Money Marketing
28 May 2003

  • ཥ% of borrowers do not shop around'

    28 May 2003

  • 'Depolarisation will bring surge in funds of funds'

    29 May 2003

    One-seventh of worldwide investment into mutual funds last year was in funds of funds, market analyst Cerulli Associates has revealed. Its latest report, entitled The Global Multimanager and Mutual Fund Sub-advisory Markets 2003, says this inflow of capital into funds of funds marked an all-time high. Despite losing around 17 per cent of their assets due to market depreciation in 2002, funds of funds globally attracted £9.1bn or $15bn in net new inflows last year. There are ...

  • 'First-time buyers prefer to approach societies for help'

    29 May 2003

    A survey has found that first-time buyers are most likely to approach a building society for information about getting a mortgage. The online survey of 1,700 people by Coventry Building Society shows that 29 per cent would go to a building society while 18.5 per cent would choose a bank. Twenty-seven per cent said they would look on the internet while 8 per cent would talk to their parents. Seventy-five per cent of respondents said they would save for a deposit on a house, ...

  • 'FSA's annuity projections are unrealistic'

    29 May 2003

    FSA projections on with-profits annuities are misleading retirees because they fail to reflect current market conditions, says The Annuity Bureau. The IFA says the over-ambitious projections mean that annuity purchasers are being misled into believing they will earn more from their investment than is realistic. It says the standard projection bands for earnings from with-profits annuities should be cut from 5 per cent, 7 per cent and 9 per cent to 3 per cent, 5 per cent and 7 per ...

  • 'Good deals unlikely for bargain-hunters'

    29 May 2003

    County Homesearch Company says the market is coming back to life for realistically priced homes and is predicting a 10 per cent rise in prices this year. The company, which exclusively represents homebuyers, says there has been a distinct upturn since the end of the Iraq war. It says prices are picking up in prosperous towns such as Winchester and Oxford and counties such as Buckinghamshire and Hertfordshire. The company says it has recently put together a number of seven-figure ...

  • 'IFA staff send 20 personal emails a day'

    29 May 2003

    The internet is raising IFA firms' costs, with an IFA employee spending 67 minutes a day surfing the internet and sending 20 personal emails a day. Employment law firm Peninsula surveyed 435 IFAs and claims that 44 per cent of all company emails are personal and 40 per cent of IFAs have problems with employees downloading illegal software. Seventy-three per cent have spent money getting rid of computer viruses from downloading. The survey reckons that personal email and surfing ...

  • 'The rental market is set to rise'

    29 May 2003

    A rise in confidence since the Iraq war boom could lead to a surge in the rental market, says The Mortgage Lender. The TML property pulse index shows 42 per cent of people think house prices will go up over the next quarter compared with 36 per cent three months ago. Only19 per cent predict prices will fall, down from 23 per cent the previous quarter, with the number expecting house prices to remain unchanged staying steady at 23 per cent. Although confidence is improving, it remains ...

  • A&L offering free valuation and cashback on discounts and fixes

    29 May 2003

    Alliance & Leicester is offering a new range of fixed and discounted mortgages which include a number of incentives for different types of borrowers. The fixed-rate range includes a low-start two-year fix at 1.45 per cent until August 31, 2005, available up to 95 per cent loan to value. There is a £295 arrangement fee. The redemption penalties are 3 per cent in year one, then 6 per cent in year two reducing by 1 per cent each year to 2 per cent in year six. There ...

  • Abbey appoints pensions intermediary head

    2 Jun 2003

    Abbey National for intermediaries is appointing Mike Brown to the newly created position of head of pensions and retirement.

  • Abbey launches numbers game for IFAs

    30 May 2003

    Abbey National for Intermediaries is trying to increase cross-sales in three of its key product areas by mailing its 30,000 strong intermediary database a loyalty card numbers game.

  • Analysis covers protection

    29 May 2003

    Protection experts Peter Le Beau and Andy Couchman have teamed up to launch the first annual review of the protection market, providing detailed analysis of sales figures and trends. The Protection Review was launched last week at a dinner in London, with the support of sponsors Norwich Union Healthcare, Bright Grey and Red Arc Assurance. It features articles by leading industry experts, a comparison of the UK with the global perspective, analysis of product areas and of trends ...

  • Artemis wins remit to run Piccadilly Growth fund

    29 May 2003

    Artemis is taking over the management of the Piccadilly growth investment trust from boutique house JO Hambro. A vote on winding up the £9.6m trust was due to take place in August at its annual general meeting. Instead of focusing primarily on pan-European large and medium caps, the trust will now comprise mainly UK and selected international equities, with the potential for investment in hedge funds, cash and bonds. It will be included in the UK growth sector and benchmarked ...

  • Axa UK creates information boss position

    2 Jun 2003

    AXA UK has created a new group chief information officer position, appointing Francois-Xavier Quilici to the role.

  • Bad to worse

    29 May 2003

    You recently reported David Kenmir's claims that the PI crisis will "force bad IFAs out of the business, making it easier for good IFAs to get affordable cover, and increase confidence in the market as a whole". The FSA was recently reported as having granted waivers from PI cover requirements to various people. Presumably, this was because they could not get cover. By Mr Kenmir's definition, these are clearly "bad IFAs". If so, why allow them to continue in trade? If "bad ...

  • Banks build up their funds

    29 May 2003

    IFAs would be wise not to underestimate the business threat from the banks as depolarisation kicks in. The deal struck by HSBC last week to offer the funds of five fund firms in their branches may be the first of many. The fund companies signed - Fidelity, Gartmore, Invesco Perpetual, JP Morgan Fleming and Schroders - have roughly a quarter of the UK's money under management between them. The harsh reality is that IFAs are rightly or wrongly going to be blamed by some investors ...

  • Baring chooses technology chief

    28 May 2003

  • Bhoy up business

    29 May 2003

    Last week saw a rare occurrence or, rather, two rare occurrences. One was me watching Celtic and the second was me agreeing with their manager, Martin O'Neil. In some ways, there are parallels with IFAs selecting product providers. Some time ago, Norwich Union told us that it would take the lion's share of the stakeholder market while other offices promised us e-commerce solutions that are now as rare as a ticket for last week's game. Having recently taken over a portfolio ...

  • Browned off

    29 May 2003

    I am Chancellor of the Exchequer of a European country which is facing an ever increasing savings gap which now stands at something in the region of £27bn. This is causing us a great deal of concern. We have tried to encourage the population to make pension provision and have even gone so far as to enforce a low-cost pension product regime but this seems to have failed and the problem worsens. In addition to the lack of retirement provision, I am conscious that there are increasingly ...

  • Bureau warns that drawdown income will fall from June

    29 May 2003

    The amount of income that investors can get from their income-drawdown plan will decrease from June because of a fall in the underlying gilt yield, warns The Drawdown Bureau. After a significant drop in the long-term gilt rate to 4.25 per cent from 4.5 per cent, the Government Actuary's Department has been forced to revise down drawdown limits. The reduction means that from June 1, a 60-year-old male with a pension fund of £250,000 will be able to withdraw a maximum income ...

  • CA tells IFAs to put money where their mouth is

    29 May 2003

    The Consumers' Association says IFAs making recommendations for actively managed funds should "put their money where their mouth is" and only charge clients if the fund performs well. Responding to the FSA's CP185, published last week, which proposes allowing fund managers to charge performance-related fees for the first time, the CA says IFAs should follow fund managers. It says all fund managers should take this route, saying that for too long, consumers have paid through ...

  • Champion Manager

    29 May 2003

    Two weeks ago, I looked at some of the emerging alternatives within the portal market for advisers obtaining quotations and transacting electronic new business. At the time, I mentioned the progress that has been made by Synaptic Systems in the development of its portal and its Manager range of adviser software. Originally launched in the second half of last year, this is becoming an increasingly broad range of products. Rollout of some of the additional functionality has been rather ...

  • Changes to NU guaranteed fund

    28 May 2003

  • Correspondent's week

    29 May 2003

    It is 8am on a Monday morning and it is the first day of Accord Mortgages, the intermediary lending arm of Yorkshire Building Society. The three executive directors - Mark, Rachel and myself - and our colleague who runs the Yorkshire Building Society administrative team, Chris, are all in early. We are all dressed in vivid orange to reflect our new orange logo. The boys and girls arriving at Accord that morning only look slightly nonplussed to be greeted by four human Jaffa Cakes. Unrelentingl

  • Debt fears see young reject buying property

    29 May 2003

    Young Britons have given up worrying about getting a foot on the property ladder and are now more concerned about ending up in a debt trap, according to Birmingham Midshires. Its Saving Britain campaign, which is an ongoing study into issues influencing consumer savings, found that 24 per cent of 20-somethings worry that they have fallen into a debt trap that could cause them trouble for the next 10 years. Last year, the issue of most concern was homebuying at 25 per cent. The ...

  • Depolarisation architect takes top job at DWP

    29 May 2003

    Robert Laslett the economist whose report into polarisation kicked off the review leading to the regime's demise, has left the consultancy he set up to become the chief economist for the Department for Work & Pensions. Laslett set up the London office of Charles River Associates, after London Economics, the firm he previously ran went into receivership in November 2000. At London Economics, Laslett and his team were commissioned by the FSA to look into polarisation. They ...

  • Ex-Equitable Life regulator joins consultancy

    29 May 2003

    Former FSA head of insurance regulation Martin Roberts has joined consultantcy Beachcroft Wansbroughs. Roberts left the FSA in February 2002, moving to a part-time consultant's position focusing on the FSA's Grey Panther themed project looking at issues affecting the older population. Before working for the FSA, he was at the Department of Trade and Industry and was responsible for regulating Equitable Life during his time at both organisations. In February 2001, FSA ...

  • Face value

    29 May 2003

    How much do you think your face is worth? Nicole Jones values hers at around £100,000 and is paying a premium of £200 a year in case it goes downhill. The FaceSafe policy, arranged through Simon Burgess at Ultraviolet pays out if a panel of 10 randomly selected independent brickies say Jones's looks have gone downhill. Apparently, 26-year-old Jones is so worried her husband will dump her if she ends up looking like the back end of a bus, she wants to make sure she ...

  • Family site aids IFAs on Tesps

    29 May 2003

    Family Assurance has set up a website for IFAs offering a complete one-stop shop service for tax-exempt saving plans. The friendly society says www.familyifa.co.uk provides everything that an IFA needs to research and market Tesps, including instant illustrations and online sales of children and adult savings bonds. Family is offering IFAs who log on to the site the chance of winning their choice of three prizes - a trip on the Orient Express, a Mariott Country Club hotel golfing ...

  • Frankenstein's monster tamed by FSA

    29 May 2003

    Reading a new FSA consultation paper has rarely been compared with peering inside a well-stuffed Christmas stocking but CP185, entitled The CIS Sourcebook - A New Approach, breaks the mould in more ways than one. For a start, it addresses many of the industry's long-held bugbears. The proposal to allow authorised property funds to invest 100 per cent in property, for example, has prompted some fund managers to show a previously unexpressed interest in adding one to their range. But ...

  • FSA grants third waiver to London firm

    28 May 2003

  • FSA may free filters from regulation

    29 May 2003

    The mortgage industry has welcomed new proposals from the FSA for standard mortgages to become advised or non-advised and to drop the unpopular halfway house of non-advised sales with filtering questions. The plans are set out in CP186, published last week. The plan to make standard mortgages advised or non-advised will mean mortgage brokers will have to state clearly to borrowers in initial disclosure whether or not they are providing advice. Non-advised sales with filtering ...

  • Fund business doubles through IFA channel

    29 May 2003

    IFAs are showing the first indications that they are prepared to venture back into the investment market, with fund sales doubling in April from March. IMA figures show that net retail sales of funds through IFAs leapt to £631m in April, with £146m in Isa business, compared with £301m total and £94m in Isas in March. This was well down on April 2002, which saw net retail sales of £1.1bn and Isa sales of £417m. Advised sales were higher than direct ...

  • Game of two halves for Birmingham Midshires and Northern Rock

    2 Jun 2003

    Birmingham Midshires and Northern Rock both have products which combine a one-year fixed-rate high interest account with a five-year guaranteed equity bond. Comparing the high interest account elements, both products offer 7 per gross for one year. However, Northern Rock's product is more flexible, as withdrawals can be made, provided investors are prepared for 60 days' loss of interest. The guaranteed equity bond elements are both linked to the FTSE 100 and both ...

  • Game of two halves for Birmingham Midshires and Northern Rock

    2 Jun 2003

    Birmingham Midshires and Northern Rock both have products which combine a one-year fixed-rate high interest account with a five-year guaranteed equity bond. Comparing the high interest account elements, both products offer 7 per cent gross for one year. However, Northern Rock's product is more flexible, as withdrawals can be made, provided investors are prepared for 60 days' loss of interest. The guaranteed equity bond elements are both linked to the FTSE 100 and ...

  • Global bond specialists join team at Thames River Capital

    29 May 2003

    Fund managers Paul Thursby and Peter Geikie-Cobb are to join Thames River Capital in a move that will see them jointly manage a global bond fund. Thursby, who will help launch the new fund in October, ran Baring Asset Management's global bond trust from 1994 to November 2002. Due to join in August, he says it is currently an excellent time to be launching a quality sovereign debt product. Geikie-Cobb joins from Insight Investment, where he was head of global fixed interest. ...

  • GMAC's Colin Duggleby dies at 50

    29 May 2003

    Former GMAC Residential Funding chief executive Colin Duggleby has died at the age of 50 after a battle with cancer. Colleagues say Mr Duggleby came from humble beginnings, but worked his way up from a junior clerk position with Halifax to become chief executive at GMAC-RFC in 2000. He left the role last summer to fight his illness but died on May 10. He spent 26 years building a career with Halifax before moving to GMAC-RFC in 1999 as operations director. He leaves behind ...

  • Group300 charity bike ride aiming to raise £16,000

    29 May 2003

    Cambridge-based IFA network Group300 is hoping to raise £16,000 in a charity bike ride from France to England. Starting on June 1, three of the network's senior managers are cycling 1,300 miles to raise money for Each, the East Anglia Children's Hospices. Covering 130 miles a day, the cyclists start in Biarritz and will end the journey 10 days later in Cambourne, Cambridgeshire. The team consists of chief executive Chris Batten, a cycling veteran who has cycled ...

  • Half of stakeholder sales are transfers

    29 May 2003

    Nearly half of the 138,000 stakeholder pension sales in the first quarter of this year were transfers from existing schemes rather than new investments, according to the ABI. Figures from the ABI shows 39 per cent of the total £1.8bn sales of stakeholder since its inception in April 2001 has come from transfers It says stakeholder sales in the first quarter of this year rose by 8 per cent from the 127,526 sold during the final three months of 2002 but were down by 22 per ...

  • HSBC BAnk International - Nasdaq Bonus Fund

    3 Jun 2003

    Type: Capital protected fund Aim: Growth linked to the performance of the Nasdaq 100 index Minimum investment: Lump sum £5,000, $5,000 Term: Five years Place of registration: Dublin Investment split: 100% linked to performance of Nasdaq 100 index Guarantee: Original capital returned in full along with 12.5% growth for sterling investments and 10% growth for dollar investments regardless of performance of index Return: Sterling ...

  • IF innovator Spowart quits HBOS

    29 May 2003

    Intelligent Finance founder Jim Spowart is leaving HBOS after the provider dropped plans to expand the phone and internet bank abroad. Last December, Spowart handed over the role of IF chief executive to Grenville Turner as he took on a new role researching how to take the brand to the US and continental Europe. Known in the industry as an innovator, Spowart created Standard Life Bank in 1998 and was credited with creating the model which shot from zero to 11 per cent market share ...

  • IFAs and providers battle over worksite

    29 May 2003

    Competition is heating up between IFAs and product providers in the battleground for worksite marketing of financial products, according to market researcher Finaccord. The firm says employers prefer to deal with an intermediary when arranging staff benefits. It says there is a relatively untapped market waiting for IFAs, with many firms already creating dedicated worksite marketing divisions. In four key product areas, stakeholder pensions, term insurance, critical-illness ...

  • IFAs ignore small lenders, claims Stafford Railway

    29 May 2003

    Stafford Railway Building Society is calling on IFAs to look beyond TV ad campaigns by big high-street names and consider smaller lenders when recommending mortgages. The Midlands-based lender says IFAs wrongly assume its name means it only lends in the Stafford region. It claims its mortgage deals compare favourably with those offered by high-street players but are rarely recommended. Chief executive Mike Heenan says the lender gets few recommendations from IFAs despite its products ...

  • IFAs warned to be on alert for data mailshots

    29 May 2003

    The Government agency responsible for administering the Data Protection Act has issued a warning to IFAs to beware of companies trying to charge them fees for registering under the Act. The Information Commissioner's Office has been inundated with phone calls from hundreds of IFAs who have received a mailshot which offers to register them with the agency through a third party for an annual fee of £95. The mailshots take the form of a warning, threatening that the IFA firm ...

  • IMA urged to close 'involvement gap'

    29 May 2003

    The IMA has received the backing from member firms for its services but has also been told to take a more "pro-active" role when it comes to involvement in industry issues. A survey carried out earlier this year by Cauldron Consulting on behalf of the IMA shows that members are broadly satisfied with the job it is doing in terms of services it provides and rep-resenting the interests of members to the Government and the FSA. But they say they are unsure about the direction of some ...

  • Independent view

    29 May 2003

    Well, it has started to happen. The Analysts has started to weed out those clients we perceive as having little prospect of producing good-quality business in the immediate future. As much as I hate to admit it, we are being forced into this corner by the current issues facing us all - there is some serious hatch-battening going on out there and we are no different to anyone else. In the past, most IFAs had the margin to, in effect, crosssubsidise enquiries that resulted in little ...

  • Inflated house prices boost the cost of state school education

    2 Jun 2003

    Sending their child to a top state school could be costing parents up to an extra £47,000 according to the latest figures from Barclays Private Clients, Barclays wealth management arm.

  • Inflation is ignored in annuity purchase

    29 May 2003

    The vast majority of people ignore the effects of inflation on their retirement income when buying an annuity, according to Legal & General. Figures from L&G show 94 per cent of its customers choose level annuities instead of opting for inflation-linked products that have lower initial payment rates. ABI figures for annuity purchases across all life offices show 95 per cent buy level annuities. L&G says that over the last 25 years seven different Chancellors have presided ...

  • Inside edge

    29 May 2003

    Well, every now and then you get an email that cheers you up, don't you? I have just got one from the editor of Money Marketing asking for an Inside Edge piece on the topic: Do we need a pensions minister? Hmmm. I will assume that it is a serious question. I think we probably do if only because we have become so used to having them. Since the current Government came to power, we have had five already, six if you count the vacant seat we have at the moment. Six in six years is ...

  • Investment update

    29 May 2003

    Profit-taking on Monday set the scene for the major equity markets last week. Global investors questioned the Bush administration's commitment to a strong dollar policy after US treasury secretary John Snow commented that the recent falls in the dollar were fairly modest. News which included weak US labour data and renewed concerns over possible terrorist attacks also hurt sentiment. In the US, Monday's fall, the biggest on Wall Street for almost two months, followed losses on ...

  • Investment view

    29 May 2003

    For the past three years, I have been a director of an investment trust specialising in smaller companies. But my timing could not have been more unfortunate. Smaller companies have been suffering one of the most sustained periods of underperformance against the rest of the market since the reign of the "nifty 50", when big was beautiful and no one wanted to know if you were not an investment giant. Reading a report from a stockbroker specialising in investment trusts, I rather fear ...

  • i-Shares - GS $ InvestTop Corporate Bond Fund

    29 May 2003

    Type: Exchange traded fundAim: Growth by tracking the Goldman Sachs $ InvesTop IndexMinimum investment: Subject to negotiation with stockbrokerMaximum investment: No maximumInvestment split: 100% tracking the Goldman Sachs $ InvesTop IndexPlace of registration: DublinIsa link: YesPep transfers: YesCharges: Annual 0.15%Commission: NoneTel: 0845 735 7000

  • i-Shares - iBoxx Euro Liquid Corporates

    2 Jun 2003

    Type: Exchange traded fund Aim: Growth by tracking the iBoxx Euro Liquid Corporates Index Minimum investment: Subject to negotiation with stockbroker Maximum investment: No maximum Investment split: 100% tracking the iBoxx Euro Liquid Corporates Index Place of registration: Dublin Isa link: Yes Pep transfers: Yes Charges: Annual 0.15% Commission: None Tel: 0845 735 7000

  • i-shares bond with new territory

    28 May 2003

    i-Shares has established the iBoxx Euro Liquid Corporates exchange traded fund, which enables invests in basket of corporate bonds that replicate the iBoxx Euro Liquid Corporates index.A consortium of seven European investment banks, including ABN Amro, Barclays and Dresdner Kleinwort Wasserstein, and the Deutsche Borse created the index. It comprises 40 Euro-denominated investment-grade bond issues such as Vodafone, Deutsche Bank and France Telecom.Investors' interest ...

  • Julian Gibbs

    29 May 2003

    Tracker funds are regaining popularity as a result of the recent recovery in share prices. However, they are still a dangerous investment and are highly volatile. There is no downside protection whatsoever. In current conditions, the stockmarket is unlikely to go up by more than around 7 per cent a year over the next few years. So what is the answer? NDF, in conjunction with Abbey National Treasury Services, has produced the Double Growth Plan 3, which pays out double the rise in the ...

  • Lack of IFA unity allows providers to behave badly

    29 May 2003

    Many points spring to mind in response to the letter about the Prudential from Quentin Holland (Money Marketing, May 22). First, I must ask Mr Holland a few questions. How much do you know and understand about what really happened? Do you have any clients caught out by its decision? If so, how many days have you lost trying to appease your clients and rebroke these policies elsewhere? Have you stopped to consider the long-term effects on our industry of such a decision should it ...

  • Lamensdorf collapse exposes FSA flaws

    29 May 2003

    Even before the dust had settled at IFA firm Lamensdorf's Warwick Street offices in London's West End, the company's former chairman was preparing to launch a new business. Lamensdorf has finally crumbled into receivership and its shareholders are left to watch as Ken Newell and some of his former colleagues may move on to set up a new brokerage and intermediary firm initially called Speed 9540 and set up a few months ago. Newell is also a director of venture capital outfit ...

  • Loan brokers must cover the market to be 'independent'

    29 May 2003

    Mortgage intermediaries wanting to call themselves independent will be subject to the same whole of market conditions that apply to investment businesses, according to the FSA's latest consultation paper. CP186 proposes that a firm should only be able to describe itself as independent if it advises or gives information on a range of mortgages representative of the whole market and offers its clients the opportunity to pay a fee for this service. The move has been welcomed by ...

  • Long-term blues

    29 May 2003

    Gordon Brown's long-term fixed-rate mortgage review is just about to kick off and is barely registering on the industry's radar. Called for by the Chancellor in this year's budget, the review is set to establish the hows and whys of the lack of appeal of fixed-interest mortgages in the UK market. Many industry lenders and intermediaries are already writing it off as a pointless exercise but the mortgage industry's trade bodies are warning that the industry needs to take ...

  • Making a drama out of Misys

    29 May 2003

    In the last few weeks, I have been told time and again how committed Misys is to network members' futures as IFAs. •A reduction in percentage deductions? Any reduction applied now is proof that percentage deductions need never have been increased when Misys took over DBS. •Promise of better services? Why is it that we have been told that we must strive for "best practice" all the time when our network is now admitting that it has not provided best service to us all? •Benefits

  • Managing the managers

    29 May 2003

    Q: I saw recently that the FSA had fined ABN Amro Equities (UK) the sum of £900,000 for market misconduct and serious compliance failures. I was surprised to see the FSA had also fined an individual in the firm £70,000. Is it normal for the FSA to take action against individuals when a company has compliance problems? A: When the FSA was legally created in December 2001, there was a change in approach which places more emphasis on the people running regulated companies, ...

  • Martin Davis

    29 May 2003

    Born of Kenyan settler stock and raised in Ireland, in his 41 years, Misys commercial director Martin Davis has seen more than his fair share of excitement and personal challenges. His father was a pilot in Africa before coming to the UK in the 1950s and attending Cambridge. Davis's three sisters have followed in their father's footsteps and are commercial pilots in the US, Africa and Australia. However, Davis says he never had any ambition to fly planes, preferring instead to ...

  • Money Portal buys third discount broker

    29 May 2003

    Retail fund distributor Money Portal has bought a third discount broker as part of its acquisition programme. It has bought the Isa and Withprofits Bond shop in Nottingham from IFG for an undisclosed sum and is looking to purchase another eight discount brokers by the end of the year. It says that four of these deals are at contract stage, with the firm expecting two to be completed by the end of July. The group has plans to expand into the IFA market in 2004 and says it is ...

  • Mortgage Next widens lender panel

    28 May 2003

  • Mortgageforce appoints new sales director

    2 Jun 2003

    Mortgageforce has found a new development manager in the shape of Neil Atkins, who will be responsible for franchise development across the UK for the company.

  • Most DB firms don't plan moving to DC

    29 May 2003

    The majority of private sector defined-benefit pension schemes have no new plans to introduce defined-contribution arrangements, claims JP Morgan Fleming's latest research. The company's survey is based on a 43 per cent response rate from the top 350 pension schemes in the UK and was designed to determine the driving forces in the UK pension market. It showed that 84 per cent of the schemes surveyed in the private sector which currently only offer DB arrangements said they ...

  • Mutuals winning on WP returns

    28 May 2003

  • Nationwide takes bigger loan share

    29 May 2003

    Nationwide says it has increased its mortgage market share to 8.8 per cent from 3.1 per cent. Its annual results show that net lending increased by £1.8n to £7.3bn and the company says it now exceeds its natural mortgage market share of 8 per cent, reaching a share of 8.8 per cent. Profits rose by 8.5 per cent to £353.3m compared with £325.7m last year. Total assets have risen by 15 per cent to £85.4bn from £74.5bn. The society says its solvency ...

  • Newcastle fixes five-year loan at 3.95%

    29 May 2003

    Newcastle Building Society is offering a five-year fixed-rate mortgage set at 3.95 per cent with no extended tie-in. The society says the product is a best buy compared with other five-year fixed rates with no extended tie-ins. It is offered exclusively through London & Country mortgage brokers and interest on the mortgage is calculated daily. Maximum loan to value is 90 per cent and mortgage indemnity guarantee charges apply on 85 per cent and above. The minimum loan available ...

  • No date for reversion and second-charge reviews

    29 May 2003

    The FSA has confirmed that the Treasury's decision not to regulate home reversion plans and second-charge mortgages will be reviewed but has given no timetable under CP186. The mortgage industry has raised concerns about the Treasury's decision not to include home reversion plans in the regulation which starts next October. CP186 does not reveal any changes in this respect but it acknowledges that alternative equity-release products such as lifetime mortgages, which will ...

  • North slows down as South keeps on falling

    29 May 2003

    House price stagnation is beginning to hit the North and prices are continuing to fall in the South, according to Hometrack's latest housing market survey. The survey, which uses asking prices from over 3,500 estate agencies across the UK, reveals a 0.1 per cent fall in prices in May, the second consecutive month it has recorded a fall. Over the last three months, the North has maintained steady prices increases compared with dips in the South and South-east. Hometrack housing ...

  • nvesta - FTSE Focus Secure Plan

    30 May 2003

    Type: Capital protected bond Aim: Income or growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £3,000-£2m, £3,000-£7,000 Isa Term: Three years Guarantee: Original capital returned in full provided index does not fall by more than 35% and returns to at least its initial level Return: 7% income a year, 0.55% income a month or 21 growth at end of term Closing date: July 21, 2003 for ...

  • OFT tells loan broker to stop right-to-buy scare

    29 May 2003

    A Kent mortgage broker has been stopped by the Office of Fair Trading from distributing leaflets containing misleading information about the Government. Michael Edward Hanchett, trading as The Mortgage Master, was handing out leaflets claiming the Government intended to stop the right-to-buy scheme and the right-to-buy discount. The leaflets urged potential customers to act before the Government ends the scheme, with statements such as "The Government has announced it intends to ...

  • Out of context

    29 May 2003

    •"We only deal with the nationals, not you people." - Julie Saxton again. •So far the Financial Ombumdsan Service has about 2,500 complaints about Equitabe Life. - BBC website reports with interesting spelling on the news of Equitable Life losing ombudsman cases. •"I keep waking up and thinking what's next - Sars?" - FSA press officer Jackie Blyth on her perennial head cold. •"I counteract my Presbyterian upbringing and need to be constantly active by ...

  • Outside edge

    29 May 2003

    How many pension ministers have we had in the past six years? I've lost count and I suspect that many in the financial services industry would be hard-pressed to name the last one. I wonder if the position is something of a poisoned chalice? You can almost imagine the heart-dropping moment as some poor minister is called into the PM's office to be told: "I want you to sort out pensions." I have always believed that we should not leave important decisions to politicians as they ...

  • Paragon in talks to buy Britannic Money

    29 May 2003

    Paragon has confirmed it is in talks to acquire specialist lender Britannic Money from its life office parent Britannic. The price is thought to be around £50m and Paragon says it would be financed through a combination of new debt facilities and existing cash resources. Talks between the two companies are believed to have been going on for several months. Britannic Money and Paragon have complementary offerings in the buy-to-let market. The acquisition would boost Paragon's ...

  • Parents are willing to back children on housebuying

    29 May 2003

    The majority of UK parents would be willing to borrow to help their children buy their first home. Research from Yorkshire Bank shows that 57 per cent say they would take on debt to help their children while 70 per cent said they were hoping to pay off their mortgage early so they could free cash to help their children. Seventy-five per cent of parents dreaded the idea that their children would still be living at home in their 30s. A quarter of homebuyers received financial ...

  • Pay as you goad

    29 May 2003

    Today, we received from a local recruitment agency three pages of profiles on various candidates who they are trying to place. It makes enlightening reading, starting with: - Annuity specialist, graduate calibre (2.1 and MSc) seeking £18,000 pa. - Pension specialist with 20 years' experience, has passed G10, G60, K10 and is awaiting result of K20, seeking £20,000 pa. - Senior employee benefits specialist with ACII 510, 520 and 530 plus seven subjects of APMI, ...

  • Pension contenders

    29 May 2003

    This may prove to be the silliest article I have written for Money Marketing. I am going to try and predict the name of the next pensions minister. It won't be silly because my prediction will be outlandish or ridiculous. It is silly because of its timing - that most valuable of commodities in politics - as events may overtake my predictions. Clare Short has finally left the Cabinet, replaced by Baroness Amos. This could lead to a wide-ranging ministerial reshuffle (including the ...

  • Personal touch for IFAs

    29 May 2003

    Professional answering service Moneypenny says it can save IFAs and consultants 90 per cent of the cost of a full-time receptionist or PA. The company says its Your Personal Assistant and Your Receptionist services are suited to the IFA sector, where a lot of advisers work on their own or as part of small companies and networks. Your Personal Assistant diverts calls to an individual briefed on the client's business. For bigger firms, Your Receptionist provides a skilled receptionist. Moneyp

  • Principal Global Investors - Preferred Securities Fund

    2 Jun 2003

    Type: UcitsAim: Income by investing in US denominated hybrid preferred securities and debt securitiesMinimum investment: Lump sum euros 10,000Place of registration: DublinInvestment split: 100% in US-denominated hybrid preferred securities and debt securitiesCharges: Initial up to 5%, annual 0.9%Commission: Initial up to 5%, renewal 0.3%Tel: 020 7 710 0220

  • Principal prefers hybrid securities

    3 Jun 2003

    Principal Global Investors has unveiled a Ucits fund that aims to produce income by investing in between 80 and 90 US-denominated hybrid preferred securities.These securities are popular with US investors and Principal Global Investors felt the time was right to introduce them to UK investors, as many people are looking for income at the lower-risk end of the scale.Hybrid preferred securities are debt securities like corporate bonds, but they are also similar to equities ...

  • Principal prefers hybrid securities

    3 Jun 2003

    Principal Global Investors has unveiled a Ucits fund that aims to produce income by investing in between 80 and 90 US-denominated hybrid preferred securities. These securities are popular with US investors and Principal Global Investors felt the time was right to introduce them to UK investors, as many people are looking for income at the lower-risk end of the scale. Hybrid preferred securities are debt securities like corporate bonds, but they are also similar to equities ...

  • Product matters

    29 May 2003

    I don't want to bore you with more structured products at the moment but there is very little else being launched in the new product arena. You do always worry about bandwagons when too many groups launch similar products. However, I am happy to report that HSBC with its capital and growth plan could claim to have started the wagon rolling in this area. I like this investment. It is simple and straightforward offering full protection over the term and no nasty surprises at the ...

  • Prudential - Prudential Growth & Income Plan 4

    28 May 2003

    Type: Capital protected bond Aim: Income or growth linked to the FTSE 100 index Minimum-maximum investment: £7,000-£1m Term: Five years Guarantee: Capital secure growth option - original capital returned in full regardless of performance of FTSE 100 index, Fixed income options - original capital returned in full provided the index does not fall by more than 40% and returns to at least its initial value. Return: 7.75% income a year, ...

  • Prudential bond offers dual objective

    30 May 2003

    Prudential has introduced the Prudential growth & income plan 4, a capital-protected bond that offers different degrees of capital protection for income and growth investors.The bond is linked to the FTSE 100 index over a five-year term and allows investors to choose annual income of 7.75 per cent a year, 0.62 per cent monthly income or 60 per cent growth at the end of the term.Investors who choose the growth option will get their original capital returned in full regardless ...

  • Purnell is hot tip for pensions minister

    29 May 2003

    Speculation is rife over who is likely to be the next pensions minister, with James Purnell the top choice doing the rounds. Work and pensions select committee member Purnell, 33, was Tony Blair's former adviser on media, sport, technology and culture before becoming MP for Stalybridge and Hyde in 2001. He is tipped by, among others, MM columnists, lobbyist Ed Vaizey, IFA Nick Bamford and providers. The pensions minister post has been empty for the past seven weeks since ...

  • Record 10,000 calls to IFAP's TaxAction line

    29 May 2003

    IFA Promotion's TaxAction campaign has attracted a record 10,000 requests for IFAs since March. The campaign, now in its 11th year, is intended to highlight how much tax is wasted in the UK. It says that in 2002/2003, a total of £4bn will be paid in unnecessary tax. This figure equates to nine out of 10 of the UK adult population saving an average of £114 per person. The campaign says that this year, a potential £1bn of unclaimed tax credits will be wasted ...

  • Remortgages bring upturn

    29 May 2003

    April heralded an upturn in monthly mortgage lending, according to the Council of Mortgage Lenders' monthly survey. Gross lending rose to £21bn in April from £19.7bn in March, a return to the heights of last October and a 28 per cent increase on last April's figure of £16.4bn. Remortgaging was again the reason behind the growth, as it accounted for 51 per cent of all lending in April, with £10.7bn lent for remortgaging compared with £9.7bn in ...

  • Revenue to reveal pension details

    29 May 2003

    The Inland Revenue intends to publish a consultation paper on its pension simplification proposals before the summer recess of Parliament. The Revenue is believed to be bringing forward publication of a technical consultation paper giving advisers and life companies details of the new regime and when it will be implemented before the House of Commons rises on July 17 for the summer break. The paper is also expected to clarify the Revenue's reaction to the tide of responses that ...

  • RJ Temple denies breaching deadline

    29 May 2003

    IFA firm RJ Temple denies it is breaching a deadline set by the FSA to force it either to find an investor or join up with a network. But an email seen by Money Marketing from Temple chief executive Geoffrey Morphitis to major shareholders following an FSA debriefing reads: "We discussed the question of our solvency requirements during which they confirmed they would allow us until March 31, 2003 to get new capital or networking in place." The message was sent in February to founder ...

  • Safe as spouses

    29 May 2003

    Before following the advice of IFA Promotion in connection with the use of spouse allowances, (Money Marketing, May 8), IFAs should be warned to be fully conversant with all the intricacies of Section 660 of the Income and Corporation Tax Act 1988.Geoffrey Coker Thain Wildbur, King's Lynn, Norfolk

  • ScotLife Mortgages squares up to networks with Triangle

    29 May 2003

    Scottish Life Mortgages is launching Triangle Solution, which it claims offers a one-stop online solution for mortgage intermediaries. SLM says the service will give brokers access to panels of credit card providers and general insurance as well as mortgage lenders, leaving them well placed to advise on wider aspects of financial planning. SLM says that it is a solution for intermediaries who are not interested in joining a network as the software allows them to compete with the ...

  • Scottish Life International - Protected Bonus Bond Series 3

    30 May 2003

    Type: Guaranteed equity bond Aim: Growth linked to the performance of FTSE 100, Eurostoxx 50 and S&P 500 indices Minimum investment: Lump sum £10,000 Term: Six years two months Place of registration: Isle of Man Investment Split: 100% linked to the performance of FTSE 100, Eurostoxx 50 and S&P 500 indices Guarantee: Capital returned in full along with 16% growth regardless of performance of indices Return: Between 16% ...

  • Scottish Widows - Guaranteed Investment Bond

    29 May 2003

    Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £2,000-£100,000 Term: Six years Guarantee: Original capital returned in full along with 10% growth regardless of performance of index Return: Between 10% and 36% growth at end of term Closing date: June 27, 2003 Commission: Initial 3% Tel: 0845 843 2222

  • Societies surge ahead

    29 May 2003

    Building societies' net advances have leapt by over 50 per cent in the last year. The Building Societies Association's monthly survey shows this April's net advances were £1.2bn, up from £788m in April 2002 and £958m in March 2003. Seasonally adjusted gross advances revealed a rising trend, amounting to £3.4bn in April and a slightly lower £3.3bn in March. Last April saw the figure significantly lower at £2.9bn. Approvals were also ...

  • Sub-prime loan tracks base rate

    28 May 2003

  • Surprise package?

    29 May 2003

    The UK has one of the slowest, albeit one of the cheapest, home buying and selling processes in Europe - largely because of the volume of information to be gathered before exchanging contracts on a house purchase. The processes that must be undertaken in order to obtain this information can be time-consuming. The length of time between offer acceptance and exchange of contracts can also cause sales to fall through after much expense has been incurred because critical information about ...

  • Survey shows public opinion rising

    28 May 2003

  • Syndaxi makes first buy in RHB deal

    29 May 2003

    Syndaxi Financial Planning's Robert Reid has made his first acquisition, buying the financial services division of RHB Insurance Services. The deal for RHB's three RIs sees Reid moving from his North London base where he has operated as a sole trader, to RHB's West End office. It comes just weeks after Reid, a former Sofa chairman and current board member, joined Raymond James Investment Services, the big US broker with a small but growing presence in the UK, as an appointed ...

  • Talkback

    29 May 2003

    "No, I think it makes the adviser's job more difficult. I don't think 4, 6 or 8 per cent is unrealistic because endowments should not be sold for anything less than 15 years." Marel Sandidge, Marel Sandidge Associates "The way things have gone with endowments, I would think the answer is yes." Gordon Jarrold, Jarrold Ridgway Life & Pensions "It's realistic but it's still a pathetic aim." Ian Dickson, The Pension Centre Network "I would say it is definitely ...

  • Terms of engagement

    29 May 2003

    OK, here's the brief. You are the head of corporate affairs for a major financial services company. Your mission is to represent your organisation and its interests. You need to do this by trying to better understand and change your external environment. That means entering some form of dialogue with the Government. How do you do it? Broadly, there are two approaches. One is safe but limited. The other is bolder and perhaps riskier but holds the possibility of substantial rewards. With ...

  • Thames River flows into Europe

    29 May 2003

    Thames River Capital aims to stockpick its way through Europe including the UK with the Thames River European Nations Fund.The company's European equities team is best known for continental European funds, but during the last five years it has been running a portfolio for a French company that includes UK stocks. Thames River Capital believes the UK element will be attractive to a wider range of investors throughout Europe who are looking for a one-stop shop.The lead ...

  • That's capital

    29 May 2003

    At the Money Marketing Live event in Earls Court, I was exhorted by Brian Lawless to write something on capital allowances and their relevance to IFAs. Who am I to refuse? It seems clear to me that capital allowances could be relevant to financial advisers on two levels, depending on whether or not you run your own business. The first level is how capital allowances can benefit your business. The second level is how capital allowances are relevant to your clients. It is worth reminding ...

  • The costs of compliance

    29 May 2003

    The recent publication of the FSA's latest consultation paper CP180 has put in focus one very important aspect of regulation - the cost of compliance. For any business, not just financial organisations, a potential change in its cost base can have a profound effect and if costs increase dramatically, the business may find that it is no longer viable. Against a background where brokers have seen the cost of professional indemnity cover increase dramatically, it is no surprise ...

  • The NAV lark

    29 May 2003

    New fund management group Iimia has unveiled the Iimia accelerated fund, an Oeic that invests in a portfolio of 40 investment trusts. Iimia feels the investment trust sector is attractive because it is under-researched and negativity about split-capital trusts has led to a widening of discounts. Discounts occur where the value of the investment trust itself is lower than the total net value of the underlying shares it invests in. Nick Greenwood, Iimia's head of investment trusts, ...

  • Thinking out of the box

    29 May 2003

    Fund information website TrustNet.co.uk has discovered that IFAs and investors are arriving at the site by the most curious means. The Diary understands that surfers have been directed to the site after putting some peculiar questions into search engines such as Google and Yahoo. Some of the odder searches include: •I want a petrol company to invest and drill in. •Websites for day nurseries in Exeter. •What does pragmatic investing mean? •What ...

  • Tilney opens up access to Oeics

    29 May 2003

    Tilney Investment Management is for the first time making its Oeic funds available to IFAs outside its portfolio management services. The firm previously only offered its fund management services to high-net-worth individuals through its investment portfolios but now wants to give smaller investors access to its fund management process. Tilney will initially market its income & growth, European growth and UK equity funds to IFAs. Minimum investment in the funds, which are ...

  • Total eclipse of Sun Life

    29 May 2003

    Sadly, I can better Julian Stevens' experience with Sun Life (Money Marketing, May 15). I, too, needed a bond illustration and called the office-based consultant at the telephone number on the card given to me by Sun Life. The consultant was busy on another call, so I said I would call back. I then noticed the following statement on the reverse of the business card: "For all sales support, quotations and new business enquiries, contact our dedicated team on 0845 300 2222." I ...

  • Transfer tips on ScotEq CD-Rom

    29 May 2003

    Scottish Equitable is offering an interactive cd-rom for IFAs as part of its bid to become a leading player in the individual pension transfer market. The cd-rom gives tips and guidance to help IFAs navigate the transfer maze and expands on ScotEq's transfer campaign marketing pack which it says has been a hit with advisers. The firm says there are 4.5 million people contributing to a personal pension who could potentially benefit from a transfer to another plan. Scenarios ...

  • Two senior ScotLife managers leave

    28 May 2003

  • Verity's view

    29 May 2003

    BT's announcement last week of a £6.3bn deficit should, you might have thought, have had a serious impact on the people who run Britain's occupational pensions industry. With Royal Mail announcing a deficit of £4.6bn, occupational pensions are looking fragile. Behind the deficits is a big irony. For years, IFAs and life insurers have been paying billions of pounds in compensation over the pension review. With the benefit of hindsight, can we still say with confidence ...

  • Watchdog puts bite on Equitable

    29 May 2003

    The Financial Ombudsman Service has ruled in favour of five policyholders who claim that the Equitable Life had failed to explain its guaranteed annuity rate problems when they took out their policies. The watchdog ruled that Equitable must make up for the losses and should pay compensation on the five lead cases. The ruling, made last week, concludes that in four of the five cases, the facts regarding the potential impact of meeting the company's liabilities to GAR investors ...

  • What's the bigger risk for homebuyers?

    29 May 2003

    Asked to reflect on their major concerns in life, most people are likely to place serious illness near the top of the list. If the FSA implements proposals in consultation papers 160 and 174 to categorise critical-illness insurance as higher risk, this could result in many fewer people having financial protection against this very real concern. Many advisers will view the increased costs and regulatory burdens imposed on them as prohibitive and may decide to no longer recommend critical-illness

  • Wide of the mark

    29 May 2003

    Hargreaves Lansdown has found that only one of the 276 funds most likely to have been chosen for a Pep or Isa mortgage five years ago is now on target to repay the loan. Can anything be done to solve the problem now? Mowbray: The past five years have been turbulent for equity investors. From a high of around the 6,000 mark three years ago, the FTSE can now be found hovering around the 4,000 mark. This is clearly not a good story for people with investment-backed interestonly mortgages. The ...

  • Woolwich with fixed but flexible trio

    28 May 2003

  • Zurich launches second tranche of guaranteed account

    2 Jun 2003

    Zurich has released the second tranche of its structured product offering, the Zurich Guaranteed Account, available on a first come, first serve basis until July 21.

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