Money Marketing
28 January 2004

  • 'PI firms don't understand FOS's conciliatory nature'

    29 Jan 2004

    Professional indemnity insurers' lack of understan-ding of the conciliatory nat-ure of the Financial Ombudsman makes it difficult to solve complaints without apportioning blame, according to FOS head of communications David Cresswell. He says PI firms' interference in trying to cover any exposure that IFA cli-ents may have to misselling claims makes it difficult for the FOS to operate and often results in parties being unnecessarily blamed. But PI providers have ...

  • 'Providers have created atmosphere of mistrust'

    29 Jan 2004

    Labour MP Angela Eagle has blamed product providers for creating "market failure on a massive scale" in the financial services sector and damaging consumer confidence. Speaking at a Treasury select committee hearing on restoring confidence in long-term savings last week, Eagle told witness Ron Sandler she blames providers for perpetuating an atmosphere of mistrust in financial services. Sandler replied that he is disappointed the industry has not seen his new product ...

  • 'Regulation will mean death of loan clubs'

    29 Jan 2004

    Mortgage regulation will bring the death of mortgage clubs, claims Whitechurch Network chief executive Kean Seager. Seager says mortgage clubs are in a frenzy, trying to come up with a unique selling proposition post-regulation and the solutions they are coming up with will not be attractive for most advisers. He believes that in an attempt to keep control of their adviser bases, some mortgage clubs are preparing to provide compliance services. But Seager adds ...

  • 23 firms declared in default by FSCS

    3 Feb 2004

    The Financial Services Compensation Scheme has declared 23 firm in default this month. It is encouraging consumers who may have lost money as a result of their dealings with any one of 23 firms recently declared in default by the Scheme to get in touch.The firms came from across the country with 11 from London, one from the east, two from the Midlands, six from the North, and two each from Scotland and Wales.FSCS chief executive Suzanne McCarthy says: "As the Scheme of ...

  • 6.8% income deal on HSBC six-year plan

    29 Jan 2004

    HSBC Asset Management is offering a capital and income plan which returns the investor's capital at the end of six years and offers a fixed income payment of 6.8 per cent after year one. For the remaining five years, the plan will return variable income payments of between zero and 6.8 per cent a year. The plan is linked to the performance of four stockmarket indices which cover the UK, Europe, the US and Japan. Intermediary business managing director Jon-athan ...

  • 62 per cent of HNW have PMI - survey

    2 Feb 2004

    Sixty-two per cent of high earners in the UK have private health insurance, with 36 per cent saying avoidance of waiting lists as the reason for taking the product, according to research from Lloyds TSB Premier Banking. Only one per cent said private health insurance does not offer good value for money, and eight per cent adopt a pay as you go approach, preferring to pay for medical treatment as and when needed. Lloyds TSB Premier Banking managing director Mark Cheshire ...

  • A consumer's view

    29 Jan 2004

    The Treasury's move to clamp down on inheritance tax avoidance schemes which seek to get round the gift-with-reservation restrictions is not entirely unexpected. Promoters of these schemes, mostly big firms of accountants and solicitors and high-net-worth advisers such as St James's Place, must have known that to actively promote such a blatant tax avoidance device was bound to end in tears. But it does set a dangerous precedent. For virtually the first time in ...

  • A swipe at security

    29 Jan 2004

    A Whitehall mole reliably informs the Diary that Home Office minister Hazel Blears is employing a tough "don't do as I do, do as I say" policy over extra security measures at Government building Portcullis House. On realising she had forgotten her swipe card to get back into the building, the minister responsible for the crackdown on terrorism tried to cajole a young researcher into letting her through the doors. The researcher refused to let the woman pass and demanded ...

  • Abbey call for FSA protection rethink

    29 Jan 2004

    Abbey protection head Nick Kirwan is calling for the FSA to reconsider its stance on the definition of pure protection products before regulation of the sector starts and causes erosion of customer choice. Under current regulations, which were finalised last week, products such as term, income protection or critical illness which have contracts running over the age of 70 and which are held for more than 10 years have to be treated as investment products for regulation purposes ...

  • Abbey reduces rates on fixed rate mortgages

    3 Feb 2004

    Abbey for Intermediaries is reducing the rates on its range of fixed rate mortgages by up to 25 per cent. The new range includes a two year fixed rate at 4.84 per cent, available at up to 75 per cent loan to value, and a five year fixed rate at 5.24 per cent, also at up to 75 per cent loan to value.Director Ambrose McGinn says: "Our new range allows intermediaries to offer deals that will suit clients who want to know where they stand each month, in terms of repayments, rather ...

  • ABN takes note with Euro-DAN bonds

    29 Jan 2004

    ABN Amro is launching its European Direct Access notes into the UK, allowing IFAs to buy global companies' original issue bonds on behalf of clients. The notes, called EuroDANs, will be available at a fixed price throughout the year, offering investors a variety of coupon payments and maturities. Initially, they will have either three-year or five-year terms but ABN says both shorter and longer maturities are in the pipeline. Payment schedules will vary, depending ...

  • AFI to relaunch loan club without principal status

    29 Jan 2004

    Abbey for Intermediaries is planning to relaunch its mortgage club to IFAs and will not be applying to the FSA for principal status, saying it does not want to compete with intermediaries. Over the next few weeks, AfI's The Mortgage Alliance will offer improved features such as access to training, enhanced sourcing systems and new lenders. AfI says IFAs should expect further developments which relate more specifically to regulatory support in the run-up to statutory ...

  • AITC calling for levy to fund financial education

    29 Jan 2004

    The Association of Investment Trust Companies is calling for a levy on product providers to fund personal finance education for consumers. Supporting the Personal Finance Education Group's Excellence & Access project, the AITC says if significant progress is to be made in extending the public's financial capability, funding of the initiative needs to be boldly addressed. Communications director Annabel Brodie-Smith says the AITC would not be looking to make ...

  • An open door to protection

    29 Jan 2004

    The start of another year is often a time when people take stock of their lives. Some people look at how much they are earning and take action to increase their income by changing jobs. Others seek to increase their income by switching money in deposit accounts to maximise their returns. Some may even look longer term to what they hope to live on in their retirement and review their pension plans. This focus on income is logical and understandable but what is not is the ...

  • Aviva appoints new finance director

    3 Feb 2004

    Aviva has appointed Andrew Moss as group finance director to replace Mike Biggs who left the company at the end of last year.Moss, 45, is an accountant and currently Lloyd's of London's director of finance, risk management and operations and is credited with playing a key role in transforming the business, including the move from three-year to one-year accounting and managing the aftermath of the September 11 tragedy.Before joining Lloyd's in September 2000, he ...

  • Birmingham Midshires - BM Solutions Buy-to-Let Variable Tracker

    2 Feb 2004

    Type: Discounted rate buy-to-let tracker mortgageDiscounted term: Three yearsDiscount: 0.45%Payable rate: 5.25%Tracker term: Lifetime of loanTracker rate: Bank of England base rate plus 1.95%Minimum loan:£25.001Maximum loan:Up to 85% of valuation subject to a maximum of £1m, up to 75% of valuation subject to a maximum of £2.5mIncome multiples: Rental income must be ...

  • Bloomsbury puts planning online

    29 Jan 2004

    Bloomsbury Financial Planning is offering investors an online financial planner on its website. The service allows clients to enter details and then provides a series of what-if scenarios based on calculations that Bloomsbury would use. The system includes asset allocation, stochastic forecasting and lifetime cashflow analysis. It can create budget, investment, retirement, protection and mortgage plans. The tool has been developed by software company Distribution ...

  • Bond rate boosted but Widows makes WP cuts

    29 Jan 2004

    Scottish Widows is cutting bonus rates on many of its with-profits policies in line with rival companies, with changes taking effect from January 1. Unitised with-profits life and pension policyholders will see regular bonus rates down by between 0.5 per cent and 1 per cent while regular bonuses on conventional with-profits life polices remain the same. However, most conventional pension policies will see no regular bonuses, with final bonuses on with-profits policies ...

  • Boost for advisers as least worst rule axed

    29 Jan 2004

    The least worst option has been abolished in final rules for mortgage regulation, meaning that lenders and intermediaries must send potential borrowers to an IFA if a product in their own range does not exactly meet their needs. Tied brokers or lenders will be prevented from recommending a product unless it is entirely suitable and in the FSA's opinion, the best course of action will be to send borrowers to an IFA. In the past, if a consumer's needs were not exactly ...

  • Bureaux are bought by Forbes

    29 Jan 2004

    Corporate pension IFA Alexander Forbes Financial Services has bought specialist at-retirement firm The Annuity Bureau and its three sister companies for an undisclosed fee. The deal sees all four bureaux - The Annuity Bureau, The Drawdown Bureau, The Care Funding Bureau and The Investors Bureau - continue trading under their existing brands. The Bureaux managing director Peter Quinton will keep his role and get a seat on the board of AFFS. The addition of The Bureaux's ...

  • Cable quizzes Brown over mutual support

    29 Jan 2004

    Liberal Democrat Treasury spokesman Vincent Cable is tabling a question to Chancellor Gordon Brown this week on whether the Government will continue to support mutuals following the recent turmoil surrounding Standard Life. Cable believes Standard's decision to consider demutualisation has clouded the deb-ate on whether mutuals remain a viable proposition and whe-ther they contribute to the market as a whole. He will ask Brown whether the Treasury plans to review the ...

  • Chelsea offers fixed-rate focus

    2 Feb 2004

    CHELSEA BUILDING SOCIETY5 Year Buy-to-Let Fixed RateType: Fixed-rate buy-to-let mortgageFixed term: Until May 1, 2009Fixed rate:5.79%Minimum loan: £35,000Maximum loan: Up to 80% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £400,000, up to 70% of valuation subject to a maximum of £500,000Income multiples: Rental income must be ...

  • Child Trust Funds at 1.5 per cent

    2 Feb 2004

    The Treasury has announced the latest rules for Child Trust Funds, which will be capped at 1.5 per cent.

  • Clerical finally makes return to GPP market

    29 Jan 2004

    Clerical Medical is re-entering the commission-based group pension market two and a half years after a flood of new stakeholder group business forced it to close its GPP doors. Clerical had pledged to return to the market nine months after its group pension admin collapsed under the strain of thousands of stakeholder plans in August 2001. The firm has processed its admin backlog and is transferring all pension data on to the Equitable Life back-office system bought by ...

  • Commentary - Portal Combat

    29 Jan 2004

    Portal combatThe role of intermediary portals has grown steadily in importance over the past decade. However, as the industry faces increasing regulatory pressure to reduce costs and improve service levels, I believe we are on the brink of a major shift in the portal model that will redefine the role they play for the next decade.Central to this is the requirement for the industry to embrace e-commerce to help overcome regulatory pressures. One of the key challenges the industry ...

  • Credit Suisse Asset Management - UK property Unit Trust

    28 Jan 2004

    Type:Exempt unit trustAim: Income and growth by investing in UK commercial propertyMinimum investment: Lump sum £50,000Investment split:100% commercial propertyPlace of registration: GuernseyCharges:Annual 0.65%Commission: Initial up to 2%Tel: 020 7426 2626

  • Directive disharmony

    29 Jan 2004

    Consumer protection could be seriously undermined by a draft European directive on unfair commercial practices. The FSA has sent a strongly worded response to the Department of Trade and Industry consultation on the plans. The regulator believes the directive could dismember its strategy for empowering consumers and remove large areas of consumer protection. The FSA says the directive would reduce its freedom to develop an effective regime covering fairness after ...

  • DTI looks at financial services outsourcing

    28 Jan 2004

    Minister for trade and industry Patricia Hewitt has announced that her department will be looking closely at the number of financial services jobs likely to be transferred to India over the next 12 months as part of its investigation into outsourcing.

  • DWS goes for growth

    29 Jan 2004

    Type: Oeic fund of funds Aim: Growth by investing in DWS equity and bond funds Minimum investment: Lump sum £1,000, monthly £25 Investment split: 50% equity funds, 50% bond funds Isa link: Yes Pap transfers: Yes Charges: Initial 4.25%, Isa 3.25%, Pep transfers 3%, annual 1.25% Commission: Initial 3%, renewal 0.5% Tel: 0800 917 0005The DWS managed distribution ...

  • Falcon seeks funding to expand

    29 Jan 2004

    IFA network Falcon Group is seeking capital to expand its IFA offerings and increase its presence in the marketplace and says under the right market conditions, it would seek a stockmarket listing. Chief executive Allan Rosengren says the firm is seeking additional funding to buy equity stakes in IFA firms and to launch an IFA services comp-any separate from the existing business. It is also looking to refund its subordinated debt and acquire additional capital adequacy. ...

  • Fee-based Compton bought by iimia

    29 Jan 2004

    Fund firm iimia is buying fee-based IFA Compton House in a move which the group says will boost its funds under advice and management to £200m. Compton, which will retain its name, will operate as part of iimia's financial planning division alongside Eveleigh & Huckle, the Bournemouth IFA which merged with the fund company last year. Eight Compton staff will join iimia in the move, including two directors, a senior adviser and chairman Michael Orton-Jones, who will ...

  • Feeling the burn

    29 Jan 2004

    Scottish Life International entertaining at a Burns night supper last week offered something not many others Burns nights can boast - potentially burning the guests. The Diary was alarmed to hear that guests tucking into a good solid feed of haggis, neeps and tatties had to suddenly flee their Scottish experience for the safety of the street when the fire alarm went off. Guests mingled with hotel patrons in their pjs while the situation was sorted out. Fortunately, Burns ...

  • Fidelity call to scrap Sandler suite cap

    29 Jan 2004

    Fidelity is urging the Government to scrap plans to impose a price cap on the stakeholder suite of savings products, arguing that it should abandon efforts to dictate to the market. Managing director Richard Wastcoat says investors' needs are too complicated for Ron Sandler's "simplistic solution", which it warns could leave the Government facing ano-ther misselling scandal. He says that as most investment products are sold, not bought off the shelf, providers ...

  • Fidelity to run IFA teleconferences

    30 Jan 2004

    Fidelity is running a teleconference programme for IFAs through February and March.IFAs tuning in will be able to hear a short fund overview from some of Fidelity's leading managers and participate in a open-floor question and answer session. The managers include Tim McCarron, European fund manager and Richard Skelt, manager of Fidelity's multimanager portfolios. IFAs can book a place by clicking: www.fidelity.co.uk/

  • Financial marketer confidence grows

    3 Feb 2004

    Confidence has increased steadily over the last nine months in financial services marketers and is continuing to increase according to the Financial Services Forum's latest research.The Forum's Marketing Confidence Index now stands at 114 compared with an initial level of 100 in December 2001. The Index is based on dedicated research amongst the Forum's 220 UK- based members, and asks for their personal views, rather than their employers' official responses, on how ...

  • First State sees in Chinese New Year with fund deal

    29 Jan 2004

    First State Investments is kicking off the Chinese New Year by offering a 0.5 per cent discount on entry fees into its Greater China growth fund. The initial cha-rge on the fund, which laun-ched in December, will be 3.5 per cent until April 5. Framlington is cutting by 1 per cent off the 5 per cent charge for lump-sum Isa investments into its flagship equity income fund managed by George Luckraft. The discount, which runs to April 30, applies to investments of £1,000 or more, ...

  • Friends shows record new business

    2 Feb 2004

    Friends Provident have reported their best new business figures to date, bucking the industry trend and increasing new business by 14 per cent.The insurer has reported that new sales have increased to £429.2m from £376.7m in 2002 on an annual premium equivalent basis, with life and pension new sales in the fourth quarter up 13 per cent to £116.7m from £103.1m in 2002 on the same basis.The growth included growth in protection sales of 54 per cent, ...

  • FSA fines Deloitte & Touche Wealth Management £750,000

    28 Jan 2004

    FSA has fined Deloitte & Touche Wealth Management £750,000 for what it calls serious compliance failings and for not taking "reasonable steps" to complete both Phase 1 and 2 of its Pensions Review within set standards and to regulatory deadlines.The regulator says these failings are particularly serious in light of the fact that DTWM's compliance failures were systemic and continued for a prolonged period of time.Additionally, the FSA says regulators had placed ...

  • FSA lets IFAs mediate during enforcement investigations

    3 Feb 2004

    From this week IFAs will be able to apply for mediation when they are being investigated by the FSA. Following a review of the regulator's enforcement process, the FSA has decided to provide greater access to the mediation process in an attempt to encourage firms to settle more quickly.Firms will be able to apply for mediation on all areas of investigation except criminal cases. This includes unfitness, impropriety and variation of permissions.FSA spokesman Robin ...

  • FSA pledges help with ads but rules out pre-vetting

    29 Jan 2004

    The FSA has vowed to work more closely with financial companies over their ads but has maintained its position on not pre-vetting ads, saying this is "a bridge too far". In its business plan for the next financial year, the regulator says it will look at the marketing strategies of financial services companies and set up systems and services that will "help the industry to prevent misselling from advertising material". As part of the change in focus, the FSA will also ...

  • FSA publishes PI insurance guide

    28 Jan 2004

    The FSA has published a guide to getting professional indemnity insurance in a bid to give IFAs a greater insight into the PI market. The guide includes information on how IFAs can improve their systems and present their risk more effectively to insurers.

  • FSA selects XBRL for electronic reporting

    29 Jan 2004

    The FSA has picked Xtensible Business Reporting Language as the blueprint for the set of electronic reporting standards it will develop, opting for XBRL over Origo. XBRL is an electronic messaging system used by accountancy groups worldwide which condenses complex financial data. Starting from 2005 with a phased introduction until 2007, regulated firms will report not only their basic business details online but also submit compliance returns via an FSA extranet. Origo ...

  • Fulton's Positive attitude

    29 Jan 2004

    Whoever said January would be quiet was playing a cruel joke. The month is far from over and I am feeling distinctly "Tiggered". It is fitting, then, that the week should start with one of my favourite clients, the wonderfully feline Ali Cooley at Charcol. We discuss the results of their latest personal loan research and catch up on new year gossip. Then it is a short bus ride into the City for some quality time with my old friend and colleague Steve McDowell. As ...

  • Gartmore outsources admin to HSBC

    30 Jan 2004

    HSBC is in exclusive discussions to take over the running of Gartmore's back office administration.Under the deal approximately 105 Gartmore staff will transfer to HSBC subject to final negotiations and a staff consultation period.HSBC will then provide transaction processing and related foreign exchange, custody, portfolio and fund accounting and performance measurement for Gartmore's European institutional and retail product ranges. HSBC Securities Services ...

  • GMAC offers residential mortgages in Germany

    2 Feb 2004

    GMAC-RFC has started its mortgage lending business in Germany. It acquired DFH Eigenheimbank GmbH, Saarbruecken and renamed it, GMAC-RFC Bank GmbH. The bank will offer residential mortgages to private customers throughout Germany. GMAC-RFC will distribute its products through intermediaries including mortgage brokers, insurance companies and other retail financial service companies.GMAC-RFC German Country Manager Matthias Bergmann says: "The German residential mortgage market is ...

  • Govt faces revolt over collapsed companies

    29 Jan 2004

    The Government is facing a backbench rebellion over the Pensions Bill from a large number of MPs supporting an early day motion calling for compensation for pensioners who have seen their funds disappear after the collapse of their employers. Cardiff MP Kevin Brennan has tabled the EDM, challenging the Government to compensate thousands of pensioners who have lost all or nearly all their pension pots following the closure of companies. The motion has been supported by 215 MPs, ...

  • Grosvenor Films - Messages

    30 Jan 2004

    Type: Enterprise investment schemeAim: Growth by investing in the production of a supernatural thrillerMinimum investment: Lump sun £2,000Opening/closing date: October 21, 2003/February 29, 2004Charges: ImplicitCommission: Initial up to 5%Tel: 0208 567 6655

  • Halifax nets online boom

    29 Jan 2004

    Halifax did a massive £14bn of intermediary mortgage business last year and it is now doing 90 per cent of the business electronically. Head of intermediary markets Jack Saxton believes this level of business shows the company's commitment to technology is paying off. He says: "This is a phenomenal level of business to be doing online, particularly as the maximum possible is not 100 per cent, as some business, such as shared ownership, cannot be done electronically." Halifax ...

  • IFAs say tighter CI definitions better than losing guarantee

    29 Jan 2004

    IFAs would rather see definitions on guaranteed critical-illness policies continually tightened than lose them altogether, according to research by Legal & General. L&G's survey of 400 IFAs found that new-generation CI cover products should be based on today's model rather than "radical" new designs. Fifty-seven per cent of the IFAs offer only guaranteed premiums to clients while 42 per cent offer both guaranteed and reviewable rates. When asked ...

  • Independent view

    29 Jan 2004

    If you are an IFA reading this article, I congratulate you on your survival skills. You have survived through a period in which there has been a systematic attempt to destroy your income base. You have been under severe pressure, both financially and mentally. Bearing in mind these factors, you would think that IFAs would be united in their approach to the various problems that confront them. If only that were true. It pains me to say that, faced with such threats, IFAs are completely ...

  • Inside Edge - Nick Bamford

    29 Jan 2004

    Did the FSA convince Standard Life to review its stance on mutuality? We may never know. The FSA may well feel that if it is going to be criticised for the demise of one major mutual, Equitable Life, it had better ensure it is fireproof when it comes to a second mutual, Standard Life. That is not to say that Standard is in decline - it is not. It remains a financially strong organisation. Sometimes it is much easier to write a negative story than a balanced report. You could be ...

  • Investment view

    29 Jan 2004

    Here we are, just a month into the New Year and already my diary is filling up. Not, you understand, with speaking engagements (there are a few but 2004 is disappointingly low so far), lunches (a new, fitter regime demands that no lunches are booked before February) or corporate events (we need the index back above 6,000 before the box at Cheltenham returns). Instead, it is other people's invitations that are finding their way into my diary. Invitations to learn how other managers ...

  • Investor confidence is soaring, says JPMF

    3 Feb 2004

    Investor confidence is rising steadily and is now nearing the level it was at in April 2001, according to JPMorgan Fleming.JPMF's investor confidence index rose from 84 in December to 92 in January, nearing April 2001's all-time high of 103. It also reveals that 44 per cent of investors believe the stockmarket will be higher in six month's time, an increase of 4 per cent over the month. Just 17 per cent think it will be lower (19 per cent in December).Head of market ...

  • Johnson swims in EIS pool

    30 Jan 2004

    Johnson Seafarms is an enterprise investment scheme promoted by Kreis Consulting that aims to raise up to £1m to invest in a cod-farming venture.This EIS will raise up to £1m to buy up to £200,000 cod hatchlings which will be raised to maturity over two or three years, then sold. There are two hatcheries in the UK and Johnson Seafarms has contracts with both, guaranteeing the company 90 per cent of all cod hatchlings over the next five years. The projected ...

  • JPMorgan Fleming -Elect

    28 Jan 2004

    Type: Investment trustAim: Income, growth and capital preservation by investing in investment trusts, investment funds and liquidity fundsMinimum investment: Lump sum £50, monthly £50Investment split: Managed growth shares - 65% UK, 35% overseas, Managed income shares - 85% equities, 15% fixed-interest, Managed cash shares -100% sterling liquidity fundsTypes of share: Managed income, managed growth, managed ...

  • Julian Gibbs

    29 Jan 2004

    An essential website for investment IFAs is structured retailproducts.com. It gives full details of every new product and up-to-date reviews and comments. Over £5.3bn of structured retail products were sold last year and, while this was down by 15 per cent on the previous year, this was entirely accounted for by the decline in sales of high-income products. Capital-protected products accounted for £4.6bn worth of sales while high-income products sold just £770m ...

  • Jupiter appoints retail marketing head

    2 Feb 2004

    Jupiter has appointed Peter Hall as head of retail marketing.Hall joins from Fidelity, where he was senior manager, practitioner and IFA marketing.Joint managing director Gordon Davidson says: "Peter's experience in UK retail marketing and fund distribution will make him a valuable addition to the marketing and sales team."

  • L&G distribution trust gets AA rating

    30 Jan 2004

    Legal & General's new distribution trust has been awarded an AA fund management rating from Standard & Poor's fund research. The trust is available to lump sum investors and regular savers with minimum investments of £500 lump sum or £25 a month and currently includes a special offer whereby IFA clients can have a 1 per cent discount on the initial 5 per cent charge for lump sum investments made before April 30. The annual management fee is 1.25 per cent.Retail ...

  • L&G rethinking its stance on with-profits sales

    29 Jan 2004

    Legal & General says it will review its stance on selling with-profits, saying in the wake of impending regulatory ref-orms, such as the new realistic reporting regime, it has been forced to reconsider the types of business it sells. L&G head of press relations John Morgan says it is not going to be withdrawing from with-profits as matters stand but will be looking closely at the FSA's suggested reforms which he says create "significant" issues for the industry, including ...

  • L&G sees 2 per cent drop in new business

    28 Jan 2004

    Legal & General has recorded a drop of 2 per cent in its UK new business levels in 2003, but saw growth in the second half of the year and is holding out hopes for further recovery this year. The group saw UK new business sales drop to £794m APE last year from £810m in 2002. However, in the last quarter of 2003, total UK new business rose 6 per cent to £186m from £175.5m the previous year.

  • Legg Mason likes sound of the Pacific

    2 Feb 2004

    Legg Mason Investments has introduced the Legg Mason Asia Pacific fund, an Oeic that invests in companies based in the Asia Pacific region, excluding Japan.The fund will contain between 50 and 70 holdings and will be managed by Batterymarch Financial Management, a Boston-based subsidiary of Legg Mason. It has managed emerging markets portfolios since 1987 and in 1995, it became a subsidiary of Legg Mason.The lead fund manager, David Lazenby, will take a bottom-up approach ...

  • Letwin promises to cut a tax a year

    30 Jan 2004

    Shadow chancellor Oliver Letwin has promised to cut a tax a year if his party is reelected. As part of the Conservative's tax proposals Letwin has pledged to reduce the burden for small businesses.

  • LIA's View - John Ellis

    29 Jan 2004

    LIA's view There have recently been a number of attacks in the press on various aspects of regulation which appear to impinge on the freedom of action of financial services practitioners. The more extreme versions suggest taking cases to the European Court and seeking to have aspects of regulation or consumer protection declared null and void. The Financial Ombudsman Service has been mentioned in this connection. The LIA does not go along with these extreme positions. Our ...

  • LibDem warns Govt over commission crackdown

    29 Jan 2004

    The Government will risk throwing the baby out with the bath water if it follows recommendations to crack down on IFA remuneration through commission to prevent misselling, warns Liberal Democrat MP Normal Lamb. Treasury select committee member Lamb urged colleagues to consider whether calls for tighter restrictions on commission for advisers recommended by Ron Sandler and the committee could destroy IFA networks. Witness Paul Myners, author of the Treasury-commissioned ...

  • Life firm told to rethink its 17 tech systems

    29 Jan 2004

    A life office with 17 different back-office systems is believed to have been warned by the regulator to streamline its systems ahead of changes to reporting regulation. Money Marketing understands that the company was told by the FSA that it will not accept its information from 17 different sources and that this data will have to be aggregated to be acceptable. By the second half of 2005, all life offices will be submitting financial and actuarial reports and quarterly ...

  • Mark Chilton on Mortgages

    29 Jan 2004

    The whole industry is focusing on the impact of the last quarter of 2003, but I believe a more fundamental challenge to the independent broker, who makes up the majority of our market, will come from the introduction of the seller's pack.First a few words on why these proposals are not just wrong but misplaced. The very limited trial of the packs in Bristol a couple of years ago was not just so small as to be statistically irrelevant but its findings were also far from conclusive ...

  • Marlborough looking to boost turnover by £10m

    29 Jan 2004

    Technology provider Marlborough Stirling says its turnover will be boosted by £10m in the next year if a series of deals go ahead as planned. In its market outlook for 2004, the firm says it expects to complete a number of exclusive contracts that will boost turnover to £80m by March 2005 from £70m. However, City analysts are more bullish, predicting its results will show overall turnover at around £114m-£115m, with profits around £9m by ...

  • MCCB reduces fees

    2 Feb 2004

    The Mortgage Code Compliance Board has announced that the fees for its final six month renewal period are considerably below the pro-rata 2003/4 levels.The renewal fee for an intermediary firm with a single sales person would be £40, a firm with 8 sales staff would pay a fee of £320, firms with 12 sales people would pay £420 and for a very large intermediary firm with 1,200 sales staff the fee is £18,000.Chief executive Luke March says: "We are ...

  • McFall says Standard is not honest on mutuality future

    29 Jan 2004

    Treasury select committee chairman John McFall has attacked Standard Life and new group chief executive Sandy Crombie for failing to be honest with policyholders over its decision to consider demutualisation. Speaking at a Treasury select committee investigation on restoring confidence in long-term savings this week, Labour MP McFall slammed Standard Life for publishing a statement on its website which told policyholders that the pending mutuality discussions would have no immediate ...

  • Mike Webb

    29 Jan 2004

    I nvesco UK head of distribution Mike Webb has, by his own admission, taken an extremely bizarre route to the top. At a time when most of his peers were hunched over economic textbooks, he was working in pubs and clubs the length of the country attempting to eke out a living as a stand-up comedian. But despite minor successes, including a well-received stint at the Edinburgh Festival, it was no laughing matter. Realising that working simultaneously at a morgue, among other unappealing ...

  • Miles wide of the mark

    29 Jan 2004

    Professor David Miles has sparked an angry response from mortgage brokers with his claim in his interim report late last year that brokers are fuelling the remortgaging boom and encouraging borrowers to spurn longer-term fixed deals. Miles claimed that advisers are churning mortgage business by guiding clients to remortgage to short-term fixed-rate deals every two or three years. The academic, who has been asked by Chancellor Gordon Brown to investigate why borrowers ...

  • More homeowners using equity to buy second properties

    29 Jan 2004

    One-fifth of remortgages are taken out to buy a second property, according to a survey by Paragon Mortgages. Six months ago, the figure was 15 per cent. Paragon believes the increase is a result of buoyant house price inflation increasing the equity in people's houses, which they then release to buy second homes. Paragon's survey of brokers shows that remortgages are the biggest category of mortgages arranged, at 51 per cent of the total, although this is a small ...

  • Mortgage debt still rising too rapidly warns Cable

    2 Feb 2004

    Commenting on the Building Societies Association figures showing lending up 70% in 2003 Liberal Democrat chief economics spokesman, Vince Cable says: "These figures show that housing credit is still growing at an extraordinarily rapid rate. Even the FSA is expressing alarm at the rising level of debt." He added: "It is alarming that nobody in the Government is taking action to address the inflated housing market. It is time for the Government to take action to protect ordinary ...

  • Move to block Aberdeen trust sale

    29 Jan 2004

    Law firm Class Law is fighting to block receivers Ernst & Young selling off the rump of the now liquidated Aberdeen preferred income trust. Class Law partner Stephen Alexander says he intends to fight the sale of the former flagship trust to property firms on behalf of his clients with splits and zero investments. Alexander says the move to sell off the remaining assets of the business for tax losses will leave shareholders with "almost nothing", ...

  • New Star chief fears bond misselling

    29 Jan 2004

    Direct-sales teams working for high-street banks could be guilty of misselling corporate bond funds by failing to explain the risks, according to New Star sterling bond fund manger Phil Roantree. Speaking to Money Marketing this week, Roantree says the success of the corporate bond fund sector in recent years means direct salespeople are highlighting rates of return without making clear the risks. He says: "Corporate bonds have been the best-selling sector in the market ...

  • NU increases rates on mortgage life insurance

    28 Jan 2004

    Norwich Union is increasing rates on its mortgage life insurance with guaranteed critical illness cover by an average of 3 per cent.The change takes effect from this week, with angioplasty being removed from the list of conditions covered in line with other insurers. The maximum term has also been reduced to 25 years and expiry age to 65 years.

  • NU poised to enter home-reversion market

    29 Jan 2004

    Norwich Union is considering launching a homereversion plan as it believes the product has benefits which a mortgage-based equity-release scheme cannot match. Head of marketing Paul Stokes says the fundamental benefit of a home-reversion plan is that the borrower is able to leave a fixed legacy to their inheritants as they will always own a set part of their property regardless of fluctuations in house price. But Stokes says it is clear that for the market to really take ...

  • Octopus Asset Management - Eureka

    30 Jan 2004

    Type: Enterprise investment scheme fundAim: Growth by investing in unquoted UK companies and Aim companiesMinimum investment:Lump sum £20,000Investment split: 60% unquoted companies, 40% Aim companiesCharges:Initial 5%, annual 2.25%, 0performance fee 20%Commission: Initial 2.5%, renewal 0.25%Tel: 0800 298 4472

  • Offshore life sales boost for ScotEq and Pru

    29 Jan 2004

    The offshore life market looks to be picking up pace rapidly, with Scottish Equitable International and Prudential International seeing new business grow massively last year. ScotEq International recorded its most success-ful year, with sales into the UK market up by 83 per cent last year. Single-pre-mium investment sales reached £412m compared with £225m in 2002. It is also believed that Pru International has seen substantial growth along similar lines to ...

  • Out of context

    29 Jan 2004

    •"Fortunately, FSA does not stand for Food Standards Agency or we would have all been poisoned a long time ago." - Carpetbagger David Stonebanks in an email to Standard Life policyholders. •"With-profits is like a condom. It offers less protection than you think and gets in the way of the key objective." - Syndaxi director Robert Reid, speaking at a Selestia with-profits debate. •"Some people give up alcohol for January, I just gave up lewd jokes." - Defaqto ...

  • Outside Edge - Richard Jacobs

    29 Jan 2004

    Don't panic was the headline of a leading national news-paper on January 9. I hope this does not turn out to be the epitaph for Standard Life. What is going on? Why Standard? Surely if there are issues concerning valuing liabilities and solvency, then this applies to all insurance companies? Why is it that the Standard debate is public? We need to look back to the origins of our industry. Mutual societies and friendly societies were there to protect their members' ...

  • Over £1 trillion equity for retired homeowners - Key RS

    28 Jan 2004

    Research from Key Retirement Solutions shows the rise in property prices means that for the first time the nation's retired homeowners now have over £1 trillion of equity in their homes.This is an increase of around £444bn or 75.32 per cent since 1998, when they had £589bn worth of equity.Key Retirement Solutions managing director Colin Taylor says: "With the rise in property prices, many retired homeowners now have considerable wealth. However, ...

  • Pink Home Loans makes move into commercial lending sector

    29 Jan 2004

    Skipton Building Society subsidiary Pink Home Loans is moving into the commercial lending market. Pink Commercial will be run in association with specialist intermediary lender Commercial First. The service will offer loans to borrowers who find it difficult to get funding from banks and institutional lenders, such as small businesses, the self-employed and partnerships. There will be a self-cert option for some customers. Commercial First says only 15 per cent ...

  • Postal friendly says Sandler is missing target

    29 Jan 2004

    The Communication Workers Friendly Society has slammed the Government and the FSA for rubber-stamping changes to financial products which the society believes are detrimental to the people the regulator is trying to help. Chief executive Edward Chapman says the Government and the FSA's support of Sandler's no-advice framework proves that the regulator and the Government have failed to understand the target audience of low to middle-earners. Chapman says that when ...

  • Principal principles

    29 Jan 2004

    There seems to be an unerring belief among introducers that the network's permission for inter-principal or multi-principal agreements with any other principal firm, irrespective of their market reputation, is a prerequisite of a commercially competitive network. After the significant capital investment that is required to set up a network, principal firms can be forgiven for running a little scared. What if 60 per cent of advisers take the direct authorised route to maintain ...

  • Product Matters

    29 Jan 2004

    The last three years of market turbulence has understandably led investors to seek a safer haven for their money. Corporate bonds carry less risk than equities and have been a major beneficiary of investors' cash during difficult market conditions. In recent months,we have seen speculation about whether the bond market can sustain its performance but I believe the outlook, especially for UK bonds, is not necess-arily negative. Investors should always include some exposure to ...

  • Promotion battle

    29 Jan 2004

    The FSA says it has already seen evidence of poor financial promotions in the equity-release sector and is warning that it will take swift regulatory action against firms which missell the products. Do you agree with this stance? Batchelor: The prime reason why the FSA is regulating mortgages is to protect the consumer and in its rules it makes it clear that equity release is a higher-risk product with an increased possibility for misselling. With that in mind, it is ...

  • Prosser pleading L&G's innocence on misselling

    29 Jan 2004

    Legal & General group chief executive David Prosser has denied to MPs on the Treasury select committee that the company has missold endowments. Testifying before the committee's investigation into long-term savings on Tuesday this week, Prosser refused to concede that L&G missold endowments. It emerged separately this week that former Legal & General investment development director John Maguire had an email exchange in 1998 between himself and L&G's ...

  • Pru picks distribution chief

    29 Jan 2004

    Prudential business-to-business distribution director Andy Briggs is heading all intermediated UK distribution following distribution director Nick Smith's departure. Briggs, who will continue as director of BTB distribution, took up his new position last week. Having joined the Pru 16 years ago, Briggs starting out as a pensions actuary. He later moved into marketing, becoming strategic marketing director and then in 1997 became sales director for Scottish Amicable ...

  • Pru wary despite bond sales surge

    29 Jan 2004

    Prudential says it is continuing to tread cautiously in the UK insurance market after new business fell by 19 per cent last year to £607m in annual premium equivalent from £750m in 2002. UK new business was only slightly ahead of the Pru's Asian operations, which reached £555m in 2003, up by 16 per cent from £478m in 2002. Group chief executive Jonathan Bloomer says the Pru expects to gain from returning consumer confidence and a shift by savers ...

  • Remortgages soar by 50% in 2003

    29 Jan 2004

    Remortgaging was the main driver of the lending market in 2003. Figures from the Council of Mortgage Lenders show gross remortgaging leapt by 50 per cent to £120.8bn from £80.6bn in 2002 while gross lending for purchases was up by only 3 per cent to £121.8bn from £118.2bn. December was the only month in 2003 when lending for purchases passed the 50 per cent mark, reaching £12bn or 51 per cent of total lending. In April, it fell to 40 per cent ...

  • Rock increases mortgage multiples

    29 Jan 2004

    Northern Rock has increased the income multiples on some of its mortgages. The increases will apply to Rock's five, seven, 10 and 15-year flexible fixed products and the together five and seven-year fixed products. Rock is offering 4.3 times single income on its five-year and over fixed-rate together product, 3.25 times joint income or 4.3 times single plus one times the lower income. Its flexible fixed rates of five years and over are now available at four times income, ...

  • Room with a phew

    29 Jan 2004

    Room for Improvement? The Diary hopes this is no longer the case for MM columnist Keith Popplewell who let builder Dave and designer Angus into his house last week to convert his utility area. Keith seems to have acquired the taste for fame - readers may remember him from such shows as The Big Breakfast where he won family of the week. But the technical guru is adamant that his appearance was not part of a quest for the limelight.

  • Sainsbury's Bank - Decreasing Term Assurance

    29 Jan 2004

    Type: Decreasing term assuranceMinimum sum assured/premium: No minimum/£5 a monthMinimum-maximum term: One year-40 yearsOptions: Waiver of payment benefitCharges: ImplicitCommission: NoneTel: 020 7571 2170

  • Sainsbury's Bank - Level Term Assurance

    29 Jan 2004

    Type: Level term assurance.Minimum sum assured/premium: No minimum/£5Minimum-maximum term: One year-40 yearsOptions: Waiver of payment benefitCharges: ImplicitCommission: NoneTel: 0800 0137137

  • Sales of retail funds rocket 84 per cent in December

    28 Jan 2004

    Net retail sales of investment funds rocketed 84 per cent from November to December, according to the IMA.The trade body's monthly figures reveal that net sales hit £834m in December from £480m in the previous month. Isa sales were up 5 per cent, to £209m from £201m.Total funds under management in 2003 grew to £240bn from £195bn at the start of the year.

  • Sandler and Myners have got it wrong

    29 Jan 2004

    Ron Sandler has been beating up on IFAs and product providers again, abetted by former fund management boss Paul Myners. In evidence to the Treasury select comm-ittee, Myners suggested commission sales should carry a health warning while Sandler warned of misselling if the current state of affairs continues. Sandler has also attacked providers' obsession with the 1 per cent price cap and FSA attempts to over-regulate his products. Both are wrong. Myners' suggestion ...

  • Scot Eq closes 11 IFA branch offices

    28 Jan 2004

    Scottish Equitable is closing 11 of its IFA branch offices in a restructuring that will see its branch numbers cut to 17 from 28. ScotEq says it wants to move to more focussed national 'sales centres' from its current branch structure.

  • Scottish Widows Bank launches online mortgage service

    28 Jan 2004

    Scottish Widows Bank is launching an online service for IFAs and mortgage brokers offering direct electronic access for mortgage quotations, agreements in principle, applications and case tracking. The service offers a fully compliant mortgage quote at all hours of the day, full online applications for professional, flexible and graduate mortgages without signature and up to date information on the progress of all cases.Scottish Widows Bank business development director Gordon ...

  • Selestia stays on track with sales of £218m

    29 Jan 2004

    Asset allocation platform Selestia saw new business of £218.3m in 2003 after taking £74m in the final quarter. It says the results for its second full year keep it on target to reach profitability by 2006 through accumulating assets of between £1.5bn and £2bn. The Old Mutual-owned platform now has £300m in assets under management while 700 IFAs have signed terms of business contracts with it. Advisers using Selestia can select between ...

  • Sesame hit by weak markets

    29 Jan 2004

    Misys is blaming continued weakness in the long-term savings and investment markets after financial services sales fell by 16 per cent in the six months to November 30. Total revenue for its financial services businesses, including mega-network Sesame, Sesame Insurance Services and Assureweb, was £195m compared with £233m in the previous year. The businesses made a loss of £2m compared with a £3m profit previously. However, the Sesame network saw a ...

  • SFO to look into Penrose report on Equitable

    29 Jan 2004

    Equitable Life's former management may be the subject of a criminal investigation after it emerged that the Treasury has referred the Penrose report to the Serious Fraud Office. The SFO has confirmed it has received the 800-page report and will be looking to see whether it is appropriate for it to carry out an investigation on the back of the report's findings. The independent inquiry into Equitable, headed by Lord Penrose, was ann-ounced by the Treasury in August ...

  • Sixty staff are axed at Abbey arm in multi-manager move

    29 Jan 2004

    Abbey is axing 60 staff from its asset management arm as part of a plan to introduce a multi-manager approach across its actively managed bond and equity-based unit linked life and pensions and unit trust business. Abbey says it wants to move away from directly managing funds to external fund managers. The 60 redundancies will come from within the fund management and back-office operations at Abbey National Asset Manager's Glasgow premises over the next few months. At ...

  • Sizing up consolidation

    29 Jan 2004

    The merger talks between Inter-Alliance and Berkeley Berry Birch is in perfect tune with the City's mantra for the listed IFA sector - consolidation, consolidation, consolidation. The move is a clear res-ponse to investor impatience over the performance of the bigger Aim-listed advisory firms. Analysts and distribution consultants have for some time been arguing that listed IFAs need economies of scale to become profitable. Durlacher analyst David Pannell says: "Consolidation ...

  • Skandia Investment Management - Skandia American Fund

    3 Feb 2004

    Type: OeicAim: Growth by investing in the US and CanadaMinimum investment: Lump sum £1,000, monthly £50Investment split: 100% US and Canadian companiesIsa link: YesPep transfers: YesCharges: Initial 5%, annual 1.5%Commission: Initial 3.5%, annual 0.5%Tel: 02380 334411

  • Skipton takes long view

    28 Jan 2004

    Type: Flexible fixed-rate mortgage with discount Discounted term: Until March 31, 2005 Discount: 0.25%Payable rate: 5.99%Fixed term: Until March 31, 2014 Fixed rate: 6.24% Minimum loan: £5,000Maximum loan: Up to 95% of valuation subject to a maximum of£200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000Income ...

  • Split-cap trusts bounce back to trounce markets

    29 Jan 2004

    Split-capital investment trusts enjoyed a strong recovery last year, with returns far outstripping those of the FTSE All Share index, according to stockbroker Caze-nove's annual review. Total returns on ordinary income shares rocketed to an average 47.1 per cent while zeros shot up to 37.3 per cent, significantly above the 21 per cent rise recorded by the All Share index. Investment trusts as a whole also performed well, with prices rising by an average 24 per cent, outperforming ...

  • Spring TV campaign from Norwich Union

    3 Feb 2004

    Norwich Union is launching a new TV advertising campaign this week focussing on pensions, protection, investments and healthcare. The £3m Spring campaign of TV commercials will be supported by a press campaign running mid February to mid March and by outdoor advertising in March. Norwich Union director of marketing strategy & communications Sally Shire says: "It has never been more important for people to make their own provision when it comes to saving for the future. ...

  • St James's enjoys final-quarter fillip

    29 Jan 2004

    St James's Place saw new business rise by 24 per cent in the final quarter of 2003 despite a 4 per cent fall for the whole year. Investment new business leapt by 44 per cent to £26.1m annual premium equivalent in the last three months while protection business was up by 32 per cent to £7.5m. New pension business fell by 8 per cent to £12.3m. Total new business over 2003 was down to £148.8m from £154.7m. New investment business fell by 3 per ...

  • Standard adding Liontrust to funds

    29 Jan 2004

    Boutique fund manager Liontrust's first large cap fund is among the range of 28 external funds which Standard Life will offer under its new pension proposition from March 15. Standard is also introducing a new commission model for its pension range, with commission based on the term until the custo-mer's retirement date. Fourteen external fund managers are being used by Standard, with access to funds such as Fidelity's special situations, Threadneedle's American ...

  • Standard confirms review team

    2 Feb 2004

    Standard Life has confirmed its strategic review team with big names such as Price Waterhouse Coopers and UBS to support senior executives in its quest to find the best way forward for the mutual insurer.The review, which will look at a range of factors including the most appropriate capital structure for the company in the future, will be led by Standard's senior executives, with a range of firms providing additional advice.McKinsey & Company has been appointed to ...

  • Standard cuts bonus rates

    29 Jan 2004

    Standard Life has announced it is cutting bonuses on its with-profits policies by up to one per cent, with payouts falling by an average of 7 per cent.However, the insurer says that following a year of strong investment performance, most policies have seen investment return of more than 10 per cent.Bonus cuts on life and pension with-profits policies ranged from 0.25 per cent to 1 per cent.The change means a 25 year savings endowment policy taken out by a male aged 30 next ...

  • Standard Life Bank is in profit ahead of schedule

    29 Jan 2004

    Standard Life Bank has moved into profit a year ahead of schedule after making £4.6m last year. City analysts have speculated that parent company Standard Life may have to sell off the bank and its Standard Life Healthcare subsidiary if it wants to maintain its mutuality. In the year to November 16, Standard Life Bank's mortgages under management rose to £8.7bn from £7.2bn the previous year while gross mortgage lending rose to £3.4bn from £3.1bn. The

  • Standard Life Investments appoints Crombie replacement

    29 Jan 2004

    Standard Life Investments has appointed Keith Skeoch acting chief executive, replacing Sandy Crombie who moved into the Standard Life group chief executive post on 13th January following the resignation of Iain Lumsden.Former Mercury Asset Management chairman Hugh Stevenson has been appointed non-executive chairman of Standard Life Investments in place of Sandy Crombie. Additionally former global head of equities at UBS Warburg Colin Buchan has been appointed non-executive deputy chairman. ...

  • Standard policyholders fear Thursday's bonus announcement

    28 Jan 2004

    Standard Life policyholders are fearful of what lies in store for them this week with the mutual insurer scheduled to make its bonus announcement Thursday. Standard has already revealed cuts are likely, but in a statement announcing its decision to carry out a strategic review earlier this month, moved to reassure policyholders that cuts would be in line with competitors.

  • Std Life Healthcare launches into PMI cost plus sector

    28 Jan 2004

    Standard Life Healthcare is launching into the cost plus sector of the private medical insurance sector.Cost Plus is aimed at larger companies who have large and stable volumes of medical insurance claims and want an alternative to a fully insured scheme.With cost plus, the company agrees a claims fund with the insurer who then manages the scheme for the company, with insurance cover protecting the company against claims that exceed their claims fund significantly. The ...

  • Strike up the brand

    29 Jan 2004

    The FSA's decision to introduce rules preventing firms from making past performance the overwhelming feature of ads was widely welcomed at the end of last year. But as the Isa season app-roaches and groups start implementing marketing strategies, the impact of the rules, which come into force in June, are only now becoming clear. When the FSA published its requirements last December, fund groups - many of which feared that the use of past performance would be banned ...

  • Subprime lender Infinity Mortgages launches

    28 Jan 2004

    A new subprime lender, Infinity Mortgages, has launched into the market. Infinity will be offering products for consumers with adverse credit histories along with buy-to-let and right-to-buy products. It is financed through a minority shareholding from the Mortgages plc group of companies and by equity provided by financier Ravi Takhar.

  • Talkback

    29 Jan 2004

    "Yes, I think if groups of IFAs joining together like this gives advisers more strength to take on the FSA then it is a good thing. At the minute, I get the feeling that most IFAs are going to have to join really large groups or stay as small niche businesses." Wesley Haslett,Andrews Insurance Life & Pensions "No, I don't think it will have an impact. Falling turnover has driven the merger and they may take more market share but this is a cost-cutting exercise and will ...

  • Tax Planning

    29 Jan 2004

    Over the next few weeks, I will look at some of the key proposals in the pre-Budget report and consider what they could mean to those in the business of giving financial advice. I will start with income tax. The Chancellor gave details of the main personal allowances applicable for 2004/05. There were no real surprises, with all the main allowances maintained and increased by the expected amount. It would be easy to pass by all this fairly mundane stuff but it is worth ...

  • Technically Speaking: Where is the index finger pointing?

    29 Jan 2004

    In my last few articles, I have tried to identify likely future investment returns from some of the core asset classes including cash, fixed-interest gilts and corporate bonds. This week, I will continue by looking at index-linked investments and property before moving on to equities. Fundamentally, the only significant market in index-linked securities is Government bonds. The return on these bonds is linked to price inflation, with the underlying interest payment - ...

  • The meaning of life settlements

    29 Jan 2004

    I have a large traditional investment portfolio managed by a well-known stockbroker, which has not performed very well over the last three years although the last six months have been quite good. I now have a further £100,000 which I wish to invest in an alternative investment vehicle that will give me a good return, low volatility and little or no correlation to the stockmarket or interest rates. What can you suggest? More of my high-net-worth clients have been seeking ...

  • The source of VAT problem

    29 Jan 2004

    The financial services sector is moving into a new era of VAT pain and this time it is technical. The new source of pain is a matter of opinion on technical law and has the makings of a tax lawyers' field day. It relates to outsourcing of services - a real life issue for many businesses - and the possible tax cost of doing so because of VAT exemption. Defining VAT exemption VAT exemption means that.the financial services sector may not recover all the VAT that ...

  • Treasury rethinks suite proposals to comply with ISD

    29 Jan 2004

    The Treasury is to modify its proposals for the Sandler suite so they will comply with the Investment Services Directive, according to Ron Sandler. Sandler told the select committee that he has been reassured by Treasury Fin-ancial Secretary Ruth Kelly's team that it is looking closely at the requirement for inclusion of a suitability test in the range. Negotiations between British MEPs and representatives from other EU countries ran into trouble last November when ...

  • Unicorn launches new VCT share issue

    28 Jan 2004

    Unicorn AIM Venture Capital Trust has launched a new series of shares. The company has issued up to £20m of new shares which will qualify for tax relief.The original Unicorn AIM VCT Fund raised £35m in the 2001/2 tax year. Since its launch date in October 2001 to end December 2003 it has provided investors with a net asset value total return of 18.5 per cent based on an offer price of 100p.Unicorn chief executive Peter Webb says: "The increase in corporate activity ...

  • Why does the broker always get the blame?

    29 Jan 2004

    I find it rather surprising that once again the big bad wolf in a misselling scandal is the IFA. I refer to what with hindsight are now called precipice bonds. Now it might just be that RJ Temple, Chase de Vere Financial Solutions and David Aaron were all a little too zealous in the promotion of these products and perhaps they should just have known better. Heaven knows they have all been round long enough to know that markets can collapse. I think Aaron was around in 1974 but ...

  • Why the dinosaur life companies will be killed off

    29 Jan 2004

    I agree completely with Peter Hargreaves' assertion that life offices must change or die. Virtually all of them are so far behind the leading edge of the market that they will simply fade away as also-rans. Here are a few examples of why. Most of the traditional life offices have: •Damaged themselves hugely by participating in the stakeholder fiasco. That damage will not simply disappear once the whole stupid 1 per cent thing has finally been consigned to the ...

  • Winners and losers in merger

    29 Jan 2004

    The proposed merger of Inter-Alliance and Berkeley Berry Birch is potentially very significant. The headline figures are impressive. The combined company would have 2,000 advisers, bringing it to within a whisker of Tenet's number three slot. With revenues of £100m, it would have real clout with providers and, with a market capitalisation of £50m-plus, it would be sufficiently big to get noticed on the stockmarket. From a business point of view, ...

  • WPA provides professional touch

    3 Feb 2004

    WESTERN PROVIDENT ASSOCIATIONProfessional HealthType: Individual private medical insurance for members of professional occupationsMinimum-maximum ages: 18-65Minimum premiums: £1.65 a month, £18.77 a yearMaximum benefits: Standard cover no maximum, worldwide option up to £250,000 a year. dental option up to £31,250, cash plan benefits level one up to £705 a year, level two £1,410 a year, therapy ...

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