

    Burns-Anderson is encouraging its members to move to a fee-based model and has branded up-front commission as the heroin of the industry.Speaking at the network's annual conference in St Andrew's Bay last week, finance director Peter Coleman likened initial commission to the drug, saying it provides immediate gratification and short-term benefit but ultimately it has destructive tendencies.He said in order to achieve a better perceived sense of professionalism, the industry ...

  • Gift wrapping

    28 Sep 2006

    Trusts may be a tax-efficient way of making gifts but donors must bear in mind this year's Budget reforms

  • Government £4m backing for Hip test

    28 Sep 2006

    The Government has pledged £4m of funding for the Hip dry run in Bath, Newcastle, Southampton, Northampton, Huddersfield and Cambridge in November

  • Government launches Openmarket homebuy scheme

    2 Oct 2006

    The Government has today launched its Openmarket Homebuy scheme that it says will help an extra 20,000 people buy their own home.

  • Grandfather deal for Mifid

    28 Sep 2006

    IFAs will still be able to sell complex products to "intermediate" clients under Mifid because of a loophole created by the FSA. Law firm CMS Cameron McKenna says FSA proposals will allow current intermediate clients to be "grandfathered" into the Mifid regime as "professional" clients without having to meet strict new criteria.

  • Gummer pledge to clean up second-charge loan sector

    28 Sep 2006

    The Association of Finance Brokers insists it can self-regulate the secured loan market after officially launching last week.AFB chairman John Gummer, who holds the same role with Aifa and the Association of Mortgage Intermediaries, says the market is capable of getting its own house in order rather than requiring FSA policing.AFB director-general Chris Cummings said earlier this year that the second-charge loan market needs formal regulation but the organisation's demand for ...

  • Harrison to become head of UK equities as Taylor steps back at Threadneedle.

    2 Oct 2006

    Leigh Harrison will move from head of UK retail to become head of UK equities at Threadneedle when Michael Taylor steps back from day to day fund management at the end of the year.

  • Henderson duo leave in reshuffle

    28 Sep 2006

    Henderson head of UK wholesale Phil Jefferson and his European and Asian counterpart Mike Clare are leaving the firm following a group restructure.Henderson says Clare is ret-iring while Jefferson, who joined two years ago to help develop the UK retail business, is leaving to pursue other opportunities.Henderson has created what it calls a listed assets' business, which will be jointly managed by head of equities Andrew Formica and head of fixed income David Jacob. All distribution ...

  • Heritable adds new mortgage rates

    3 Oct 2006

    Heritable Bank has launched a range of mortgage with lower interest rates available up to 80 per cent LTV.

  • Home delivery

    28 Sep 2006

    Role of the intermediary: Bradford & Bingley director of distribution Adrian Scott assess the starting turn-round in mortgage distribution over the past decade as brokers have taken the lead

  • House prices on the up again, says Nationwide

    28 Sep 2006

    House prices increased by 1.3 per cent in September, bringing the annual rate to 8.2 per cent, according to Nationwide.

  • Hutton sets out simple route to 0.3%

    28 Sep 2006

    The Government is clinging to its belief that pension personal accounts can be delivered at a charge of 0.3 per cent despite acknowledging that few in the industry believe this is possible.Speaking at an Axa fringe event in Manchester on Tuesday, Work and Pensions Secretary John Hutton said if the Government can deliver enough volume and simplicity the 0.3 per cent target is realistic.He said the scheme would be "screwed up" if it has too many "bells and whistles" which could ...

  • Icob firms should sell PTA without advice

    28 Sep 2006

    Direct Life & Pensions sales and marketing director Richard Verdin says Icob advisers should sell pension term assurance without advice rather than with a caveat which says they cannot advise on the suitability of the product.Verdin says he knows of specialist protection advisers that do not sell PTA because they are uncomfortable with the risk of invalidating someone's enhanced protection.He says some Icob advisers do not hold basic qualifications and therefore may not be aware ...

  • IMA calls for new ideas on annuities

    28 Sep 2006

    The Investment Management Association says responsibility for annuities should be taken away from Revenue and Customs and moved to another Government department to produce more coherent pension policies.Speaking at the FSA's annual asset management conf-erence in London last week, chief executive Richard Saunders said there needed to be new thinking on annuities as current rules are not fit for modern life.Saunders suggested that moving responsibility for annuity rules to the ...

  • Intrinsic offers to take on AR liability

    28 Sep 2006

    Intrinsic is offering to take on the regulatory liability of the 109 firms, comprising 200 appointed representatives, of Friends Provident's now closed mortgage network. Friends says the network accounted for 1 per cent of its business and90 jobs will be affected.

  • Investing time in pensions

    28 Sep 2006

    What an extraordinary article from Lee Birkett from Prestbury. He says most IFAs should stick to mortgages and general insurance which I would have thought were the absolute cripplers for the average good IFA. I gave up mortgages ages ago to concentrate on pensions and investments, which occupy most of my time, particularly the former. Apparently, his network has 200 advisers turning over around 50,000 a year. I hope that does not mean what it says because that amounts to about ...

  • Is the number up for non-conform?

    28 Sep 2006

    Guy Anker gauges market reaction to a Standard & Poor's report which says cracks are starting to appear in the non-conforming market

  • L&G in letter blunder on tax-free cash

    28 Sep 2006

    Legal & General has admitted mistakenly sending letters to customers warning of year-long delays in calculating tax-free cash on EPPs.It says the maximum processing time is actually 12 weeks, not 12 months, as the letter states. L&G says it is struggling to perform the calculations as quickly as usual because of a significant increase in requests since A-Day.The statement follows a complaint from Amersham Financial Planners IFA Ian Smith who received the letter after submitting ...

  • L&G launches interactive underwriting

    28 Sep 2006

    Legal & General has launched an interactive underwriting service on its protection products range which is an addition to its existing online processing system.

  • Leeds offers 5-year fixed BTL range

    27 Sep 2006

    Leeds Building Society has launched a five-year fixed rate buy-to-let mortgage range with fee free options for those looking to remortgage their portfolio.

  • Liongate warns on strategy

    28 Sep 2006

    Fund of hedge fund managers could be overstating the value of accessing underlying managers that are closed to new business, says multi-strategy manager Liongate Capital.It says many funds pitch themselves as adding value through due diligence and providing access to funds that would otherwise be unavailable to the average investor.Partner Jeff Holland says: "Some managers try to say they could find access to single-strategy managers that investors may not know about or that ...

  • Lloyds TSB waives product fees in October

    3 Oct 2006

    Customers taking out a new mortgage or remortgaging with Lloyds TSB during October will not have to pay an arrangement fee.

  • Long-playing record

    28 Sep 2006

    Prospects: Helen Pow says this year has seen lending hit the heights and many new mortgage firms starting up but can the levels of business continue?

  • Long-term outlook pays off for Baillie Gifford

    28 Sep 2006

    Baillie Gifford American co-fund manager Peter Cawston says the industry is obsessed with short-term performance and consistently ignores sustained long-term growth.Cawston says the average US mutual fund has an annual stock turnover of 100 per cent and likens it to a form of betting. He favours a longer-term approach in his 47-stock high-conviction portfolio and says the fund's turnover was just 13 per cent in 2005.He says the fund's philosophy is to stick with firms that are ...

  • Mackay returning to Skandia after a month

    28 Sep 2006

    Billy Mackay is returning to Skandia after leaving to join Barclays Wealth Management just last month.Mackay, previously pensions marketing manager at Skandia, returns in the elevated role of head of marketing across the life and pensions division.He will be responsible for developing Skandia's range of multi-manager life and pension products, reporting to Skandia UK group chief executive Nick Poyntz-Wright.Mackay says: "This decision is purely about the opportunity I have ...

  • Marching in Manchester

    28 Sep 2006

    The Transport & General Workers Union, Amicus and Community joined forces outside the Labour conference in Manchester on Tuesday calling for 100 per cent restoration of the estimated 100,000 workers' pensions' lost when firms were wound up before the Pension Protection Fund was running.

  • McFall's churn salvo

    28 Sep 2006

    Treasury select committee chairman John McFall believes FSA chairman Callum McCarthy's scathing attack on churning shows the Government and industry needs to act on the distribution modelAt a Standard Life fringe event, McFall said the committee's report on financial inclusion, due in October, will address churning and its effect.He was glad the FSA was addressing this "root cause" of failings and described commission as incentives that benefit neither consumers nor providers. He ...

  • Mutual trends

    28 Sep 2006

    Consolidation had become a distant memory until Nationwide's takeover of Portman. If more lenders increase competition, then surely fewer lenders will have the opposite effect?

  • Mystery shop reveals basic equity-release failings

    28 Sep 2006

    Lifetime mortgage advisers have been accused by the regulator of treating the product as an opportunity to sell rather than as an opportunity to give advice.The FSA is also urging firms not to rely on literature packs to explain products and focus on face-to-face interviews.It says it is not a regulatory issue but questions whether clients are being treated fairly if they are not told verbally of the high-risk nature of equity release.In detailed analysis from mystery-shopping ...

  • Network data reports profits surge in H1 2006

    29 Sep 2006

    Network Data has announced a threefold increase in profits during the first half of the year, following the floating of its parent company last week.

  • New Star staff cash in 40m in shares

    28 Sep 2006

    New Star Asset Management employees have cashed in around 40m-worth of shares, with speculation that fund manager Alan Miller, who is on a sabbatical, may have sold up to 15m in stock.New Star managing director Mark Skinner has also sold over 310,000 shares, netting him nearly 1.185m.Staff who bought shares in the group following its 700m flotation last November have been locked into a share scheme until 2009 but are allowed to divest up to around 20 per cent of their shares ...

  • No regulation required

    28 Sep 2006

    The buy-to-let market is unlikely to see any significant future innovation because it is mature and has already undergone its metamorphosis.Brokers and lenders agree that the market remains buoyant and is not desperate for any new types of products or major changes.It is also doubtful if many new lenders will enter the sector as it requires niche players and is already well populated.Alexander Hall chief operating officer Andy Pratt says: "There are still a few tweaks required ...

  • Norbom quits Pru, Reed leaving Standard

    28 Sep 2006

    Life office giants Standard Life and Prudential are undergoing boardroom reshuffles.Standard Life finance director Alison Reed and Prudential Asia chief executive Mark Norbom are both set to leave.Reed is leaving Standard Life after only just over a year in her role as part of a series of boardroom changes following its demutualisation.She was a surprise choice for Standard when she was hired and City analysts raised doubts about her suitability for the role as she had spent ...

  • Now BM aims for instant completion

    28 Sep 2006

    BM Solutions has pledged to provide instant completions and further advances within an hour, where it already holds the customers' details on file as the technology battle in the specialist market hots up.

  • O’Donoghue takes offshore and Nordic role at Jupiter

    28 Sep 2006

    Jupiter has appointed Simon O’Donoghue to its international sales team in the newly created role of sales director, offshore and Nordic.O’Donoghue will work with Kevin Scott to build sales of Jupiter funds in the Channel Islands, Isle of Man and the Nordic markets.He has 14 years experience in the fund management industry most recently working for Forsyth Partners where he spent four years as offshore sales director for the Channel Islands and Nordic markets.O’Donoghue says: ...

  • Octopus takes Aim

    28 Sep 2006

    Octopus Investments, the well regarded UK smaller company fund manager, has just launched a protected inheritance tax service which allows investors to shelter assets outside their estate for IHT purposes with the peace of mind that their heirs cannot lose money.

  • Offset onset

    28 Sep 2006

    Offset Amanda Newman looks at the pros and cons of offset mortgages

  • On the home front

    28 Sep 2006

    The coup in Thailand came at an unfortunate time as far as I was concerned. There I was in a television studio, with the first interview completed. I was awaiting the next opportunity to share my opinions on what the market might be about to do when the news broke and my thoughts on Footsie behaviour became relegated to the cutting room floor. Not that the coup appears to have had any great implications. With tourism such an important element on Thailand's economic mix, the army generals ...

  • Overwhelming response sees consensus emerge for hybrid

    28 Sep 2006

    FSA Annual Management Conference

  • Pension payouts plummet over decade

    28 Sep 2006

    Pension payouts have more than halved over the last 10 years, says personal finance research firm MoneyFacts,In July 1996, a male retiring at 65 who contributed a gross annual premium of £500 into a with-profits personal pension for 15 years would on average have built up a pension fund worth £25,840 or a unit linked fund of £19,709.But a person retiring today on the same criteria would receive an average with-profits pension of just £12,306 or unit-linked pension of £11,696.This ...

  • Pension warning on life expectancy

    28 Sep 2006

    Pension schemes could be left with tens of millions of pounds of unforeseen liabilities if they underestimate life expectancy among their members, says the Pensions Regulator. In a speech to the UK Pensions and Investment Summit in Brighton, chairman David Norgrove said trustees and their advisers should review their assumptions about life expectancy to ensure they remain suitable.

  • Pensions Commission 'feared Brown'

    28 Sep 2006

    The Pensions Commission did not propose changes to higher-rate pension tax relief because it feared the wrath of Gordon Brown, says LibDem Work and Pensions Secretary David Laws.Speaking at an Association of British Insurers' fringe event in Brighton, Laws said Lord Turner would have liked to have tackled the issue but feared a rap on the knuckles from the Chancellor.Turner's report was critical of the current tax relief system, stating "pension tax relief is costly, poorly ...

  • People ready to die for sex

    28 Sep 2006

    Fewer than half of people are prepared to become celibate if it means they can live to 100, according to a survey by Bupa.The Ipsos Mori research found that just 40 per cent of 1,003 people questioned would sacrifice sex to prolong their lives.Forty-eight per cent of women and 42 per cent of men say they would sacrifice travelling if it ensured they lived to 100.The poll found that people aspire to live to 85 on average and 49 per cent believe that scientists should continue ...

  • PMI premiums set to rise as NHS private spend soars

    28 Sep 2006

    PruHealth is warning that private medical insurance premiums will increase sharply over the next five years as the NHS increasingly farms out procedures to private hospitals.Sales director Dave Priestley says 15 per cent of the NHS's procedures will be carried out in the private sector by 2010, making it the biggest spender on private hospitals and weakening the bargaining power that private insurers have with private hospitals.Private insurers spend around £1.2bn a year with ...

  • Pos Sol announces Partnership and PBO schemes

    29 Sep 2006

    Positive Solutions has launched two schemes to recruit and reward partners and build profits leading up to a possible stock market flotation in 2010.

  • Posos could cut proc fees

    28 Sep 2006

    The launch of instant offers in the sub-prime market could signal a reduction in proc fees for brokers, according to Openwork mortgage proposition director Paul Shearman.He believes the fact that brokers will have their work cut less with such technology means that lenders may start offering reduced fees.Some commentators have recently slammed the high fees earned by sub-prime intermediaries, with an article in one national newspaper recently labelling such brokers "Ferrari ...

  • Prime probe shows short-term focus

    28 Sep 2006

    FSA has concerns over cheap introductory offers

  • Property trusts top sales league again

    28 Sep 2006

    Property trusts were again the top-selling sector in August for the eight consecutive month. Net Isa sales were 1.7bn, the worst figures in 11 months.

  • PTA principles

    28 Sep 2006

    Icob advisers are being split into two camps over sales of PTA

  • Public sector liability stands at 1,025bn

    28 Sep 2006

    The true size of the UK's public sector liability has risen to 1,025bn, according to a report by the Institute of Economic Affairs.

  • Radical relief redraw

    28 Sep 2006

    Higher-rate pension tax relief must be radically restructured to offer incentives employers and employees to contribute more into personal accounts and stop the scheme failing, said former pensions minister John Denham.Speaking at an Axa fringe event at the Labour conference in Manchester on Tuesday, Denham said a combination of state pension and the NPSS will not come "remotely close" to enabling millions to enjoy a decent pension.Southampton Itchen MP Denham said although ...

  • Regulation set to boost Sipp sales

    28 Sep 2006

    More than eight out of 10 of advisers believe the introduction of Sipp regulation next April will make the market more attractive.A survey by Skandia, which interviewed 465 advisers, found that 83 per cent expect the onset of regulation to bring a boost to the self-invested personal pension market.Skandia also asked advisers what features they consider important when choosing a Sipp, with investment choice being ranked as very important by 64 per cent of advisers.Pensions ...

  • Retention seeker

    28 Sep 2006

    Lender profile Guy Anker finds that BM Solutions is focusing on retention and technology to stave off the challenge of new lenders

  • Rise to the challenge

    28 Sep 2006

    The sound of a gauntlet hitting the floor reverberated across the financial services industry earlier this month. Sir Callum McCarthy's speech at the Gleneagles Savings & Pensions Industry Leaders' Summit was a challenge to the industry to address fundamental questions.Callum surfaced some contentious issues that we have all deliberated upon from our own perspective. Was he right to speak out? Was he right to address these matters by way of a challenge? Was the thinly veiled promise ...

  • Ritchie warns of sour 'sweeteners'

    28 Sep 2006

    'It is perfectly clear who is going to get sued- the IFA's'

  • Rotten carrots

    28 Sep 2006

    In the US, a great discussion revolves around the age-old debate of fees v commission. In my own firm, the ratio of fees to commission has changed substantially over the last few years to the point where some fees have no potential to lead to the sale of an insured or collective investment. As a result, we will soon need to set up a separate company for that revenue, if only to keep the VAT return simple.

  • Row looms on tracking fraudsters

    28 Sep 2006

    FSA backs condemnation of insurers using detectives

  • Royal London cuts terminal bonus on Scottish Life policies

    28 Sep 2006

    Royal London is reducing the terminal bonuses on some with-profits policies in the closed Scottish Life fund.Final bonus rates for longer-term conventional with-profits plans have been reduced from 15 per cent at January 1 this year to 11.25 per cent from September 1.Rates on 20-year plans fall from 25 per cent to 19.75 per cent and on 25-year terms from 45 per cent to 37.25 per cent.Terminal bonus rates for shorter plans and annual bonus rates have been maintained.Group ...

  • RU64 could be revived for NPSS

    28 Sep 2006

    Advisers could be forced to grapple with another RU64-style rule in the run-up to the implementation of pension personal accounts, warns Axa head of pensions and savings policy Steve Folkard.He fears that pension advisers may have to explain to clients why a pension is at least as suitable or more so than a stakeholder product or personal account when the plans for the NPSS are finalised.Folkard highlights a paragraph in the FSA's recent response to the Pensions White Paper ...

  • Rysaffe and sound

    28 Sep 2006

    Looking at situations where a Rysaffe strategy might be of value in estate planning

  • Silly lenders are still in the sector

    28 Sep 2006

    Irresponsible lending is still a part of the buy-to-let sector, according to National Association of Commercial Finance Brokers chief executive Keith Heron.He believes that some lenders on the fringes of the market are still indulging in poor practices but that concern is one of the few issues that the experts have in an otherwise healthy market.Other concerns are the diminishing housing stock and the threat that the Revenue could raid the market to boost its bank balance with ...

  • SimplyBiz host IHT webcast

    29 Sep 2006

    SimplyBiz and Zurich Intermediary Group are co-hosting a webcast by Technical Connections director Tony Wickenden to provide an exclusive presentation on post-Budget IHT planning.

  • Skandia rewrites annuity letters

    28 Sep 2006

    Aifa director general Chris Cummings says providers checking the quality of advice could lead to confusion over responsibility for missellingHe says it would also result in providers' second-guessing IFA decisions and lead to problems with the Data Protection Act if providers want evidence to back advisers' decisions.Cummings says providers take greater responsibility for quality of products and communication to advisers but says the FSA's suggestions could shift the balance too ...

  • Sour taste of sweetener

    28 Sep 2006

    Scottish Equitable's veteran pension guru Stewart Ritchie is alarmed that IFAs might find themselves carrying the can for complaints arising from employees who get sweeteners to leave defined-benefit pension schemes early.

  • Standard Life sees increase in pension lapses

    27 Sep 2006

    Standard Life saw an increase in pensions lapses due to customers consolidating pension arrangements following A-Day in the first half of 2006.

  • Strike a poso

    28 Sep 2006

    If moving home is one of the most stressful things that most people do in their lives, there can be little doubt that applying for the mortgage is one of the most stressful parts of that process.

  • T Bailey feeds fund facts to IFAs via RSS

    28 Sep 2006

    T Bailey claims to be it is the first multi-manager to use RSS technology to provide IFAs with instant access to fund factsheets.The service uses widely available Really Simple Syndication software to notify IFAs when a new factsheet is issued. It believes other fund groups should use RSS to improve their services to clients.IFAs who want to use the RSS service will need newsreader software which is freely available. Advisers subscribe to newsfeeds through the newsreader.Further ...

  • Tee time

    28 Sep 2006

    A team of IFAs from Yorkshire-based JM Glendinning won the first annual golf tournament hosted by support services provider Threesixty.Six regional teams competed for the title at The Belfry's Brabazon course last week.The winners of the four-ball (pictured below) consisted of Paul Glendinning, Craig Bradley, Richard Carr and Zurich's Nick Henshaw.Scottish Widows' Keith Scott was Nearest the Pin while Jon James of Bristol-based IFA Grosvenor made the longest drive.

  • The churning point

    28 Sep 2006

    FSA chairman Callum McCarthy has called for urgent change to financial services distribution models, which he says are failing consumers, advisers and providers.Speaking to savings and pensions industry leaders, McCarthy criticised commission bias and provider incentives, which he claims are causing detriment to consumers.On the issue of churning, he said: "This merry-go-round, as it has been so characterised, not only reduces, if not eliminates, the profitability of the business, ...

  • The client's interests come first

    28 Sep 2006

    I have clients who just over five years ago jointly invested 100,000 with ABC Insurance. They have taken no withdrawals and the bond is now worth 140,000, representing compound annual growth of almost 7 per cent. My clients have been pleased with the performance of their holding. The male is a higher-rate taxpayer but his wife is a long way under the threshold. My male client therefore decides to assign his part-ownership of the bond to his wife, which can be effected with no tax charge. ...

  • The numbers game

    28 Sep 2006

    The argument that bancassurance is threatening IFAs is tired and irrelevant

  • This week in Investment

    29 Sep 2006

    HSBC's announcement that it is to shift its core UK equity business away from Halbis Partners to its multimanager team has raised a few eyebrows in the investment community.

  • This week in Investment

    28 Sep 2006

    The latest round of restructuring at Hendersons Global Investors looks to be the most dramatic the group has performed for some time. Two years ago Phil Jefferson was brought in as head of UK wholesale to get on with the onerous task of restructuring the retail distribution of an illustrious fund house that had lost its way.

  • This week in Mortgages

    29 Sep 2006

    It's been a busy week of news in the mortgage market as the down-time that is the summer months is now adistant memory.

  • This week in Mortgages

    2 Oct 2006

    It's been a busy week of news in the mortgage market as the down-time that is the summer months is now a distant memory.

  • Turning Japanese

    28 Sep 2006

    Multi-manager View, Nick Greenwood

  • 'US making a mockery of CFP'

    28 Sep 2006

    UK financial planners fear that American proposals to change standards will tarnish qualification

  • Vertex in acquisition talks with Trigold

    28 Sep 2006

    Vertex is understood to be in acquisition talks with several companies, including mortgage sourcing system Trigold.Capita and Mortgage Brain are also understood to be in the running for Trigold, which industry insiders value at about £20m.Trigold chief executive Bill Safran declined to comment on the rumours but admits he would obviously push for a higher price.Mortgage Brain and Trigold each have around 45 per cent of the mortgage sourcing market, meaning that if the two ...

  • Victoria range aims to cut costs for borrowers

    28 Sep 2006

    Victoria Mortgages says it is ready to pass on internal cost savings to borrowers from Monday.

  • Wacky baccy

    28 Sep 2006

    Banks and retailers look attractive but tobacco stocks are trading at around 14 times earnings

  • Watch out for DB exit 'bribes'

    28 Sep 2006

    IFAs must beware of advising clients on "bribes" offered by employers to leave final-salary pension schemes.Syndaxi Financial Planning managing director Robert Reid says firms are effectively trying to bribe staff to quit schemes by offering payouts.He says staff would be worse off and urges the FSA to investigate if employers are carrying out advice which should be regulated. Reid says: "This rerun of pension misselling has the potential to land at our door but only if we act ...

  • Watchdog is not qualified to be a judge

    28 Sep 2006

    Clarke Willmott partner Robert Morfee says the Financial Ombudsman Service has no accountability

  • Watchdog must not be a law unto itself

    28 Sep 2006

    Clarke Willmott partner Robert Morfee says the Financial Ombudsman Service has no accountability

  • Wealth tax rejected as Cable says inequality debate 'has moved on'

    28 Sep 2006

    LibDem conference: Paul McMillan reports from Brighton

  • Welsh broker denies BNP life insurance connection

    28 Sep 2006

    Welsh mortgage and life insurance firm Financial Solutions Unlimited has rejected claims it is the broker behind the BNP’s life arm saying it has not written any business through Albion Life.The claims were made this week in a local newspaper but FSU partner Craig Francis says that “no business in any way shape or form has been written through Albion Life”.Francis says the firm has been approached by Albion Life about a possible link-up- before they knew about the BNP connection- ...

  • Widows cuts jobs in customer services

    28 Sep 2006

    Scottish Widows is to axe 200 jobs after a review of its customer services division. All customer services will operate from Edinburgh.

  • Zurich's Davis joins Openwork board

    2 Oct 2006

    Openwork Holdings Limited has announced the appointment of Martin Davis to its board.

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