Money Marketing
4 August 2004

  • 'Bancassurers consign clients to a lifetime of poor performance'

    5 Aug 2004

    Bancassurers are consigning people to a lifetime of poor fund performance, according to Willis Owen. The IFA's analysis shows that nearly half of funds offered by bancassurers perform worse than average. The research uses Standard and Poor's data and looks at the cumulative performance over five years to June 30 of 136 funds offered by bancassurers. The figures show that 42 per cent of the bancassurer funds underperform compared with the sector average. Some of ...

  • 'New Sipp limits may dampen market'

    5 Aug 2004

    Pension IFA Alexander Forbes Financial Services says changes to the lending limits for Sipps could dampen the commercial property market. Sipp investors can currently fund commercial property purchases by borrowing up to three-quarters of the value of the property but after A-Day on April 6, 2006, they will only be able to borrow up to half the value the accumulated Sipp fund for residential and commercial property purchases. An investor with a fund of £100,000 before ...

  • 28% would invest overseas if more information was available

    5 Aug 2004

    Paragon Mortgages buy-to-let report for June shows a continuing slowdown in the property market. The report shows a slight rise in property values of 0.5 per cent in June to £137,849 compared with a rise of just 0.1 per cent in May. In April, values rose by 2.5 per cent to £136,973 from £133,658 in March. Paragon says annual house price inflation stands at 16.9 per cent but Halifax puts it at 22.5 per cent, Nationwide at 19.1 per cent and Rightmove at 18 ...

  • 90 per cent of advisers support move to fees

    4 Aug 2004

    Ninety per cent of IFAs say fee-based advice is either essential or important to their businesses going forward. Winterthur Life conducted the survey at a series of IFA workshops. At the May and June workshops to discuss the preparations for A-day, 96 per cent of advisers surveyed believe their business prospects would either improve or remain the same as a result of depolarisation and 98 per cent felt their business prospects would improve or stay the same as a result of the menu system.

  • 90% of advisers support move to fees

    5 Aug 2004

    Ninety per cent of IFAs say fee-based advice is either essential or important to their businesses. Winterthur Life conducted the survey at a series of IFA workshops. At the May and June workshops to discuss the preparations for A-Day, 96 per cent of advisers surveyed believed their business prospects would either improve or remain the same as a result of depolarisation and 98 per cent felt their business prospects would improve or stay the same as a result of the menu system.

  • A new Lisa life for savings

    5 Aug 2004

    Shadow Work and Pensions Secretary David Willetts has warned the Government it is skating on thin ice by promising consumers full protection under the pension protection fund. In an exclusive interview with Money Marketing, Willetts hit out at Labour pensions minister Malcolm Wickes for claiming in a recent TV interview that the fund is a "guarantee" for pensioners. Willetts believes that ministers have raised expectations about guarantees "when that goes way beyond ...

  • A&L rate offers low start

    6 Aug 2004

    ALLIANCE & LEICESTERLow Start Discounted Rate Mortgage - Standard PackageType: Discounted rate tracker mortgageDiscounted term: Two yearsDiscount: 2.8%Payable rate: 3.79%Tracker term: One yearTracker rate: 1.25% above Bank of England base rateMinimum loan: £25,000Maximum loan: Up to 95% of valuation subject to a maximum of £250, up to 90% of valuation subject to a ...

  • Abbey in discussions over sale of French subsidiary

    4 Aug 2004

    Abbey is in advanced discussion to sell its subsidiary AbbeyNational France to BNP Paribas.Abbey National France provides residential mortgages in France and has assets of approximately Euro 2.1bn.Abbey says in a statement: "The sale of ANF represents a further step in Abbey's strategy of focusing solely on providing personal financial services in the UK, announced at its annual results in February 2003."

  • ABI supports Government proposal for company reports

    9 Aug 2004

    The Association of British Insurers is supporting Government proposals to require listed companies to produce an enhanced operating and financial review including details of issues such as environmental and social ones which have material impact on long term shareholder value.

  • AILO launch overseas tax guides

    4 Aug 2004

    The Association of International Life Offices has launched a range of tax guides to help intermediaries with clients moving or working abroad.It has issued eleven short, 'easy to use' guides outlining the taxation laws in favourite immigration destinations, both for work or retirement.These include European hotspots such as France, Italy, Portugal and Spain, as well as Bahrain and United Arab Emirates.In addition AILO has produced a further guide designed to help intermediaries ...

  • Alliance & Leicester - Low Start Discounted Rate Mortgage - Standard Package

    6 Aug 2004

    Type: Discounted rate tracker mortgageDiscounted term: Two yearsDiscount: 2.8%Payable rate: 3.79%Tracker term: One yearTracker rate: 1.25% above Bank of England base rateMinimum loan: £25,000Maximum loan: Up to 95% of valuation subject to a maximum of £250, up to 90% of valuation subject to a maximum of £500,000, up to 85% of valuation subject to a maximum of £1mIncome multiples: ...

  • Alliance & Leicester International appeals to the safety conscious

    4 Aug 2004

    Alliance & Leicester International has introduced a second issue of its capital guaranteed growth bond.This offshore guaranteed equity bond is linked to the FTSE 100 index for five years and six months. A full capital return is provided regardless of the performance of the index and investors will also receive the greater of 25 per cent growth on their original investment or 70 per cent of the growth in the index.To calculate the final return, the closing level of the index ...

  • Alliance wraps up first step to investment

    9 Aug 2004

    ALLIANCE TRUST SAVINGSFirst StepsType: Wrap account for childrenAim: Growth and income by investing in investment trusts, Oeics, unit trusts, exchange-traded funds, UK listed equities, UK government gilts, debentures and loan stocks and cashMinimum investment: Lump sum £50, monthly £50Income facility: YesInvestment choice: Client's choice of Alliance Trust, Second Alliance Trust, and other permitted ...

  • Analysts say Santander bid will not spark Euro consolidation

    10 Aug 2004

    Analysts believe Banco Santander's bid for Abbey National is unlikely to spark a wave of pan-European consolidation. Hiscox Investment Management financials fund manager David Astor says in his latest fund fact sheet that the recommended bid by Santander for Abbey is unlikely to herald consolidation. Whilst it has put pressure on Santander's shares in the short term, the bank has a good restructuring record and the move could prove to be a bold one according to Astor. But he ...

  • Arrears and repossessions fall despite rate rises

    5 Aug 2004

    Mortgage arrears and property repossessions fell in the first half of this year, according to CML figures. Only 3,240 properties were repossessed in the first half of the year compared with 4,230 in the first half of 2003 and 3,660 in the second half of last year. In 1991, a total of 75,000 homes were repossessed. The number of mortgages in long-term arr-ears is falling, with 39,740 cases of arrears of more than six months at the end of June compared with 42,480 for the ...

  • Assureweb's free deal hots up annuity battle

    5 Aug 2004

    IFA portal Assureweb says it is taking market share from rivals with its free annuity quote service. It claims its policy of no additional charges for its comparative quote services is winning over users from other portals. Users of rival service The Exchange pay for annuity quotes, either in monthly £18 instalments or £1.50 per quote, depending on how much annuity business they do. Assureweb says interest has been strong in the second quarter of this ...

  • Axa boost bond with external funds

    4 Aug 2004

    Axa is expanding the options available within its investment bond wrapper by allowing access to 80 external funds. Through the premium select bond, investors will be able to access managers such as Fidelity's Anthony Bolton, Jupiter's Anthony Nutt and Gartmore's Roger Guy as well as the 20 Axa-run funds already available. Axa chose the funds from a list compiled by Old Broad Street Research.

  • Axa boosts bond with external funds

    5 Aug 2004

    Axa is expanding the options available within its investment bond wrapper withaccess to 80 external funds. Premium select bond clients will be able to invest in funds from Fidelity, Jupiter and Gartmore as well as 20 Axa funds. Axa chose the funds from a list compiled by Old Broad Street Research.

  • B&B finalises the short list of Charcol bidders

    5 Aug 2004

    Bradford & Bingley is understood to have had bids for Charcol from estate agencies Countrywide, Spicerhaart and property valuation service Direct Valuations. B&B announced in May it is selling its mortgage broking arm Charcol as well as its surveying arm and estate agency operations and is believed to be keen to offload all the companies to the same bidder. The short list of candidates drawn up by adviser Goldman Sachs could be as few as five. Most of ...

  • Bankhall concern over AR lethargy

    9 Aug 2004

    Bankhall is warning mortgage firms intending to apply for appointed representative status that time could be running out.Bankhall is concerned some firms are failing to appreciate they must complete a formal application process with their chosen network and that this can take several weeks as the network must obtain FSA approval for that firm to join.Group sales director Shaun Godfrey says: "I would urge any firm that's going down the AR route to get a move on. One firm ...

  • Base Rate has peaked says Isis

    9 Aug 2004

    Last week's 25 point Base Rate hike to 4.75 per cent by the Bank of England's Monetary Policy Committee will mark the peak of the rate cycle with interest rates staying flat for the rest of 2004, according to ISIS chief economist Steven Andrew. He believes that, by November, evidence of a slowing in the economy will be much more compelling.Andrew says: "The continued decline in mortgage approvals suggests that the public appetite for taking on more debt is at ...

  • Base rate increased to 4.75 per cent

    5 Aug 2004

    The Monetary Policy Committee voted today to increase the base rate to 4.75 per cent from 4.5 per cent.

  • Boffey becomes NU Healthcare MD

    4 Aug 2004

    Graham Boffey has been promoted to managing director of Norwich Union Healthcare this week, replacing Cathryn Riley who becomes executive chairman. Boffey joined NU in 1998 from Barclays Bank. He was NUI's partnership director for two years and secured several key deals including a partnership with Asda. He has also held the positions of head of group purchasing, director of purchasing and director of claims and purchasing. Boffey is replaced by David McMillan who was NUI's director ...

  • Boffey becomes NU Healthcare MD

    5 Aug 2004

    Graham Boffey has been promoted to managing director of Norwich Union Healthcare, replacing Cathryn Riley who becomes executive chairman. Boffey joined NU in 1998 from Barclays Bank. He has been NUI's partnership director for two years and secured several key deals, including a link-up with Asda. He was previously head of group purchasing, director of purchasing and director of claims and purchasing. Boffey is replaced by NUI director of retail bank partnerships David McMillan.

  • Citigroup - Enhanceed growth Plan III

    5 Aug 2004

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £3,000-no maximum, Isa £7,000Term: Six yearsReturn: Option 1 - 105% growth in the index, Option 2 - 30% of original investment if index grows by at least 30 per cent in year three, otherwise 130% of growth in index at end of termGuarantee: Original capital returned in full regardless of performance ...

  • Citigroup links options to FTSE 100

    4 Aug 2004

    Citigroup is launching a FTSE 100-linked structured product offering different growth options and 100 per cent capital protection. Option one of the enhanced growth plan III offers investors 105 per cent of any rise in the index over six years, subject to final year averaging. Option two offers 130 per cent participation with an early redemption trigger - if, on the third anniversary of the start date, the index has grown 30 per cent, the plan will mature early.

  • Citigroup links options to FTSE 100

    5 Aug 2004

    Citigroup is offering a FTSE 100-linked structured product with two growth options and 100 per cent capital protection. Option one of the enhanced growth plan III offers investors 105 per cent of any rise in the index over six years, subject to final year averaging. Option two offers 130 per cent participation with an early redemption trigger if,on the third anniversary of the start date, the index has grown by 30 per cent.

  • Clerical Medical launches OEIC

    10 Aug 2004

    Clerical Medical is launching an OEIC which provides a choice of five funds, and which can be held as a straightforward OEIC or as an ISA.The funds are an income Fund, a distribution fund, a balanced managed fund, an international managed fund and a FTSE 100 tracker fund.Clerical says it has extensive plans to increase its OEIC presence with further fund launches in the future, particularly protected funds.Investment marketing manager Jon Baker says: "We have decided ...

  • Close Venture Management - Close Income & Growth VCT

    9 Aug 2004

    Type: Venture capital trustAim: Income and growth by investing in unquoted companiesMinimum investment: Lump sum £1,000Closing date: April 4, 2005Charges: Initial 5.5%, annual 2.5%Commission: Initial 2.5%, renewal 0.25%Tel: 0870 733 3773

  • Club together

    5 Aug 2004

    The fight for survival in the mortgage network arena has been hotting up over the past few weeks with three mortgage clubs banding together. Mortgage Next, Pink Home Loans and Mortgage Intelligence have formed a distribution agreement that pools their combined bargaining power with lenders by barring their competitors' appointed representatives from accessing any of their exclusive products. The move comes as smaller mortgage clubs and networks vie not only for market ...

  • CML rejects voluntary code for unregulated business

    5 Aug 2004

    The Council of Mortgage Lenders says it would not support a voluntary code of conduct for areas of the industry excluded from statutory regulation. Building societies are considering designing a voluntary code and are initially looking at a framework that could be adopted by packagers. Mortgage regulation will not cover packagers, buy to let or commercial property lending while home-reversion regulation could take another three years to put in place. Lenders ...

  • Cofunds and L&G alliance aiming to build on cost-effective platform

    5 Aug 2004

    Cofunds and Legal & General claim their new alliance will offer simplicity for distribution as the pension and investment markets converge. L&G retail investments director Simon Pistell says the alliance has come at an opportune time for the industry as it moves towards depolarisation, with platforms starting to dominate the IFA market. Pistell says the aim is to deliver cost-effective distribution to the retail market. L&G's onshore investment ...

  • Commentary

    5 Aug 2004

    The first thing to say is congratulations to the engaged couple. It takes a lot of faith and courage to propose and an equal amount of courage and faith to accept a course of action which is potentially life-changing. But why isn't the Institute of Financial Planning joining the party? Would it not benefit by being party to a merger? The IFP is a professional institute and is delighted to see any progression towards the stated objectives of each organisation to develop ...

  • Correspondent's Week

    5 Aug 2004

    As I work at the weekend reviewing the papers for the Headline Money website, I take Monday off. I must, however, go online and pay my tax bill. I have financed this by cashing in premium bonds. I now buy these during the year rather than putting "tax money" aside in a savings account with low interest. Of course, Ernie pays no interest but offers the prospect of a £1m prize. I have only won £50 so far but I am not disheartened. I go swimming and spend my day on domestic ...

  • Critical coverage

    5 Aug 2004

    First, many thanks to Money Marketing for the excellent coverage of our first critical-illness analysis. We have already had an excellent response from many of the providers who genuinely want to improve the proposition, both product and service, they offer to intermediaries, and ultimately clients. Many IFAs have also contacted us for a copy of the report and we are very grateful to all those who have expressed an interest. However, due to the financial and time constraints of ...

  • Darby resigns from B&B board

    6 Aug 2004

    Bradford & Bingley announced today that Ian Darby has resigned from the plc Board. He will however continue in his role as group commercial director to oversee the sale of the businesses B&B says are no longer core to its activities, as well as group PR and marketing activities.

  • Distribution chief Webb quits at Invesco Perpetual

    5 Aug 2004

    Invesco Perpetual head of distribution Mike Webb is leaving the group to seek other career opportunities following its decision to relocate the UK sales division to Henley-on-Thames. Webb, who oversaw the merger between Invesco and Perpetual in 2001, had been with the group for six years but was keen to remain in the City rather than move to Henley, where the bulk of Invesco's fund managers relocated last year. He is being replaced by Andrew Williams, who joined the group last ...

  • Exclusive Connections - GMAC Self Cert Tracker 1.15%

    6 Aug 2004

    Type: Light adverse self-cert tracker mortgageTracker term: Until September 1, 2005Tracker rate: 1.15% above Bank of England base ratePayable rate: 5.65%Minimum loan: £40,000Maximum loan: Up to 85% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £500,000Income multiples: Up to 3.5 times principal income plus second or three times jointConditions: ...

  • Exclusive Connections makes tracks

    10 Aug 2004

    EXCLUSIVE CONNECTIONSGMAC SELF CERT TRACKER 1.15%Type:Light adverse self-cert tracker mortgageTracker term: Until September 1, 2005Tracker rate: 1.15% above Bank of England base ratePayable rate: 5.65%Minimum loan: £40,000Maximum loan: Up to 85% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £500,000Income multiples: Up to 3.5 ...

  • F&C to take the lead on investment in merger restructure

    5 Aug 2004

    The giant pan-European group set to be created through the merger of F&C and Isis Asset Management will be shaped around nine investment desks reporting directly to chief investment officer Tony Broccardo. The new structure, revealed this week, will comprise desks covering global/US equities, fixed interest and emerging and Pacific equities. All of the above - the major investment areas - will be headed by F&C personnel while the dealing, strategy and governance & ...

  • Falcon sets up aggregator for high-end IFA market

    5 Aug 2004

    Falcon Group is targeting the upper end of the IFA market with the launch of a new aggregation company that plans to challenge Bankhall's dominant position. The company is called Financial Synergies and will aim at the 400 to 500 IFA firms with annual financial turnovers of between £500,000-£1m, offering them access to better terms from product providers and the potential to take an equity stake in the business. There are plans for a market flotation of the ...

  • Fangs for the memory

    5 Aug 2004

    The Sunday Times has once again sunk its fangs into the IFA community, suggesting they are ripping consumers off to the tune of £140m a year by pushing unsuitable investments upon an unsuspecting public. In suggesting that commission-based remuneration is inherently against the interests of consumers, the newspaper is guilty of over-simplification. Many investors prefer to pay their adviser through commission and to suggest otherwise is not recognising the reality of the ...

  • Former Equitable chiefs face misconduct charges

    5 Aug 2004

    Four former Equitable Life chief executives could be banned from the actuarial profession in disciplinary proceedings brought by the Institute of Actuaries. A disciplinary tribunal is set to hear charges of misconduct against Roy Ranson, Chris Headdon, Alan Nash and Barry Sherlock, who ran Equitable Life from the 1970s to its closure to new business in 2000. They are accused of a series of failures in the run-up to Equitable losing a House of Lords' ruling over guaranteed ...

  • FSA develops tool to assess product risk

    5 Aug 2004

    The FSA is developing a tool that will assess the risks of products being launched by firms. The product risk framework, which is being piloted and refined by the FSA, takes into account the characteristics and risks of products as well as the controls put in place on their marketing and the target audience. The regulator hopes the tool will identify products which require particular care if they are to be sold properly as well as providers which need special supervision. The ...

  • FSA gives advice a fitting chance

    5 Aug 2004

    Aifa has welcomed recognition from the FSA that there needs to be a link between generic advice and regulated advice. A paper this week from the FSA looks at advice in building financial capability. Aifa has been concerned that people getting generic advice would be left without information on how to contact an IFA. But the paper says there is a clear need to consider how regulated and generic advice fit together and interact. It asks if authorised advisers will be able ...

  • FSA revokes IFA's permission to trade

    4 Aug 2004

    The FSA has taken away Glasgow based IFA Allied Capital's permission to trade. The 2-RI firm failed to satisfy the FSA that it was conducting its business in compliance with proper standards. ACL failed to notify the FSA of a change of address of its principal place of business and pay outstanding fees of £9,670. It failed to satisfy the regulator that its affairs are, and will be, conducted soundly and prudently, and in compliance with proper standards.

  • FSA revokes IFA's permission to trade

    5 Aug 2004

    The FSA has revoked Glasgow IFA Allied Capital's permission to trade. The firm, which has two RIs, failed to satisfy the FSA it was conducting its business in compliance with proper standards.It failed to notify the FSA of a change of address of its principal place of business, did not pay outstanding fees of £9,670 and failed to satisfy the regulator that its affairs are, and will be, conducted soundly and prudently, and in compliance with proper standards.

  • Gartmore multi-managers say yes to UK income funds

    9 Aug 2004

    Gartmore's star managers Bambos Hambi and Marcus Brookes, who run its multi-manager proposition, have raised their investment in UK equity income funds. Hambi says that with this year's muted stock market returns, rising interest rates and with many companies having very healthy levels of dividend cover, dividends will form a greater proportion of overall return from shares.Both managers believe interest rates now look set to rise further than predicted, and they ...

  • Gary Potter and Robert Burdett

    5 Aug 2004

    CSAM's joint fund of fund chiefs enjoy a meeting of minds that has helped them grow business from scratch to £415m in just three years, with 98 per cent of assets in the top quartile. But despite mutual enthusiasms, like many successful partners, personal space is part of the mix bruce love Three years ago, fund of fund specialists Gary Potter and Robert Burdett left their successful portfolios at Rothschild Asset Management to launch Credit Suisse's fund of funds business, ...

  • GMAC-RFC complete £558 million in July 2004

    4 Aug 2004

    GMAC- RFC, has announced its highest ever monthly figures with completions totalling £558 million in July 2004. This increase was spread across all product areas as a result of the recent launch of its online automated decisioning system.GMAC-RFC head of marketing services Jeff Knight says:"like many other lenders, we are enjoying record new business volumes this year. In addition our online system has given us increased capacity and we are in a very strong position to do more. ...

  • GMAC-RFC complete £558 million in July 2004

    4 Aug 2004

    GMAC- RFC, has announced its highest ever monthly figures with completions totalling £558 million in July 2004. This increase was spread across all product areas as a result of the recent launch of its online automated decisioning system.GMAC-RFC head of marketing services Jeff Knight says:"Like many other lenders, we are enjoying record new business volumes this year. In addition our online system has given us increased capacity and we are in a very strong position to do more. ...

  • Guaranteed Home Loans receives MTA letter from FSA

    5 Aug 2004

    Guaranteed Home Loans receives its MTA letter from the FSA in the lead up to regulation on October 31.

  • Hargreaves Lansdown provides free access to pensions experts

    4 Aug 2004

    Hargreaves Lansdown has launched a pensions 'Open Day' so that investors can access advice from its team of pensions experts.Through a free pensions helpline operating from Saturday 7th August to Monday 9th August the experts will field calls on topics such as final salary schemes, state benefits, contracting out or buying annuity, - areas of pension planning which leave investors grasping for answers despite the government trying to simplify pensions.Hargreaves Lansdown ...

  • HBOS swoop for Abbey would take third of mortgage market

    5 Aug 2004

    The race to buy Abbey has intensified, with HBOS confirming that it may make a counter-bid for the company which has already agreed an £8bn offer from Spanish company Banco Santander Central Hispano. HBOS, the UK's fourth-biggest bank, told the Stock Exchange this week it was in the early stages of reviewing whether a "combination" with Abbey could be in the best interests of shareholders. The Edinburgh-based bank is believed to have instructed its lawyers to ...

  • Heading for a McFall

    5 Aug 2004

    The Diary believes the tables have been turned on Treasury select committee chairman John McFall, MP. Once the darling of the weekend business sections, McFall received a bashing following the publication of the TSC report on restoring confidence in long-term savings. Columnists who have characterised him as a firebrand Labour stalwart have begun to poke fun at his "loyalty" to the Chancellor. The TSC report lambasted the financial industry but carefully skates around ...

  • Healthsure - Healthsure One

    4 Aug 2004

    Type: Group healthcare cash planMinimum group size: 10Minimum premium: £1 a week single cover, £1.50 a week joint coverMinimum-maximum ages: 16-65Maximum benefits: Full cost of dental treatment within 12 months up to £50, £100 or £180 depending on level of cover, full cost of optical care within 24 months up to £50,£100 or £150, full cost of diagnostic tests within 12 months up to £100, ...

  • IFA Life connects adviser businesses

    5 Aug 2004

    Online networking club Ecademy has set up a new section, IFA Life, which allows IFAs to make connections with business colleagues. The service aims to provide a forum to bring financial advisers in contact with each other. IFAs can create a profile page which tells other members about their business and areas of expertise. IFAs can see who has been looking at their profile and can contact them online, by email or phone. IFAs can also publish their own articles ...

  • IFA's financial controller fined over share purchase

    5 Aug 2004

    The former group financial controller at IFA Berkeley Morgan Group has been fined by the FSA for market abuse in shares trading on Ofex - the first such action taken by the regulator. Michael Davies was fined £1,000 after he admitted using market information in the purchase of BMG shares. The FSA says Davies was given a draft copy of the chairman's statement on BMG's interim results. Having helped prepare the results, he knew BMG had returned to generating ...

  • IFAs comment on Millfield and Inter-Alliance merger

    6 Aug 2004

    IFAs believe there is still a lot of work to be done to improve the service model to be applied by Millfield after its merger with Inter-Alliance, according to feed-back.Origen director Barry Duffield says Millfield is a well recognised name and welcomes the move for Inter-Alliance which he says needs to get rid of its bad past, including its debts and start afresh. Duffield says: "Overall, I think this is a positive move. The sooner it could happen for Inter the better." Capital ...

  • IFP chief pledges to provide an alternative to CII

    5 Aug 2004

    The Institute of Financial Planning believes that an alternative to the Chartered Insurance Institute is needed and so it will not be party to the planned merger between Sofa and the LIA. If the merger goes ahead, then the LIA and Sofa will come under the banner of the CII but IFP president Campbell Edgar says the exam review and competition laws dictate that there should be an alternative to the CII. Writing in this week's Money Marketing, Edgar says although advisers ...

  • In the line of ire

    5 Aug 2004

    With the summer upon us, perhaps the financial services industry should spend the time on the beach mulling over the publication of the Treasury select committee's long-awaited report on Restoring Confidence in Long-term Savings. The report is much more positive about the industry than many had feared but its conclusions provide some dramatic implications for the coming year. Looking back at some of the industry's appearances before the select committee over the ...

  • Independent view

    5 Aug 2004

    I remember when I went out with a librarian in my youth. I was two days late with a birthday card and she fined me 50p Now that was a shock, not because of the amount - although in those hard times 50p bought a drink at the student union bar) but because it was so unjustified. That story does afford me the chance to re-engage with the value-for-money debate in financial services. Just occasionally, the issues prevalent in the world of financial services do stray a bit ...

  • Inter-Alliance name to go

    6 Aug 2004

    The merger between Inter-Alliance and Millfield will see the Inter-Alliance name fall by the wayside with the newly merged company to be called Millfield.

  • Investment view

    5 Aug 2004

    The last few months have seen a mass exodus from UK smaller companies funds. According to the IMA, £185m flew out of the sector in June, a marked increase from May's figure of £128m. The question is, why are UK smaller companies funds now the second most red-eemed portfolios when there have been no obvious catalysts for their sudden fall from grace? Smaller companies have outperformed strongly in the past 18 months and the UK economy, while not exactly flying, ...

  • Irish Permanent International - Buy-to-Let Discounted Flexi Tracker

    10 Aug 2004

    Type: Offshore discounted rate buy-to-let flexible tracker mortgageDiscounted term: Three yearsDiscount: Up to 75% of valuation - 0.49%, up to 65% of valuation - - 0.59%Payable rate: Up to 75% of valuation - 5.5%, up to 65% of valuation - 5.4%Tracker term: Lifetime of loanTracker rate: 1.24% above Bank of England base rateMaximum loan: Up to 75% of valuation subject to no maximumIncome ...

  • Isis profits boosted as it looks to F&C merger

    5 Aug 2004

    Isis Asset Management has seen strong half-year results following its reverse takeover of fund firm F&C. Isis' interim results for the six months to June show that group profits rose to £15.6m from £11.4m in the first half of 2003. Isis, which is majority-owned by Friends Provident, is merging with F&C this year to form the UK's fourth-biggest fund management group. The comb- ined group will be called F&C, with Friends owning 51 per cent. Isis ...

  • Japan star Balfour moves to Framlington

    5 Aug 2004

    Framlington has recruited Baillie Gifford star manager Anja Balfour to replace Japan fund manager David Mitchinson following his recent defection to JP Morgan Fleming Asset Management. Balfour, a Japan specialist for more than 12 years, has been part of a team at BG which has achieved top-quartile performance over one, two and three years. She is believed to have been offered equity participation at Framlington, which has made a name for itself in the past two years for poaching ...

  • Julian Gibbs

    5 Aug 2004

    Membership of Lloyd's has become unfashionable because of losses on asbestos claims and the attack on the World Trade Centre. However, I believe it is now time to go back into Lloyd's because insurance premiums have risen dramatically and are likely to remain high, although perhaps a little lower than at present. It is now possible to join Lloyd's immediately through Hampden Agencies, the first FSA-authorised Lloyd's members' agency to facilitate the trade of limited ...

  • LIA calls for review of trail commission

    5 Aug 2004

    The LIA is urging the FSA to take a close look at trail commission after the Treasury select committee called for it to be scrapped. The committee last week labelled trail commission as unacceptable in its current form and called on product providers, IFAs and the regulator to limit the basis on which it is paid. It also wants to ensure that payments only occur when a client is receiving annual advice. LIA head of public affairs John Ellis believes the committee is right ...

  • LIA's VIEW

    5 Aug 2004

    It was encouraging to read in Money Marketing that about a quarter of IFAs have found PI cover which conforms to the IMD. This is an issue about which some of us have been pushing for a good deal of time and it is heartening to think our words are having some effect. I believe IFAs who run the risk of trying to put in place the uplifted level of cover at the end of the year will face severe problems and cost increases. My advice is act now. It is good to have positive ...

  • Lifelink receives its MTA letter from the FSA

    4 Aug 2004

    Lifelink Services has received its minded to approve letter from the FSA.

  • Lighthouse targets benefits in deal with Personal Group

    5 Aug 2004

    Lighthouse is bidding to enter the employee benefits market through a strategic agreement with Personal Group. A new division, Lighthouse Corporate Benefits, will initially have 50 advisers who will focus on developing corporate business with Personal Group. They will have access to Personal Group products including its benefits software system. Personal Group, which provides employee benefits including flexible and voluntary benefit schemes to 250 major corporate clients ...

  • Martin Currie - Martin Currie Daijiro Absolute Return Fund

    9 Aug 2004

    Type: Hedge fundAim; Growth by investing long and short in Japanese equitiesMinimum investment: $100,000Investment split: 100% in Japanese equitiesPlace of registration: DublinCharges: Annual 1.5%Commission: Subject to negotiationTel: 0808 1002125

  • MCCB fears firms lack PI cover

    5 Aug 2004

    The Mortgage Code Compliance Board is concerned that a significant number of mortgage firms do not hold sufficient PI cover. It says the FSA has noticed in processing regulation applications that some mortgage firms do not understand the amount of PI cover they need. Some firms only cover themselves for mortgage business and not general insurance. The MCCB says that firms doing both mortgage and general insurance business will need PI cover of at least €1m per claim, ...

  • Merged company will be largest IFA - Tebbutt

    6 Aug 2004

    Millfield chief executive Paul Tebbutt says the new Millfield Group will be the largest national independent financial adviser in the UK.He says: "We are extremely excited about the opportunities that are facing us. We are creating a financial services distribution company with the scale, financial resources, technology and team required in the new economic, political and regulatory environment in which we now operate."

  • Millfield and Inter secure £15m funding

    6 Aug 2004

    Up to £15m of funding has been secured by way of loans for integration and working capital purposes for the Millfield and Inter-Alliance merger from five leading financial institutions - AXA Sun Life, Friends Provident Life and Pensions, Prudential UK Services, Scottish Widows and Skandia Life Assurance.

  • Millfield and Inter-Alliance merge

    6 Aug 2004

    Millfield and Inter-Alliance will merge forming the UK's largest national IFA with 1850 advisers. The merger offer is being made on the basis of 5 new Millfield Shares for every 236 Inter-Alliance Shares valuing each Inter-Alliance Share at 1.25 pence and the entire issued and to be issued share capital of Inter-Alliance at approximately £11.35 million.

  • Mortgage Data adds MTE software

    5 Aug 2004

    Mortgage network Network Data is integrating platform Mortgage Trading Exchange technology into its mortgage sourcing system. The Mortgage Link system currently used by Network Data's members allows them to search through mortgage products and select the most appropriate one for a client. The additional software from MTE will allow brokers to complete applications online and email them direct to lenders' back-office systems.

  • Mortgage EDGE: Andy Yung

    5 Aug 2004

    Increased regulation and lower margins have been squeezing the life and pension industry for many years. Consolidation is a reality of today's market. With mortgage regulation looming large on the horizon, are we about to see our industry follow suit? Exclusive mortgage schemes are negotiated with lenders on terms that are available only through that distributor. At first glance, the dec-ision by three mortgage clubs to share their exclusives may appear tactical but it is symptomatic ...

  • Mortgage Edge:Sally Laker

    5 Aug 2004

    Mortgage Intelligence, Pink Home Loans and Mortgage Next have announced an agreement to share their exclusive direct-to-lender products through each others' appointed representatives only. This move will benefit our respective members in several ways. The reason for this announcement is twofold. First, all three networks feel a likeminded synergy in providing a solution that meets the requirements of experienced mortgage brokers. Pre-regulation, most intermediaries ...

  • Mortgage industry is next target for probe by MPs

    5 Aug 2004

    The Treasury select committee is to turn the spotlight on the mortgage industry in its next Parliamentary session. Money Marketing understands the committee is planning to meet with senior FSA officials for an update on the number of mortgage brokers which have applied for authorisation and the speed of processing of applications ahead of regulation. Industry representatives from organisations such as the Association of Mortgage Intermediaries are likely to come under ...

  • Mortgage versus life cover gap widening - Egg

    10 Aug 2004

    Research released by online Egg shows the gap between the nation's level of mortgage life cover and their outstanding debt has stretched to £113bn, almost 15 per cent of the UK's total mortgage debt. Egg attributes this to the sharp rise in loans to householders looking to access further equity in their properties.According to the survey, three out of four advance loans fail to have any insurance attached to them. Egg chief operating officer Mark Nancarrow says: ...

  • MS signs deal with Canadian lender CIBC

    9 Aug 2004

    Marlborough Stirling has sold its Omiga point-of-sale, application processing and customer management solution to the Canadian Imperial Bank of Canada, one of that country's leading mortgage lenders. MS' Optimus system, a mortgage business management solution, was already being used for back office administration by CIBC and is now being combined with Omiga to provide an end-to-end mortgage solution which it says will significantly reduce origination and servicing costs. ...

  • Nationwide - Three Year Fixed Rate

    10 Aug 2004

    Type: Fixed-rate mortgageFixed term: Three yearsFixed rate: Up to 95% of valuation - 6.19%, up to 90% of valuation - 5.69%Minimum loan: £1Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £700,000, up ...

  • Network Data adds MTE software

    4 Aug 2004

    Mortgage network Network Data is integrating platform Mortgage Trading Exchange technology into its mortgage sourcing system. The Mortgage Link system currently used by Network Data's members allows them to search through thousands of mortgage products and select the most appropriate one for their client. The additional software from MTE will allow brokers to complete applications on line and email them direct to lender back office systems.

  • Northern Rock launches new ISA

    6 Aug 2004

    Northern Rock has launched a new ISA. Available as a mini cash ISA or as a TESSA only ISA, with a minimum opening balance of £500, the interest rate will be fixed until 15 August 2008. Northern Rock says the ISA combines the benefits of tax free savings with the peace of mind of a fixed rate. The four year fixed rate of 6 per cent gross per annum compares well with Derbyshire (at 5.50 per cent) and Halifax (at 5.45 per cent).

  • Norwich Union Healthcare - Global Care, Global Care Plus

    5 Aug 2004

    Type: International private medical insuranceUpdate: Global HR Assistance service added to corporate plansTel: 0845 3000 649

  • NU introducing online underwriting

    5 Aug 2004

    Norwich Union is offering online underwriting for term insurance and mortgage life insurance. Instant Decision Online, which starts operations this week, allows IFAs to choose to use virtual underwriting or NU's underwriting support service, depending on the type and complexity of policy being placed. Features of the service include standardised questions to help with multiple applications. NU has included common disclosures such as high blood pressure and asthma in ...

  • Nvesta nets income investors

    9 Aug 2004

    Structured product provider Nvesta has introduced a second issue of the safety net income plan, a capital protected bond which aims to pay out 5.6 per cent a year net of basic rate tax. This is the equivalent of 7 per cent gross for basic rate taxpayers or 9.13 per cent for higher rate taxpayers.The bond is linked to the FTSE 100 index for five-years and investors will get a full capital return unless the index falls by more than 40 per cent and fails to recover to at least its ...

  • Opportunity knocks

    5 Aug 2004

    I am grateful to Swiss Re for allowing me to draw on its excellent insurance report to write this and next week's articles. The findings of the report are based on surveys of over 1,000 consumers (quantitively) and 100 consumers (qualitatively). I have summarised some of the findings and identified a business opportunity related to each of them. While the summaries are founded on Swiss Re's findings, the opportunities specified are all my own work, so to speak. •In ...

  • Out in the cold

    5 Aug 2004

    From the perspective of last weekend, a further rate rise from the monetary policy committee looked inevitable. Indeed, by the time you read this, you may already have learned the outcome of their deliberations. Nationwide Building Society suggests that, far from slowing, the housing market is continuing to race away and with personal debt passing the £1trn mark for the first time, the Bank of England has every reason to feel concerned that its modest tightening of monetary ...

  • Out of context

    5 Aug 2004

    •"You turn up to the party conference twice and they think you're one of them" - Jackson Consultancy director Ralph Jackson fends off young Tories. •"Thankfully, I found out I do not have a criminal record." - TMB managing director Bill Dudgeon on collecting information for his application for the FSA minded to authorise letter. •"The thing is, it's even worse than it sounds." - KPMG PR Mike Davies about the prospect of spending the afternoon in an ...

  • PI Direct and Saturn merge

    6 Aug 2004

    PI Direct is merging with Saturn Professional Risks through the creation of a new holding company which will be owned by the management of both companies and by new investors Penta Capital.Both companies will continue to operate independently but they say that the new group is now effectively the largest specialist PI underwriting agency in the UK with combined gross written premium of £55m.PID chief executive Michael Wood says: "The combination of our two companies ...

  • Planning appeal

    5 Aug 2004

    A month ago I talked of the conflict between the generally held view that protecting families involves a simple purchase of cover and IFAs' view that advice is vital in making proper decisions. Richard Verdin has since highlighted the advantages of family income benefit, which is surely never sold without advice. So all advisers agree consumers are better off with advice. As no one else believes us, let us try and prove it. I think we can. In areas such as investment management, ...

  • Platform appoints heads of new business

    10 Aug 2004

    Platform, the intermediary lender for Britannia Building Society has appointed Carlo Garguilo and Jason Finch to the position of head of new business.Garguilo has been the case manager at Platform and more recently, the new business manager. In his new position, he will be managing and developing the branded team and mobile/onsite underwriters.Finch joins from Peterborough Building Society where he was head of underwriting for residential mortgages. He will be responsible ...

  • Policy Portfolio & Beale Dobie to stop trading

    4 Aug 2004

    Traded endowment policy providers Policy Portfolio and Beale Dobie have announced that having reviewed the future potential of the TEP market, they no longer intend to purchase endowments.In time both Policy Portfolio and Beale Dobie will withdraw from the market and will no longer trade as TEP market makers. The two companies will continue to sell policies to their current clients, and both companies will continue to administer TEP funds.

  • Premier offers early exit

    6 Aug 2004

    Premier Fund Managers has brought out the Premier growth plan - limited editions no 21. This is a FTSE 100 linked capital-protected bond which has the potential to mature each year during its six-year term.Investors get a full capital return unless the FTSE 100 index falls by more than 50 per cent and does not recover to at least its initial value. It will mature early each year if the index has stayed the same as its initial value or has risen at that particular anniversary. ...

  • Prestbury lifts turnover but sees losses double

    5 Aug 2004

    Losses for Aim-listed IFA Prestbury Holdings more than doubled for the six months ending April this year despite turnover rising by 41 per cent. The company increased turnover to £2.7m from £1.9m in the same period of the previous year and gross profits grew from £494,000 to £900,000. However, admin expenses of £2.1m pushed Prestbury into a loss of £1.25m compared with a loss of £494,000 in the previous year. Prestbury issued ...

  • Product Matters

    5 Aug 2004

    Having seen good returns from overseas property, many high-net-worth individuals are seeking exposure to new areas. Bulgarian Property Developments plc is a fund investing in Bulgarian residential property and will be geared 50-75 per cent with the intention of being quoted on Aim or Ofex. Bulgaria is a politically stable state which is not reliant on old heavy industries. It is well sited on the main trade route from Europe to the Middle East and enjoys access to the ...

  • Pru calls off Egg auction

    5 Aug 2004

    Prudential has ended discussions on a possible auction of its 79 per cent shareholding of online bank Egg. Pru's board believes this will be in the best interests of its shareholders, saying Egg has the potential for significant growth in value. Egg is refocusing business on UK operations and closing its business in France.

  • Pru doubles IFA salesforce to target big regional firms

    5 Aug 2004

    Prudential is reaffirming its commitment to the IFA market by doubling its IFA salesforce and increasing its coverage of big regional firms. The Pru reviewed its capacity in the IFA market towards the end of last year and found that with a salesforce of 55 broker consultants and five sales managers, it had substantially less support available for IFAs than other life offices which have up to 300 IFA sales staff. The need to offer more support to big regional IFAs was ...

  • R&SA shuts book on life business with £850m deal

    5 Aug 2004

    Royal & Sun Alliance has sold its closed UK life business to Resolution Life Group for £850m in a deal marking the final stage of R&SA's exit from the life and savings industry. Resolution, which is backed by the investment arm of the Fleming family and Nikko, is paying £750m in cash and £100m in preference shares for the business, which comprises four funds with £24bn in assets. The move will release between £500m-£650m of capital, ...

  • Raising the standards' issues

    5 Aug 2004

    Moves to create data standards for electronic trading in the mortgage industry raise some significant questions for the mortgage market and the personal finance industry. The founder of not-for-profit standards holder Mides (Mortgage Industry Data Exchange Standards) has said it wants to promote a debate about open data standards for the mortgage industry. It is essential there is forthright examination of all the options. The timing of this announcement is interesting ...

  • Scale and independence key - Carby

    6 Aug 2004

    Inter-Alliance chairman Keith Carby says scale and independence are two of the key ingredients that are essential to be able to deliver value and service for stakeholders.Carby says: "The joining of Millfield and Inter-Alliance will be the single biggest merger that has happened in distribution. We are delighted with the support the merger has received from these five leading product providers which is a further endorsement of our strategy and the excellence of our people. We unanimously ...

  • ScotProv cuts protection premiums as IFAs consider effects of takeover

    5 Aug 2004

    Scottish Provident is cutting premiums on many of its life cover and critical-illness Self-Assurance plans from next week. The average fall in monthly premiums is £2.55, with people over 40 and longer-term policies seeing the biggest reductions. A male non-smoker aged 40 next birthday taking out a critical-illness policy with £100,000 sum assured with guaranteed rates on a 20-year term will now pay £55.72 a month, down from £57.92. Cover is ...

  • Scottish Widows - Guaranteed Investment Bond

    4 Aug 2004

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £2,000-£100,000Term: Five yearsReturn: The greater of 10% of original investment or up to 40% growth at end of termGuarantee: Original capital returned in full along with 10% growth at end of termClosing date: September 26, 2004Commission: Initial 3%Tel: 0845 843 2222

  • SimplyBiz firms get Euro PI cover with no increases

    5 Aug 2004

    Support services provider SimplyBiz is claiming a victory for small IFA firms over the EU on professional indemnity insurance. The tide has turned for the group that struggled to get PI cover after its launch in December 2002. Now 400 of its 590 firms have got PI renewal from August that is fully compliant with the insurance mediation directive and 99 per cent have seen no increase in their premiums. The excesses have also remained low at £3,000 for firms with ...

  • SLI and Wilshire offering Mom pension funds

    5 Aug 2004

    Standard Life Investments is offering a range of manager of manager pension funds with US giant Wilshire Associates. The funds are available through SLI's trustee investment plan and personal pension investment plan contracts. The new range provides access to a Mom-balanced managed fund and seven und-erlying funds covering a variety of assets. Wilshire will select managers to form blended portfolios for the underlying asset classes, with the exception of property ...

  • Sofa meetings will give non-voters chance to make their views known

    5 Aug 2004

    Money Marketing has reported that as much as half of the Sofa membership is unable to vote in the decision about whether or not to merge with the LIA. It is correct that those certified members of the society (the ones without AFPC qualifications) do not have the vote and, under the constitution of the society, that has always been the case. To change that now would require a further EGM ahead of the EGM due to take place on October 15 and that is simply not a practical ...

  • Sofa says non-voters' views will be heard at roadshows

    5 Aug 2004

    All of Sofa's members will get a chance to air their views on the proposed merger with the LIA through a series of meetings planned for September. As revealed in Money Marketing two weeks ago, only AFPC-qualified members of Sofa will be able to vote on whether the merger should go ahead, which means that half of Sofa's membership who only have the FPC qualification are excluded from the ballot. But Sofa chairman Nick Bamford says Sofa is planning a series of meetings ...

  • Standard Bank Offshore sets up index trio

    10 Aug 2004

    Standard Bank offshore has created equity growth deposit 4, a guaranteed equity bond that is linked to the FTSE 100, S&P 500 and Nikkei 225 indices for four years.The bond is available in two currencies and the minimum investment is £10,000 or $20,000. Investors receive a full capital return regardless of the index performance. In addition, sterling investors get 100 per cent of the average growth across the indices while dollar investors get 75 per cent of this growth.To ...

  • Standard bonus rate cuts wipe out windfalls

    5 Aug 2004

    Standard Life has cut payouts for with-profits policyholders for the sixth time in two years. Payouts on maturity and retirement will fall by around 8 per cent, following a 7 per cent cut in February. Standard, which plans to shed its mutual status and float on the stockmarket in two years following a strategic review, warns that further cuts for policyholders are likely, with rates to be reviewed again in six months. If Standard demutualises, the average windfall ...

  • Status of affairs

    5 Aug 2004

    I am rapidly approaching my 60th birthday, having taken early retirement from the civil service. I live most of the year in the US but travel back home to the UK for long visits to my family. I have an investment portfolio of £220,000 and receive a widow's pension and a civil service early retirement pension. How does the Inland Revenue work out whether or not I am subject to UK tax and how does this affect how my pension and investment income is taxed? An individual's ...

  • Sun rises on Martin Currie Daijiro

    5 Aug 2004

    Edinburgh fund manager Martin Currie has announced details of its forthcoming Daijiro absolute return fund.This will be Martin Currie's seventh hedge fund and the second Japanese fund. The name Daijiro, meaning vibrant second son, reflects its aggressive position in relation to the existing Martin Currie ARF Japan fund, which is more conservative.The new fund aims to deliver a target return of 20 per cent a year. It will contain between 20 and 30 long holdings and will ...

  • Surrenda-link backs TEPs as competitors pull back

    9 Aug 2004

    Surrenda-link says it sees positive business growth for the traded endowment market despite Beale Dobie and Policy Portfolio's announcement that they are no longer buying endowment policies.Surrenda-link chief executive Paul Sands says: "The outlook for Surrenda-link's current TEP business is bright and together with the progress in other market areas, the prospects are excellent. Over the last few months the returns on with profits have become more positive, which is excellent ...

  • Swiss Life looks at group risk sell-off

    5 Aug 2004

    Swiss Life is thought to have appointed an investment bank to offload its closed group risk business for up to £250m. The firm is believed to have asked JP Morgan to sell its group protection business this autumn. A move in January to sell the division to Unum Provident was abandoned after it was referred to the Competition Commission and an admin deal was brokered with Unum. Resolution Life, headed by group chief executive Clive Cowdery, has been suggested as a ...

  • Talkback

    5 Aug 2004

    Do you agree with the FSA's decision to go back to the drawing board on its plans for reforming the with-profits sector, as announced last week? "No, I wish the FSA would leave investment decisions to investment experts." Iain Macmillan,Macmillan Financial Services "Yes, the matter should be considered thoroughly." Peter Bottomley, Bridgwater Leach & Co "No, with-profits is now dead in the water and there is little merit in revisiting it." Grahame ...

  • The MTA list

    5 Aug 2004

    Life company networks that have received their MTA letter Friends Mortgage World, Legal & General, MGM Assurance Life company networks that have not yet received their MTA letter Axa Assurance, Zurich IFA networks that have received their MTA letter Bankhall, Banking-Insurance Services, Burns Anderson, Berkeley Wodehouse Associates,IN-Partnership, Interdependence, Lighthouse IFA, Mint, M&E Network, Park Row, Personal Touch Insurance, Sage Financial, Sesame IFA networks ...

  • Thinc Mortgage Solutions receives its MTA letter from the FSA

    6 Aug 2004

    Thinc Mortgage Solutions, the IFA network has received its minded to approve letter from the FSA.Thinc Mortgage Solutions has also recruited a number of former Charcol advisers as part of its rigorous recruitment strategy. As part of its restructuring, Thinc Mortgage Solutions will shortly becoming a trading style of Thinc Financial Planning, its wholly owned IFA subsidiary.

  • Two-thirds of packagers looking to branch out after M-Day

    5 Aug 2004

    Less than one-third of mortgage packagers questioned by Imla expect packaging to remain their sole form of business after M-Day on October 31. Imla's survey of a cross-section of packagers found that 39 per cent plan to split their operations between a pure packager and an authorised broker while 30 per cent want to remain as pure packagers. Thirteen per cent expect to become mortgage brokers while 18 per cent are looking to become networks. Of those firms ...

  • Verity's view

    5 Aug 2004

    The Treasury select committee published a report last week which was evidently intended to be a damning indictment of the financial services industry. It set out a "catalogue of problems" which had contributed to a "damaging lack of confidence" in the industry, which in turn had had such far-reaching effects that the public are now more inclined to trust a supermarket than a bank. Well knock me down with a feather. Given the title of the document, Restoring Confidence ...

  • We foresaw the problems

    5 Aug 2004

    Unfortunately, Mr O'Halloran (Money Marketing, June 3) appears to continue within the world of rose-tinted spectacles. The majority of life insurance savings plans connected to mortgages do not, nor have not, shown evidence of reaching maturity. In my book, for the common man, endowment policies stopped being attractive packages for savings of any type in 1984. Indeed, perhaps that is why, years before the present carnage in the with-profits industry, we published ...

  • What will be costa Abbey takeover?

    5 Aug 2004

    News that banking giant HBOS appears set to bid for rival Abbey would seem to have as little chance of success as Lloyds TSB's similar attempt in 2001. HBOS is significantly bigger than Lloyds and competes head-on with Abbey in key markets, not least being mortgages where the two are the biggest and second-biggest players. The Competition Commission said no to Lloyds on the grounds of high-street branch concentration and if James Crosby pushes ahead, it would seem likely to ...

  • Willetts warning of staff pension void

    5 Aug 2004

    Shadow Work and Pensions Secretary David Willetts claims that thousands of people could fall through the Government's pension safety net if their occupational schemes collapse in the next 12 months. Willetts warns that victims could fall into a hole between Government compensation for workers whose schemes have already gone bust and the introduction of the pension protection fund in April 2005. He has written to Work and Pensions Secretary Andrew Smith, asking him ...

  • With-profits profits from FSA's rethink

    5 Aug 2004

    The reform of with-profits appears to be a particularly difficult nut for the FSA to crack, having started over three years ago and with consultation now set to continue for a further three months. The with-profits review was first announced in February 2001. Three years later, the latest consultation paper, published in December, CP207: Treating With-Profits Policyholders Fairly, provoked a significant response from the industry, much of it negative, which prompted the regulator ...

  • Xit2 software will help compile sellers' packs

    5 Aug 2004

    Mortgage technology provider Xit2 has designed software to help intermediaries put together sellers' packs for clients. Managing director Paul Duckworth says the problem with designing marketwide technology for home information packs is that they are likely to be produced from many sources, including estate agents, lenders, solicitors and big intermediaries. Hips will have to be produced for many property transactions and will include a variety of documents covering ...

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