Money Marketing
3 July 2002

  • '£10k medical bill as insurer cancels policy'

    4 Jul 2002

    An Essex IFA is outraged at the treatment a client received from niche PMI insurer Revelation Health-care after it ended his policy halfway through its one-year term. French & Associates financial consultant Roger Lloyd says the insurer offered PMI cover to his client but revoked the contract without a full explanation. The client contracted a serious illness while travelling in December, has had two major operations and is due for more surgery in September. The insurer ...

  • 'Commercial property is offering real value'

    4 Jul 2002

    Returns on commercial property have outperformed equities and bonds over the last five years, offering investors a real alternative to these asset classes, claims Edinburgh Fund Managers property adviser Robin White. White, who advises on the Edinburgh portfolio property fund, told the Senate Programme that despite tales of doom and gloom surrounding the residential property market, commercial property represents an excellent opportunity to investors and is no longer the poorer cousin ...

  • 'Nothing to fear from depolarisation'

    4 Jul 2002

    IFAs have nothing to fear in a depolarised world, according to former Investec managing director Jamie MacLeod. Delivering the keynote address at this year's Sway Senate Programme in Monte Carlo last week, MacLeod said IFAs have very little to fear if the FSA presses ahead with plans for depolarisation as long as they continue to offer best advice to clients. He predicted that after polarisation, IFAs will continue to be regarded as innovators and will challenge providers to ...

  • £13.5bn bill for pension misselling

    4 Jul 2002

    The final bill for the pension review has been calculated at £13.5bn, with 98 per cent of cases completed on time, according to the FSA.IFA firms have the most cases still outstanding, with only 77 per cent of cases completed compared with 99 per cent from product providers and bancassurers.Of the total bill, £11.5bn has been paid out to consumers in compensation but admin costs have amounted to £2bn. City law firm Reynolds Porter Chamberlain says this works out at nearly ...

  • 1 per cent will distort UK market says Beachcroft Wansbroughs

    9 Jul 2002

    Beachcroft Wansbroughs Consulting has criticised Ron Sandler's proposals for extending the 1 per cent world, saying it will cause distortions in the UK market for packaged products.

  • A consumer's view

    4 Jul 2002

    If the analysts at Schroders who are predicting that the FTSE100 will not see 6,000 again before the end of the decade are right, then IFAs could be in for some lean years. Just as well that the recent report on their finances revealed that they are generally cash-rich. Investors are on strike, not least of all because the majority are sitting on anything up to a 30 per cent loss if they bought in the tech share boom of the spring of 2000. Likewise, pension investors, particularly ...

  • ABI calls on MPs for £500m tax breaks to fund advice

    4 Jul 2002

    The Government should fund financial advice in the workplace to the tune of £500m a year by providing tax incentives to employers which offer their staff access to IFAs, says the ABI. In a speech to the all-party Parliamentary group on insurance and financial services this week, ABI director general Mary Francis outlined an action plan to close the savings gap which includes IFAs offering face-to-face advice in the workplace. Combined with its recent proposals for an employer ...

  • ABI gives Sandler qualified welcome

    9 Jul 2002

    The ABI has given the Sandler report a qualified welcome.ABI director general Mary Francis says: "The Sandler report can help deliver confidence for consumers and stability for the industry. Many of Ron Sandler's ideas reflect best practice and new thinking in the savings industry. We particularly welcome his support for simpler products and less red tape." "The Sandler review confirms that the industry has ...

  • ABN and Framlington come to agreement

    8 Jul 2002

    Star managers George Luckraft and Nigel Thomas will start work for Framlington in September after coming to an out of court agreement with former employer ABN Amro.

  • Active too prevalent in the retail market Sandler warns

    9 Jul 2002

    Consumers are over reliant on actively managed funds says Ron Sandler and should look to cheaper tracker funds to deliver better returns.His report concludes there is no correlation between the higher charges from active funds and better performance. Compared with institutional trends, review head Sandler says the prevalence of active management of retail funds is surprising.

  • Aifa welcomes rethink on Defined Payment

    9 Jul 2002

    Ron Sandler's approach to remunerating advisers is more practical than the Defined Payment system proposed by the FSA according to Aifa chairman Lord David Hunt.

  • AMP moves ad account for £30m brand push

    4 Jul 2002

    AMP has moved its creative account to Camp Chipperfield Hill Murray in advance of a £30m campaign to promote the brand in the UK. Ad agency St Luke had been retained to carry out what AMP describes as preparatory brand research and positioning. Its creative proposal was rejected by AMP after a three-way pitch, including CCHM and Rainey Kelly Cambell Roalfe Y&R. AMP plans to spend £30m over three years. The campaign will include TV ads and below-the-line initiatives. To ...

  • An oversight by the FSA

    4 Jul 2002

    Six months on, N2 is coming home to roost. In its rush to impose the new regulatory regime last December, the FSA faced the thankless task of telling us how the changes would affect us. Not surprisingly, it failed to get beyond the headlines and it is only now that the ramifications of some aspects of the new regime are beginning to unwind. At first glance, the revised approved persons (controlled functions) regime seemed to expand substantially the number of roles within a regulated ...

  • Another step taken on way to ABI-BBA merger

    4 Jul 2002

    The merger between the ABI and the British Bankers' Association has taken one step nearer to completion as consultancy KPMG has told the two that it sees no problems with the merger, Money Marketing understands. Its report is not yet officially finalised but KPMG is understood to have said that there are no insurmountable hurdles to the two trade bodies becoming one. The consultancy was asked in March to look at whether it made sense for there to be a single trade body, given ...

  • Assureweb redesigns website

    3 Jul 2002

    IFA e-trading portal Assureweb is launching a completely redesigned website. The new site has a simpler design that incorporates its new logo and should work faster and be easier to use. IFAs are now a maximum of three clicks away from any part of the site and can personalise the service by setting up quick links to other areas. The site has been re-formatted and is now categorised by business areas.  

  • B&B makes FTSE debut as shares rise strongly

    4 Jul 2002

    Mortgage lender and national IFA Bradford & Bingley has entered the FTSE 100 this week on the back of strong share price performance. B&B's share price rose by 5.7 per cent to 323p last week after the release of a trading statement showing it is on track to meet analysts' expectations. It takes the vacancy in the FTSE left by utility company Eon's acquisition of Powergen last month. B&B says its subsidiaries, The MarketPlace, mortgage broker Charcol and ...

  • Berth of a notion

    4 Jul 2002

    I am a 67-year-old woman who has not made enough pension or investment provision to live comfortably in the future although I have equity in my property. Friends have just bought a houseboat moored on the Thames, which appeals to me. How does one go about such a purchase and what other options do I have to ease my situation? Penelope is active and in good health, enjoying many hobbies. The most conservative of her options are to control her monthly expenditure to match her ...

  • Big rise in endowment complaints to watchdog

    4 Jul 2002

    Complaints on endowments rose by more than 60 per cent last year, with 40 per cent being upheld, says the Financial Ombudsman Service. Its annual report shows it received 15,000 endowment complaints in the last financial year, up from 9,000 in 2000, accounting for nearly half its caseload. IFAs were the subject of only 10 per cent or 1,500 of the complaints and had only 600 upheld against them. Pension complaints rose by 75 per cent to 5,881 from 3,363 the previous year. The third ...

  • Big rise in endowment complaints to watchdog

    4 Jul 2002

    Complaints on endowments rose by more than 60 per cent last year, with 40 per cent being upheld, says the Financial Ombudsman Service. Its annual report shows it received 15,000 endowment complaints in the last financial year, up from 9,000 in 2000, accounting for nearly half its caseload. IFAs were the subject of only 10 per cent or 1,500 of the complaints and had only 600 upheld against them. Pension complaints rose by 75 per cent to 5,881 from 3,363 the previous year. The third ...

  • Britannia International - 3 Year Fixed Rate Deposit Account Issue 2

    8 Jul 2002

    Monday, July 8, 2002 Type: High interest account Minimum-maximum investment: £10,000, £5,000 for existing Britannia International customers-£1m Place of registration: Isle of Man Interest rates: £5,000-£24,999 5.15% gross a year, 4.85% gross a month, £25,000 and above 5.25% gross a year, 4.95% gross a month Term: Three years Offer period: Until further notice Withdrawal penalties: ...

  • Britannic, Pru and NU are top on WP annuities

    4 Jul 2002

    Britannic Retirement Solutions, Norwich Union and Prudential have been named as the top three with-profits annuity prov-iders in a survey by Chartwell. The IFA has named and shamed with-profits annuity providers on the basis of the transparency of costs and charges, transparency and understanding of mortality assumptions and investment performance and financial strength. Chartwell says many IFAs are guilty of selecting with-profits annuity providers on the same basis as conventional ...

  • CA calls for simple products, less regulation

    8 Jul 2002

    The Consumers' Association is calling on Ron Sandler to recommend a two tier approach towards financial advice consisting of both generic and product specific advisers serving different consumer needs.

  • CA welcomes Sandler's call for reform

    9 Jul 2002

    CA welcomes Sandler's call for reform of finance industry but calls on FSA and Government to act

  • CGNU unveils new logo

    4 Jul 2002

    CGNU's logo is being replaced by the Aviva logo, which will be the public face of the global insurance group from this month. The Norwich Union brand will continue for Aviva's UK business.

  • Chartwell says savings compulsion still needed

    9 Jul 2002

     IFA Chartwell has warned the Sandler review will not meet some of its original objectives such as encouraging those on low incomes to save despite being "well-intentioned".The IFA says that the simple range of products will not get people to save without a long term learning process and some element of compulsion.

  • Chase de Vere opens Birmingham office

    5 Jul 2002

  • CII warns of misbuying

    9 Jul 2002

  • Clerical Medical Investment Management rebrands as Insight Investment

    5 Jul 2002

    HBOS is rebranding subsidiary Clerical Medical Investment Management as Insight Investment in advance of a major retail launch later this year.

  • Consumer Panel says Sandler proposals put more pressure on consumer

    9 Jul 2002

  • Consumers' Association says report 'nails' industry

    9 Jul 2002

    The Consumers' Association says the Sandler review has nailed 'the industry line that it serves consumer interest' by finding the industry full of 'poor products, bad advice and failed regulation'.

  • Conundrum of charging for financial advice

    4 Jul 2002

    There is one aspect of the defined-payment proposal which seems not to have received any airing. Consider the following: Two brothers of similar age live near each other, follow similar careers, earn similar amounts of money and retire at about the same time, each with a retirement lump sum of £60,000. Brother A consults his local IFA for investment advice on £50,000 and is happy with the recommendations and the commission earned, so he recommends the same IFA to ...

  • Correspondent's week

    4 Jul 2002

    Monday - official launch week. I have been doing this work for 10 years but there is still a sense of excited anticipation about the new company structure. Today, I must finish a script for an event taking place tomorrow night in central London. A client's senior director is moving back the US. Brown's courtroom has been booked (a restaurant with actual courtrooms) so that the director can be put on mock trial after dinner - an ideal way for colleagues to congratulate and ...

  • Crawford to join IBM

    3 Jul 2002

    Former Cap Gemini Ernst & Young head of insurance Shaun Crawford has now joined IBM to head its insurance division. He will be director of insurance services and will be focusing on the development of IBM's life and pensions packages. Crawford has been an influential commentator on the IFA market while at Cap Gemini and helped the FSA with research for its CP121 paper. 

  • Create a savings culture to close the widest gap

    4 Jul 2002

    It has become fashionable to say that only way to close the £27bn savings gap is to compel people to save. But the "compulsion" argument misses the point. The real issue is where that gap is widest. Of course, it is of great concern that there is a huge gap between what people need to save and what they actually save to provide for a comfortable retirement. But even with compulsion, the only solution is through universal participation that makes saving as ingrained in the British ...

  • Deals are already changing industry

    4 Jul 2002

    Is this anarchy in the UK financial services industry? Last week brought three major deals covering nearly 500 RIs. Aegon, after a slow start, has pulled level with Norwich Union, Friends Provident, Skandia and AMP with Widows just behind in the dash for distribution. It is hoping to own or part-own between 300 and 400 hundred RIs. Millfield, flush with provider cash, wants another 15 IFA businesses. The Germans are coming with AWD, Europe's third-biggest IFA group now the UK's ...

  • Does Smith have mettle to forge a new system?

    4 Jul 2002

    As I write this, publication of Alan Pickering's pension simplification review is expected "some time in July". At the risk of having already been proved wrong, there follow a few thoughts about this process. It is now widely anticipated that Pickering will recognise the need for a significant simplification of the UK pension system. It is also expected that he will acknowledge the fundamental interdependence of the state and private pension systems. The logical conclusion is that ...

  • Emerging markets set to take off, says Gartmore chief

    4 Jul 2002

    Emerging markets are finally about to take off after several aborted attempts, claims Gartmore head of pacific & emerging markets Phillip Ehrmann. Speaking at the Senate Programme in Monte Carlo, Ehrm- ann suggested that after several false dawns, emerging markets now represent great value and look poised to outperform developed markets in the next few years. He said that over the last few years, emerging countries have undergone a period of introspection and financial rationalisation ...

  • Equitable deals a new blow to policyholders with harsher penalties

    4 Jul 2002

    Equitable Life has slashed its maturity and surrender values further in a bid to maintain solvency, blaming recent stockmarket falls. In a move described by Equitable as "most regrettable", it will now reduce maturity values by 10 per cent, rather than 4 per cent, unless this brings the value to below the guarantee, which it will honour. Early surrenders will incur a market value reduction of 20 per cent, up from 14 per cent. At the same time, Equitable has disclosed that only ...

  • Exeter Friendly Society - Interplan Euro

    5 Jul 2002

    Friday, 5 July 2002 Type: Private medical insurance for expats living in Spain, Portugal or Gibralter for a minimum of 180 days a year Minimum-maximum ages: 18-79 Maximum benefit: Level 1 15,000 euros, level 2 75,000 euros, level 3 150,000 euros Cover provided: Hospital charges, specialist services, parental accommodation, out-patient treatment, out-patient services, GP consultations, physiotherapy, complementary treatment, oncology, ...

  • Expert ease

    4 Jul 2002

    Effective training and business success are closely correlated, so when the FSA assumed its role as the UK's sole financial services regulator at N2, imp-ortant changes in regulation for training were introduced and embraced by many companies in the industry. The new regulations provide more structure to the framework for training and competence, with the FSA placing a greater onus on individuals to be compliant and properly trained. In addition, the regulator confers more responsibility ...

  • Ex-Savills fund chief setting up property portfolio firm

    4 Jul 2002

    Former FPD Savills head of fund management James Thornton is setting up a commercial property investment company for private clients who have more than £100,000 to invest. Mayfair Capital Partners, which was co-founded by Guy Brogden, a former senior equity partner at niche property company Oliver Liggins, will enable wealthy private clients to gain exposure to the commercial property sector through managed funds. Its aim is to provide a high-quality, balanced portfolio approach ...

  • Faith, hope, strategy

    4 Jul 2002

    It is now time to start to draw to a conclusion this latest series of articles in which I have discussed certain important aspects of financial planning based on establishing and reviewing target levels of future income for clients and providing recommendations as to how these targets may be met. Throughout these articles, I have contrasted this with a less structured approach which simply allows the client to invest as much or as little as they feel able in the anticipation that their ...

  • Fall in housebuilding adds to pressure on prices

    4 Jul 2002

    Fewer homes were built last year than in any year since 1950, adding to pressure on the surge in property prices, according to research from Halifax. The total number of new homes built in the UK fell by 4 per cent to 162,500 last year from 169,000 in 2000. In England, the number of new homes built has fallen by 5 per cent for the last four years. The Halifax says if housebuilding in England continues at last year's level, there will be a shortfall of over 400,000 homes to cater ...

  • Family of new stakeholder products proposed

    9 Jul 2002

    A new family of priced capped, catmarked stakeholder-style products should be created for sales outside the currently regulated advice structure according to the Sandler review.

  • Fidelity says Sandler has failed to appreciate IFAs' value

    9 Jul 2002

    Fidelity says Sandler has failed to appreciate the true value of IFAs in his report and done little to encourage consumers to save for the future.

  • Fidelity surges ahead as IFAs' favourite fund firm

    4 Jul 2002

    Fidelity raced ahead of its rivals to secure almost a quarter of IFA fund recommendations in May, according to research company Keydata. Its latest findings show that Fidelity received 24 per cent of IFA recommendations, an increase from its 14 per cent share at the same time last year. Fidelity was well ahead of second-placed Credit Suisse, which received 9 per cent of recommendations. Third was Invesco Perpetual with 8 per cent. Newton was fourth with 7 per cent and joint ...

  • Friends Ivory & Sime plans Isis switch

    4 Jul 2002

    The Friends Ivory & Sime brand name will disappear by 2003 as the company seeks to forge a new identity after acquiring the asset management arm of Royal & Sun Alliance. FIS, which was created after parent Friends Provident bought Ivory & Sime in 1998, is to replace its name with its retail brand Isis after research found that investors and IFAs regard FIS as lacking clarity. The move, which will also see RSAI rebranded in the same way, comes after FIS launched a range ...

  • Friends welcomes Sandler, but warns on price caps

    9 Jul 2002

    Friends Provident has welcomed the Sandler review's proposals for simplification but has is warning that the imposition of the one per cent price cap of the new-style stakeholder products will not help close the savings gap.

  • FSA ring fenced budget for consumer education says Sandler

    9 Jul 2002

     The FSA's budget for consumer education should be ringfenced and increased according to the Sandler review.The review team wants the regulator to put together a long term plan for delivering clearly specified objectives. It also suggests that the FSA establish a separate governance structure for education such as a sub-board accountable to the main board and with suitable external representation, responsible for all aspects of education.

  • FSA says depolarisation rules will be out by Christmas

    5 Jul 2002

    The FSA has set itself a deadline of Christmas to publish its consultations the new post polarisation regime.It says it has been deluged by responses to CP121 from the industry and consumers, some of which are large in size and require time to process. The regulator also says it will have to take the reviews of Ron Sandler and Alan Pickering on board.

  • FSA should redefine misselling says Sandler

    9 Jul 2002

    The FSA has been called upon to clarify its definition of misselling by the Sandler Review in a bid to cut the costs of compliance. The review team believes that the industry incurs costs because it has no clear definition of what constitutes misselling. Review chief Sandler says that this is a common complaint from practitioners.

  • FSA supports direction of Sandler report

    9 Jul 2002

    The FSA says it supports the Sandler report's recommendations on products, regulation and consumer education, and will publish an outline programme in September for the simplification of the sales regime.

  • Gay IFAs lead assault on insurers' 'homophobia'

    4 Jul 2002

    The Terrence Higgins Trust, gay rights lobbyist Stonewall and a group of gay IFAs have come together to fight what they claim is homophobia and Aids' discrimination in the life insurance industry. The group is spearheaded by Compass IFA director Chris Morgan and includes Ruth Whitehead Associates and former IFA Roger Taylor. It is meeting with ABI head of health insurance Richard Walsh this week. THT says it came across 70 cases last year where HIV was used to discriminate against ...

  • GMAC-RFC slices up to 1% off rates

    4 Jul 2002

    GMAC-RFC is cutting interest rates by up to 1 per cent on most of its non-conforming mortgages and offering a new mainstream capped-rate loan. The moves come as it leaps into the top 20 UK lenders for the first time, ranked 14th in terms of volume of gross lending, according to CML figures for 2001. It is cutting rates in 21 areas of its non-conforming menu of new purchase and remortgage products, including right-to-buy loans and loans for customers with county court judgments ...

  • Govett strengthens its sales support

    8 Jul 2002

    Fund manager Govett has announced it is strengthening its sales team with the appointment of a sales director for open-ended funds in the South East.

  • Govt accepts six-month challenge on pensions

    4 Jul 2002

    The Government's new pension chief Andrew Smith has accepted a challenge from the Liberal Democrats that it has a "narrow window" of six months to sort out the pension crisis. Speaking in an Opposition day debate in the House of Commons this week, LibDem MP and chairman of the work and pensions select committee Archy Kirkwood said the Government has an opportunity to solve the pension dilemma but does not have much time. Work and Pensions Secretary Andrew Smith agreed with Kirkwood's ...

  • Guide to high-yield bonds

    4 Jul 2002

    IFA firm David Aaron Partnership is offering a guide to finding the best high-yield investments in the current economic climate of volatile stockmarkets and low interest rates. The booklet, entitled The Best High Yield Investments, shows investments yielding around 10 per cent or more. With world economies recovering, Aaron believes that an investment in high-yield bonds through well managed unit trusts is likely to give much higher returns over the medium to long term than funds ...

  • Half of workers failing to save for retirement

    4 Jul 2002

    Almost half the UK workforce are not contributing to a pension, says the Consumers' Association. A CA survey shows that 46 per cent of workers are not contributing to a pension scheme. The CA says this highlights the gap between the retirement income that consumers expect and what they are on target for. The CA's findings are supported by research from consultancy KPMG, which says 53 per cent of people under 30 have no pension and 15 per cent of over-50s have made no retirement ...

  • Hargreaves says Sandler is wrong over trackers

    9 Jul 2002

    Hargreaves Lansdown disagrees with Sandler's view that investors should look to cheaper tracker funds for better returns, saying it is a "classic" case of using past performance.

  • Head in the lion's mouth

    4 Jul 2002

    Some time ago, I attended Wembley to watch England play Scotland in the second leg of the Euro 2000 play-off. I had assumed, wrongly, that I would be at the Scotland end but found that my ticket placed me among the England fans. What followed was the longest night in my memory as I had to remain silent for over three hours - one-anda-half hours for the football and a similar time just to leave the vicinity. I vowed that never again would I stray into the lions' den - especially ...

  • HL sparks IFA row as it stops WP sales

    4 Jul 2002

    Hargreaves Lansdown has put the sale of with-profits products on hold for the next few years in a move condemned by other leading IFAs. The Bristol intermediary says any money going into with-profits will simply be used to repair damage to ravaged funds if markets improve. If markets continue to slump, it says life offices could see free-asset ratios dwindle to zero and be forced to freeze bonuses. But the David Aaron Partnership says the move is a kneejerk reaction and Chartwell ...

  • House prices see fastest quarter of growth since 1989

    4 Jul 2002

    House prices rose by 3.3 per cent in June, rounding off the fastest quarter of growth since 1989, according to Nationwide Building Society. The average home now costs £106,693, up from £102,693 in May. This is an increase of 19.8 per cent since June last year. Based on these findings, Nationwide is revising up its forecast for house price growth for the year to 18 per cent from its prediction of 10 per cent in March. But Nationwide says borrowers are not overstretching ...

  • IFA investment knowledge to be increased

    9 Jul 2002

    Financial advisers will have to beef up their investment knowledge following Sandler's recommendations, with the review team concluding IFAs are lacking in this area.

  • Ilog to continue IFA subsidy

    3 Jul 2002

    The Independent Life Offices Group has confirmed it will continue its financial support of IFAs by providing an 85 per cent subsidy of IFA contributions to the Financial Services Compensation Scheme. Aifa has been in negotiations with ILOG on the issue for some time, as originally reported in Money Marketing in May. The FSCS levy falls due on July 25 by when firms must make their payments in full. 

  • Independent View

    4 Jul 2002

    "Invest when blood is running in the streets" is the famous quote of Nathan Rothschild. Quite literally during a war, when it is often the best time to invest because prices fall to such low levels when everyone is panicking that bargains can be picked up. We are not at that stage yet but, without doubt, the events of September 11 did precipitate the current very poor stockmarket conditions following a bear market which had been going on for 20 months or so. Experts have been ...

  • Inside Edge: Peter Dornan

    4 Jul 2002

    The basic criteria used to select the most appropriate financial products for clients are hardly startling. A tailored product, consistent investment performance across a range of funds and good service support are key elements to consider. However, the financial health and outlook of the provider require a more significant evaluation and this has quickly installed itself as the number-one factor for advisers and clients. Any successful company in any industry needs capital to support ...

  • Interest rates on hold again

    4 Jul 2002

    The Bank of England's Monetary Policy Committee has decided to keep interest rates at 4 per cent for the eighth month in succession. The news comes despite widespread predictions that the housing market is close to overheating. Only today the Halifax reported there has been a 20 per cent rise in house prices in the last 12 months.  

  • Investment view

    4 Jul 2002

    More years ago than I care to remember - when old Labour held power - a firm of chartered accountants in this country hit a spot of bother. I cannot be precisely certain what it was they did wrong but I do recall a cartoon which showed a civil servant rushing in to the office of the Chancellor of the Exchequer, exclaiming he had good news and bad news. The good news was that the economy was doing better than expected. The bad news was the figures had been audited by.....and a prominent ...

  • It could be zero for Geared Income Fund

    3 Jul 2002

    Guaranteed zeroholders in the Geared Income split-capital investment trust could receive nothing when it winds up next year following a £260m slump in its assets. The zeros are meant to pay out more than £60m to holders in October 2003 but following a share price collapse only have £13m to cover them once a £90m bank loan has been paid off. Zeroholders can only be paid after all liabilities have been met. 

  • Julian Gibbs

    4 Jul 2002

    Self-invested personal pensions are probably the best way of investing in commercial property, especially with the high yields now available and the low cost of mortgages. Under the Sipp rules, up to 75 per cent can be borrowed against commercial property and the property can be leased back to the Sippholder. But it must be subject to an independent survey and a rental valuation every five years. This commercial property facility has made Sipps very popular with professional partnerships ...

  • Kat and dogs...

    4 Jul 2002

    After meeting Reservoir Dogs' star Michael Madsen last week, Mainland PR Kat Milne has apparently been acting (even more) strangely. Aside from wearing a dodgy black suit and tie to work every day (not too much change there), Kat was overheard asking a stroppy journalist: "Are you going to bark all day, little doggy or are you gonna bite?" If that were not bad enough, the previously mild(ish)-mannered Kat was caught by her boss - the ever-affable Neil Mainland - threatening ...

  • Key features docs to be shortened and simplified

    9 Jul 2002

    Key features documents need to be shortened and simplified because they do not currently serve any purpose Ron Sandler believes.

  • Leader claims actuaries shoulder directors' responsibilities

    4 Jul 2002

    The new president of the Institute of Actuaries Jeremy Goford claims that appointed actuaries have done too good a job and allowed directors to offload their responsibilities on to them. In his inaugural address at Staples Inn in London this week, Goford also maintained that policyholders would rather have actuaries taking decisions than directors accountable to shareholders. His comments came after the FSA's with-profits review recently recommended that directors of life companies ...

  • Leeds & Holbeck Building Society - Bonus Tracker

    3 Jul 2002

    Wednesday, 3 July 2002Type: High interest accountMinimum-maximum investment: £5,000-£250,000Interest rate: Bank of England base rate plus 1% until January 1, 2003, thereafter Bank of England base rate until January 1, 2004Term: Until January 1, 2004Offer period: Until further noticeWithdrawal penalties: No withdrawals permitted until February 1, 2003, thereafter one penalty free withdrawal allowed until January 1, 2004Tel: ...

  • Lender suggests route for unqualified brokers

    4 Jul 2002

    As the mortgage industry gears up for regulation, packager Rapid Money says it is offering a lifeline to unqualified brokers while competitor Olympian Financial is calling on firms to form a lobbying group. The Mortgage Code Compliance Board has told intermediaries they must have the Chartered Insurance Institute's mortgage advice qualification or the Institute of Financial Services' certificate in mortgage advice and practice by December 31. But Rapid Money says unqualified ...

  • Level playing field on tax for all savings vehicles says Sandler

    9 Jul 2002

     

  • Lifequote appoints former L&G marketing director

    5 Jul 2002

    Protection network LifeQuote has announced the appointment of Richard Verdin as sales and marketing director.

  • Lord Hunt

    4 Jul 2002

    Lord David Hunt of the Wirral may be stepping down as Aifa chairman but one can be sure that he will have plenty on his plate to keep him busy. Besides being a senior partner with City law firm Beachcroft Wansbroughs and starting a financial services consultancy, he also has his duties in the House of Lords where he takes the lead for the Conservatives on financial services matters. Then there are the 60 charities and voluntary organisations he is involved in such as the British Heart ...

  • Lording it

    4 Jul 2002

    Cheltenham & Gloucester is giving Money Marketing readers the chance to win a pair of tickets to the C&G Trophy final at Lord's on August 2002 as part of its sponsorship deal. To enter, all readers need to do is send a postcard to The Chief Office, Cheltenham & Gloucester, Barnett Way, Gloucester, GL4 3RL, by July 31 with the answer to this question: Which two teams contested the final of the C&G Trophy in 2001?

  • LTC firms link up for single application

    4 Jul 2002

    Leading long-term care cover providers Bupa, Norwich Union and PPP Lifetime Care have joined up to streamline the LTC application process for IFAs. By completing a single questionnaire, advisers will be able to get the best terms from the providers. The three have agreed to the streamlined application to reduce admin time and costs. The process, which will be available from July 5, has been developed with the co-operation of specialist LTC IFA Future Care Assured.

  • LTC firms look to forge local authority links

    4 Jul 2002

    Long-term care insurers will move towards greater co-operation with local authorities in an attempt to reach elderly potential customers, predicts Continuing Care Conference former chairman Des les Grys. Speaking at an IPPR conference on A New Contract For Retirement last week, Le Grys said product providers are aiming to exploit existing relationships between pensioners and local councils. He also said some providers are looking to develop products combining equity release and ...

  • Man creates first sterling hedge fund of funds

    9 Jul 2002

    Man Investment Products has unveiled Man Greenwood multi-strategy GB, its first sterling-denominated fund of hedge funds.

  • Man Investment Products - Man Glenwood Multi-Strategy GB

    4 Jul 2002

    Thursday, 4 July 2002 Type: Fund of hedge funds Aim: Growth by investing in fund of hedge funds Minimum investment: Lump sum £10,000 Place of registration: Bermuda Investment split: 100% in fund of hedge funds Isa link: No Charges: Annual 1.75% Commission: Subject to negotiation Tel: 020 7285 2000

  • Maq to the future

    4 Jul 2002

    The desire to raise standards and enhance the level of protection offered to customers has prompted the Mortgage Code Compliance Board to require all registered mortgage advisers to obtain an approved professional mortgage qualification by December 31, 2002. In response, the Chartered Insurance Institute has introduced the Mortgage Advice Qualification. The MCCB has indicated that the combination of Maq and the CII's Financial Planning Certificate will satisfy its requirements. Maq ...

  • Maxi and Mini Isas to be brought into line

    9 Jul 2002

     The Sandler review has recommended that Isas be preserved because of their importance to the savings in the UK.The review team believes that the rules on mini and maxi Isas should be brought into line in the medium term with mini limit raised.It also wants fund managers to make a statement setting out their principles of investment, in a move echoing recommendations made by the Myners report for institutional managers.

  • Midlands merger sees Ernest Shaw take over Kendall White Millar

    4 Jul 2002

    Ernest R Shaw has taken over Wolverhampton-based Kendal White Millar, creating a consolidated business of 11 registered individuals. Ernest R Shaw, reckoned to be Birmingham's oldest insurance broker, was founded in 1905. Its IFA arm has an annual turnover of around £2m. The insurance arm of the firm will continue to be managed from Birmingham while the financial management arm will be based in Wolverhampton. Managing director David Philips says: "The time was right ...

  • Misys' IFAs in threat to quit as PI leaps

    4 Jul 2002

    Smaller Misys IFAs are threatening to quit after seeing some PI premiums triple to levels they say are "not financially viable". A Financial Options' sole trader says he was given one week's notice of a 320 per cent jump in his PI bill from £800 to £2,640 per RI. Despite finding alternative cover for a third of the price, he was told he had to accept Financial Options' cover or leave. A letter, seen by Money Marketing, says if a member leaves the network ...

  • Momentum - missed opportunity for workplace advice

    9 Jul 2002

    Corporate IFA Momentum has warned that despite simplification recommended by the Sandler Review team it is employers that hold the key to increased levels of saving. It says that Sandler has missed an opportunity to help close the savings gap by not considering workplace advice. Momentum financial services development director David James says: "Providing such products in itself will not address the critical issue of motivating the consumer to invest. We believe that only by providing ...

  • Mortgage firms in tracker deal

    4 Jul 2002

    Mortgage distributor Pink Home Loans has linked up with specialist lender Mortgages plc to offer a new range of base-rate tracker products. The Crystal mortgage range is a selection of tracker mortgages with a 1.5 per cent discount until August next year. Rates start at 5 per cent and are tiered according to loan to value and the level of adverse credit that the borrower has.

  • Moss moves from HSBC to Widows

    4 Jul 2002

    Scottish Widows has appointed Nathan Moss as managing director of marketing and distribution to replace Newton Scott, who has retired. Moss joins from HSBC, where he was chief operating officer of online investment and banking joint venture Merrill Lynch HSBC. Before that, he headed HSBC's personal financial services business. He will be responsible for new business acquisition and marketing activity for IFAs direct to consumers and through the LloydsTSB branch network and Scottish ...

  • Moves at the top for Norwich Union Life

    3 Jul 2002

    Aviva, formerly CGNU, has promoted Philip Scott to become executive chairman of Norwich Union Life.

  • NatWest cricket website covers triangle series

    4 Jul 2002

    NatWest Bank has set up a website as an information centre for cricket fans to support its sponsorship of the triangular cricket series involving England, India and Sri Lanka. The site, which can be found on the internet at www.natwestseries.com, will provide live scorecards, news headlines, player profiles, competitions and commentary from cricketer Darren Gough. Users will also be able to play a bespoke cricket game by setting up their own mini-triangular tournament. The ...

  • NDF Administration brings out income & growth bond

    8 Jul 2002

    NDF Administration has established the income and growth plan, a guaranteed equity bond that is linked to the FTSE100 index for three years and two months.

  • Net gains

    4 Jul 2002

    Picture the scene - Bankhall's Tony Murrell nutmegging ageing pop star Rod Stewart and embarking on a mazy dribble before whacking the ball just wide of the far top corner. Murrell was invited to the hoarse-throated legend's country manor for a game of football. The IFA support group's director, who plays for his former school's football team,Old Chigwellians, was challenged to a match at Stewart's house in Essex which has a full-sized pitch in the garden. Although ...

  • Northern Rock introduces fifty:fifty issue nine

    4 Jul 2002

    Northern Rock has introduced the ninth issue of fifty:fifty, a guaranteed equity bond and high interest account packaged within one product.

  • Norwich Union enters impaired life annuity market

    5 Jul 2002

    Norwich Union has entered the impaired life annuity market.

  • NPI makes renewed assault on transfer market with six plans

    4 Jul 2002

    AMP NPI is bidding to re-establish its position in the pension transfer market by introducing six new products. The company says it now has the capability to accept all forms of pension transfer business. NPI's product range has lain dormant since its takeover by AMP. It predicts the transfer market will grow over the next few years as more companies close their final-salary schemes. AMP NPI can now offer IFAs access to individual and bulk section 32 buyout plans, a group ...

  • Outside Edge: David Ferguson

    4 Jul 2002

    In the past, life office financial strength tended to be quoted in a positive light, giving a boost to the company's market ing effort and generally providing an all-round smiley, happy feeling. Now, though, as global equity markets continue on their meander south and the dust tries to settle on the Equitable Life disgrace, financial strength is being more correctly scrutinised as a measure of proximity to insolvency. Should we be surprised by this subtle shift? I think not. ...

  • Product matters

    4 Jul 2002

    The first of the so-called new breed of with-profits funds has been introduced by Scottish Widows. This is available as a growth or an income bond. The idea behind these funds is that they should "fit well with the likely direction of the ongoing Sandler review and FSA with-profits review". If you like with-profits bonds, they look like very nice ones. Widows promises there will be lots of disclosure, transparency of charges and no build-up of inherited estates (free assets). The ...

  • Raising Standards praises members on Sandler

    9 Jul 2002

    The Raising Standards initiative has congratulated the companies which have signed up to its quality mark scheme and claims they have already delivered on many Sandler Review recommendations.

  • Real waste of our real time

    4 Jul 2002

    Unsolicited real-time financial promotion to a Potential Intermediate Customer (sorry, "letter to the editor"). Dear "Potential Intermediate Customer," I am issuing this "unsolicited real-time financial promotion" to invite you to a "solicited real time financial promotion" designed for potential "intermediate customers" and "private customers" at the Jargonfree Hotel in Jargonfreetown. We have classed you as an "Intermediate Customer" because you are not a "market counter-party" or ...

  • Resilience tests eased again amid volatility

    4 Jul 2002

    The FSA has again eased the resilience tests for life insurance companies to avoid forcing them to sell shares in a declining market. Life companies have had to maintain a cushion to withstand a 25 per cent fall in equity prices. But they will now be able to take a three-month smoothed average from the FTSE All Share index and reduce the cushion to 15 per cent. Falling stockmarkets can force life companies to sell shares at an unfavourable time to meet solvency requirements. The ...

  • Rethink on FRS 17 accounting rule

    3 Jul 2002

    Full implementation of controversial pension accounting rule FRS17 will be delayed while the International Accounting Standards Board decides on its worldwide standard.

  • Royal & SunAlliance Eurolife - RSAE Glanmore Property Fund

    9 Jul 2002

    Tuesday, July 9, 2002 Type: Dublin listed company Aim: Income and growth by investing in commercial property Minimum investment: Lump sum Euros 15,000 Place of registration: Guernsey Investment split: 100% in commercial property Isa link: No Charges: Initial 7.75%, annual 1.5% Commission: Initial 5% Tel: 00353 15009100

  • Royal & SunAlliance Eurolife - Swiss Franc Managed Fund

    3 Jul 2002

    Wednesday, 3 July 2002Type: Unit-linked bondAim: Growth by investing in Bank von Ernst Swiss Franc managed fund and international equitiesMinimum investment: Lump sum Swiss franc 45,000, euro 30,000Place of registration: DublinInvestment split: Bank von Ernst Swiss Franc managed fund 67%, international equities 33%Isa link: NoCharges: Initial 0.3-0.6%, annual 1.2%Commission: Initial 5% or Initial 3%, renewal 0.5%Tel: ...

  • Sandler recommendations could damage customers

    9 Jul 2002

    Ron Sandler's recommendations run the danger of being achieved at the expense of consumer protection says the Financial Services Consumer Panel.

  • Sandler stockmarket announcement tomorrow morning

    8 Jul 2002

    Tuesday's publication of Ron Sandler's review into medium and long term savings will be kicked off with a stockmarket announcement at 7am tomorrow morning. It will then be followed by a press briefing at 11am when the full text of the report will be available.

  • Sandler to criticise actively managed funds - FT

    8 Jul 2002

    Ron Sandler will criticise actively managed funds, saying investors should look instead to trackers when he issues his report tomorrow according to the Financial Times.

  • Scottish Widows creates new generation of with-profits

    3 Jul 2002

    Scottish Widows has introduced the flexible options bond, a with-profits bond that provides investors with access to two new with-profits funds.

  • Second thoughts

    4 Jul 2002

    This week I would like to explore three ideas on the state second pension, targeting protected rights funds and protection benefits on pension plans. At first glance, these ideas may not appear to be massive opportunities but, if managed as a concerted campaign, they can really give your business a boost. State second pension For Scottish football fans, 1978 was a year of great hope in the World Cup in Argentina but it came to a sticky end one hot night against Peru. The ...

  • Selestia adding property

    4 Jul 2002

    Multi-manager Selestia is introducing property as a new asset class after adding two property funds from Norwich Union and Edinburgh Fund Managers to its platform. The funds - the NU property trust and EFM property portfolio - can be accessed via Selestia's collective investment account and collective and offshore bonds but not through Pep or Isa wrappers. Selestia says it has chosen the NU and EFM funds because they invest directly in property rather than in property shares. It ...

  • SLFoC offers partners and employees cover deal

    4 Jul 2002

    Sun Life Financial of Canada is offering a group life and group income protection facility featuring cover for firms which have both staff partnerships and employees. SLFoC says businesses such as legal and accountancy firms often have staff that are equity partners drawing a monthly income from the business as well as salaried employees. Partners and employees need separate life and income protection schemes because the Inland Revenue taxes their income in different ways. SLFoC ...

  • Spotlight on the global pension scheme

    4 Jul 2002

    The National Association of Pension Funds is holding its global pension conference in London in September. The conference, which is held every two years, is a forum for pension professionals to discuss developments around the globe. Topics to be covered include global asset allocation, the prospects for agreement on European directives and a timely review of international accounting standards. Sessions will also cover explanations of pension arrangements around the world and ...

  • Stakeholder set to be Euro pension model

    4 Jul 2002

    The EU could be set to introduce a portable pan-European stakeholder-style pension based on a report from a group of leading European financial services companies. According to experts at the ABI, the report by the European Financial Services Roundtable may form the basis of a new pensions directive with a green paper to appear by spring 2003. It could mean an IFA's fact-find would have to consider whether a client is likely to move within Europe when recommending a pension. The ...

  • Standard adds flexible personal pensions

    4 Jul 2002

    Standard Life is offering two new personal pensions that allow flexibility on contribution payments, bringing the products in line with the leeway allowed on stakeholder. The personal pension flex and group personal pension flex offer customers a range of different payment methods and allow them to vary the frequency and amount of contributions they make. Customers can reduce contribution levels or make extra contributions as and when their finances allow it. The contracts are ...

  • Standard Life Bank improves buy-to-let products

    5 Jul 2002

    Standard Life Bank says it has improved its buy-to-let mortgage to help parents wanting to buy a property for their children going to university.

  • Take the right exit

    4 Jul 2002

    Over the past few weeks, I have been looking at the proposals in the consultation document on offshore funds. Those involved in providing and using offshore funds will, no doubt, monitor and contribute to developments with interest. Anyone advising clients where an offshore investment may be appropriate also has to make decisions now regarding the suitability of any particular investment based on the law as it is but taking account of the possibility that it may change. In the ...

  • Talkback

    4 Jul 2002

    "Yes. For what he has not done for the industry, it is too much." Leslie Shields, Shields Investment and Financial Consultants "No. To get any kind of decent chairman, there needs to be a reasonable remuneration package. In today's market, paying peanuts might get us an even bigger monkey." Andrew Swallow, Swallow Financial Planning "Yes. Nobody is worth that much money for that job." Kieran Platt, Insurance & Investment Solutions "Yes, I do not think he ...

  • Tep exchange adds new service for IFAs

    3 Jul 2002

  • The wonderful wizard of quiz

    4 Jul 2002

    We first set up the G60 site in January with the aim of putting a bit of fun into the learning process. One of the main features is the daily quiz which is 12 different G60 multiple-choice questions every day. It is not the usual quiz format that you come across on the web which normally just consists of selecting your answers and you get your score at the end. It is much more sophisticated than that. The daily quiz works by giving you 60 seconds to answer each question and then ...

  • Threadneedle appoints Holden to new team for UK equities

    8 Jul 2002

    Threadneedle Investments has recruited Mark Holden onto its new UK equities high alpha team.The team will manage UK equities for both retail and institutional clients, and will include the UK select growth fund. It will be lead by Paul Findley, and will include Peter Wilton, Steve Hewitt and Mark Holden.Holden, who joins in September, is currently at ABN Amro Securities. He was previously at director of former Morgan Grenfell.

  • Threadneedle Investments - Threadneedle Global Healthcare Fund

    9 Jul 2002

    Tuesday, July 9, 2002 Type: Oeic Aim: Growth by investing in pharmaceutical companies, biotechnology, healthcare providers, medical supply companies and producers of advanced medical devices Minimum investment: Lump sum £2,000 Investment split: Pharmaceuticals 55.5%, healthcare 14%, biotechnology 9.5%, medical technology 7%, medical supplies 8.5%, cash 5.5% Isa link: Yes Pep transfers: Yes Charges: Initial ...

  • Top lenders disagree with CML call for rate rise

    4 Jul 2002

    Some of the UK's biggest lenders have washed their hands of the CML's unprecedented call to increase interest rates after it made the move without consulting members. HBOS, the biggest lender with a 24.8 per cent market share, says it was "very surprised" by the call to increase rates now to avoid bigger rises in the future. Halifax group economist Martin Ellis says: "This is not something we back. We do expect rates to increase but we are not asking for this. The Bank of ...

  • Tory leader blames price cap for lack of advice

    4 Jul 2002

    Pension providers are losing money on every stakeholder scheme they sell, said Conservative leader Iain Duncan Smith in a hard-hitting speech attacking the Government's flagship pension last week. Entering the pension fray for the first time, Duncan Smith said savers are not getting the advice they need when they buy a pension, blaming stakeholder's price cap. He said only 100,000 stakeholder policies have been sold to the target market of 2.5 million people, with another ...

  • Warning of continued need for LTC cover in Scotland

    4 Jul 2002

    Free personal and nursing care became a reality in Scotland this week as the underpinning legislation came into effect on July 1. The decision to provide free care of up to £210 a week will potentially affect 75,000 Scottish pensioners owning assets of less than £18,500. This compares with a maximum of £110 a week of available funding in England, which only pays for nursing care. But specialist long-term care IFAs believe that rising costs, especially in care ...

  • Warning that reviews flood will sink savings confidence

    4 Jul 2002

    The head of the financial services practitioner panel is warning the Treasury and the FSA that the consequence of the present multitude of reviews could be damage to the economy and savings confidence. Panel chairman Donald Brydon says too many reviews could distract management at a time when the industry is already being squeezed by falling equity markets. He is calling for the conclusions of all the reviews to be considered together and warns that failure to take an overall view ...

  • Watered down defined payment system from Sandler

    9 Jul 2002

    IFAs should be able to negotiate their charges with potential and existing clients Ron Sandler's review team has concluded in his recommendations, effectively watering down the FSA's Defined Payment proposals.

  • Which? backs pensions over Isas

    3 Jul 2002

    Pensions remain a better vehicle than Isas to save for retirement according to research appearing in the latest edition of Which? Magazine.

  • Will exodus from policy guarantees reach critical mass?

    4 Jul 2002

    The announcement by Swiss Re that it plans to stop underwriting critical-illness guarantees has left product providers and IFAs wondering what the future holds for guaranteed business. Currently representing 98 per cent of CI sales, policies sold with guaranteed rather than reviewable premiums have been the mainstay of the individual market since their introduction eight years ago. But now Swiss Re, one of the two biggest underwriters in the UK protection market, has decided it ...

  • With-profits alternatives

    4 Jul 2002

    Over recent months and years, it has been a dangerous time to be a tree. More likely than not, you will have been chopped down and turned into a consultation paper on some aspect of the financial services industry. Indeed, it is difficult to imagine a period when the industry has been subject to more scrutiny than has been the case recently. Judging from the FSA feedback statement on the with-profits review, it appears this trend will continue. Having already published around ...

  • With-profits AVCs beat unit-linked

    4 Jul 2002

    With-profits AVCs have outperformed unit-linked contracts, with the average fund producing returns of 6 per cent a year over the past three years, according to Watson Wyatt. Over three, five and 10-year investment periods, all but one with-profits AVC provider produced a higher return than the best-performing managed unit-linked contract. Wyatt found the equivalent unit-linked managed fund AVC lost 5.7 per cent over each of the past three years. Over five years, the average ...

  • With-profits face fundamental change under Sandler

    9 Jul 2002

    With-profits products should be gutted with only the smoothing feature remaining according to the Sandler review team.

  • WorldCon puts the markets on a knife-edge

    4 Jul 2002

    The news that US telecoms giant WorldCom fraudulently overstated profits by $3.8bn has sent shockwaves thr-ough an industry just beginning to come to terms with the Enron scandal. Although another financial debacle was far from unexpected, it is the scale of the misreporting that has sent markets rocking rather than the fact that WorldCom is the second major global firm to admit fraud in a matter of months. Not only are the improvements that have been made in terms of earnings' ...

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