Money Marketing
31 March 2004

  • 'Commission is hurdle for trusts'

    1 Apr 2004

    The Association of Investment Trust Companies must lobby hard for the unbundling of commission and for inclusion of investment trusts on fund supermarkets if trusts are to become more popular with IFAs, says Best Invest. Speaking at the AITC conference for directors in London last week, Best Invest managing director John Spiers said there were a host of factors deterring IFAs from recommending investment trusts in greater numbers. Foremost among the factors were their ...

  • 'Consolidation could narrow the differences between IFAs and multi-ties'

    1 Apr 2004

    There may be little to choose between IFAs and multi-tied advisers if the rate of consolidation by product providers continues, says HBOS insurance and investment division chief executive Phil Hodkinson. Speaking to IFAs at the Clerical Medical Industry Leaders' dinner last week, Hodkinson said such a situation is not stretching the imagination but it will mean that improvements in efficiency will be a priority. He predicted that the trend towards consolidation of ...

  • 'Education failing to interest consumers'

    1 Apr 2004

    Informed Choice managing director Nick Bamford believes industry efforts to educate consumers on the inner workings of with-profits is to little avail as most do not want to know. His comments were made at the Money Marketing with-profits debate last week where Bamford said one of his clients, a chief executive of a life office, had told him that of the hundreds of thousands of with-profits products it had sold, it had only had 20 requests for its with-profits guide and 13 had ...

  • 'Emphasise qualifications, not price'

    1 Apr 2004

    The LIA thinks that consumers would be better served by a qualifications menu than the pricing menu devised by the FSA and Aifa. Head of affairs John Ellis says a standardised method for informing potential clients of advisers' qualifications should be a bigger priority than a transparent pricing structure. Ellis says putting the emphasis on price rather than qualifications does not position financial advice as a consumer-facing service. He believes the industry's ...

  • 'First deadline for pension simplication is already here'

    1 Apr 2004

    Executives and directors have until April 5 to top up their pension or lose this year's allowance because of pension simplification, warns pension IFA Alexander Forbes Financial Services. The firm points out that calculations for pension simplification will be based on three years of salary. It says that the first pension simplification deadline is fast approaching and it is April 5 this year. Corporate development director Robert Macgregor warns that any ...

  • 'Global asset managers must look to segment their clients'

    1 Apr 2004

    The global asset management industry must restructure itself around either wealthy or mass-market clients in the future, says a report from Mercer Oliver Wyman and Lazard. Mercer says that, historically, client segmentation has been based on a spilt between institutional, retail and high-net-worth client segments which has produced overlapping service requirements and confusion over client needs. But Mercer believes in the future, asset managers will reorganise around ...

  • 'IFAs have a vital with-profits role'

    1 Apr 2004

    Prudential UK chief executive Mark Wood and Liverpool Victoria's IFA division director Rye Mills have staunchly defended the with-profits concept, saying with-profits should not be thought of as one homogeneous product. Wood said advisers have a crucial role in distinguishing strong with-profits providers from the weaker ones. He also stressed that the Pru's with-profits fund has compared well with options at both ends of the risk spectrum despite volatile markets. Consume

  • 'PI has been our foot and mouth'

    1 Apr 2004

    Rickman Tooze was set up in 1987 and the eponymous founders have moved on but the firm has retained many of its original clients. The privately owned firm is now run by chief executive Matthew Morris and has expanded to 35 Ris, with offices in Cirencester, Cheltenham, London and Winchcombe. The owners have plans to expand the firm in other areas of the South and are particularly interested in affluent areas such as Maidenhead and Windsor. The traditional focus ...

  • 'Standardise offset figures in literature'

    1 Apr 2004

    Mortgage adviser Clear Cut Mortgages is calling for lenders to make offset deals easier for borrowers to compare by standardising the borrowing and savings figures they use in their marketing material. Director Ben Thompson says while lenders are not deliberately misleading borrowers, offset products are too confusing. He says the marketing material can hinder the uptake of these kinds of products and in the worst circumstances borrowers end up with the wrong product. Clear ...

  • 'Watchdog could put the bite on ASU advice'

    1 Apr 2004

    Direct Life & Pension Services is warning advisers over accident, sickness and unemployment cover. It even suggests finding an alternative product, claiming that advisers could run into difficulties with the Financial Ombudsman Service. Managing director Michael Ward says ASU contains worrying clauses, such as the fact it can be repriced at 30 days notice and withdrawn at 90 days. He believes it has an inherent mismatch in its benefit structure, paying out ...

  • £1m PI bill closed Interlink but firm could be sold on

    1 Apr 2004

    Interlink Premier Network is to be put into administration rather than be liquidated, which leaves the door open for it to be sold as a going concern rather than wound-up as had previously been expected. Appointed liquidators Stones & Co has been replaced by Cardiff-based receivers Grant Thornton following a series of complaints made by creditors. The move means that if a group of the IPN advisers raised the funds, they could be in a position to buy back their network. At ...

  • 40% of BTL landlords have been in sector for only a year

    1 Apr 2004

    Over 40 per cent of buy-to-let landlords have been in the market for only a year or less, according to a survey by the Association of Residential Letting Agents. It reveals that 30.9 per cent of buy-to-let landlords have been in the market for less than a year while 13 per cent have been landlords for a year. Durlacher analyst David Pannell believes this statistic is significant, saying it is helping to prop up unsustainable rises in house prices. He says the ...

  • A view to a skill

    1 Apr 2004

    Many have heavily criticised the Financial Services Skills Council, feeling the body lacks credibility and could actually lower standards. What are behind the concerns and what suggestions do training and competence experts make to improve the current state of play? The skills council's aim is to approve and endorse appropriate exams, with the longer-term aim of working towards one clear and approved qualification framework. Arguably, the first problem the ...

  • Accounting brought to book

    1 Apr 2004

    A rationalisation of the way that insurance intermediaries account for business is likely to hit a big proportion of IFAs rather than just a few listed firms. High-profile firm Millfield saw £6m wiped off its revenue calculations for the year to March after a new accounting rule outlawed booking revenue when cases are submitted to a provider rather than when the transaction is completed. The purpose of the accounting rule is to bring some consistency to a sector ...

  • Action groups want life offices to help

    1 Apr 2004

    Equitable Life policyholders may ask other life companies to help them fund a campaign to take their case for Government compensation to the European Court. Joint action group E7 member Liz Kwantes says going through the European Court would be a last resort and backing from other life companies as well as Equitable for such a campaign is an option, following the Government's refusal to award compensation for its regulatory failings. Kwantes says other avenues for ...

  • Aegon urging the Treasury to extend its advice benefit

    1 Apr 2004

    Aegon UK Distribution is calling for the Government to make advice a non-taxable P11D benefit to ensure that it becomes a key component in all existing and future flexible benefit packages. The Aegon IFA arm believes that the Budget plan for employers to get £150 tax exemption towards independent advice for each member of staff will significantly boost the availability of advice in the workplace but says that the measure does not go far enough. The proposal is ...

  • Agencies are braced for big rise in job seekers

    1 Apr 2004

    Edinburgh recruitment agencies are preparing themselves for another wave of financial services redundancies and are pointing the finger at Standard Life as the most likely life company to be looking to shed jobs. The recruitment firms say although they have not yet been inundated with CVs, they have seen a steady rise in the number of people looking for work in the financial services sector and they predict this will increase. Edinburgh job agency Arcan consultant Ian ...

  • An Exclusive Connection is made

    1 Apr 2004

    EXCLUSIVE CONNECTIONS!00% PLUS THREE_YEAR FIXED RATEType: Fixed-rate mortgage Fixed term: Until March 3, 2007 Fixed rate: 5.65% Minimum loan: £60,000 Maximum loan: Up to 105% of valuation subject to a maximum of £250,000 Income multiples: Up to 3.75 times principal income plus second or 2.75 times joint Conditions: Six months' free mortgage payment protection insurance Arrangement ...

  • Annuity Bureau lowers minimum fund

    31 Mar 2004

    The Annuity Bureau has reduced its minimum pension fund size to £20,000. The company says this is in line with the £22,000 average fund size.

  • Ashley Law in legal battle over client ownership

    1 Apr 2004

    National IFA Ashley Law is in dispute with former advisers over the ownership of clients and trail commission. The firm has refused to confirm whether associate partners are entitled to renewal commission when they leave, even though its marketing literature guarantees client ownership. Former associate partner Ned Naylor issued a statutory demand for £7,719 to Ashley Law for unpaid commission. But solicitors acting for Ashley Law said that his agreement makes no ...

  • B&B launches new fixed rate mini cash ISA

    31 Mar 2004

    Bradford & Bingley is launching what it describes as a "market beating" fixed rate ISA offering 5 per cent annual equivalent rate tax free.Available from the start of the new tax year on April 6, the mini cash ISA is designed for those who can commit their full year's cash ISA allowance of £3,000 for the whole one-year term.At the same time it has also launched three new fixed term bonds for those wanting to invest for two, three and five year periods. They offer ...

  • Barclays Global Investors - iBoxx £ Liquid Corporate Bond Fund

    2 Apr 2004

    Type: Exchange traded fundAim: Growth by tracking the iBoxx £ Liquid Corporates Long-Dated Index Minimum investment: Subject to negotiation with stockbrokerInvestment split: 100% tracking the iBoxx Sterling Liquid Corporates Long-Dated Index Place of registration: DublinIsa link: YesPep transfers: YesCharges: Annual 0.2%Commission: NoneTel: 020 7668 8007

  • Barclays Global Investors - iShares FTSE 250 Fund

    2 Apr 2004

    Type: Exchange traded fundAim: Growth by tracking the FTSE 250 IndexMinimum investment: Subject to negotiation with stockbrokerInvestment split: 100% tracking the FTSE 250 IndexPlace of registration: DublinIsa link: YesPep transfers: YesCharges: Annual 0.4%Commission: NoneTel: 020 7668 8007

  • Base rate rise imminent says Portman

    6 Apr 2004

    Portman Building Society believes a base rate increase is only days away.It says fixed rate mortgage pricing is already rising more quickly than variable rates with the best two year fixed rate in July 2003only 3.24%. The best rates today are all over 4.40% - an increase of more than 1%.It says it has warned mortgage customers to "fasten their seatbelts" after the last increase and that borrowers who haven't acted will have to decide if they have "missed the boat" with ...

  • BBB could take 7% hit from new accounting standards

    1 Apr 2004

    Berkeley Berry Birch is understood to be facing a 7 per cent hit to its turnover figures in this year's accounts as it adopts new revenue recognition accounting requirements, according to a City analyst. Other listed IFAs are also believed to be affected by the new accounting standard, although BBB prospective merger partner Inter-Alliance changed to the new regime two years ago. Over a year, the one-off cut in revenue could equate to a £4.2m reduction in turnover ...

  • Brain storm

    1 Apr 2004

    With the start of FSA mortgage regulation just under seven months away, this week I will be looking at some of the emerging solutions designed to help mortgage advisers with complying with the regulations. In the last few years, electronic trading in the mortgage market has taken off at a rate that would make most life and pension providers green with envy. With the notable exception of fund managementbased products, where the fund supermarkets and EMX have achieved significant ...

  • Burns-Anderson service bids for quality mortgage brokers

    1 Apr 2004

    Burns-Anderson has set up a regulated mortgage service and is encouraging mortgage intermediaries to act quickly as regulation approaches. Early registration closed at the end of last month and the network will be helping advisers prepare for the regulatory environment after the FSA takes over regulation of mortgages on October 31. Burns-Anderson's service includes access to whole-of-market mortgages, comprehensive profess-ional indemnity cover at what the network ...

  • Cable calls for Government to toughen up on 'irresponsible lending'

    2 Apr 2004

    Commenting on the latest 'lending to individuals' figures from the Bank of England, which show an increase in mortgage lending, Liberal Democrat Treasury spokesman Vince Cable MP is calling on the Government to take action to protect ordinary homeowners against irresponsible lending from banks and building societies.Cable says: "This rise in lending comes on the back of an unsustainable house price bubble. Large numbers of people are gambling on the house price boom ...

  • Calculating CPPI

    1 Apr 2004

    In an industry bedevilled with me-too propositions and a general oversupply of products, it is staggering that product differentiation is so often confined just to cost. Of course, there are many other factors that should be considered - some true of all products and some true only of parts of the market. As funds based on constant proportion portfolio insurance (CPPI) become more widely accepted, it would be a positive development all round if IFAs could be furnished with the ...

  • Canada Life exits individual IP market

    31 Mar 2004

    Canada Life is pulling out of the individual income protection market from the end of April as it refocuses on core product areas. The insurer says it will continue to issue quotes until April 16, with new applications accepted until April 30.Existing policyholders will not be affected and Canada Life says it remains committed to group insurance. Last year income protection formed only one per cent of its total new business.

  • Cavanagh set to continue acquisitions

    1 Apr 2004

    Cavanagh Group's latest results show a strong performance for the year to October 2003 following completion of its purchase of Ernst & Young Financial Management. Cavanagh chairman John Campbell says its number of clients has risen by 25 per cent while IFAs increased by 85 per cent to 76 and over the next 12 months the firm will attract more advisers. The group believes it has weathered the difficult times well and has a national structure of motivated, high-earning advisers. Its ...

  • Complaints to soar after MPs' endowment report

    1 Apr 2004

    The Financial Ombudsman Service has revised its predictions for complaints for the year, saying that after the Treasury select committee's report into mortgage endowments it now expects an additional 15,000 related complaints this year. This is a drastic change from only two months ago when the FOS anticipated a decrease of 15,000 endowment complaints to 35,000 from 50,000 but it has reconsidered the "gross underestimation". The FOS says it will have to hire an extra ...

  • Consumers' Association presses for probe on 'prisoners'

    1 Apr 2004

    The Consumers' Association is calling for an independent investigation into the treatment of policyholders who have found themselves "prisoners" in closed funds. Speaking at the Money Marketing round table debate on with-profits last week, CA senior policy adviser Mick McAteer said it will take a wider review to help people in underperforming closed funds to find a way out. He said an investigation should be carried out by the Treasury, perhaps through an emergency taskforce ...

  • Correspondent's week

    1 Apr 2004

    Thank God the Budget's over for another year. Huge sighs of relief were heard at The Express as the pressure on us seemed particularly heavy this time, mainly because the measures announced were at best convoluted and at worst plain dull. Still, at least Brown stayed true to form by making lots of sneaky changes for us to berate him for in the aftermath. To be fair, I should not really complain too much about Budget day though, as I could have made the whole experience a lot ...

  • Coventry Building Society - Flexx Capped Rate

    31 Mar 2004

    Type: Flexible capped-rate tracker mortgageTracker rate: 0.85% above Bank of England base ratePayable rate: 4.85%Capped term: Until December 31, 2009Capped rate: 5.99%Minimum loan: £1Maximum loan: Up to 95% of valuation subject to a maximum of £500,000Income multiples: Dependent on loan to valuation and salary bandFlexible features: Overpayments, payment holidays up to three ...

  • Craig Walton

    1 Apr 2004

    There is a new media outlet for all those aspiring financial services celebrities who would like to see themselves on the box. Former Framlington sales and marketing director Craig Walton has created the UK's first financial services-dedicated television network and fund managers are quickly becoming the latest stars of the small screen. Walton and his partners created asset.tv as a way of reflecting what happens in the fund market from a real-time perspective. He was looking ...

  • Crosby goes for the brand slam

    1 Apr 2004

    HBOS is best known for the pre-eminence of its mortgage businesses, which has even seen mortgage IFAs worried about the lack of competition from its lending rivals. Now chief executive James Crosby is turning his attention to the group's investment business. Clerical Medical is the focus of plans to become the undisputed number one for investment products and to put clear distance between HBOS and Aviva. Last week, Crosby outlined his strategy to some of the UK's ...

  • Demutualisation benefits for recent joiners

    31 Mar 2004

    The Standard Life board has announced that any with profits members who have signed three year waivers prior to March 31st 2004 will be eligible to participate in any demutualisation benefits.Those who have taken out a with profits policy on or after this date will not be eligible to participate in demutualisation benefits or vote in connection with any demutualisation proposal for a period of three years, and will be required to sign waivers to this effect.

  • Derisory amount will not benefit smaller advisers

    1 Apr 2004

    In response to the Budget, I can only quote John McEnroe "You cannot be serious, Mr Brown!" I am sure that the big benefit consultants will be clapping when they go and see firms of 1,000 employees, give them one piece of paper, stick them into default funds, charge the company a tax-relievable £150,000 for the privilege and take full commission. However, for those of us who advise business owners and the self-employed with small workforces, you try and give comprehensive, ...

  • Electronic medical reporting to speed up sales

    1 Apr 2004

    Protection providers hope that electronic advances will cut the time it takes to request medical reports from an average of 25 days to less than five. The system, expected to be in full swing towards the end of the year, will enable requests for general practitioner reports to be sent electronically to GPs. Completed reports will then be sent back to insurers via a secure website hosted by Marlborough Sterling. GPs will be able to automatically convert medical ...

  • Employers selling themselves short on pensions- CIPD

    5 Apr 2004

    Employers who do not keep staff updated on the pensions packages they offer risk demotivating their workforce and losing out in the increasingly competitive battle to attract skilled staff, according to people management experts the Chartered Institute of Personnel and Development.The warning comes follows the CBI/Mercer survey on pensions uptake by employees, which concludes that many employees remain ignorant or unsure about the benefits on offer and are failing to take advantage ...

  • Equitable declare interim bonus

    31 Mar 2004

    Equitable Life has announced an interim bonus and says it is in better condition than at any other time in recent years.In the society's preliminary announcement of results for 2003, it revealed an interim bonus of 2 per cent for with-profits pensions policies and 1.5 per cent for life policies, effective from January 1.It also announced that a review is underway looking at developing its long term future which is believed to include the aim of getting back into equities.Chairman ...

  • Equitable may return to equities

    1 Apr 2004

    Equitable Life looks set to make a return to investing in equities for the first time in two years. It is also expected to announce a strategic review into its long-term future this week as part of its 2003 full-year results. It is believed that the troubled insurer has become more stable and wants to get back into equities. The strategic review will look at options for restructuring its £11.6bn with-profits fund. The insurer started paying interim bonuses again ...

  • Equities will beat property for pensions, says Crosby

    1 Apr 2004

    HBOS chief executive James Crosby says property is not "anything like as appropriate" an investment for pensions as equities and the trend of people using property for such a purpose is only short term. Speaking to Money Marketing before the Clerical Medical Industry Leaders' dinner at the Natural History Museum in London last week, Crosby, who heads the UK's biggest lender by far, says equities are a far more appropriate pension investment than property. He believes ...

  • Equity release goes live on Exweb

    31 Mar 2004

    The first electronic trading platform for equity release products went live this week on The Exchange's Exweb portal.Advisers can compare products by provider, amount raised, interest rate, total fees, product details and whether the provider is a member of Safe Home Income Plans.

  • Euro PI is half-baked

    1 Apr 2004

    I feel compelled to respond to the article headlined, Sole trader in battle to beat Euro ultimatum over PI (Money Marketing, March 25). I was the broker who spoke with John Knox of Strathayr Associates for which Marrs have been trying to obtain cover for some while now. I did not say there was"no chance" of getting John PI cover for £1m, as required by the forthcoming EU directive, effective January 2005. What I did say was that such a directive existed ...

  • Exeter promotes two to board

    5 Apr 2004

    Exeter Friendly Society has made two new appointments to its board of directors with Michael Dunford becoming actuary and operations director and Mark Moreland taking on the IT director role.Dunford will also take responsibility for customer support, claims and hospital liaison functions and will continue helping to develop new products for both the UK and overseas PMI markets. Moreland's brief is to further develop Exeter's IT department, introducing and implementing "innovative" ...

  • Falcon chooses Quay technology

    1 Apr 2004

    Falcon Group has chosen Quay Software to supply back-office technology as it enters the third stage of its IT overhaul. The group has already updated its website and deployed an extranet to manage staff and adviser communications. The latest stage of its overhaul, the complete replacement of its back-office system to keep pace with the company's growth, is considered the most critical. Group director Julian Telling says Falcon developed a methodology that ...

  • First Direct launches discounted offset mortgage

    6 Apr 2004

    First Direct has launched a discounted rate offset mortgage at 3.99 per cent for three months. Borrowers can then choose to switch to the bank's offset SVR (currently 5.00 per cent), or move to First Direct's two year fixed rate mortgage at 5.34 per cent.First Direct says it is the only provider to offer a discounted rate offset mortgage with the option to switch to a fixed rate once the discount ends.Chief executive Alan Hughes says: "Borrowers who take out a first ...

  • Flexible fund rules could be catalyst for innovation

    1 Apr 2004

    New flexible rules for collective investment schemes have been introduced which allow the use of performance fees and broadly provide for greater flexibility in product design. The FSA's new rules halve the amount of regulation covering the sector and are set to give retail investors access to a wider range of investment opportunities and products. The rules remove the non-Ucits authorised funds category to provide more flexible rules on authorised fund investments. Although ...

  • Free the imprisoned policyholders

    1 Apr 2004

    Set the prisoners free, says the Consumers' Association, in this case referring to those people who are trapped in closed with-profits funds. Money Marketing may not agree with all that the CA says, but in this case we are definitely on its side. In many ways, the treatment of policyholders in closed funds has been abysmal. Policyholders, regardless of the vague requirement for companies to treat them fairly, have been sent straight to the bottom of the financial services ...

  • Freedom buys 56% of Mortgage Next

    1 Apr 2004

    Freedom Finance has bought a 56.5 per cent stake in Mortgage Next in a deal which values the mortgage distributor at £22m. Mortgage Next founders and joint owners Martin Maynard and Justine Tomlinson are retaining a 43.5 per cent shareholding and will continue to run the business. Freedom Finance founder and group chief executive Rupert Webb along with directors Tony Machin, Colin Snowdon and Mark Chadwick are to join the Mortgage Next board. Former Mortgage ...

  • Friends nails down Hammers in fourth soccer deal

    1 Apr 2004

    Friends Provident has signed another deal with a football club to offer financial services to members, supporters and employees of West Ham United. Representatives of Hammers Financial Services will attend all home games and offer financial planning seminars throughout the year. West Ham will benefit from each product sold, including mortgage, protection, savings, pension and investment products. Friends Provident already has similar agreements with Southampton, ...

  • Friends Prov posts PPFM

    2 Apr 2004

    Friends Provident has published its Principles and Practices of Financial Management for its with-profit business, one of the first life offices to do so.The document is up on its website and comes as part of the FSA's proposals in consultation paper 167 which looks at with-profits governance and the role of actuaries in life insurers. It is based on making the life insurance industry more transparent and to ensure all policyholders are treated fairly.Friends Prov group finance ...

  • Friends Provident announces new mortgage panels

    2 Apr 2004

    Friends Provident has announced final details of its mortgage panels, which are available through the Friends mortgage arm and its appointed representative distribution channel.The panel is divided between national and regional direct, packagers and commercial. Friends Provident UK distribution director Simon Clamp says: "We have put together a comprehensive mortgage panel which will cater for all their client needs."

  • FSA criticised for failing to support educational website

    1 Apr 2004

    An educational charity is disappointed after the FSA failed to set up an online link to its new website. The website, www.learnaboutmoney.org, has been designed by the Pre-Retirement Association and is sponsored by the Department for Work and Pensions and leading UK firms. It gives advice on financial planning and encourages users to prepare for retirement. The DWP has set up a link from its own website but the FSA has no plans do the same, according to the PRA. The ...

  • FSA finalises exam reforms

    2 Apr 2004

    The FSA has finalised changes to the Training and Competence sourcebook as part of the reform to the examinations regime which will see a move from 'approved' to 'appropriate' exams.The change, which will give more freedom to senior management within IFA firms as to which exams their advisers can take, has been expected by the industry.A memorandum of understanding has also been signed between the regulator and the Financial Services Skills Council which sees ...

  • FSA fines Morgan Grenfell £190,000

    5 Apr 2004

    The FSA has fined Morgan Grenfell £190,000 for breaching FSA principles by failing to act in its customers' best interest and failing to manage its conflicts of interests.The Deutsche Bank subsidiary was found to have commenced proprietary trading in seven of the constituent securities of a client's programme trade, prior to its award, based on limited information provided to enable the firm to quote for that business.The FSA says this proprietary trading resulted ...

  • FSA moves towards integrated reporting

    31 Mar 2004

    The FSA is moving closer to rolling out its electronic reporting for regulated firms in the UK by confirming the new system's framework.It has devised its Integrated Regulatory Returns and Mandatory Electronic Reporting systems to be introduced for most regulated firms.The FSA says its principal aims in implementing electronic reporting are to simplify and streamline the current paper-based process whilst reducing reporting costs to firms.FSA managing director ...

  • FSA to monitor compliance through firms' financial health reports

    31 Mar 2004

    The regulator will use the information it collects about firms' financial health and business activities to monitor compliance and to identify trends and anomalies, the FSA has just announced.It says this will help it to determine what sector-wide or firm-specific work needs to be done to protect consumers and maintain market confidence.The change comes as the FSA finalises its reporting requirements for mortgage, general insurance and retail investment firms.FSA ...

  • FSCS imposes £55m levy to cover pension review compensation

    1 Apr 2004

    The Financial Services Compensation Scheme is looking to raise £55m to cover the expected pension review compensation costs affecting companies in the ringfenced contribution group. This is a drop in the levy of £87.9m last year and close to the £56.4m level in 2002. The FSCS says there are no surprises in its funding requirements for the various sub-schemes. An extra £130m needs to be raised from general insurance firms intended to pay compensation ...

  • Funds enjoy greater flexibility

    1 Apr 2004

    The FSA has slashed its rulebook for collective investment schemes in half in one of the biggest regulatory shake-ups for years. But as the move was largely expected, the response from fund companies has been muted. The regulator had outlined its radical proposals to widespread acclaim last May in consultation paper 185, The CIS Sourcebook - A New Approach. A handful of minor technical tweaks aside, the finished rulebook has barely changed from the proposals. Its main ...

  • Funds gaining as advisers' choice

    1 Apr 2004

    Mutual funds are fast gaining ground on the with-profits sector as advisers distance themselves from WP, it was revealed at the Money Marketing with-profits round table. Investec Fund Managers joint managing director Andy Sowerby said in 2000, research showed that 60 per cent of advised investment was going into with-profits but recent research with 277 IFAs shows that 59 per cent of respondents are now very unlikely to use with-profits and 24 per cent are unlikely to use with-profits. C

  • Generous packages at the pension protection fund

    1 Apr 2004

    The appointments section of the Sunday Times (March 21) carried an advertisement for two new positions that have become available - one for chairman and the other for chief executive of a public sector employer. The jobs require all the usual skills - leadership, drive, vision and the ability to deliver inspiration in this new venture. In return, the chairman will cop a very nice £80,000 for two days per week and the chief executive an attractive six-figure package. Of ...

  • Get in with the out crowd

    1 Apr 2004

    If you are an IFA trying to deliver quality service to your customers, your number one frustration is almost certain to be the quality of service that you get from product providers. In spite of all the challenges facing IFAs in today's changing market, provider administration regularly features in the top issues from surveys. Overall, things are not improving, even though Aifa tells us that it is one of the two most important criteria in selecting a provider. For ...

  • Heist of fashion

    1 Apr 2004

    The Diary hears on the financial services grapevine that a well known overseas mortgage broker has been approached by an interesting new website, Crooks-reunited.co.uk, the latest means of keeping in post-heist contact. Set up by Ronnie Knight, the site follows the Friends Reunited model, allowing bank robbers and jailbirds to stay in touch. It aims to make life easier for anyone doing a Biggs and setting sail for sunnier climes. The Diary under-stands that the ...

  • HHG profits fall

    31 Mar 2004

    HHG's operating profit before tax slumped to £98m from £108m in 2003 as its life services arm suffered heavy write-downs in the first half of the year following its closure to new business.HHG's loss on ordinary activities before tax ballooned to £864m from £343m following write-downs, amortisation, impairment of goodwill and present value of in-force business. Henderson's operating profit fell to £32m from £54m although the second half ...

  • Hometrack reports 0.7 per cent price rise

    31 Mar 2004

    House prices rose by 0.7 per cent in March, according to Hometrack's monthly survey of the housing market. Growth was slightly down on February's increase of 0.9 per cent, which Hometrack says was the biggest monthly rise since October 2002. It says the average house now costs £149,800.All 52 county areas reported prices rises, and Hometrack has now upgraded its house price forecast to eight per cent from four per cent.

  • Howard's way?

    1 Apr 2004

    The Diary brought readers news of the attempted theft of a banner of the Halifax's singing legend Howard a few weeks ago. It now appears that the plot is thickening. Could the Labour spin machine have been behind the theft of the banner? Does Howard have designs on Mr Blair's position? Should the New Labour leader be worried? The Diary will be keeping an eye on any further developments.

  • Huge boost predicted for group income protection

    1 Apr 2004

    The group income protection market could grow by as much as 60 per cent in the next three years, according to research by Mintel. It forecasts that premium income from group schemes will reach £899m by 2007. The individual market is expected to expand at a slower rate, with premiums rising by 39 per cent to £659m by 2007. Growth will be driven by an increased profile for income protection and product innovation. Depolarisation is also expected to provide ...

  • IFA counts the cost of critical mistakes

    1 Apr 2004

    Scottish Equitable Protect has apologised to London IFA Bramin Financial Services after a series of withdrawn quotes left principal Binod Charitra defending his competence to clients. Charitra arranged £300,000 life and critical-illness cover for a solicitor and doctor couple and asked for the policy - which was quoted at £656.38 a month - to take effect from October 29, 2003. After sending health declarations, Scottish Equitable Protect sent a written apology ...

  • IFA market to remain Standard's core distribution channel

    31 Mar 2004

    Standard Life has reaffirmed its commitment to the IFA channel following its announcement it believes demutualisation is the best way forward, but says it has begun work developing relationships with other intermediaries and partners.As part of its update today on the progress of its strategic review, the insurer says it is committed to continuing to build on its leading position amongst IFAs, through consistently good service and supporting IFAs in business growth.The statement ...

  • IFAs more bullish on growth funds than property

    1 Apr 2004

    Independent advisers believe that growth funds will provide better returns than property this year, according to research commissioned by Invesco Perpetual. The survey of 410 IFAs found that 48 per cent favour growth funds while 23 per cent believe buy to let will provide the best returns in 2004. Head of distribution Mike Webb believes that investors who rely solely on property are taking a big risk with their capital. He says there is a place for property in ...

  • Independent view

    1 Apr 2004

    Does Chancellor Gordon Brown think the British public are really stupid? All this nonsense about cutting Civil Service jobs by 40,000 to fund the ever increasing tax and waste policies of a morally corrupt Government. Brown did not mention the 80,000 Civil Service jobs created by Labour since 1997. What is more, it is only words. We all know that Sir Humphrey will find a way around all this. In my opinion, half of all public sector jobs should go. Increase the pay of the remaining ...

  • Investec Asset Management - Investec Managed Distribution Fund

    31 Mar 2004

    Type: OeicAim:Income and growth by investing in fixed-income securities and UK equitiesMinimum investment: Lump sum £1,000, monthly £100Investment split: At least 60% fixed-income securities, remainder in UK equitiesIsa link: YesPep transfers: YesYield: 4.75%Charges: Initial 4.5%, annual 1.25%Commission: Initial 4%, renewal 0.5%Tel: 020 7597 1900

  • Investment analysis

    1 Apr 2004

    International tension saw another rollercoaster ride for equity markets last week, with most falling during the first few days in reaction to the assassination of Sheikh Ahmed Yassin, the founder and spiritual leader of the Hamas group. In the US, stocks continued to fall in the first half of the week amid continued geopolitical and valuation concerns. However, a rally on Thursday inspired by good employment data and bargain hunters, saw the Dow gain 1.5 per cent. By Friday's ...

  • Investment view

    1 Apr 2004

    Most of us involved in the investment business are influenced by the mood of the market. Down days, which should perhaps be taken as a buying opportunity, are all too often the catalyst for compiling a reasons-why list to justify not buying. But then markets reflect what people are doing. Peaks occur when buyers have been steadily outnumbering sellers. Bear markets finish when the last bull ditches their stock into the market. The gently deteriorating mood of the market has been ...

  • Isa sales up by 14 per cent in February

    31 Mar 2004

    Net sales of Isas rose by 14 per cent to £210m in February from £184m the previous month, according to the IMA. Its monthly statistics show that net retail sales of investment funds rocketed by 42 per cent to £717m from £505m. Sales continued to be dominated by UK equities, with the all companies sector accounting for 25 per cent of gross retail sales.

  • Julian Gibbs

    1 Apr 2004

    Christows, one of the UK's most progressive firms of stockbrokers and fund managers, has recently launched Christows Investment Funds, which is an Oeic with a range of sub-funds. This product takes advantage of the Ucits 3 directive, which enables fund managers to hold significant proportions of near-cash investments at times when risk should be reduced and investment markets are likely to fall. It invests globally through its worldwide growth sub-fund, which invests ...

  • Kelly pledges Miles consultation

    2 Apr 2004

    Treasury Financial Secretary Ruth Kelly has welcomed Professor David Miles' analysis of the strengths of the UK mortgage market, telling the annual CML lunch the Government 'fully endorses' his conclusion that urgent reform is needed.Speaking today, Kelly confirmed both the Treasury and FSA are considering Miles' recommendations and will be consulting on them in due course.In his Budget speech last month, Chancellor Gordon Brown said Miles' recommendations ...

  • Key to open the door to white-label lifetime mortgage

    1 Apr 2004

    Key Retirement Solutions is offering a white-labelled lifetime mortgage at 6.49 per cent, which it claims is the lowest rate on the market. The product, a five-year fixed rate provided by New Life Mortgages, will be available from mid-April. At the end of the fixed-rate period, clients can choose to take out another fixed rate or move to a tracker at Bank of England base rate plus 3 per cent, capped at 9.99 per cent. Loan to value for the Orchard Lifetime Mortgage ...

  • Killik & Co to adopt CFP licence

    2 Apr 2004

    Killick & Co is adopting the certified financial planner licence from the Institute of Financail Planning as its preferred standard for the company's advisers.Chief executive Matthew Orr says: "We believe that in order to provide the best all round financial and investment advice in today's complex world, the CFP qualification makes most sense."IFP chief executive Nick Cann says: "It is encouraging to see a traditional stockbroker such as Killick & Co seeing the need ...

  • Latest survey could reveal further misselling says PWC

    6 Apr 2004

    A sharp increase in the number of policyholders surrendering their life insurance and pensions policies has sparked fears of another misselling scandal according to consultants PricewaterhouseCoopers. Figures contained in the latest CBI's quarterly report on the financial services sector show a marked increase in the number of people who have surrendered their policies in the last two years.PWC, who carried out the research for the CBI, says the figure surprised it but ...

  • Legg Mason Investments - Legg Mason US Smaller Companies Fund

    6 Apr 2004

    Type: OeicAim: Growth by investing in smaller US companiesMinimum investment: Lump sum £3,000Investment split: 13.1% technology, 12.7% financial services,12% health, 10.4% industrial products, 9.6% industrial services, 8.6% natural resources, 7.4% consumer services, 5.6% financial intermediaries, 1.7% consumer products, 18.9% cash & equivalentCommission: Initial 3%, renewal 0.5%Tel: 020 7070 7400

  • Legg Mason thinks small is beautiful

    5 Apr 2004

    Legg Mason Investments has brought out the Legg Mason US smaller companies fund, an Oeic that aims for growth by investing in US companies with a market cap of up to $2bn.The fund is managed by Royce & Associates, a New-York based subsidiary of Legg Mason Investments. Royce & Associates already manages Legg Mason's Dublin-domiciled Royce US small cap equity fund, but this fund was recently closed to new business.The new fund differs from the offshore fund in that it ...

  • LIA's view

    1 Apr 2004

    You will find that at most gatherings of industry people, at some point someone will say: "The biggest issue we face is reputation." That is certainly my perspective and that of my colleagues at the LIA. The need to improve trust, confidence and reputation lies behind the recent LIA announcement that it is on a journey to turn itself into a fully professional body. I sat through the recent Treasury select committee hearing on the Equitable Life saga, occasioned by the publication ...

  • Lighthouse lifts turnover by 53%

    1 Apr 2004

    IFA Lighthouse Group has filed a £1.13m loss for the last year, due partially to its purchase of RJ Temple's advisers in June. But the IFA says the purchase has helped strong performance, with turnover up by 53 per cent to £22.8m. Protection business made up 36 per cent of turnover, with 27 per cent from investments and 23 per cent from pensions. The remaining 14 per cent was made up from mortgages, health insurance and tax planning for high-net-worth clients. Avera

  • Litigation fear is a red herring

    1 Apr 2004

    At the Association of Investment Trust Companies' recent Conference for Directors, about 300 non-executive investment trust directors gave up a full day of their busy schedules to attend the UK's biggest event for independent directors. I provided delegates with an update on the state of play on the FSA's split-capital investigation and the prospects of compensation being paid. Then I covered our efforts to ensure that all the lessons are learned and that the ...

  • Lord Abbett makes UK equity debut

    31 Mar 2004

    Lord Abbett & Co has brought out the CF Lord Abbett UK Growth & Income fund, an Oeic that invests in larger well-known UK companies such a Vodafone, BP and AstraZeneca.The company is the UK subsidiary of the US investment manager Lord Abbett Limited, which was founded in 1929. This fund is the fifth fund available to UK investors and is the first to invest in the UK.The fund is managed by a team of five investment professionals who previously worked together at Warburg ...

  • LPI annuity may be axed for final-salary pensions

    1 Apr 2004

    The requirement to buy index-linked annuities could be dropped for defined-contribution pensions. This confirms a change of tack by the Department for Work and Pensions, which distanced itself from such a move in July 2002. Pensions minister Malcolm Wicks said his office was reviewing whether to drop limited price indexation - a move that could put an end to people having to buy several different annuities. The complexity of current rules requires purchase of ...

  • Meeting the mortgage challenge

    1 Apr 2004

    This year's Mortgage Strategy Live will once again provide intermediaries with the very latest developments within the industry. The event, taking place at London Olympia on May 6 as part of Money Marketing Live, will feature key figures debating the most important regulatory and business issues in the industry. In the main conference, a special training panel debate featuring Mortgage Force managing director Rob Clifford, AMI director Chris Cummings, Premier Mortgage ...

  • Merricks leaves IFA Simpsons

    5 Apr 2004

    Simpsons of Brighton adviser Andrew Merricks is leaving the IFA to join Hove-based firm Skerritts Consultants.Merricks, who was a partner at Simpsons, takes up his new position as head of investments this week.He says: "I've helped Simpsons of Brighton to go as far as they want to go and therole that I will play at Skerritts will hopefully help to develop thatfirm into one of the most recognisable and leading names in the IFAindustry."

  • Misselling fears over 48% RIY on ScotEq plan

    1 Apr 2004

    Scottish Equitable is introducing a front-end-loaded personal pension with a potential reduction in yield of over 48 per cent in the first year. Some advisers warn that selling the product risks future accusations of misselling if clients are unable to keep up payments. Hargreaves Lansdown head of pension research Tom McPhail says: "There is a potential risk for IFAs of being accused to misselling if the client cannot keep up the payments. Just because the client agreed ...

  • Moneyfacts launches IFA portal

    5 Apr 2004

    Money facts is launching a web portal for IFAs that will offer an information service and online quotes. The service includes a mortgage sourcing service, which the group says will cover all products from all lenders. The site will give users access to an area that lets them view full commission details, a mortgage compliance centres and daily product selections.Moneyfacts Group chief executive John Woods says: "The launch of eMoneyfacts is timely for a number of reasons. ...

  • Mortgage network grows in Midlands

    1 Apr 2004

    The Mortgage Advice Bureau has signed up estate agents Hunters in Solihull and Taylors in Dudley as its franchise network in the Midlands continues to expand. Hunters and Taylors add 14 branches to the MAB network, which now has more than 200 outlets. Taylors managing director Geoff Taylor says it has been looking for a high-profile company that shares its business vision and believes MAB can provide invaluable support for the agency as it expands. Hunters chairman ...

  • Mutuality review unaffected by Standard move - Treasury

    31 Mar 2004

    The Treasury says Standard Life's decision to push for demutualisation will not affect its planned probe into corporate governance of mutual life offices.The mutuality review was announced by Treasury Financial Secretary Ruth Kelly upon the publication of the Penrose Report into what went wrong at fellow mutual insurer Equitable Life earlier this month.A Treasury spokesman said today that the terms of reference for what would be a wide ranging review had been set down and it ...

  • Nationwide remains committed to mutuality

    31 Mar 2004

    In the light of recent events at Standard Life which announced its intention to demutualise this morning, Nationwide affirms that it remains committed to mutuali no plans to review its status.

  • Networks vie to sign up advisers of collapsed company

    1 Apr 2004

    Rival networks are competing with the Tenet group for the 188 members of collapsed firm Interlink Premier Network. Tenet has signed up 50 of the Interlink advisers to its M&E Network and says it is confident that it will complete negotiations with another 50. But Falcon Group spokesman Keith Jones, a former IPN member, believes that many of IPN's advisers are unlikely to join a group as big as Tenet. The Bristol-based network has signed up eight of IPN's highest-earning ...

  • Newton fund on hold as star Beagles moves

    1 Apr 2004

    Clive Beagles, the high-profile manager of Newton's flagship higher-income fund, has left the group to join boutique JO Hambro Capital Management, prompting IFAs to put the £1.5bn Newton fund on hold. Beagles, who has run the Newton fund since 2001, will run a fund that JOHCM is launching in the autumn after it decided to plug the equity income gap in its burgeoning product range. IFAs have immediately put the Newton higher-income fund on hold while they wait to meet replacement ...

  • Norwich Union kept IFA waiting for six weeks before he could change network

    1 Apr 2004

    A Norwich IFA has suffered a six-week delay in changing networks because of problems in getting an authorisation letter from Norwich Union. The Allan Consultancy principal Frank Baldry says his commission was held up when he left Sesame to trade directly under FSA approval through Simply Biz. The hold-up was due to delays in getting a letter from NU authorising the network to release commission. He says NU took six weeks to send the letter although he chased ...

  • NU disappointed at lack of EU gender reprieve

    31 Mar 2004

    Norwich Union says it is disappointed the European Parliament has rejected an amendment to the Gender Equality Directive that proposes to prohibit underwriting on grounds of gender.NU says the use of gender in the calculation of insurance and annuity premiums is a fair recognition of objective risk because premium differences between the sexes are based on actuarial statistics and actual claims experiences.Norwich Union spokeswoman Louise Goffee says: "Norwich Union believes ...

  • NU solves small company problem

    5 Apr 2004

    NORWICH UNIONSOLUTIONSType: Group private medical insurance Minimum-maximum ages: 16-no maximum Minimum group size: 10 Maximum benefit: None Cover provided: Core cover - inpatient and day patient benefits - hospital charges, specialists' fees, diagnostic tests, radiotherapy, chemotherapy, outpatient benefits - specialist consultations, physiotherapy, chiropody treatment, osteopathy psychiatric treatment up to £1,000 ...

  • Old Mutual Asset Managers - Old Mutual US Specialist Equity Fund

    6 Apr 2004

    Type: Hedge fund Aim: Growth by investing long and short in US companies with a market cap of more than $2bnMinimum investment: Lump sum £100,000, $100,000, euros 100,000Investment split:100% in US equitiesPlace of registration: Cayman IslandsCharges: Annual 1.5%, performance fee 20%Commission: NoneTel: 0808 1002715

  • Old Mutual Asset Managers - US Select Equity Fund

    1 Apr 2004

    Type: Unit trustAim: Growth by investing in US equitiesMinimum investment: Lump sum £1,000Investment split:100% US equitiesIsa link: YesPep transfers: YesCharges: Initial 4%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0808 100 2715

  • On the nail

    1 Apr 2004

    A financial plan prepared by an expert adviser requires three basic questions: •What are your goals? •Where are you now and are you on track to meet your goals? •If not, what actions do you need to take in order to meet them? Holistic financial planning is certainly best practice but the sheer number of elements (budgeting, investing, protection, mortgages, retirement planning and tax) and the fact that any change in one area requires ...

  • One in four investors never review their asset mix, says JPMF

    6 Apr 2004

    Nearly one in four investors never review the mix of assets in their portfolio, according to JPMorgan Fleming Asset Management.According to its survey, 23 per cent of investors never review their asset mix while only 56 per cent have reviewed it in the past year.Asked what would prompt them to make more frequent reviews, 54 per cent said advice from IFAs, 46 per cent said recommendations from family or friends and 46 per cent said good or bad press about a provider.

  • Out of context

    1 Apr 2004

    •"Gorillas don't use scissors but they still have nice neat nails." - Mortgage Trust's Austin Jelfs ponders the grooming habits of gorillas. •"I was in a hydrotherapy pool with Murray Walker at the weekend." - Helene Barnes of the Clerical Medical press office. •"It looks like an alien just landed on my plate." - Clerical Medical head of public relations Gordon McAra contemplates his vegetarian option at the Clerical industry leaders' dinner last ...

  • Pensions in site

    1 Apr 2004

    A change to the tax treatment of workplace financial advice costs is being heralded as recognition by the Government of the important role that intermediaries play in boosting retirement saving. However, some view the move more cynically, feeling that the change merely recognises what is already going on with employers. Some experts also believe the parameters of the proposed change are too limiting and do not reflect the realistic cost of advice. Within the 2004 Budget ...

  • Policyholders likely to favour demutualisation - Commerzbank

    31 Mar 2004

    Commerzbank insurance analyst Roman Cizdyn believes Standard Life policyholders are likely to favour its recommendation for demutualisation because of the need for more capital.Cizdyn says he believes policyholders would generally be in favour of the move as the drive behind it is the need for capital and this is one way of providing that, which he says has to be good for policyholders.He also said it was clear the margins Standard has been making on some products are inadequate ...

  • Product matters

    1 Apr 2004

    The Franklin Templeton emerging markets investment trust is one of the most famous names in investing so it was only a matter of time before an open-ended version was launched. The surprise is that it has taken so long. Templeton's name is synonymous with emerging market investing. Dr Mark Mobius, fund manager of this fund and head of the emerging markets team, has been with Franklin Templeton since 1987. Franklin Templeton is one of the biggest managers in the sector, ...

  • Professional indemnity edge

    1 Apr 2004

    Despite being the worst professional indemnity insurance market for many years, there are some great success stories around. Burns-Anderson has achieved commercially advantageous PI terms for quality advisers through a professional, well-planned, structured approach, an assiduous attention to detail and a highly determined attitude to make it happen. The PI market is in the doldrums. Those insurers which have remained in PI have turned to the accountancy and law markets, which ...

  • Professional indemnity edge

    1 Apr 2004

    Professional indemnity insurance is a subject destined not to go away. My firm's PI issues have been well reported in this paper. I guess that we are not unusual as many IFA firms will have been faced with exactly the same problems. We have seen the cost of cover rise from a tolerable £2,750 in 2001 to a ridiculous £38,750 in 2004. Over that time, our policy excess has risen from £5,000 to £10,000 and then to £15,000. For the first time this year, we ...

  • Protection rules are a 'spaghetti' of regimes

    1 Apr 2004

    Abbey for Intermediaries' Nick Kirwan is warning that a clause in the forthcoming protection regulation that could turn selling of protection products into a "spaghetti" of different sales regimes. Kirwan, who is head of protection, marketing and product development at Abbey, says the regulation will see protection contracts running over the age of 70 and lasting for more than 10 years treated as investment products. Shorter contracts treated under protection regulation, means ...

  • Quarterly reporting victory for MEPs

    31 Mar 2004

    MEPS have rejected proposals to impose quarterly reporting requirements. Instead of quarterly reporting, companies will be asked to publish a short statement on their current financial position between their half year and full year statements.European Parliament Conservative finance spokesman Theresa Villiers MEP says: "This is a significant victory in the battle against unnecessary EU red tape. Companies will not be required to file quarterly accounts, which would ...

  • Rich pickings

    1 Apr 2004

    Anyone who knows about pensions and insurance and fancies £80,000 a year for a two-day week might want to apply to become chair of the Pension Protection Fund. Ads for the post appeared in newspapers this week. Applicants concerned about the strength of their retirement provision can relax - a "range of attractive pension offerings" are offered, backed by the Government. Which is more than can be said for the PPF.

  • Richard Verdin on protection

    1 Apr 2004

    I wonder how many people running life insurers' new business admin departments have seen the film Groundhog Day, in which Bill Murray has the worst day of his life over and over again. I have to say that the combination of continuously repeated proposal-processing issues alongside the grumblings of certain specialist IFAs feels all too familiar each time they surface and resurface. Not a month goes by without XYZ insurance comp-any or ABC insurance company getting lambasted ...

  • Sainsbury puts health cover on shelves

    31 Mar 2004

    Sainsbury has become the first supermarket to enter the health insurance market with a product designed to complement the treatment available on the NHS.The Sainsbury's Bank policy aims to offer patients fast access to specialist consultants for diagnosis and treatment.

  • Sainsbury's Bank - Health Cover

    1 Apr 2004

    Type: Individual private medical insuranceMinimum-maximum ages: 18-79Minimum premium: £21.40 a monthMaximum benefit: No maximumCover provided: Consultations, diagnostic tests recommended by consultant, pre-admission hospital tests, surgeon's fees, hospital accommodation, nursing fees, theatre, drugs, dressings and prostheses, post-operative consultations, outpatient physiotherapy up to £150 a yearExcess: NoneOptions: ...

  • Sainsburys enters healthcare market

    1 Apr 2004

    Sainsbury's Bank has entered the private medical insurance market with health cover, a plan that aims to fill the gap between comprehensive but expensive PMI and cheaper healthcare cash plans which have fewer benefits.According to the supermarket bank, the key to affordable PMI is complementing the NHS rather than duplicating it in areas where it provides quick and efficient treatment. The health cover plan provides cover for initial consultations, diagnostic tests recommended ...

  • ScotProv and the 'comedy of errors'

    1 Apr 2004

    IFA Ceri Evans is upset about the "comedy of errors" he has been through with Scottish Provident. Evans, of IFA Evans Ash,is invoicing ScotProv for the time that he has spent trying to sort out a life and critical-illness plan for a client. He says he wasted more than 30 hours in meeting and dealing with Scot Prov, and was wrongly informed and dealt with arrogantly by the company. Evans spent four months trying to resolve the problems, and despite assurances ...

  • Scottish Life Mortgages targets networks as tech plan is dropped

    1 Apr 2004

    Aegon-owned IFA Advisory & Brokerage Services was voted IFA of the year at the annual Money Marketing Awards last week at the Grosvenor House Hotel in London. Dubbed the industry's Oscars, the evening saw Scottish Life head of pensions Steve Bee named Industry Personality of the Year. Bee edged out contenders such as Chancellor Gordon Brown, Credit Suisse Asset Management thematic manager Bill Mott, New Star chairman John Duffield and Scottish Equitable pensions ...

  • Search for a superhero

    1 Apr 2004

    What is the world coming to? We've heard of Batman, Superman and Spiderman…but Isa man? The latest action superhero coming to your screens, computer screens, that is, is Fidelity Investments' Isa man. IFAs are asked to become Fidelity's very own heart-throb by collecting as many Isa applications as possible before midnight in Fidelity's Isa man jet-bike game. But life is never easy for any superhero and wannabes need to beware of "pesky tax vans". The ...

  • Selestia attracts £100m of inflows

    2 Apr 2004

    Fund supermarket Selestia enjoyed its best-ever inflow of new business last quarter, pulling in more than £100m in the three months to March 31.The platform says it attracted £105m of new business, significantly up from the fourth quarter of 2003, when it pulled in £73m. Director Bill Vasilieff says: "It is a significant milestone for us and puts Selestia well on target for profitability in 2006. Our ever increasing market share we believe is a clear demonstration ...

  • Seminars speak for themselves

    1 Apr 2004

    How do financial advisers look beyond the distractions of an industry in flux and focus on writing volume business? Substantial growth is a key goal of small financial services businesses, more than in most other sectors, according to a 2002 survey by the Federation of Small Businesses entitled Lifting the Barriers to Growth in UK Small Businesses. Funding any growth initiative is also a big issue. But while the networks increasingly show determination to help members ...

  • Shades of grey

    1 Apr 2004

    Starting life in 1989 as a branch of Fiduciary Corporation of South Africa, the Annuity Bureau's early years were confined to execution-only conventional annuity purchase. Four years later, a management buyout led by current managing director Peter Quinton saw the beginning of the specialist at-retirement IFA that was to grow into four individually named advice bodies known collectively as The Bureaux. In January, the firm was bought by corporate pension IFA Alexander ...

  • Should the Tories make Equitable Life compensation an election issue?

    1 Apr 2004

    "In no way do I think the Tories should be banging that drum. I feel that the time has come now just to move forward and remove ourselves from this horrible compensation culture." Steven Whelan,Oughtred & Harrison Financial Services "No. I just don't think it is an election issue." Tony Revans,Tony Revans Financial Planning "No. I do not think it is acceptable to try to win votes by going for retrospective compensation." Frank Cox,Whitaker Redfearn Pappin "No, ...

  • Skandia looks for WP switches with enhanced-allocation bond

    1 Apr 2004

    Skandia is seeking to attract disgruntled with-profits policyholders with the launch of a high-allocation-rate version of its capital & income bond which will be open only to those switching from a smoothed fund. The enhanced allocation bond will launch in either the second or third quarter with a 120 per cent allocation rate designed to offset the prohibitively large MVRs applied by WP providers. The single-premium unit-linked whole-of-life bond will be marketed as a stand-alone ...

  • Sofa sets out vision of professional industry

    1 Apr 2004

    Sofa has produced a mission statement outlining its vision of how the financial advisory industry can be turned into a profession. The statement follows a review of Sofa's activities by its new managing director Bob Bullivant. Bullivant says the most distinct change in stance for Sofa is that it is now trying to appeal to a variety of audiences from consumers to professionals and politicians. It is developing a business plan, showing how it can increase its ...

  • Standard demutualisation inevitable because of FSA rules - CFP

    31 Mar 2004

    Standard Life's board's recommendation of demutualisation was inevitable because of the FSA's new realistic reporting requirements says Central Financial Planning director Ian Smith.Smith says he expects policyholders to agree the demutualisation when it is voted on at its 2006 annual general meeting.Smith says: "Once the realistic reporting rules came in Standard could not raise capital on its with-profits fund so would have been fighting its competitors with ...

  • Standard Life Bank challenged to accelerate business plan

    31 Mar 2004

    Following the announcement that Standard Life is to demutualise, Standard Life Bank has been challenged to accelerate its business plan.The subsidiary has been told it is an integral part of Standard's business plan going forward as it is profitable and there will be no job reductions at SLB.But it will be looking to exploit further cross selling opportunities within the group, for example the freestyle mortgage will be looked at as a proposition for the whole group, ...

  • Standard Life: Demutualisation and job losses

    31 Mar 2004

    Standard Life looks set to demutualise.In an announcement today the Board has decided demutualisation is the best option for moving forward due to the group becoming "increasingly capital constrained". In the announcement Standard said demutualisation will maximise the value of the company and let it deliver "performance, reduce risk and crystallise value for members"Also announced are significant job losses.The mutual has said it will require a reduction in overall ...

  • Standard problems unique- Royal London

    6 Apr 2004

    Royal London has moved to assure policyholders that the problems recently experienced by Standard Life are specific to the company. It says on the basis of the work already carried out, there is no reason to believe that any of the realistic balance sheet problems identified in respect of Standard Life will impact on Royal London. Royal London says there is no reason to change any of its business practices or for the Group to undertake a strategic review such as Standard Life.

  • Templeton eyes up emerging markets

    6 Apr 2004

    RANKLIN TEMPLETON INVESTMENTSTEMPLETON GLOBAL EMERGING MARKETS FUNDType: Oeic Aim: Growth by investing in emerging market equities Minimum investment: Lump sum £1,000, monthly £30 Investment split: 100% in emerging market equities Isa link:Yes Pep transfers: Yes Charges: Initial 5%, annual 1.75% Special offer: Initial charge reduced to 3% Offer period: ...

  • Ten year fixed rate from The Co-operative Bank

    2 Apr 2004

    The Co-operative Bank is launching a ten year fixed rate mortgage at 5.69 per cent.Maximum loan to value on the product is 95 per cent and the mortgage has a number of flexible features - for example borrowers can opt to pay off up to five per cent of the mortgage balance each year without penalty.Head of mortgages Paul Rumbold says: "This new mortgage may suit homeowners who have ten years left on their current mortgage and would like the financial security of knowing ...

  • Testing time

    1 Apr 2004

    The Financial Services Skills Council is taking forward a skills' agenda for the whole of the industry. Our corporate strategy and business plans are ambitious and, given the challenges facing our sector, they have to be. Our priorities are grounded in the knowledge that the demand for high-level skills and increased productivity will be driven by increased competition at home and abroad and by the urgent need to restore consumer confidence. Pressures on firms to reach new ...

  • The best of wealth

    1 Apr 2004

    When I start thinking about writing an article, I normally have a quick surf of the net as part of my research so when starting this article, the first in a series of three looking at wealth management, I visited Google. I entered the words "wealth management" and was surprised to see that there were 3,640,000 references, which highlights the point that it is a hot topic. In this series, I want to explain what we see as the future for wealth management, explain what it ...

  • The miles file

    1 Apr 2004

    Tree huggers might have the right idea after all. As equity markets falter and bonds run out of steam, perhaps it is time to reassess an investment that the wealthy often have tucked away in their portfolios - timberland. Forests are difficult to beat for consistency of performance. Between 1987 and 2002, annualised returns from US timberland comfortably outpaced shares and fixed-income securities, not to mention other commodities. Over that 14-year period, woodland paid ...

  • The Mortgage Alliance makes key appointments

    5 Apr 2004

    Scottish Provident's mortgage club -- The Mortgage Alliance -- has made two key appointments. John Gibbons has been appointed head of development and Steve Atkins head of The Mortgage Alliance.The company says these appointments form part of Abbey's drive to generate £7bn of business for The Mortgage Alliance in 2004, up from £4.5bn in 2003.Gibbons' position will have a strategic focus with his priorities being to expand the mortgage club's lender ...

  • The Rat race

    1 Apr 2004

    Despite limitations introduced over the years to make Furbs less attractive on tax and NI grounds, they have been attractive enough for a reasonable number to have been established. Even if no further contributions are to be made in light of changes proposed as part of pension simplification, it is necessary to consider the impact that the 40 per cent tax rate (32.5 per cent for dividends) applicable to income from A-Day and to capital gains from April 6, 2004 will have on Furbs. It is ...

  • The road to simplification

    1 Apr 2004

    We have seen the Sipp and SSAS markets expand dramatically but more recently the number of new Sipps has grown at a much faster rate than the number of new SSASs. What are the reasons for this and what might the future hold, particularly with simplification on the horizon for 2006? Early retirement It has always been clear that a member of a Sipp can take retirement benefits and continue in paid employment. This was not clear with a SSAS and in 1997 the Revenue decided to ...

  • There weren't so many disasters BR (before regulation)

    1 Apr 2004

    I am unable to refrain from replying to Paul Boyle's letter (Money Marketing, March 18) as an ex-IFA and one who has served his 30 months'co-operation clause, you know the one that the PIA sneaked in when we were forced to change from Fimbra to the PIA, or was it from the PIA to the FSA, they are all the same to me. I still read Money Marketing to keep informed, but I am delighted to no longer be a member of his "club" as I now have a life again. If Mr Boyle showed his letter ...

  • Three-pronged strategy for Abbey fund

    31 Mar 2004

    Abbey has appointed State Street Global Advisers, JP Morgan Fleming and Barclays Global Investors to jointly run its flagship fund, the Abbey National growth unit trust. Abbey announced in January that it intended to adopt a multi-manager approach to running its funds. State Street will take control of half the £1.2bn assets in the growth unit trust, with JPMF and BGI equally splitting the rest.

  • Tories in U-turn over PMI tax plans

    1 Apr 2004

    The Conservatives have abandoned proposals to subsidise private healthcare using the tax system. Speaking in the House of Commons last week, Shadow Health Secretary Tim Yeo highlighted the party's renewed commitment to the NHS, saying: "There should be equal access to all, free at the point of delivery." The PMI U-turn indicates a shift away from the line taken by Yeo's predecessor Dr Liam Fox. Fox, who is now party chairman, was known to believe that the ...

  • Tories slam 'callous' Kelly over Equitable

    1 Apr 2004

    Conservative MPs have bran-ded Treasury Financial Secretary Ruth Kelly "callous" for refusing to offer compensation to Equitable Life policyholders. Speaking in the first debate on Equitable to follow Lord Penrose's report, Shadow Chancellor Oliver Letwin said the Government was washing its hands of policyholders. Letwin said he agrees with Penrose that there have been regulatory failures across two Governments but highlighted serious failures by the Department of ...

  • Towry Law deal to link with solicitor's clients

    1 Apr 2004

    Towry Law has formed a partnership with national solicitors Russell Jones & Walker which lets Towry Law tap into the solicitor's client base. Russell Jones & Walker senior partner John Webber says the firm will be working closely with Towry Law and that the clients' legal matters are fundamentally linked to their finances and the partnership will offer access to professional specialist advice in both areas. Towry Law national professional connections manager ...

  • Wicks appointed to FSA steering group

    2 Apr 2004

    The Minister for State for Pensions Malcolm Wicks has been appointed to the FSA's financial capability steering group.The Department for Work and Pensions Minister will help advise on the development and implementation of a national strategy for financial capability.The objective of the strategy will be to provide consumers with the education, information and generic advice needed to make their financial decisions with confidence.FSA chief executive and chairman ...

  • Widows reopens property funds

    5 Apr 2004

    Scottish Widows is to reopen its unit-linked life and pension property funds to new investments.Available from April 30, there will however, be a 25 per cent restriction on new business into these funds.Widows suspended investment into its life and pension property funds after such investments took off in 2001, with many investors allocating up to 100 per cent of their investments to property. This caused "unprecedented" cash flow levels into the property funds, leading Widows ...

  • Wise Investment - CF Wise Investment

    5 Apr 2004

    Type: Oeic fund of fundsAim: Growth by investing in collective investment schemes, UK shares and cashMinimum investment: Lump sum £1,000Investment split: 100% unit trusts, Oeics, investment trusts, UK shares and cashIsa link: YesPep transfers: YesCharges: Initial 4%, annual 1.65%Commission: Initial 3%, renewal 0.5%Tel: 01608 642233L

  • Wise Investment - Wise Active Growth

    5 Apr 2004

    Type: Oeic fund of fundsAim: Growth by investing in collective investment fundsMinimum investment: Lump sum £1,000Investment split: 30% UK equity, 21% UK growth, 20% managed mix, 10% European equity, 10% UK equity income, 8% Japanese equity, 1% cashIsa link: YesPep transfers: YesCharges Initial 4%, annual 1.65%Commission:Initial 3%, renewal 0.5%Tel: 01608 642233

  • Witan trust seeks to be class act through diversity

    1 Apr 2004

    Witan's new chief executive Jim Horsburgh says the giant investment trust is likely to branch out into different asset classes as it seeks to boost flagging performance. Horsburgh says the equity-driven portfolio could invest in fixed interest, private equity, absolute return funds and property in what would be a huge policy reversal for the £1.4bn trust. He says the current benchmark may also be amended, which he claims would reflect a shift away from mature ...

  • With profits is less than 20 per cent of new business- Standard

    31 Mar 2004

    Standard Life's update on its strategic review reveals its with profits product now represents less than 20 per cent of new business sales compared to around 40 per cent two years ago. The statement says the group believes the decline is significant as Standard's main source of capital has traditionally been the with profits fund. The decline in with profits business means a smaller proportion of individuals are bearing a larger proportion of the business risks of the company, ...

  • Wrap it up

    1 Apr 2004

    I have read about the introduction of a new wrap platform in the UK called Adviser Service powered by American Express. Can you explain to me why wrap platforms are being developed, how they work, what the costs are and how both IFAs and clients benefit from them? Wrap services have developed partly as a result of FSA pressure to reform the market for financial advice in the UK. The regulator's underlying concern is that the commission system has resulted in customers receiving ...

  • Zurich announces multi-tie plans

    2 Apr 2004

    Zurich Financial Services has announced it is to turn all of its 3,800 advisers multi-tied following depolarisation, offering the best products it manufactures alongside best of breed products from the wider marketplace.Global chief executive life Paul Van de Geijn said the Group remains committed to the UK market, despite widespread rumours to the contrary. He announced it is splitting its Zurich Advice Network into two parts with one focusing on manufacturing and the ...

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