Money Marketing
29 October 2003

  • 'AITC must set example on governance rules'

    30 Oct 2003

    Treasury select committee chairman John McFall is urging the AITC to lead by example by making its future chairman comply with new corporate governance rules immediately. The Labour MP is unhappy that Alex Hammond-Chambers, who becomes AITC chairman in December, is chairman of both the Fidelity special values and Fidelity Japanese values investment trusts. Prompted by the splits debacle, the FSA is introducing new rules for investment companies designed to increase board independence ...

  • 'Nonsense' for fund companies to buy stakes in advisers'

    30 Oct 2003

    Schroders head of UK retail Robin Stoakley believes it would be "absolute nonsense" for fund companies to join life offices in the distribution dash. In an interview with Money Marketing, Stoakley says he doubts whether trying to secure distribution by taking stakes in IFAs is a sound strategy for any firm. He argues that fund firms, in particular, should only invest in IFAs as an investment decision and not on a corporate basis with an eye on distribution. Stoakley also questions ...

  • 'Only best of breed will go to market'

    30 Oct 2003

    Distribution will be the most important issue to face fund managers over the next five years as traditional sales channels begin to break down, according to Schroders. Head of UK retail Robin Stoakley says the industry has arrived at a crossroads, driven partly by the rise of the supermarkets and consolidators. He suggests this will eventually lead to direct business being all but eradicated. Stoakley believes that firms able to offer an efficient, cheap service with good admin, ...

  • 'Tory plan would boost PMI take-up'

    30 Oct 2003

    The Tories' proposed Patients' Passport could boost the private medical insurance market by making it cheaper and more accessible, says Abbey head of marketing and product development Nick Kirwan. The Tories have pledged to meet 60 per cent of health costs when people use the private sector for treatment. Kirwan says the policy would allow policyholders to halve their cover, opening up the market to more consumers. He says Abbey would consider entering the market if the ...

  • A bigger slice of the pension pie

    30 Oct 2003

    In my last article, I started to identify and discuss important recent and upcoming legislative and case law developments in pensions. That first article in this short series, in which I looked at scheme wind-up rules, has already been the subject of a subsequent Government announcement about further amending regulations due to be introduced later this year so this week I would like first of all to mention this development and put it into context. On the winding up of a finalsalary ...

  • A defining moment for employers

    30 Oct 2003

    The Inland Revenue's simplification proposals may be a headache for employers and their top people but the proposals from the Department for Work and Pensions are more likely to cause a headache for employers in respect of employees generally. To the extent that employees generally are in a defined- benefit scheme, the world changed on June 11. That was the day that Work and Pensions secretary Andrew Smith announced a package of measures designed to restore confidence in defined-benefit ...

  • Alarming gaps in nation's finances - survey

    3 Nov 2003

    A survey carried out by the Mortgage Advisers Association has discovered that over 50 per cent of people would hope to rely on state social security benefits if they were unable to find employment after redundancy.Over 80 per cent of the 10,000 survey respondents considered meeting their mortgage repayments as their biggest financial worry if they were to lose their jobs.Chief executive Phillip Ambler says: "Respondents are very aware of the risks of unemployment or long-term ...

  • Annuity alarm for UK on the gender agenda

    30 Oct 2003

    The European Commission is meeting next week to agree draft legislation that would outlaw underwriting annuities, private medical, life and motor insurance on the basis of gender. The draft Gender Discrimination Directive is being pushed through the EC by European social affairs commissioner Anna Diamantopolou but faces opposition from the Department for Work and Pensions in the UK. The DWP says the proposal would mean worse annuity rates for everybody as providers would have to ...

  • Aurora buys Chantrey Vellacott Financial Management

    4 Nov 2003

    Aegon UK firm Aurora Financial Services has bought London-based IFA Chantrey Vellacott Financial Management part of the Chantrey Vellacott DFK accountancy practice. The move increases Aurora to 41 RI s from 38.

  • Barclays buys £210m Gerrard

    30 Oct 2003

    Barclays has acquired leading stockbroker Gerrard from Old Mutual in a £210m cash deal that will create the UK's biggest private client investment manager. Barclays intends to bring together Gerrard, which manages £12.5bn and has 116,000 clients, with Barclays Investment Management, part of its private client arm which provides wealth management to group clients. Together, they will run more than £21bn of assets in discretionary and advisory portfolios for high-net-worth ...

  • Barnsley becomes fourth society to link with Zurich Financial Services

    30 Oct 2003

    Zurich Financial Services group has signed a deal to tie with Barnsley Building Society. Barnsley, which has assets of £300m, follows three other mutuals, Bristol &West, Market Harborough and Newcastle, which have tied with Zurich in the last 12 months as part of the group's strategy to expand into the sector. Zurich advisers will be working from Barnsley's nine society branches from February next year. ZFS distribution marketing director Ian McLaughlin says: ...

  • Brainstorm trooper

    30 Oct 2003

    Shadow Work and Pensions Secretary David "Two Brains" Willetts has been told by his Tory superiors to stick the boot into Government pension policy. But he took his brief a bit too far at the ABI/Money Marketing Saver Summit in London last week. Midway through the questions and answers session, those two brains started doing their own thing. While his left brain was pondering the subtleties of the pension credit, Willetts's right brain went into kicking mode to such an extent ...

  • Brits cautiously optimistic about housing market - Charcol

    29 Oct 2003

    British adults are cautiously optimistic about the housing market for the next five years, with only 16 per cent expecting house prices to fall.Eighteen per cent of people expect returns of more than 10 per cent while 59 per cent of those questioned think that property returns of less than 10 per cent are more realistic.General manager Ricky Okey says: "It is encouraging to discover that people are now becoming more realistic in their estimations for growth, and not piling ...

  • Butterfield to offer Sipp

    4 Nov 2003

    Butterfield Private Bank has received authority from the Inland Revenue to offer Sipps to its private clients targeting retirement funds in excess of £100,000.The Sipp offers loan facilities available for the purchase of a commercial property through the Butterfield Pension Mortgage and the plan is set up under trust through Wolanski & Co Trustees Limited.Butterfield Private Bank Head of Marketing Antonia Blake says: "With many of us living longer, the efficiency ...

  • Butterfield to offer Sipps

    4 Nov 2003

    Butterfield Private Bank has received authorisation from the Inland Revenue to offer Sipps to its private clients targeting retirement funds in excess of £100,000.The Sipp offers loan facilities available for the purchase of a commercial property through the Butterfield Pension Mortgage and the plan is set up under trust through Wolanski & Co Trustees Limited.Butterfield Private Bank Head of Marketing Antonia Blake says: "With many of us living longer, the efficiency ...

  • Buy to let grows while FTBs fall

    30 Oct 2003

    Buy to let is continuing to flourish while the number of first-time buyers has hit new lows, according to Paragon Mortgages. Its survey of financial advisers and mortgage brokers says FTBs accounted for 10.5 per cent of all mortgages arranged in the third quarter of 2003 compared with 10.8 per cent in the second quarter. The survey highlights the fall in FTBs despite CML figures showing FTBs returning to the market and representing 31 per cent of loans in September. Paragon ...

  • Cable claims Bank is afraid of raising rates

    30 Oct 2003

    The Bank of England is trapped between a rock and a hard place over interest rates, says Liberal Democrat Treasury spokesman Vincent Cable. Cable believes the monetary policy committee is afraid to raise rates because it recognises that the housing market is propping up the economy. The minutes of the committee's last meeting show that house prices are well above what the Bank considers sustainable and that recent rises may have been driven by "speculative behaviour and/or over-optimistic ...

  • Captain Scarlet Rides Again

    4 Nov 2003

    Margetts Fund Management is offering another chance to invest in Gerry Anderson Productions, the enterprise investment scheme (EIS) that aims to create a new version of the cult 1960s television series, Captain Scarlet.The new series will be created using computer generated images similar to those used in the animated film Shrek. The original EIS offer raised over £8m in March this year and the directors of this EIS were pleased, as appetite for investing ...

  • Cheltenham & Gloucester - 7 Year Fixed Rate

    30 Oct 2003

    Type: Fixed rate mortgageFixed term: Until January 31, 2011Fixed rate: Up to 90% of valuation 5.19%, up to 95% of valuation 5.49%Minimum loan: £20,000Maximum loan: Up to 95% of valuation subject to no maximumIncome multiples: Up to 3 times principal income plus second or 2.75 times jointArrangement fee: £249Conditions: Overpayments of up to 10% allowed without penalty, arrangement fee waived for remortgages and ...

  • Clients left on the shelf

    30 Oct 2003

    I feel that the situation regarding the Sesame clash with Norwich Union over the claims of Tesco favouritism, as described on the front page of the October 16 issue of Money Marketing, is extremely serious. The fact is that Tesco is selling term insurance as a sideline and, as it is such a large organisation, anything they can get is a bonus and it is not its living, as it is for IFAs. Its personal finance spokeswoman said it chooses to return some commission to its customers ...

  • CML says BTL yet to be tested in face of downturn

    30 Oct 2003

    The Council of Mortgage Lenders has sounded a note of caution about the buy-to-let market, warning that it has yet to be tested in a housing market downturn. The CML says the BTL market has grown much faster than the housing market as a whole, with the value of BTL mortgages increasing from £2bn in June 1998 to more than £31bn. However, it points out that research has not kept up with growth and says too little is known about the landlords and tenants who make up the ...

  • Concern over future for Eagle

    30 Oct 2003

    IFAs are looking to Zurich Financial Services to give them confidence in Eagle Star following widespread rumours that it is likely to be the next life company to close its doors to new business. Zurich declines to comment, saying it does not comment on market speculation or rumour. Sofa chairman and Informed Choice managing director Nick Bamford says he would not be surprised by a closure in the current climate of market consolidation, a position reiterated by Cazalet Consulting ...

  • Connells buys R&SA's estate agency business

    30 Oct 2003

    Skipton Building Society's estate agency subsidiary Connells has bought Royal & Sun Alliance's estate agency business Sequence in a bid to increase its mortgage distribution. Connells and Sequence will retain their individual brands and branch networks following the acquisition, which will give a combined total of almost 500 branches, making it the second-biggest estate agency network in the UK. R&SA says the transaction will not have a material effect on its shareholders' ...

  • Connelly to leave Chartwell for JS&P

    4 Nov 2003

    Chartwell Investment Management's head of discount broking Patrick Connolly is leaving the company to join JS&P. After eight years with Chartwell, Connolly will take up his new role towards the end of the year, joining Ian Millward, formerly of RJ Temple and Toby Strauss, former Charcol managing director at the high-net worth IFA firm which has both fee and commission divisions.

  • Critical points on bowel tests

    30 Oct 2003

    A national bowel cancer screening programme is unlikely to affect critical illness in the same way as prostate cancer screening advances, according to industry experts. The Government has given a firm commitment to establishing a national screening programme for bowel cancer after a pilot scheme. ABI CI working party chairman and Abbey head of marketing and product development Nick Kirwan says bowel cancer is a very aggressive form of cancer and it is generally only a year from ...

  • Crumbs of comfort in the PI crust

    30 Oct 2003

    The dreaded PI renewal season is upon us once again, with PI insurers predicting that prices have reached a plateau. Most IFAs will take only the very coldest of comfort from the prediction from PI providers that prices are unlikely to rise. Most advisers believe the cost of PI means they are effectively self insuring so they can hardly be expected to get enthusiastic about price stability. PI solutions are already the source of fierce competition among networks and support ...

  • Digital daze

    30 Oct 2003

    The importance of technology is growing in the financial services market. Financial services are perfectly suited to a life in a technological world. There are no tangible goods which need to be displayed or conveyed, simply documents to be filled in and paperwork to be shuffled around. Client details can be collected and transmitted electronically and payments can be made directly into bank accounts via BACS systems. In theory, no one has to touch anything other than a computer mouse ...

  • Don't rule out pension age rise, says PPI

    30 Oct 2003

    Raising the state pension age should not be ruled out just because it is perceived by bodies such as the Trades Union Congress as being unfair to manual workers, according to a study by the Pensions Policy Institute. The PPI report, called Raising State Pension Age: An Update, says raising the state pension age may be the only way to sustain a better state pension in future. The report concludes that startling longevity improvements mean that a significant increase in state pension ...

  • Dunstan Thomas launches product to keep pensions on track

    31 Oct 2003

    Pensions and investment software provider Dunstan Thomas is launching a new software tool called Imago:Contribution Analysis that monitors pension contribution levels.Part of the company's Imago-branded family of tools, Imago:Contribution Analysis enables providers to check contributions meet the scheme's target income whether through an annuity or income through drawdown, tax free cash or final plan value.Dunstan Thomas chairman Chris Read says: "For providers, administrators ...

  • DWP changes priorities

    30 Oct 2003

    The Department for Work and Pensions has bowed to consumer pressure to consult on how to provide a fairer division of assets on pension scheme wind-ups. The DWP has proposed amendments to the priority order which would reflect the length of time a member has been contributing to a scheme so those contributing the longest get the greatest protection. At present, members who have not yet retired are ranked equally, regardless of length of time in a pension scheme. Under the proposals, ...

  • Early retirement plan from UnumProvident

    30 Oct 2003

    UnumProvident is launching a new group income protection product aimed at employers which need to retire workers early but do not have the pension fund surpluses to do so. The Capital Option Solution is part of the firm's sickness absence range and provides a replacement income for two, three or five years followed by a lump sum payout to help fund early retirement or leaving service benefits. Director of marketing Eugene McCormack says the pension crisis has created a pressure ...

  • Exchange is set to strike fund firm deal for move into wraps

    30 Oct 2003

    Financial services portal The Exchange will enter the burgeoning wrap market once it has struck a deal with one of the handful of fund companies with which it is currently negotiating. The Exchange, which has more than 18,000 IFA users, is in talks with firms, including supermarket FundsDirect, about striking a partnership deal which will see it challenge companies such as Skandia, Abbey and Norwich Union. It says it does not know when an agreement will be reached but confirms ...

  • Fair deal call for costs on watchdog

    30 Oct 2003

    People complaining to the Financial Ombudsman Service should have to pay some of the cost of taking their case to arbitration, say IFAs. Advisers believe the current system, under which firms facing a complaint must pay £360 for the case to be ruled upon by the FOS, encourages people with little or no chance of winning to push for unjustified compensation. Often, they say, people aware of the charge ask for an amount below £360 in return for not taking the case to the FOS, ...

  • Fidelity - Multi-Manager Growth Portfolio

    29 Oct 2003

    Type: Oeic fund of fundsAim: Growth by investing globally in equity fundsMinimum investment: Lump sum £1,000, monthly £50Investment split: UK 55.4%, US 29.25%, Europe 8.9%, Japan 4.8%, Asia-Pacific 1.65%Isa link: YesPep transfers: YesCharges: Initial 3.25%, annual 1%Special offer: Initial charge reduced to 3% on lump sum investmentsOffer period: Until November 30, 2003Commission: Initial 3%, renewal ...

  • Fidelity turns round flagging Edinburgh trust

    30 Oct 2003

    The £1bn Edinburgh investment trust has seen a dramatic reversal in fortunes since Fidelity took over the management contract from Edinburgh Fund Managers last July. Over the last six months, the trust's total return with dividends reinvested is 23.9 per cent against its benchmark, the FTSE All Share index, which is up by 19 per cent. In the 12 months to July 2002, the trust was down by 26.45 per cent against the All Share's performance of -20.8 per cent, prompting ...

  • First State closes six funds

    4 Nov 2003

    First State Investments is closing a number of funds following a strategic review of its business. The group's British mid cap, British all companies, American, European, Japanese and global health & biotechnology funds are all due to close early next year. First State says the move will allow it to focus on key areas of strength, such as global equities, Asia Pacific and global emerging markets.Chief executive Tom Waring says: "As a growing specialist fund manager, ...

  • First State Investments - First State Global Resources Fund

    29 Oct 2003

    Type: OeicAim: Growth by investing globally in natural resources companiesMinimum investment: Lump sum £1,000, monthly £50Investment split: 100 per cent in natural resources companiesIsa link: YesPep transfers: YesCharges: Initial 4%, annual 1.5%Commission: Initial up to 4%, renewal 0.5%Tel: 0800 917 1717

  • First State's Tulloch doubles up on funds

    29 Oct 2003

    First State Investments has established two Oeic funds for manager Angus Tulloch that will be available for investors from December.First State Asia Pacific leaders and First State global emerging markets leaders aim for growth by investing in mid to large-cap companies. Sixteen portfolio managers and analysts will be involved in the selection of between 30 and 60 stocks for each fund.First State Asia Pacific Leaders is benchmarked against the MSCI Asia ...

  • Freedom Finance opens Madrid office

    29 Oct 2003

    Mortgage lender Freedom Finance has opened an office in Madrid and is planning to expand across Spain to become a leading European broker.

  • From zero to hero

    30 Oct 2003

    Just a year ago, 20 splitcapital investment trusts had been suspended as the sector went into meltdown. Around another 10 were expected to have joined them by November this year. But, in that 12-month period, only five met a premature demise as the sharp equity recovery seems to have stabilised a number of trusts which were on the brink of collapse. In fact, on average, the share classes have performed extremely well, even if some have risen from a very low base. According ...

  • FSA looks at trade-down option on equity release

    30 Oct 2003

    The FSA is considering compelling advisers to include the option of trading down to a smaller property when advising clients on equity release. Chief executive John Tiner says he can see merit in introducing advice on trading down as a formal requirement for advisers discussing equity release with their clients. He made the comments before the Treasury select committee last week when pressed on the issue by Liberal Democrat MP Norman Lamb who believes the FSA has been under pressure ...

  • FSA opens doors to mortgage and general insurance firms

    4 Nov 2003

    The FSA has launched the authorisation process for mortgage and general insurance firms. Firms are now able to register for an application pack containing application forms and guidance.Completed application forms will be accepted from mid January 2005, and director of high street firms Sarah Wilson says firms should make the effort to qualify for early application discounts. This means getting an application in by 31st March for mortgage firms and by 31st May for general insurance ...

  • FSA restructures

    3 Nov 2003

    The FSA has announced a management restructure of the regulator, largely revolving around the creation of three new business units.A regulatory services unit will be set up to provide consumers services as well as services for existing firms and firms seeking authorisation. It will be responsible for processing, validating and warehousing data received from firms and the delivery of such data to supervisors.A retail markets unit will have overall responsibility ...

  • Fund firms fear exclusion from distribution lists

    30 Oct 2003

    Fund firms believe that failing to be selected as a provider of choice by major distributors would prove catastrophic to their businesses, according to research by management consultantcy Troika. The research, sponsored by Morley, reveals that some of the biggest UK fund managers are deeply concerned about the impact of not making the short lists of multi-tied distributors and life companies. Five of the seven major firms questioned say it would be catastrophic, although they believe ...

  • Garrett-Cox joins Morley from Aberdeen

    3 Nov 2003

    Morley Fund Management has appointed Katherine Garrett-Cox to replace Gerry Holtham as chief investment officer. Garrett-Cox joins from Aberdeen Asset Management.

  • Genesis Home Loans - Gemstones - Pearl

    31 Oct 2003

    Type: Discounted rate self-certified mortgageDiscounted term: Until April 1, 2005Discount: 1 per centPayable rate: 5.24%Minimum loan: £25,001Maximum loan: Up to 85% of valuation subject to a maximum of £400,000Income multiples: 3.5 times principal income plus second or 2.75 times jointConditions: 0.5% added to payable rate for loans between £250,000 and £375,000, which are also between 65% and 75% ...

  • Global View from Fidelity

    31 Oct 2003

    FIDELITYMulti-Manager Growth PortfolioType: Oeic fund of fundsAim: Growth by investing globally in equity fundsMinimum investment: Lump sum £1,000, monthly £50Investment split: UK 55.4%, US 29.25%, Europe 8.9%, Japan 4.8%, Asia-Pacific 1.65%Isa link: YesPep transfers: YesCharges: Initial 3.25%, annual 1%Special offer: Initial charge reduced to 3% on lump sum investmentsOffer period: Until November ...

  • Grin and bear it

    30 Oct 2003

    While most of us are eagerly anticipating our office Christmas parties, Britannic Retirement Solutions head of corporate communications Jim Boyd is dreading the festive season. Boyd foolishly agreed to wear a pair of bright orange tartan trousers - similar to those sported by Rupert the Bear - to the Christmas party as long as corporate development director Bob Bullivant attended the do. Apparently, Boyd believed that Bullivant would be attending the opening night of his daughter's ...

  • Haul them over the coalition

    30 Oct 2003

    Where is the Pensions Bill? This is the question on most of my clients' minds right now. The answer I give them is somewhere between No 10 and No 11 Downing Street. The next question they ask is when will we see it? Well, the Queen's Speech is scheduled for November 26. While I had hoped to see the detail of the Pensions Bill before then, we will probably end up waiting until the end of November before any detail emerges. Déjà vu? Indeed. It was at around this time ...

  • Henderson could lose out as Witan changes investment strategy

    30 Oct 2003

    The £1.3bn Witan investment trust is seeking to appoint its first chief executive in a move which could see Henderson Global Investors lose the bulk of its management contract. The chief executive, who Witan hopes will be in place by early next year, will be charged with selecting investment managers across the industry to run different parts of the trust in a major shift to a manager-of-manager approach. The decision could mean that Henderson loses most of its contract to ...

  • Home and away

    30 Oct 2003

    Last week, I looked at some of the main conditions to be satisfied to qualify for capital gains tax relief on the sale of the principal private residence. I finished by considering the situation in respect of the last 36 months of ownership, during which a property will be treated as occupied for the purpose of the relief even if it is not. Having taken into account the concession for any delay in taking up residence and the qualifying period of non-residence prior to disposal, ...

  • Ian Muirhead: Code comfort

    30 Oct 2003

    In the fourth article in the series on making professional connections, Ian Muirhead, of Solicitors for Independent Financial Advice, continues his explanation of the Law Society rules affecting solicitors' involvement in financial services work. This week, I will continue to outline some of the Law Society rules which affect referrals of financial services business to third parties by solicitors in England and Wales. Guide to Professional Conduct - confidentiality "A ...

  • IFA anger over notice as Friends raises CI rates

    30 Oct 2003

    Friends Provident has increased its critical-illness cover rates by an average of 30 per cent, angering IFAs who say they were given only 24 hours notice, potentially jeopardising their client relationships. Friends says the increase varies between 25 per cent and 50 per cent and it will honour all pipeline business at the old rates. It is the second increase in recent months following a 15-20 per cent average increase in September. LifeSearch spokesman Kevin Carr says he is disappointed ...

  • IFAs point to NU's penalty spot

    30 Oct 2003

    Norwich Union's equity-release product has come under heavy criticism from brokers and providers, who say its early repayment charges are unacceptable. The ERCs on NU's product are mark to market, meaning they are linked to long-tem gilt yields. If interest rates go up, the customer will pay no ERC but if rates go down, the ERC could theoretically top 100 per cent of the loan. Charcol senior technical manager Ray Boulger says the plan is inappropriate for the area of ...

  • IMA welcomes child trust fund proposals

    29 Oct 2003

    The IMA has welcomed the Government's announcement about the next steps in the introduction of the child trust fund.The trade body says the CTF will encourage the next generation to save for their future and help develop a greater understanding of investment products. This includes the importance of diversification, asset allocation and the associated risks and rewards, it says.Chief executive Richard Saunders says: "The need for a new financial initiative, ...

  • Independent view

    30 Oct 2003

    Bearing in mind the level of charges on funds under management and the often poor returns achieved, it is little wonder that investors have lost their appetite for investment, especially in equities. Admittedly, there are regulatory restraints on different investments which restrict the freedom of fund managers. The sheer size of some funds make it difficult for these funds to buy sufficient small stakes in smaller growing companies, too. Fund managers do seem to have fairly big ...

  • Inside edge

    30 Oct 2003

    You are in hospital after falling down the stairs at home. Both your legs are encased from hip to toe in plaster. The consultant comes by on his rounds. "Cheer up," he says, "the patient in the bed next to you has broken both his legs and an arm too." After more than three years of stockmarket falls, investors are probably feeling a tad upset too. All the more so if they receive letters from their fund managers suggesting that while the performance of their investments has lost 30 ...

  • Investment anaylsis

    30 Oct 2003

    Investors continued to lock in profits last week, dragging most of the world stock markets back from their recent multi-month highs. The FTSE World index lost 1.5 per cent but the index has still returned an impressive 19.7 per cent since the start of the year. The biggest cause of the sell-off last week was corporate results from the US and, although most companies reported better than expected third-quarter results, the level of outperformance failed to impress. The market has already ...

  • Investment view

    30 Oct 2003

    At a dinner held earlier this month to celebrate excellence in investment management, I understand that the guest speaker, who by all accounts was most entertaining, described alternative investments as being bad for financial health. When a senior figure in the investment world voices concern over the mounting interest in these new styles of investment, it is worthy of remark. His was not the first voice to issue warnings that the widening array of new and often volatile financial ...

  • Julian Gibbs

    30 Oct 2003

    Keydata has introduced an interesting product called the alternative income plan which aims to help investors use their capital gains tax allowance. The plan pays out 28 per cent growth or 5 per cent a year for five years tax-free for those who are not liable to CGT. This is equivalent to 8.33 per cent a year for higher-rate taxpayers and 6.25 per cent for basic-rate taxpayers. Provided that the FTSE 100 index does not fall by more than 50 per cent without recovering to its ...

  • Langton leads push to fight for IFAs' rights

    30 Oct 2003

    IFAs are planning a new grassroots campaigning organisation to fight for adviser rights. One of the main concerns of the group is the treatment of IFAs by the Financial Ombudsman Service. The organisers include IFA Colin Langton, principal of Tiverton-based, 25-RI firm Langtons. Discussions are being held with a senior industry figure from a provider background about helping to steer the new organisation. The group has pledges of financial support and an initial meeting is ...

  • Lawyer warns on website regulation failings

    30 Oct 2003

    Many industry websites do not comply with FSA regulation when providing information to consumers, a financial law consultant has found. Financial services lawyer Ruth Finch says many web-sites providing information on Isas, bank accounts and mortgages do not deliver the information which is required by the FSA. Finch has found that these problems can be as simple as still referring to the PIA - the previous regulator - or as complex as not providing complete investment material ...

  • LIA fears FSA can't monitor fee structures

    30 Oct 2003

    The LIA does not believe the FSA can adequately regulate whether IFAs are charging fees after depolarisation. LIA head of public affairs John Ellis has voiced concerns that once the charging menu is in place, monitoring IFAs' remuneration systems will be almost impossible without being intrusive and needing intensive resources. Although the FSA has recently announced its intention to bring all compliance and documentation online, Ellis discounts this as a solution to the "intrinsic ...

  • Lights, camera, tax relief

    30 Oct 2003

    I have recently been told by a friend that it is possible to invest in film partnerships which give very attractive tax breaks. Can you tell me how these work and whether they would be suitable for me to consider. Also, why is it so difficult to find out information about these investments? I have never seen any advertised anywhere. A film partnership is a shelter from income and capital gains tax using tax breaks put in place by the Chancellor ...

  • Lunt joins HSBC UK fixed income team

    30 Oct 2003

    HSBC Asset Management has appointed Geoff Lunt as a senior fund manager for its UK fixed-income team. Lunt joins HSBC Asset Management, the global investment management business of HSBC Group, from Investec where he worked as fixed-income fund income manager for five years, responsible for fixed-income asset allocation and formulation of the house view for UK fixed income. He previously spent five years at Plough Court Fund Management, a wholly owned subsidiary of Investec Guinness ...

  • Margetts Fund Management - Gerry Anderson Productions

    4 Nov 2003

    Aim: Growth by investing in a new television series of Captain Scarlet Minimum investment: Lump sum £11,000 Opening/closing date: October 20, 2003/March 26, 2004 Charges: Initial 5.5%, annual 1.5% Commission: Initial 3%, renewal 0.25% Tel: 0121 236 2380

  • Mark Chilton on Mortgages

    30 Oct 2003

    For many years, I have been telling the world that 99 per cent of brokers do a wonderful and professional job for their clients and that the industry's poor reputation is caused by just a few bad apples. However, I have become increasingly concerned that this is not the case and nowhere is this more apparent than the misuse of sub-prime lenders by brokers for their own personal gain. Now I have seen another example in action and it is so blatant that I have to vent my spleen. Last ...

  • MarketPlace launch two-year discount mortgage

    29 Oct 2003

    The MarketPlace at Bradford & Bingley has launched an exclusive flexible two year discount mortgage specifically for the remortgage market. The deal, funded by Alliance & Leicester, has an initial pay rate of 3.39 per cent (5.3 per cent APR).Key features include initial pay rate of 3.39, discount of 2.15 per cent from SVR for two years, maximum LTV of 95 per cent, MIG free to 90 per cent flexible features include payment holidays, underpayments and drawdown, no extended tie ins, ...

  • Material whirl

    30 Oct 2003

    The FSA teetered on the precipice of a policy to vet structured product ad material but backtracked on the whole idea, it emerged at a Treasury select committee meeting last week. The regulator's dramatic U-turn on a policy to check marketing literature before it reached consumers was revealed by select committee member Liberal Democrat MP Norman Lamb. Lamb was flabbergasted to discover that promises made to him in a letter from FSA director of investment firms David Kenmir ...

  • Matrix Money Management - Sitka Health Fund VCT

    30 Oct 2003

    Type: Venture capital trustAim: Growth by investing in unquoted companies in the healthcare sector Minimum investment: Lump sum £2,500Opening/closing date: October 21, 2003/April 2, 2004 for 2003/2004 tax year, June 30 2004 for 2004/2005 tax yearCharges: Initial 5.5%, annual 2.25%Commission: Initial 2.25%, renewal 0.375%Tel: 020 7292 0825

  • Midshires suspends three after self-cert TV probe

    30 Oct 2003

    Concerns over borrowers inflating their incomes when applying for self-certification mortgages have come to the fore following Birmingham Midshires' suspension of three consultants. The suspension is the result of an undercover investigation carried out by the BBC's The Money Programme, where reporters posed as prospective customers. The programme claims that three of BM's brokers encouraged the reporters to inflate their inc-omes on applications for self-cert mortgages. Many ...

  • Money Portal deal for IFA falls through

    4 Nov 2003

    The Money Portal has ended discussions to acquire the David Aaron Partnership after failing to resolve "a number of issues" hampering the deal. TMP had signed a heads of agreement to acquire the IFA but says several problems developed which proved insurmountable. However, TMP has announced the completion of its acquisition of Bates Investment Services, marking its first foray into the advice market.

  • Mortgage brokers fear increase in dual pricing

    30 Oct 2003

    Mortgage brokers are concerned that dual pricing by lenders will increase to reflect different rates of churning. Dual pricing is where lenders offer almost identical products to the public and the intermediary sector but at different prices. With lenders keen to reduce churning, brokers say the trend will increase as there is more churning of business received from intermediaries once the original deal expires. Skipton Building Society recently offered a product to direct ...

  • Mortgage Express Is offering equity release at 6.74%

    30 Oct 2003

    Mortgage Express has set up an equity-release product at 6.74 per cent, as revealed in Money Marketing earlier this month. The specialist lending arm of Bradford & Bingley hopes to take a considerable amount of market share from Norwich Union and Northern Rock and is aiming for 15-20 per cent of the equity-release market next year. The company believes its product is very straightforward. Loan to value starts at 25 per cent and increases by 1 per cent each year up to a maximum ...

  • Mortgage trade bodies welcome FSA moves

    4 Nov 2003

    With 363 days to go until the FSA takes over responsibility for mortgage regulation the FSA has launched a "Call to Action" campaign for mortgage intermediaries who wish to register for direct authorisation.The FSA has already put a variety of helpful publications aimed at intermediaries on its website. It has also opened a Contact Centre which intermediaries can use to register for an application pack and ask questions about the application process.The Association of Mortgage ...

  • Most advisers welcome move to electronic ID

    30 Oct 2003

    1st Software is carrying out field trials in the IFA and lending markets to assess the effectiveness and product provider acceptance of electronic client identity verification. Research by 1st Software surveyed 200 firms and found that most IFAs accept that electronic client identity verification would help meet anti-money-laundering requirements. When asked if an electronic alternative would help their business, 68 per cent say it would significantly help and 28 per cent say it ...

  • Multi-Manager Approach from Skan

    29 Oct 2003

    SKANDIA INVESTMENT MANAGEMENTBOND INCOME FUNDType: Oeic fund of fundsAim: Income by investing in bond fundsMinimum investment: Lump sum £1,000, Isa/Pep transfers £10,000, monthly £50Investment split: Merrill Lynch corporate bond mandate 18%, Threadneedle High Yield Bond Fund 18%, Goldman Sachs sterling bond mandate 10%, BGI Sterling Bond Fund 18%, Goldman Sachs global high yield fund 18%, Fidelity moneybuilder high ...

  • Nationwide - 2 Year Fixed Rate

    3 Nov 2003

    Type: Fixed-rate mortgageFixed term: Two yearsFixed rate: Up to 95% of valuation 5.29%, up to 90% of valuation 4.89 %, up to 75% of valuation 4.79%Minimum loan: £1Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £700,000, up to 75% ...

  • Neil Stevens joins Millfield board

    31 Oct 2003

    The Millfield Group is appointing Millfield Partnership marketing director Neil Stevens to its board of directors.

  • Network needs

    30 Oct 2003

    The decision about whether or not to become an appointed representative of a principal company is, arguably, the most pressing question for the UK's mortgage intermediaries. Mortgage Day and its regulatory burden is forcing many brokers actively to consider AR status. What better solution to the issue than to have the regulatory issues taken care of by a principal's network in exchange for channelling business its way? Brokers are being bombarded from every angle with offerings ...

  • New mortgage technology company launches

    31 Oct 2003

    Softpackaging.com launched yesterday offering an online mortgage administration system which allows mortgage intermediaries to fully process a mortgage application through to offer stage.The system contains both the full criteria as well as the product information of lenders and guides intermediaries through the underwriting process.Softpackaging.com has been set up by directors of the Mortgage 2000 Financial Group. Managing director Sean Hornsby says: "Softpackaging is ...

  • New Star completes Aberdeen purchase

    3 Nov 2003

    New Star has announced the completion of its purchase of Aberdeen Asset Management's retail funds and Oeic sub-funds, which have currently been managed by Edinburgh Fund Managers. New Star originally announced the acquisition of the 24 funds in September for £33 million, which are managed on behalf of more than 70,000 clients. With the addition of the funds, valued at £900m with £420m of that in funds of funds, New Star now runs approximately £5.4bn ...

  • Nick Poyntz-Wright

    30 Oct 2003

    Economics and statistics' graduate Nick Poyntz-Wright thought he had got his sums right when he joined an insurer as an actuarial trainee. The graduate thought he was fast-tracking his way to the top but the slight miscalculation was that it was Salisbury-based UK Provident he joined in the mid-1980s. Within two years, the insurer found itself thrown into crisis as a result of some injudicious investments in US oil and gas and a habit of paying very generous bonuses while writing ...

  • Norwich Union Healthcare gets new managing director

    29 Oct 2003

    Norwich Union Healthcare has announced Cathryn Riley is to take over as managing director.Riley comes from Norwich Union Insurance, the general insurance business, where she was retail business director with responsibility for Norwich Union Direct and Hill House Hammond.She takes over from David Rogers who is moving to the Royal Bank of Scotland Group on a secondment from Norwich Union to be chief executive of the RBS and Aviva joint venture companies.

  • NU feels pressure of with-profits decline but says tide is turning

    30 Oct 2003

    The sales decline in the with-profits bond market is still hindering Norwich Union's results but chief executive Gary Withers believes the tide has finally turned for the market. The third-quarter results, released last week, show that total life and pension new business sales fell to £271m for the quarter from £278m in the same period last year. Over the nine-month period, total sales are down by 15 per cent to £862m from £1,009m last year. Withers ...

  • NU says charges are complicated but beat rivals

    30 Oct 2003

    Norwich Union has hit back at criticism of the mark to market early repayment charges on its equity-release product, saying that although the charges are complicated, they are also fairer than charges imposed by other providers. Head of marketing Paul Stokes says figures from August reveal that of those customers who redeemed their equity-release pro-duct early, less than 25 per cent paid any ERC whatsoever. On average, these customers paid about £1,100, around 1 per cent ...

  • Opra removes need to report minor breaches

    30 Oct 2003

    The Occupational Pensions Regulatory Authority is introducing a new traffic-light system of guidelines for reporting breaches of scheme rules. The guidelines, aimed principally at trustees, scheme actuaries and auditors, end the need to report routine mistakes by classifying breaches in order of seriousness. Opra has been criticised in the past for its box-ticking approach that has seen it wading through tens of thousands of reports of purely technical breaches of payments made ...

  • Out of context

    30 Oct 2003

    •"There is no way pensioners will be terribly off. The blighters vote." - Liberal Democrat pension spokesman Steve Webb. •"I wouldn't want to be quoted on that." - Webb reflects some more. •"That's not the way it works." - Shadow Work and Pensions Secretary David Willetts gives some friendly advice. •"It is like going to a restaurant and being told you cannot have a steak because you are a fat git." - Hargreaves Lansdown's Mark Dampier describes ...

  • Outside edge

    30 Oct 2003

    Human beings typically crave the best of all possible worlds. It should come as little surprise to anyone that many investors want their capital over time not only to remain secure but also to provide them with above-average returns. Throughout the long bull run and with the introduction of a few modest Government incentives, more and more private investors committed their savings to funds investing in equities. Similarly, pension fund trustees and actuaries placed heavy reliance on ...

  • Pay trail cash to those who have earned it

    30 Oct 2003

    Much has been written in these columns over the years about poor advice, fees •commission and investor confidence. But an issue which is rarely discussed is client servicing - building trust and confidence through an ongoing client relationship. Put simply, vast armies of clients never receive regular reviews. This is an intrinsic problem for most of the industry. Why does this problem exist? I believe that the problem stems almost exclusively from the fact that, in the majority ...

  • PI increases are starting to slow

    30 Oct 2003

    Professional indemnity insurance increases have finally begun to slow, with one major broker predicting that rates will reach a plateau by the middle of next year. Although PI brokers and providers are still seeing rises, they say they are nowhere near the 300 per cent hikes seen during the November 2002 and June 2003 renewal periods. Broker Collegiate managing director Tony Howe says advisers will not see any reductions in rates but that the market is steadily heading towards ...

  • Point One opts for Trigold's mortgage-sourcing system

    30 Oct 2003

    Bankhall's support services company Point One is to offer Trigold's Prospector Plus mortgage-sourcing software to members. The system provides mortgage sourcing from the whole market, compliance prompts, electronic transfers and pre-population of client data for Point One's 3,500 members. Point One says Trigold's system was chosen after a review of the options and after requests from its members. Trigold plans to link into Point One's Tribune general insurance ...

  • Positive partnership

    30 Oct 2003

    I recently met with an IFA business that, because of its technology, can operate with over 700 registered individuals on a head office staff of 35. This validates the extent of what as an industry we can achieve in savings and efficiencies. It is great to see a major IFA where technology is making a massive difference to their business. It is no surprise that Positive Solutions have been so successful at the Money Marketing awards in the last few years, winning Technology IFA of ...

  • PPP rolls out plan for self-employed

    29 Oct 2003

    Private medical insurer AXA PPP Healthcare is launching a new individual medical insurance product designed for the self -employed. Available from next month, the Independent Health Cover menu-based plan incorporates a free phone accessed messaging service that deals with customer messages when the business owner is ill and a legal advice line. Commission is up to 40 per cent initial and 5 per cent renewal.

  • Prime time for Alliance & Leicester

    30 Oct 2003

    Alliance & Leicester's business strategy of marketing prime mortgage products to the mass market continues to prove successful with interim results showing a 20 per cent increase to £3.2bn in gross advances from the same period in 2002. Council of Mortgage Lender figures put Alliance & Leicester in ninth position on gross mortgage lending in 2002, giving the lender a market share of 2.9 per cent and lending of £6.4bn. A&L is determined not to diversify ...

  • Product matters

    30 Oct 2003

    The recent decision by the Bank of England's monetary policy committee not to raise interest rates was greeted with sighs of relief by most consumers and businesses. However, the news that it was only the casting vote of the bank governor Mervyn King that kept rates on hold suggests that rates will soon rise from their 48-year low as the bank struggles to keep inflation at bay. Anticipated rises have done wonders for fixed-rate savings investments, which have struggled to offer ...

  • Pru revives with-profits

    3 Nov 2003

    Prudential plans to breathe new life into with-profits by aiming its prudence prospects bond at investors who are looking to transfer from closed or badly performing with-profits funds.The bond provides a choice of the optimum return fund and the optimum bonus fund. The optimum return fund's objective is growth, with a higher equity content than the optimum bonus bond, which aims for income.The optimum bonus fund will have a higher annual bonus than ...

  • Prudential - Prudence Prospects Bond

    4 Nov 2003

    Type: With-profits bondAim: Income and growth by investing in the Prudential optimum bonus fund and the Prudential optimum return fundMinimum investment: Lump sum £10,000Bonus rates: Optimum bonus fund 3.6%, optimum return fund 2.85%Allocation rates: £10,000-£19,999 - 105%, £20,000-£49,999 - 105.25%, £50,000-£74,999 - 106%, £75,000 and above - 106.25%Special offer: Extra 2% allocationOffer ...

  • Remortgaging drives lending

    30 Oct 2003

    Strong remortgaging is pushing total lending towards £270bn for this year, a rise of nearly 10 per cent on 2002's £219m. CML figures show that remortgages accounted for 44 per cent of all loans in September, up from 40 per cent in August and 37 per cent in September 2002. The CML says gross mortgage lending reached £25.7bn in September, up from £23.7bn in August. Loans for house purchase stood at 46 per cent (£11.9bn) of total lending, the ...

  • Retail fund sales fall by a quarter

    29 Oct 2003

    Net sales of retail funds in September were down 25 per cent from August but remained substantially higher than at the same time last year, according to the IMA. Its figures reveal that sales hit £573m last month, down from £765m in August but up from £92m in September 2002. Net Isa sales were up 10 per cent to £258m from £235m in August, 27 per cent higher than last September's figure of £203m.

  • Rift between Revenue and ministers on death benefits

    30 Oct 2003

    The Inland Revenue pensions simplification head is believed to support allowing death benefits to be passed on after the age of 75 but the law will not change because ministers oppose the idea. Revenue simplification team head Peter Hopkins has told one senior life office figure that he personally sees no reason why annuitants should not be allowed to pass on benefits to relatives, with the Treasury opposing allowing pension saving for estate planning. Several major annuity providers ...

  • Rise in gilt yields may hit income drawdown

    30 Oct 2003

    An increase in gilt yields could spark an increase in misselling of income drawdown as maximum income drawdown limits rise, warns The Drawdown Bureau. The at-retirement specialist firm says a surge in gilt yields to 4.92 per cent by October 15 means that a male aged 55 could get 19 per cent more income in drawdown than from a top-paying single life annuity. Drawdown income allowances are tied to gilt yields which have risen while annuity rates, held back by increased longevity, ...

  • Roll out the level playing field

    30 Oct 2003

    I recognise that I am an extremely fortunate man. Few people who campaign for political and regulatory change are lucky to achieve their objectives. Yet, in three weeks time, that is exactly what may happen. The Treasury is due to publish its consultation paper on the regulation of reversionary equity release. By equity release, I mean financial services products which use the home of an elderly person to generate income or a cash lump sum. These schemes can take the form of a loan ...

  • Ruffer looks for hidden gems

    30 Oct 2003

    Discretionary portfolio manager Ruffer Investment Management has unveiled its fourth fund, the CF Ruffer Baker Steel Gold Fund.This Oeic's objective is capital growth by investing in the gold and precious metals mining industry. It is benchmarked against the FTSE Gold Mines Index and managed on a day-to-day basis by Baker Steel Capital Managers. Fund managers David Baker and Trevor Steel have experience of gold and precious metal investing through their co-management ...

  • Sale of Zurich Life to Swiss Re finalised

    3 Nov 2003

    The sale of Zurich Life's closed book of business to Swiss Re has been officially completed after receiving regulatory approval.The deal was originally announced in August with Swiss Re paying around £272m ($460m), including dividends paid before the deal was sealed and £142m ($240m) paid in cash on completion. Zurich's UK Life business is contracted to continue administering the closed life assurance book until transfer to Swiss Re is complete next spring.

  • Sales tactics push inappropriate products

    30 Oct 2003

    I found David Purling's observation on the Lloyds TSB precipice bonds' fiasco to be most illuminating. Speaking as an individual who has been involved in direct sales with two very high profile companies over the last eight years or so, I have seen all sorts of tactics used by sales managers to "encourage" salesmen and women to meet their various targets by whatever means possible. Direct sales, in particular, has a target-based sales culture and all manner of different means ...

  • Sarasin - GlobalSar Principal Guaranteed Note (Series 3)

    3 Nov 2003

    Type: Capital-protected fundAim: Growth linked to the performance of the Sarasin CI GlobalSar sterling fundMinimum investment: Lump sum £7,000Investment split 100% linked to the performance of the Sarasin CI GlobalSar sterling fundTerm: Five yearsPlace of registration: GuernseyCharges: Initial 5%, annual 1.5%Commission: Initial 3%, renewal 0.25%Closing date: December 3, 2003Tel: 020 7246 0430

  • Sarasin guarantees balance

    3 Nov 2003

    SARASINGlobalSar Principal Guaranteed Note (Series 3)TYpe: Capital-protected fundAim: Growth linked to the performance of the Sarasin CI GlobalSar sterling fundMinimum investment: Lump sum £7,000Investment split 100% linked to the performance of the Sarasin CI GlobalSar sterling fundTerm: Five yearsPlace of registration: GuernseyCharges: Initial 5%, annual 1.5%Commission: Initial 3%, renewal 0.25%Tel: ...

  • Scottish IFA announces acquisition

    4 Nov 2003

    Scottish-based IFA City Gate Money Managers has announced the acquisition of Kingsbridge Advisers from listed company Kingsbridge Group for an undisclosed sum. The IFA says the move is a huge step forward for its growth strategy, which has enabled it to double in size in two years. Following the deal, City Gate now has 33 advisers, having increased its RIs from 27. In addition to its financial advice network, City Gate provides compliance and administration services to ...

  • Share Centre launches SRI fund

    29 Oct 2003

    Stockbroker The Share Centre is launching an actively managed ethical fund for investors which will allow investment in grey SRI areas such as gambling and alcohol if companies are adopting socially responsible practices. The ethical fund will have an annual management charge of 1 per cent and an initial charge of 1 per cent and will be benchmarked against the FTSE All Share index.

  • Skandia is up for sale

    30 Oct 2003

    Skandia UK is believed to be being offered for sale to rival life companies, with its senior staff also exploring a management buyout financed by venture capitalists. According to well placed sources, the company is being "aggressively hawked" to major life groups. It is believed that as recently as this summer, Skandia Group had attached a price tag in excess of £1.2bn for Skandia UK. Skandia is not thought to be close to signing a deal with a life office but its senior ...

  • SLHC appoints new commerical director

    4 Nov 2003

    Standard Life Healthcare has announced that Bob Watts is to become the company's new commercial director from November 15, 2003. Under Watts' most recent role as customer and provider services director, SLHC says it established a reputation as an excellent service provider. In his new appointment, Watts hopes to "provide the most comprehensive and flexible range of healthcare solutions for both individual and corporate customers."

  • SOFA's view

    30 Oct 2003

    Is it me? Is it old age? I don't know but it may be my personal quirks and senior moments that lead me to believe that we are all completely bonkers when it comes to our industry and advice to clients on financial matters. These thoughts occurred to me the other day as I opened my daily postal requests by banks and other lending firms urging me to have a personal loan at a fantastically cheap rate of interest, have yet another credit card from some firm I have never heard of, again ...

  • Special commission offers on the Sterling Investment Bond

    4 Nov 2003

    The Zurich IFA Group is offering new commission deals for its Sterling Investment Bond.Running from November 1 to December 31, the deals are applied to all three of its charging structures. The 6.25 per cent initial commission rate will go up to 7.25 per cent, while the 5.125 initial commission plus 0.25 per cent trail commission rises to 5.875 per cent plus 0.25 per cent. The third rate of 4 per cent initial plus 0.5 per cent trail increases to 4.5 per cent plus 0.5 per cent.The ...

  • St James's Place announces solid third quarter results

    31 Oct 2003

    The St James's Place Group has recorded a solid result for the third quarter revealing growth in protection sales, wealth management services and funds under management.However, new long term savings business was down 2 per cent to £34.1m APE for the quarter from £34.7m over the same period last year. New investment business dropped one per cent to £17.6m APE from £17.8m, pensions business fell 16 per cent to £10m APE from £11.9m, however ...

  • Standard Life Bank's equity release loan 'will discourage short-term planning'

    30 Oct 2003

    Standard Life Bank is launching an equity release mortgage next month, as revealed in Money Marketing in June. The Freestyle home cash plan will be available on a sliding scale depending on age, starting at 12.5 per cent of loan to value at age 60 and rising to 35 per cent at age 80. This is well below the loan to value of Mortgage Express's new product, which starts at 25 per cent at age 60 rising to a maximum of 55 per cent. SLB's product will be a rolled-up interest ...

  • Standard offers policy servicing deal on net

    30 Oct 2003

    Standard Life Healthcare has set up electronic policy servicing system which enables intermediaries to carry out renewals and maintain client records for corporate community-rated policies online. The service, which includes the ability to print benefit-in-kind reports, is accessed through Standard Life Group's secure intermediary website ifazone and has been piloted with three specialist PMI intermediaries. Private Medical Intermediaries customer services manager Helen Williams ...

  • Talkback

    30 Oct 2003

    "Yes. They wouldn't be able to do it. It is far easier for them not to do anything and to wait for the problems to happen which doesn't help advisers or clients." Peter Hope,Buckmaster & Co "No, but it doesn't surprise me. Nothing the FSA does surprises me these days." Aidan Burke,Michael J Burke Financial Services, "Yes. I think there is an issue that if they approve literature - like they would have approved the material put out for endowments - then they would ...

  • Technology tops investment trusts

    30 Oct 2003

    Investment trusts in the technology sectors are topping performance tables over one year, according to AITC figures. The technology, media and telecommunications sector is the top-performing investment trust sector over one year, up by 63 per cent in the year to September 30, 2003. Top sector over five years is biotechnology and life sciences, up by 151 per cent, while over 10 years, the top-performing sector is the venture and development capital sector, up by 315 per cent. The ...

  • The case against subjective ombudsman

    30 Oct 2003

    I read with considerable interest the article reporting John Goodfellow, of the Building Societies Association, calling for a Treasury review of the Financial Ombudsman Service (Money Marketing, October 16). As an outsider to the financial services industry, I cannot comment on whether the FOS is offering uncontrolled compensation to consumers over endowments but if it is it would frankly not surprise me. Over the last several months, I have been acting for a long-established firm ...

  • The FSA's watchdog criticises 'plethora of recompense schemes'

    30 Oct 2003

    The woman who investigates complaints against the FSA has attacked the regulator's "plethora of compensation schemes", describing them as costly and deficient. Under fire from the Treasury select committee, Complaints Commissioner Rosemary Radcliffe admitted that the current system was a "bureaucratic jigsaw" and that consumers fall between the gaps in the process. Radcliffe called for the FSA to look at harmonising the services provided by the three key players - the Complaints ...

  • The latest in

    30 Oct 2003

    The latest in the Diary's occasional glances at hidden talents in financial services brings us to PIFC actuary Peter Crowley. The Diary is reliably informed that Crowley is something of a piano virtuoso and anyone on Ludgate Hill, London EC4, around 1.15pm on November 5 can hear him play a piano version of Vivaldi's Four Seasons at St Martin Within Ludgate.

  • The miles' files

    30 Oct 2003

    Anthony Bolton, the Fidelity star fund manager who has been dubbed the "quiet assassin" by the City, has certainly found his voice in the past couple of weeks. For anyone who has been out of the country, Mr Bolton led the shareholder revolt that ousted Michael Green as chairman designate of the merged Granada-Carlton group. Financial advisers and fund managers who know Mr Bolton well say he must have felt really impassioned about the terms of the merger to have adopted such a high-profile ...

  • The regulation jungle

    30 Oct 2003

    My friend Harry Fuller has a big life and general brokerage in South Africa, where the Financial Services Board is about to embark on regulation. He assures me that the FSB chief executive has gone on record as saying that it will not follow the UK model, as it is not its intention to put advisers out of business but simply to improve standards. I would suggest at outset that the FSB must define misselling and misbuying, then confirm whether caveat emptor applies to financial products, ...

  • The test for buy to let

    30 Oct 2003

    The Council of Mortgage Lenders has sounded a note of caution that buy to let at its current high levels has not been tested in a housing market downturn due to high interest rates. But it also offers the hope that buy to let may be proofed against interest rate rises because it encourages more people to rent. What is an investor or an IFA to make of all this? Well, the advice is simple - make sure buy to let is affordable and appropriate and, if possible, part of a spread of different ...

  • Threadneedle boosts global equity teams

    30 Oct 2003

    Threadneedle Asset Management is strengthening its global equity teams with six new managers and creating a glo-bal emerging markets desk. The new desk will incorporate the Latin America team and be led by Julian Thompson, who joins from American Express. It will focus on Latin American, smaller Asian and eastern European markets. The expansion plans follow Threadneedle's acquisition by American Express for £340m from Zurich in October. Mike Corcell will join the Threadneedle ...

  • Trade bodies in joint lobby on pensions

    30 Oct 2003

    The LIA, Sofa and the Institute of Financial Planning are jointly lobbying the Government for a solution to the pension crisis. The bodies met for the first time last week to work towards drafting suggestions for the Treasury. One of the prime issues the coalition is looking at is a level of guarantee that the Government can give to pension investors. LIA head of public affairs John Ellis believes the Government does not understand why the public are reluctant to save for their ...

  • Trinity co-operative branded 'ludicrous'

    30 Oct 2003

    The chief executive of a leading IFA network has described the Trinity Group's plans to launch an IFA co-operative as "ludicrous". Lifeboat Group chief executive officer David Kitchen says he backs the intention to provide a new model but thinks the idea of an equal ownership co-operative is destined to fail. Trinity House Group is setting up an IFA co-operative which will offer an equity participation scheme that divides ownership of the group equally between all the participating ...

  • UCB Home Loans - Self Cert - Flexible 2 Year Fixed Rate

    31 Oct 2003

    Type: Self-certified flexible fixed-rate mortgageFixed term: Two yearsFixed rate: 4.89%Minimum loan: £25,001Maximum loan: Up to 80 per cent of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £400,000Income multiples: Up to 3.25 times principal income plus second or 2.75 times jointRedemption fee: Six months' interest in year one, five months' interest in year ...

  • Warning that red tape will hit property invested in Sipps

    30 Oct 2003

    Commercial property invested in Sipps is becoming increasingly burdened by red tape and environmental legislation, warns PPML. From May 2004, new regulations will impose a duty on commercial property trustees - Sipp providers and clients - to have in place strict procedures for the management and treatment of asbestos. Sipp providers warn that the new regulations are the latest in a string of environmental duties and liabilities which have been placed on trustees that could lead ...

  • Waxing lyrical

    30 Oct 2003

    Great prizes were up for grabs at a charity stockmarket challenge in Bath in aid of the Dorothy House Hospice, the Diary hears. Hargreaves Lansdown's Alan Durrant was understandably elated to receive a year's free subscription to Glamour magazine in the raffle. Colleagues say he was last seen booking in for the Brazilian wax explained in the latest issue.

  • What's brewing?

    30 Oct 2003

    Technology giving a true virtual offer subject only to valuation has been launched by BM Solutions. Do you think this will be prevalent across the market in a few years? Smith: This development from BM Solutions is the latest in an increasing number of electronic decision systems being offered by lenders and is part of a growing trend. As advances in technology permit, lenders will want to get closer to the sale and empower the broker more, enabling them to give better and faster ...

  • Widows links with Asda

    29 Oct 2003

    Scottish Widows has entered into a partnership with Asda to offer life insurance through the supermarket chain. Widows says level term and mortgage protection products will be available, on a basic execution-only basis. The supermarket is running a pilot for the products in 40 of its locations, with the hope of rolling it out across all 260 stores. A non-smoking male aged 35 with a term of 25 years and £100,000 cover will pay monthly premiums of £10 a month and a ...

  • Woolnough to run new bond fund for M&G

    3 Nov 2003

    M&G is appointing Richard Woolnough to manage the M&G corporate bond fund when he leaves Old Mutual in ten weeks' time. M&G also plans to launch a new fund, to stand alongside its existing investment grade and high yield funds. The M&G strategic corporate bond fund will be launched in February 2004 and will invest primarily in investment grade corporate bonds, but will give Woolnough freedom to invest in either gilts or high yield bonds.M&G managing director UK retail ...

  • Wraps will strengthen value chain

    30 Oct 2003

    Although some individual IFA companies have been sold for considerable sums - which no doubt delighted their owners - it is clear that true value (in the sense enjoyed by the providers) is a very long way off. Much contemporary thought concludes that value requires scale. I find that analysis difficult and perhaps even misleading, given the appalling profit record of the quoted IFA sector. Superficial analysis concludes that value lies with customer control (as is true in ...

  • Zurich man to head Thinc multi-brand and mortgage operations

    3 Nov 2003

    Zurich Advice Network sales director Nick Boyle is leaving the network to head up THINC's growing multi-brand and mortgage operations.Boyle's role will include recruiting for the channel, increasing THINC'S distribution to 400 by the end of 2005 on top of the 100 IFAs it will have in its IFA division.Thinc is a ZAN franchisee and has launched a fee-based IFA, a mortgage broker and a commercial lender. Boyle says: "We are stepping up our expansion plans ...

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