Money Marketing
29 January 2003

  • 'Contracting out stuck in neutral'

    30 Jan 2003

    Government proposals to allow tax-free cash on protected rights will make contracting out 10 per cent more attractive but will not be enough to persuade IFAs to recommend opting out. Product providers say although the move increases the incentive to contracting out, it does not go far enough to make it a clear-cut decision. They claim that opening up S2P to the self-employed will lead to rebates remaining neutral as the Government would need to mirror rates as an incentive ...

  • 'Danger' survey is slammed by IFAs

    30 Jan 2003

    IFAs have criticised a report which claims that around a fifth of the IFA sector is in financial "danger". Plimsoll Publishing's survey claims to analyse 781 IFA firms, giving each a financial rating category of strong, good, mediocre, caution or danger, based on figures obtained from the UK registrar of companies. This has provoked an angry reaction from some IFAs placed in the danger category. They say the figures used are from as early as quarter one of 2001 and ...

  • 'Treasury is ready to consider cap changes'

    30 Jan 2003

    The Treasury consultation on the Sandler suite is expected to consider the possibility of different price caps for the products included in the suite, according to sources close to the Treasury. The idea may not appear in the document, expected to be published this week, say sources, but it could be an outcome of the three-month consultation. It is also expected to float the idea of the suite being ext-ended to include term insurance and a cash-based product in addition ...

  • A consumer's view

    30 Jan 2003

    There are times when it is difficult not to think that the compensation culture has gone too far. We are in danger of mollycoddling those who buy financial products to the point where, not only do they not bother to check on anything before they invest but virtually anyone can claim that they did not understand what they were buying. A case in point is the recent decision by the FSA with regard to a Lloyds TSB extra income and growth bond - otherwise known as a pre-cipice bond ...

  • Aberdeen shelves Fof plan

    30 Jan 2003

    Aberdeen Asset Management has shelved the launch of its fund of funds operation, citing the economic environment for the delay. The multi-manager should have been running by the end of last year but has been put on hold, with Aberdeen admitting "everything is under review". The decision throws into doubt the positions of Simon Nicholas and David Oakes, who left Cazenove's multi-manager team last May to establish the Aberdeen business. AAM recently closed its ...

  • ABI standards still flying high

    30 Jan 2003

    Following a very successful second anniversary event for Raising Standards, I was very disappointed to read the recent front-page report. There is no evidence that the FSA's forthcoming consultation on information disclosure to customers will damage the Raising Standards scheme. After all, the disclosure standards are only two of the eight that make up the scheme. At the event, John Tiner made it clear that companies that are already Raising Standards accredited will ...

  • Aegon takes 9% stake in Aurora

    30 Jan 2003

    Aegon UK is buying a 9 per cent stake in Aurora Financial for an undisclosed fee, bringing the number of its acquisitions and strategic investments in IFA firms to nine. Aurora, formed from the merger of Jackson Batten and Advisory & Financial Planning Services last July, specialises in employee benefits and has 38 RIs. Aegon UK's fee for the stake in the company rem-ains undisclosed, with an option to take a bigger stake left open. The deal is part of ...

  • AITC proposes code to shake up split caps

    30 Jan 2003

    The Association of Investment Trust Companies is publishing a draft code of corporate governance for the boards of investment trusts in the wake of the split-cap crisis. The code, which is likely to become a requirement of AITC membership, proposes a series of measures which the trade body says will provide a best practice framework for trusts to follow in the future. In an bid to counter allegations of divided loyalties, the code proposes that chairmen as well as the ...

  • Awash on the currency

    30 Jan 2003

    If the Government sticks to its original plan for entry into the European single currency, in less than 30 months UK advisers could be assessing their clients' policies and portfolios in euros and cents. Yet more pressing industry issues such as Sandler, Pickering and depolarisation mean that many advisers and product providers have ignored the impact that the euro will have on their businesses. One organisation which has forced itself to look ahead is the ABI, which ...

  • B&W bond may mature early

    29 Jan 2003

    Bristol & West has introduced the guaranteed FTSE bond, which follows the trend for bonds that could mature before the end of the investment term. This guaranteed equity bond provides a full capital return to investors whatever happens to the FTSE 100 index. It also provides 100 per cent of any growth in the index at the end of the five-year term. However, the bond could mature before the five years are up. If the FSTE 100 index has risen by at least 30 per cent by the ...

  • Build yourself a homeloan

    30 Jan 2003

    Many intermediaries have avoided self-build mortgages for two reasons. First, they were seen as a bit of a hassle. Second, the products were not very client-friendly. But recent have brought changes. The self-build and renovation market in the UK has grown rapidly in recent years, with about 20,000 people each year building or renovating their own homes. Translating these numbers into mortgage lending makes the market for self-build mortgages total about £2bn a ...

  • Buoyant year for societies

    30 Jan 2003

    Gross mortgage advances by building societies totalled £35bn last year, up from £30bn in 2001, according the Building Societies' Association. The BSA says its members had a bumper year, with net advances increasing to £10.8bn from £6.6bn in 2001. Approvals reached £39bn in 2002 compared with £29bn in 2001. Gross advances in December were £3.4bn, up from £2.1bn in December 2001 and up from £3bn in November. In ...

  • Cable makes plea to curb property price rises

    30 Jan 2003

    Liberal Democrat trade and industry spokesman Vince Cable is urging the Government to give the FSA powers to curb unsustainable price inflation in the housing market to avoid a crash. Cable is calling on the Treasury to implement prudential regulation of lenders through the FSA to balance borrowing and affordability, including imposing maximum loan to value ratios to reflect the current level of overheating. He is warning that without such Government intervention there ...

  • CFS creates single mortgage operation

    3 Feb 2003

    Co-operative Financial Services is combining Co-operative Bank and Co-operative Insurance Society mortgage operations.The single operation will eventually offer one product range to customers across all CFS distribution sales.CFS chief executive Mervyn Pedalty says: "A pilot exercise undertaken at the end of 2002 revealed the significant cross-sales potential we have within our brands."

  • Clash of the crystal balls

    30 Jan 2003

    What price property market surveys? Homeowners and buyers are baffled by the clashing lender surveys which not only fail to agree on what will happen to house prices but can't even come to a consensus on what has already happened. There are a multitude of surveys produced by lenders with forecasts for this year which range from a gentle descent to a crash landing. Despite often incorporating each others' results and statistics, they fail to reach agreement. The ...

  • Clock watching

    30 Jan 2003

    In the next couple of articles, I will be looking at the use of mortality tables by financial planners. Not, on the face of it, a terribly exciting subject but I hope to convince you that it is a crucial area of technical knowledge and understanding which is badly overlooked in our examination syllabus. Just over 10 years ago, when taking my examinations, one of the subjects included a requirement that we had to be able to read, understand and interpret mortality tables presented ...

  • Coming up against a wall of cynicism

    30 Jan 2003

    We are arranging a home-equity release plan for two clients. Keen to ensure every i is dotted and every t is crossed, our network imposes very stringent vetting measures on all such business before we can proceed. The two providers with whom we have dealt so far all seem intent on being as efficient, professional and helpful as they can. We only use Ship-approved products. I was asked by the client to contact their solicitor. A strange welcome awaited me. It was clear ...

  • Compliance countdown

    30 Jan 2003

    Compliance with the new FSA regime for mortgage intermediaries, to be introduced in the fourth quarter of 2004, will be complex and costly. It promises to be a shock for firms that have never been subject to rules before. The experience of companies in other sectors of the financial services industry that came under the previous wave of FSA regulation in 2001, known as N2, has been salutary. For these companies, the costs have hit the bottom line hard. In a recent survey, ...

  • Consultation on orphan assets set for summer

    30 Jan 2003

    The FSA says it has undertaken preliminary work on the attribution of orphan assets and will consult on it in the summer. In CP176, the regulator says it is developing open processes for policyholders affected by the attribution of orphan assets. The move has come under fire from some critics, who say a transparent process is not enough and companies should be forced to attribute. But others say stockmarket difficulties mean insurers need the cushion afforded by orphan ...

  • Contract in, out, shake it all about

    30 Jan 2003

    The Government policy on contracting in and contracting out is full of contradictions. On the one hand, the Pensions Green Paper is seeking actively to encourage self-employed people to contract into the state second pension. This suggests a move towards state provision. This sits uneasily alongside contracting out, which has helped many people get the private savings habit. Contracting-out rebates are now so low that IFAs find it difficult to say if clients should be in or out. Money ...

  • Correspondent's week

    30 Jan 2003

    Monday, 6am. Alarm goes off. It feels like the middle of the night. It's my third week in my new job as corporate communications manager at Selestia. I rush around my (new) flat, looking for my (new) suit and my (new) bag. 8.30am. Arrive at Selestia offices in St Albans, where I will spend three days a week - the other two I will be based at our London office. The office is busy. I begin sorting through my in-tray and checking my emails, a couple of which are from ...

  • Executive stress

    30 Jan 2003

    I recently "celebrated" 40 years in the industry. During that time, there have been massive changes, of course, the main one being the move away from a desire to provide the best service in the industry to a desire not to be the worst. Despite being in charge of my own business, I have never really seen myself as an "insurance executive". An article in my local paper said told an "insurance executive" who was arrested and fined for being drunk and disorderly was aged 18 years. ...

  • Falcon wins a PI waiver from FSA for a year

    30 Jan 2003

    The FSA has granted Bristol-based IFA the Falcon Group a year's waiver from its requirements to obtain professional indemnity insurance in a move that could pave the way for other IFAs. More than 20 IFA firms are applying for waivers through Proact Legal solicitor Gareth Fatchett, who believes this case will set a precedent. The Falcon waiver, which represents a softening stance from the regulator over PI cover, was granted under section 148 of the Financial Services ...

  • Fate of engineering

    30 Jan 2003

    A few years ago, a product provider invited me to speak on the subject of investment and income drawdown. At that time, according to FSA statistics, the leading investment choice when taking the drawdown route was with-profits. While I accept that Equitable skewed the figures, there were still an unacceptable number of IFAs suggesting that with-profits was the answer, irrespective of the questions posed by the client's income profile and term to final vesting. The ...

  • Fidelity Funds - Global Focus Fund

    31 Jan 2003

    Friday, 31 January 2003 Type: SicavAim: Growth by investing in global equitiesMinimum investment: Lump sum £1,500, monthly £50Place of registration: LuxemburgInvestment split: 100% in global equitiesIsa link: YesCharges: Initial 5.25%, 3.25% Isa, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0800 414181

  • Fidelity warning over top-up fees

    30 Jan 2003

    The plans for top-up university fees mean that parents and grandparents should start saving for children's education, says Fidelity. At present, only 6 per cent of 35-54-year-olds investing in an Isa are saving for future education for their children, according to research commissioned by Fidelity. Only 2 per cent of people of grandparent age are saving to help with further education. This contrasts strongly with the US, where a third of grandparents make ...

  • First buy as Berkeley Berry Birch seeks small IFA firms

    30 Jan 2003

    IFA group Berkeley Berry Birch has bought former DBS member firm Professional Financial Solutions for £1,528,875 in cash and shares. It says the acquisition is the first in a series of small IFA purchases as part of its latest expansion strategy. PFS has a turnover of £1.5m and has offices in Huddersfield and Camberley. The firm's 17 registered individuals will now join BBB. BBB says it is looking to make a series of purchases of firms of this ...

  • Forecast of turbulence

    30 Jan 2003

    There was a letter in the Daily Telegraph early in the new year pointing out that the name of the Metropolitan Police commander in charge of the Hackney siege - the longest in London's history -- was B Quick. Sadly, no such ironies exist in politics. Our Work and Pensions Secretary resides under the dramatically dull name of A Smith. Perhaps he should rename himself. G O'Slow springs to mind because, if truth be told, this Government is in danger of conducting the longest ...

  • Fortune Asset Management - Lumen Global Value Fund

    4 Feb 2003

    Tuesday, 4 February 2003 Type: Hedge fundAim: Growth by investing in emerging marketsMinimum investment: Lump sum $50,000Place of registration: Cayman IslandsInvestment split: 100% in emerging marketsCharges: Initial up to 5%, annual 1.5%Commission: Subject to negotiationTel: 020 7355 2000

  • FSA aims to illuminate with-profits practices

    30 Jan 2003

    Life office accounts will have to show details of smoothing, bonus policy and investment strategy for their with-profits funds under new FSA proposals. Consultation paper 167, published last week, will see some of the work carried out by by the appointed actuary replaced by a requirement for the board to seek independent actuarial advice. The FSA says it will also bring forward proposals which will give IFAs more information on the financial strength of individual companies ...

  • FSA hacks back the paper forest

    30 Jan 2003

    The new FSA disclosure regime, which will introduce substantial reform on how product details are presented to consumers, will cost the insurance industry £130m and fund firms £10m, according to estimates from the regulator. The changes, outlined in a document seen by Money Marketing, will see key features replaced by key facts, in an attempt to promote greater consumer understanding of the importance of the information. The new documents will be much shorter, ...

  • FSA heralds a more liberalised regime

    30 Jan 2003

    The disappearance of polarisation as a result of CP166 will have come as little surprise to anyone who has followed the debate for the last three-and-a-half years. A bigger shock is the extent to which the regulations have been relaxed and new types of advising activities permitted. The fact that the FSA has opted for this level of liberalisation has been met with raised eyebrows throughout the industry. Aegon business development manager Steven Cameron says: "The FSA ...

  • Fund sales hit five-year low

    30 Jan 2003

    Net sales of retail investment funds fell sharply in 2002, with sales in December plunging by £230m, according to the IMA. The IMA's yearly figures show that new retail fund sales fell to £7.6bn last year from £9.3bn in 2001, with December sales plummeting to £269.3m compared with £606.5m in December 2001 and £499.5m in November. Last year's total is the lowest since 1997's figure of £7.4bn New Isa sales last year almost ...

  • GE Life - Income Option Plan 4

    30 Jan 2003

    Thursday, 30 January 2003 Type: Guaranteed equity bondAim: Income or growth linked to the performance of the Dow Jones Eurostoxx 50 indexMinimum-maximum investment: £3,000 Isa, £7,000-£1mTerm: Three yearsGuarantee: Original capital returned in full provided index does not fall more than 33.33% for option one and 50% for option twoReturn: Option one - 9% gross income a year, 0.71% gross income a month or up to 30% ...

  • Guilt-edged drive by friendly

    30 Jan 2003

    The Children's Mutual is running an advertising campaign that aims to persuade parents to save for their children by playing on their consciences. The campaign uses slogans such as: Providing for children takes a lot of time, love - and money. The first of two 20-second TV ads features a mum struggling to inflate a paddling pool while her daughter wanders off and loses interest. The second shows a dad playing hide and seek with his sons, who get distracted and leave ...

  • Hargreaves Lansdown in exit alert for AAM investors

    30 Jan 2003

    Hargreaves Lansdown is recommending Aberdeen Asset Management investors to sell their holdings in most of the firm's remaining funds following the sale of six major unit trusts to New Star. In a move which comes as another blow for Aberdeen's retail business, HL is advising investors to switch out of funds, including UK growth, UK mid cap, European growth, UK blue chip and North American. HL remains a firm supporter of four funds sold to New Star this month but ...

  • Henderson Global Investors - Global Fixed Income Absolute Return Fund

    29 Jan 2003

    Wednesday, 29 January 2003Type: Hedge fundAim: Growth by investing in fixed income securitiesMinimum investment: Lump sum $100,000Place of Registration: Cayman IslandsInvestment spilt: 100% in fixed interest securitiesCharges: Annual 1.5%Commission: Initial up to 3%Tel: 0800 881144

  • IFAP urges public to seek advice as report shows one-third have no savings

    30 Jan 2003

    IFA Promotion is urging consumers to book a financial healthcheck with an IFA after its research revealed that a third have no savings. The report - Get Saving! - shows a chasm between the rich and poor in the UK, with vast inequality in the ownership of £2.7trn in personal assets. IFAP says 10 per cent of people own 54 per cent of the country's wealth. Fifty-seven per cent have no more than £1,500 in savings. But IFAP calculates that people from ...

  • Income sector is Cofunds' top seller

    30 Jan 2003

    Seven of Cofunds' top 10 biggest-selling funds last year were income funds, toppling UK growth as the most popular sector on the platform. The supermarket's sales figures for 2002 show that five of its top 10 funds were equity income funds while two were bond funds. In 2001, just two of the top 10 were income funds, only one of which was in the equity income sector. The biggest seller last year was Credit Suisse's income fund, run by star manager Bill Mott, while ...

  • Independent view

    30 Jan 2003

    It is no surprise that this year has started out much in the manner that 2002 ended, with much unfinished business, both on the geo-political front and in a number of areas related to regulation. For most IFAs, the immediate focus is to eke out investment returns for clients in the hostile climate. If history is to repeat itself, then once final decisions have been made in respect of any action in the Gulf, we may see a platform from which modest investment returns might be expected ...

  • Index tracking

    30 Jan 2003

    Should all house price indices be rejigged following Halifax's admission that it has been overestimating the number of houses with garages, which pushed up its figure on house price growth last year? Bolton: How each house price index is structured is entirely down to who operates it. Halifax took the decision to restructure its house price index simply to take into account the changing trends in homeownership and building, for example, the increasing number of £1m-plus ...

  • Inside edge

    30 Jan 2003

    FSA consultation document 164 proposes a number of radical changes intended to ensure the conditions which led to the collapse of 19 split-capital investment trusts cannot happen again and to rebuild confidence and trust in the sector and the wider financial services market. Even if it succeeds in preventing the same type of failures happening again, it cannot prevent something else going wrong in future. But it will make other catastrophes less likely as it strengthens the whole ...

  • Inter-Alliance moves into Heartland with £4m deal

    30 Jan 2003

    National IFA Inter-Alliance is buying Midlands IFA Heartland for £2.5m in a deal fun- ded by a £4m loan from Friends Provident The cut-price cash deal for Heartland is based on £750,000 to be paid for the firm's net commission still to accrue plus a further £1.75m payable depending on how many of Heartland's 175 self-employed RIs switch to Inter-Alliance. The remaining £1.5m will be used as working capital and to support future growth. Heartland ...

  • Investment analysis

    30 Jan 2003

    Most of the world's stockmarkets endured another miserable week with concerns over the increasing probability of war with Iraq keeping investors on the sidelines. In the UK, the FTSE 100 fell by 5.7 per cent, taking the number of consecutive declines to 10, its longest sequence of losses since the index was formed in 1984 and its lowest level since late 1995. Mid and small-cap stocks fared somewhat better although still ended the week lower, with the FTSE 250 index falling ...

  • Investment view

    30 Jan 2003

    Last week saw yet another record that we would rather not have seen. The UK market recorded falls on nine consecutive days. This was a unique event in the life of the FTSE 100. Even eight days is rare, although we had eight down days on the trot as recently as last December. The bear market is clearly refusing to lie down. This is like death by 1,000 cuts. An inexorable slide fuelled by the continuing rebasing of portfolios to reflect market conditions, the withdrawal of money ...

  • Isas on the verge of breakdown

    30 Jan 2003

    Since the Treasury announced the ending of the 10 per cent tax break on Isa dividends in April 2004, the industry has been calling for a change of mind. The Pep & Isa Managers Association recently met with Treasury financial secretary Ruth Kelly in an effort to convince her that removing the tax break will add to the £27bn savings gap. By Pima's own account, the meeting was inconclusive, with Kelly giving nothing away in terms of the Treasury's latest ...

  • Julian Gibbs

    30 Jan 2003

    The best growth plan yet in current stockmarket conditions is being launched shortly by NDF in conjunction with Abbey National Treasury Services. Called the Double Growth Plan 1, it pays out double the rise in the FTSE 100 index over a five-and-a-half-year period, with a maximum return of 200 per cent. Full capital repayment is made, unless the index falls by more than 50 per cent during the investment term and fails to recover. While full capital repayment is not guaranteed, ...

  • Key facts will feature generic illustrations

    30 Jan 2003

    Generic illustrations will replace personalised illustrations in the FSA's forthcoming key facts point of sales documentation except for pen- sions which must still provide an example of what each individual can expect to get back. A draft consultation paper seen by Money Marketing shows the FSA wants to introduce a streamlined and standardised approach to illustrations. It will rely on links to its own website and standardised leaflets for further information. Speaking ...

  • Lending rockets to record £219bn

    30 Jan 2003

    Massive remortgaging saw lending soar to a record £219bn last year - a 37 per cent leap from 2001's total of £161bn. Figures from the Council of Mortgage Lenders reveal that £83.6bn, or 38 per cent, of 2002's total was for remortgages, a 67 per cent increase from £50bn in 2001. Total lending for December was £19.5bn compared with £13.4bn in December 2001 but slightly down on November's figure of £20.6bn. In December, ...

  • Lincoln is looking to hindsight

    30 Jan 2003

    Lincoln Financial Group is to offer a structured product with stepped levels of capital growth based on the performance of two investment funds and the FTSE 100. The Lincoln hindsight bond, to launch by the end of the quarter, will be linked for five years to Norwich Union's property trust, JP Morgan Fleming's sterling liquidity fund and the FTSE 100. Investors will get 50 per cent of the average growth of the best performing of the three, 30 per cent of the second-best ...

  • M&G enters multi-manager market

    4 Feb 2003

    M&G has teamed up with Cazenove to enter the multi-manager market with three Oeic funds of funds. Cazenove was chosen to manage the portfolios for M&G because of its track record in multi-manager portfolios. M&G says multi-management is a specialist skill and that it would not have worked if one of its existing fund managers was employed as a multi-manager. One of the three funds, the UK growth portfolio, invests in a portfolio of between 12 and 17 UK equity funds, which ...

  • M&G Investments - M&G Growth Portfolio

    4 Feb 2003

    Tuesday, 4 February 2003 Type: OeicAim: Growth by investing in international equitiesMinimum investment: Lump sum £1,000, monthly £100Investment split: UK equities 63.6%, European equities 6.7%, North American equities 21.1%, Japan 2.9%, Pacific 1.8%, cash 3.7%Isa link: YesPep transfers: YesCharges: Initial 4%, annual 1.5%Special offer: 1% discount on initial chargeOffer period: Until April 5, 2003Commission: ...

  • M&G Investments - M&G UK Growth Portfolio

    3 Feb 2003

    Monday, 3 February 2003 Type: OeicAim: Growth by investing in UK equitiesMinimum investment: Lump sum £1,000, monthly £100Investment split: UK equities 98.7%, cash 1.3%Isa link: YesPep transfers: YesCharges: Initial 4%, annual 1.5%Special offer: 1% discount on initial chargeOffer period: Until April 5, 2003Commission: Initial 3%, renewal 0.5%Tel: 0800 389 8600

  • Major life offices are riding out the long slide, says FSA

    30 Jan 2003

    The FSA insists that no big UK life offices have breached solvency requirements, despite an unprecedented 11 consecutive days of stockmarket falls which have seen the FTSE 100 drop by 10 per cent in the last fortnight. However, the regulator refused to be drawn on smaller life offices' solvency. It claims the majority of the consumer market falls within the remit of the top 20 life offices. Three weeks ago, outgoing FSA chairman Howard Davies said life offices could ...

  • Mark Howard

    30 Jan 2003

    After 18 months' enforced layoff from financial services, Mark Howard, the former managing director of Maddison Monetary Management, aims to mark his comeback with a bit of a splash. Just back from his honeymoon sailing the BVIs (that's the British Virgin Islands to you and me), Howard is aiming to push the boat out in a big way with the launch of his new venture M2 Financial. His exile from the industry was the result of his sudden departure from IFA employee benefits ...

  • Millfield aims to draw new RIs with share plan

    30 Jan 2003

    IFA Millfield Partnership is introducing a share scheme aimed at encouraging new advisers to join while rewarding existing RIs. The scheme, set under the brand Adviserco, aims to allocate new and existing advisers with shares linked to a points-based system, rewarding individuals on turnover, qualifications and the performance of the Millfield Group as a whole. Five million shares will be issued and divided between the partnership's existing 372 advisers and new joiners ...

  • Ministers set out on pension roadshows

    30 Jan 2003

    Work and Pensions Secretary Andrew Smith and pensions minister Ian McCartney will be travelling the country as part of the biggest consultation on pensions. The Department of Work and Pensions will be canvassing people about their views on the Pensions Green Paper in a series of roadshow events running until March 28. The roadshows are being co-hosted by CIS and Help the Aged. They began last week with an event at Templeton College, Oxford, attended by Smith. The college ...

  • Most high-flying funds fizzle out

    30 Jan 2003

    Nearly all the 50 top-performing funds between 1992 and 1997 had slipped down the rankings by the end of last year, according to Close Wealth Management. Only three of the funds remained in the top 50 between 1997 and 2002. Of the remainder, the average ranking plummeted to 524th. The biggest faller was Old Mutual's European Inc fund, which plunged from first position in 1992-97 to 1,174th. Scottish Widows Investment Partnership's UK smaller companies A fund slid ...

  • NatWest gets on the case with self-cert

    30 Jan 2003

    NatWest is making a concerted bid to win a bigger share of the intermediary market with the launch of its first self-cert mortgage which will initially only be available through IFAs and mortgage brokers. The move this month builds on its new intermediary branding launched early last year, with a private detective theme of Your Mortgage Cases Solved designed to illustrate that it can deal with even the most unusual applications and queries. NatWest has also doubled the ...

  • New directives are sapping life out of the industry

    30 Jan 2003

    Many IFAs like myself must be concerned about the end of polarisation, particularly as it comes after a period of lobbying and action by writing to local MPs asking for their help in regard to fighting these changes. The question here is that fees • commission was, I believe, a red herring and was nothing short of a cunning plan by floating two big changes, only to "give in" on one. Polarisation and the "muddying of the waters", the FSA conceding the far ...

  • Northern Rock Guernsey - Fifty:Fifty Issue 14

    3 Feb 2003

    Monday, 3 February 2002Type: Offshore guaranteed equity bond and high interest account GUARANTEED EQUITY BOND Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £5,000-£2.5m Term: Five years Guarantee: Capital returned in full at end of term regardless of performance in indexReturn: Up to 70% growth in the FTSE 100 index over term Closing date: March 5, 2003 HIGH INTEREST ...

  • NU sales down by 7% in 'challenging conditions'

    30 Jan 2003

    Norwich Union is warning that tough market conditions are set to continue after its new business figures fell slightly in 2002. Total UK sales of £7.4bn last year were down by around 7 per cent from £8bn in 2001. The trend was reflected internationally, with parent Aviva posting worldwide new long-term sales of £14.6bn, down from £15bn in 2001. NU says it has around 12 per cent of the market. Total IFA sales accounted for £943m equivalent ...

  • Off-panel advice could be disastrous, says Smee

    30 Jan 2003

    FSA proposals to allow multi-tied advisers to recommend products outside their usual range is a recipe for disaster and raises serious training and competence issues, claims Aifa director general Paul Smee. The proposals, outlined in the draft rules for depolarisation in consultation paper 166, would allow tied or multi-tied advisers to recommend off-panel products if they felt the situation warranted it But Aifa says this would create a worrying situation as most tied advisers ...

  • Omo concerns after Pru and Zurich link-up

    30 Jan 2003

    Prudential and Zurich Financial Services have signed a five-year deal which will see Zurich Advice Network customers being offered a Pru annuity on retirement. Under the deal, policyholders receiving advice from Zurich's 3,500 strong tied network will be offered a Pru annuity once FSA depolarisation plans are finalised. IFAs have attacked the deal, saying it undermines the open market option requirement, where providers must tell policyholders to shop around for the ...

  • Outside edge

    30 Jan 2003

    The last bastion of the free lunch is set to crumble. While it might be harsh to imply that the role of the non-executive director is quite the well-paid, cushy number that some make it out to be, it is fair to say that, for many, such appointments have amounted to little more than a genteel way of topping up the pension fund at the sunnier end of a long, if not illustrious, career. Things are set to change. The Higgs report on non-executive director practice and effectiveness, ...

  • Panel's ad fears prompt call for review of the FSA

    30 Jan 2003

    The Financial Services Consumer Panel is calling for a statutory review of the FSA, claiming that the regulator does not sufficiently exercise its powers to protect consumers from misleading financial advertising. The panel says that although the Treasury is committed to reviewing the Financial Services and Markets Act 2000, which underpins the FSA, this will not be until December 1 and that action should be taken now to protect consumers. Its concerns centre around the ...

  • Portman moves into equity release with lifetime loan

    30 Jan 2003

    Portman Building Society is entering the equity-release market by offering a lifetime mortgage. Although initially available only through its branches and call centre, the society says it is considering extending the product to IFAs. It says branch staff have been trained on the product and the market, which can be complex, so it is focusing the mortgage on that channel but will look at extending it to intermediaries once it gauges demand. Portman has just completed ...

  • Predictions of boom in equity release

    30 Jan 2003

    IFAs believe a boom in the equity-release market over the next five years could increase their income by as much as 20 per cent a year, according to consultancy TillinghastTowers Perrin. Its research found that 80 per cent of advisers predict they will conduct more equity release business in future. One in eight expect their annual income to rise by between 10 and 20 per cent by 2008. The survey questioned 50 IFAs on their expectations for the growth of the market, which ...

  • Reach for the PI

    30 Jan 2003

    The professional indemnity insurance market is in crisis. Many firms are without cover and many have non-compliant cover. The rules regarding professional indemnity insurance are very stringent. They are contained within chapter 13 of the Interim Prudential Sourcebook for Investment Businesses. The rules are very clear in that any firm with a market capitalisation under £50m requires professional indemnity insurance. The insurance rules have recently been ...

  • Rethink of roles at Insight after RAM deal

    30 Jan 2003

    Insight Investment has finalised its equity team structure and appointed heads of desks following its acquisition of Rothschild Asset Management last year. John Bearman, currently Insight's director (UK equities) becomes head of UK core funds while Crispin Cripwell, RAM's head of US equities, takes on the same role for the merged business. Insight head of Euro-pean equities Richard Wiseman and head of global funds David Marchant retain their roles. RAM ...

  • Scottish Life's PR returns to Mainland

    30 Jan 2003

    Mainland PR has won back the Scottish Life account from Financial Dynamics after three years. Mainland handled the Scottish Life account before the PR business was sold by Neil Mainland to Financial Dynamics in December 1999. Neil Mainland then looked after the account at Financial Dynamics until the agency was set up again in April last year. Mainland PR consultant Andrew Appleyard says ScotLife has reappointed Mainland to handle publicity for its pension, mortgage and ...

  • Scottish Mutual shifting its focus on Pensions

    30 Jan 2003

    Scottish Mutual is scaling back its pension ambitions, turning its back on group pensions to focus on Sipps and the post-retirement market. An industry source has told Money Marketing that ScotMut is making the move by no longer offering incentives to its broker consultants to sell group pensions. ScotMut closed its with-profits fund at the end of last year and earlier in 2002 took the decision to stop actively marketing stakeholder, sparking concerns among IFAs about ...

  • Solus pushes way through multi-manager crowd

    30 Jan 2003

    Solus Investment Managers has created a multi-manager fund of funds, which invests in 14 funds from different management groups. The Solus Multi-Manager Services balanced portfolio will diversify geographically, across fund management groups and asset classes. UK equities will dominate the portfolio at 50 per cent, while 23 per cent is invested in equities from other regions. The remainder goes into fixed interest and cash. When constructing the portfolio, funds are initially ...

  • St James's Place picks panel of five protection firms

    30 Jan 2003

    St James's Place is to tie to five of the UK leading protection firms ahead of plans to expand multi-tie relationships after of depolarisation later this year. The move will create a panel of five leading protection firms - Bupa, Norwich Union, Prudential, Scottish Equitable and Scottish Provident - for the company's advisers. The deal comes after disappointing new business figures for St James's Place, which saw another 22 per cent fall in new business to £82.5m ...

  • Stakeholder cap deters IFAs from advising companies

    30 Jan 2003

    IFAs are being put off from advising on company pension schemes by the 1 per cent stakeholder cap on commission, according to research by Scottish Equitable. Seventy-five per cent of IFAs questioned at 15 ScotEq roadshows across the UK in November said they would actively target employees if the cap was raised to allow more scope for promotion of the product. The research also confirmed earlier ABI statistics showing the failure of take-up of stakeholder pensions in employer-sponsored ...

  • Standard Life slashed payouts by 15 per cent

    3 Feb 2003

    Standard Life has slashed with-profits payouts by up to 15 per cent blaming extremely challenging investment conditions.It says investment performance of its with-profits fund was down 12.5 per cent for last year, compared with a 20 per cent fall in the FTSE All Share. It claims that returns despite the cuts are better than average returns on equity unit-linked life policies or deposit accounts.It is warning that payouts will continue to fall over the next years, and will ...

  • Standard premiums on CI plans leap 50%

    30 Jan 2003

    Standard Life is increasing premiums on new criticalillness plans by around 50 per cent, saying the rise is due to advances in diagnostic techniques and IFAs wanting guaranteed products. The firm says research shows that IFA clients want guaranteed CI cover and it has raised premiums to continue to offer the product. Standard says the increase returns premiums to the levels of three years ago and says existing policies are not affected. It is writing to IFAs ...

  • The industry must be freed from its regulatory shackles

    30 Jan 2003

    Open letter to Treasury Financial Secretary Ruth Kelly I am a retired IFA. I and about 500 others helped form the Life Insurance Association, played an active role trying to get North American-type regulation introduced and was at one time a member of the Labour City committee. I was a trade union official and was briefly employed by the TUC education department. I came into the life insurance business for a number of reasons. My father was sold the wrong type of policy, Britain ...

  • Top end is leading the market down

    30 Jan 2003

    The average UK house price rose by only 0.1 per cent in January to £135,600 from £134,925, which is a sign of the market stagnating, according to analyst Hometrack. The company says this compares with the house price inflation peak of 2 per cent in May last year. In London, prices dropped by 0.1 per cent to £233,200 from £235,529. This is the third consecutive month that prices have fallen in the capital. Hometrack blames the nationwide ...

  • TrustNet white labels internet tool

    3 Feb 2003

    UK fund information specialist TrustNet is launching a white-label version of its internet tool to provide IFAs with an own-brand in-house research capability. IFAs will be able to use TrustNetPro - comprising standard daily price and performance databases on pension, life and investment funds - in the form of an in-house tool, a client-facing website or as a plug-in for an existing website under their own logos.

  • Two years for a transformation

    30 Jan 2003

    Much of the debate about Sandler, CP121 and Pickering has been around the immediate impact of lower charges, multi-ties, tiers of advice, product design and to what extent this will close the savings gap. This analysis takes a longer-term perspective - which is essential for IFAs in deciding how to react in the short term. Strategic decisions taken over the next 12 months are critical - and there will be no second chances. Assuming that the proposals are implemented, ...

  • Win a wine cellar

    30 Jan 2003

    M&G and Cazenove have kickstarted this Isa season with the launch of the M&G Cazenove fund of funds range. To celebrate the launch, we are offering you the chance to win one of four superb wine cellars worth £1,000, each containing the best of the best wines that have been carefully selected by fine wine specialist Bibendum Wine. The four winners will be invited to sample their cellar at a special tutored wine-tasting evening with the experts at Bibendum Wine. Fifty ...

  • Winterthur Life offers multifund investment bond

    29 Jan 2003

    WINTERTHUR LIFEInvestment BondPRODUCT DETAILSType: Unit linked bond Aim: Growth by investing in a choice of 45 funds and seven managed portfoliosMinimum investment: Lump sum £15,000 Fund links: Choice of 45 funds and seven managed portfolios from Artemis, Baillie Gifford, Credit Suisse, Dresdner RCM, DWS, Exeter, Fidelity, First State, Gartmore, Investec, Invesco Perpetual, Jupiter, Liontrust, M&G, New Star, Newton, Norwich Union, Schroder, ...

  • Zan brings in account managers to aid IFAs

    30 Jan 2003

    Zurich Advice Network is setting aside £4m and recruiting an array of industry heavyweights to provide support and shore up its tied salesforce of 3,500. It has recruited six people for the new role of account manager, who will help advisers in the field. These include Lawrence Hawthorn, who joins from Scottish Life and was previously LIA president, and Dominic O'Connor, who joins from PricewaterhouseCoopers. Peter Welch from Royal & Sun Alliance and Andrew ...

  • Zurich in franchise deal with loan network

    30 Jan 2003

    Zurich Financial Services is set to sign a franchise agreement with the Best Advice Mortgage Network, launched this month, as it bids to build on the £10bn of mortgage business it completed last year. Zurich says the deal will help it diversify its client base to people who only want mortgage advice and not the full financial planning service offered through Zurich Advice Network. Intermediaries joining the Best Advice Mortgage Network will get compliance, training ...

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