Money Marketing
4 February 2004

  • ...as figures show IFAs' good record

    5 Feb 2004

    Only 461 of 4,191 complaints made against IFAs reached an ombudsman, internal Financial Ombudsman Service figures have revealed. Once in front of an ombudsman, IFAs' chances are 50:50, with 231 of the 461 cases finding against the IFA. FOS head of communications David Cresswell says 1,676 cases last year were settled in conciliation, recording no outcome. Of the 2,053 that were resolved in adjudication before an ombudsman having to intervene, 1,416 - 69 per cent - were found ...

  • ...but CA says watchdog is undermined...

    5 Feb 2004

    The Consumers' Association has come out strongly against any appeal on FOS decisions. CA senior policy adviser Mick McAteer, speaking out against IFA trade bodies lobbying for an appeal process, says any additional appeal would further undermine consumer confidence. He says the investigation into whether the FSA can take cases off the FOS if they have industrywide implications undermines the ombudsman. McAteer says: "The FOS is the one part of the system that ...

  • 1.5% CTI cap a good start but industry not off the hook yet

    4 Feb 2004

    The Treasury's announcement of a 1.5 per cent price cap for its Child Trust Fund shows it has recognised low cost products are no use to consumers if industry the cannot afford to produce them, financial services specialist consultancy Beachcroft Wansbroughs has said.Beachcroft Wansbroughs Consulting managing director Richard Hobbs says this is a good step but it remains to be seen whether Treasury will follow this logic through for other stakeholder products. Hobbs ...

  • Abbey loan chief goes to Lighthouse

    5 Feb 2004

    Lighthouse has poached the head of Abbey's newly relaunched mortgage club, Mark Evans, to head its new mortgage offering Lighthouse Loans. Lighthouse's move into the mortgage market will white-label Abbey's The Mortgage Alliance as Lighthouse Loans. It plans to roll out the offering to its advisers first, 160 of whom are qualified mortgage brokers. It will then look to target 200-250 external mortgage brokers to join its network. Evans will take on the role of ...

  • About Face

    5 Feb 2004

    Over the past 18 months, Positive Solutions has been approached by providers and advisers alike asking the question: "Do you do non-regulated or ABI code product sales?" In other words, things such as term and mortgage term through a non-regulated agency. Our answer has always been no. Clearly, this is against the trend. Some pro-viders have even said we are foolish or missing out. Our explanation for refusing to touch this type of business is based on several factors, some of ...

  • Accountants feel the chill

    5 Feb 2004

    Financial services industry workers feeling the pressure should maybe take a leaf out of chilled accountants BDO Stoy Hayward, which is offering staff yoga classes in company time. Getting colleagues into the lotus position every Friday morning at the firm's Baker Street ashram is guru Emma Howard, stret-ching the sinews of her work chums into the sun salutation, the downward dog and the warrior. "Staff are already reporting that they are feeling physically stronger ...

  • Aegon rethinks network of ScotEq sales centres

    5 Feb 2004

    Aegon UK is replacing its 28-branch network with 17 enlarged sales centres for the distribution of Scottish Equitable products to IFAs. The company says the new system - which will be put in place in the first half of this year - will be better suited to the new sales environment of fewer, bigger firms as the IFA sector consolidates. The national network will be complemented by an enhanced role for ScotEq's call centre operation - IFA Access. IFA Access, which ...

  • Axa Investment Managers - UK Corporate Bond Fund

    4 Feb 2004

    Type: OeicAim: Income and growth by investing mainly in investment-grade UK corporate bondsMinimum investment: Lump sum £1,000, monthly £50Investment split: 100% corporate bondsIsa link: YesPep transfer: YesCharges: Initial 5%, annual 0.75%Commission: Initial 3%, renewal 0.5%Tel: 020 7003 1234

  • Axa serves and protects

    5 Feb 2004

    AXA SUN LIFECapital Protected FTSE BondType: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £5,000-no maximumTerm: Five years and six monthsGuarantee: Original capital returned in full regardless of performance of indexReturn: Up to 77% growth at end of termClosing date: March 19, 2004Commission: Initial 3%Tel:01624643345

  • Axa targeting retail market with bond fund

    5 Feb 2004

    Axa Investment Managers is introducing a new UK corporate bond fund managed by Neil Sutherland. Axa IM says it wants to bring its expertise in the European and UK institutional fixed-interest markets - where it currently has 19 research analysts managing £118bn of investments - to retail investors. The fund's overall aim is to provide a combination of income and capital growth by investing predominantly in investment-grade corporate bonds. Sutherland ...

  • Base rate increases by 0.25 per cent

    5 Feb 2004

    The MPC voted today to increase the base rate by 0.25 per cent to 4 per cent. The increase was widely expected by the market which is widely predicting further rate rises.Portman Building Society group development director Matthew Wyles says: "This rate rise comes as absolutely no surprise - fasten your seatbelts - there will almost certainly be further increases during 2004."Skipton Building Society chief executive John Goodfellow says: "Whilst we've seen a rate rise ...

  • BM Solutions sets up new BTL and sub-prime range

    5 Feb 2004

    Birmingham Midshires Solutions is offering a new range of loans for the buy-to-let and sub-prime markets. The buy-to-let range inc-ludes a three-year tracker at 5.25 per cent with no arrangement fee, refund of valuation and cashback. The maximum lending limit has been increased to £2.5m at 75 per cent loan to value and £1m at 85 per cent. The company's sub-prime range now includes a four-year tracker with £500 cashback, which BM Solutions ...

  • Bristol & West - Global 100 Isa

    5 Feb 2004

    Type: Capital-protected Tessa-only IsaAim: Growth linked to the performance of the FTSE 100, Swiss Market Index, S&P 500 and Nikkei 225 indices.Minimum-maximum investment:£1,000-£9,000Term: Five yearsGuarantee: Original capital returned in full regardless of performance of indicesReturn: Up to 100% growth in indices at end of termClosing date: April 5, 2004Commission: NoneTel: ...

  • Building societies target offset mortgages

    4 Feb 2004

    Two building societies are challenging the growing offset mortgage market with new products hitting the market this week from Norwich & Peterborough and Coventry.N&P says it is the first building society to link a current account with mortgage and savings accounts, while Coventry's product offsets savings against borrowings.N&P group product manager Gary Lacey says: "Everyone who has been warned that their endowment policy may not repay their mortgage debt should use ...

  • Buy-to-let yields slide in 2003

    5 Feb 2004

    Yields for landlords began to dip in the last few months of 2003, says Paragon Mortgages. Its buy-to-let index shows that average yields were 7.37 per cent in December, down from 7.49 per cent in November. In December 2002, yields were 8.07 per cent. Property prices for landlords also fell to £123,372 in December from a peak of £127,329 in October. This price was still 12.03 per cent higher than the £110,120 paid in December 2002. Paragon says ...

  • By George, its Clooney

    5 Feb 2004

    The Diary hears that working at credit broker Loans.co.uk is like being at a live version of Madame Tussauds. A recruitment policy that appears to consist of only hiring celebrity lookalikes must make life interesting for employees, as John Travolta struts his stuff in the processing department and Prince Charles graces IT. The Diary wonders if his royal presence means that those frustrating problems with crashing computers that dog us all are solved more quickly. Loans.co.uk ...

  • Chartwell produces Isa guide

    4 Feb 2004

    Chartwell Investment Management has produced an Isa guide looking at the basics as well as forthcoming changes to tax rules affecting dividend income from equity income Isas.Chartwell, which says it is cautiously optimistic for the months ahead, says its booklet is aimed at helping people who want to invest to make the right decision. It can be obtained through www.chartwell-investment.co.uk.

  • CII calls for LTC advisers to require qualification

    5 Feb 2004

    The Chartered Insurance Institute is calling for all advisers dealing in long-term care insurance to be required to pass an approved exam before giving advice. In response to FSA consultation paper 200 on long-term care insurance and after working with the regulator and the Financial Services Skills Council on the development of a new LTC syllabus, the CII says grandfathering could cause problems in the industry and would lead to a two-tier advice regime and consumer confusion. The ...

  • Clerical cuts bonus rates

    6 Feb 2004

    Clerical Medical has announced it is to cut regular bonus rates by 1 per cent on most with-profits policies. The change sees many with-profits bonds receive a regular bonus of 1.5 per cent, down from 2.5, and 2 per cent for pension policies, down from 3 per cent. Bonuses on its with-profits income fund are unchanged at 4.5 per cent.A with-profits endowment taken out for 25 years, with a premium of £50 a month will now pay out £55,450 down from £68,142 ...

  • CML urges Treasury to regulate home reversion

    4 Feb 2004

    The Council of Mortgage Lenders has urged the Treasury to regulate home reversion plans to put them on an equal footing with equity release.In its response to the Treasury's ongoing consultation into whether it should regulate home reversion, the CML says failure to regulate the market could result in a skewed equity release market that disadvantages consumers, most of whom are elderly and some of whom may be vulnerable.Senior policy adviser Jackie Bennett says: "Given ...

  • Commission is set for a shake-up, warns MP

    5 Feb 2004

    Treasury select committee member Angela Eagle has warned IFAs to expect a radical restructuring of the commission system in the wake of the committee's analysis of the life sector. Following committee chairman John McFall's attack on life offices last week over endowment misselling, Labour MP Eagle says the committee will recommend in its report to the Treasury on long-term savings that there should be a review on how advisers are paid. She believes that there is ...

  • Co-op Bank and CIS to recruit 500 staff in UK

    10 Feb 2004

    Co-operative Bank and CIS are to take on another 500 service centre staff in north-west England over the next 12 months. At a time when many other insurers and banks are outsourcing overseas, it plans to recruitment for 200 new positions and 300 existing ones in Manchester, Skelmersdale and Stockport. The bank and CIS, which are part of Co-operative Financial Services, employ around 2000 staff. Co-operative Bank chief operating officer Sheila MacDonald says: "I believe ...

  • Correspondent's week

    5 Feb 2004

    At last, January is drawing to a close and I am resigned to accepting that nearly all the resolutions I made in such good faith a month ago have served their purpose and can now fade blissfully into oblivion until next year. I think this realisation was characterised not least by last Friday evening's outing to the Royal Albert Hall. I had "selflessly" offered to escort the now no-smoking, less-drinking Corey Boles to see Cirque de Soleil with Standard Life - strictly ...

  • Credit Suisse to offer onshore version of target return fund

    5 Feb 2004

    Credit Suisse is awaiting FSA approval to launch an onshore version of its Luxemburg-domiciled target return fund in a move aimed at boosting its presence in the fixed-income market. If given the green light, the fund will be run along similar lines to its offshore counterpart, which invests in core instruments such as Government bonds and in enhanced asset classes such as emerging Europe. This approach, aimed at generating positive returns during all stages of the economic ...

  • Deloitte & Touche gets record £750k fine for compliance failures

    5 Feb 2004

    Deloitte & Touche Wealth Management has been hit with the biggest-ever fine for an IFA - £750,000 - for serious compliance failures, including missing pension review deadlines by as much as four-and-a-half years. The FSA has described DTWM's compliance failings as systemic, continuing over a long period and resulting from a wholly unacceptable approach to compliance by the company until October 2000. The FSS says inadequate records hampered the firm's ...

  • Dimensional Fund Advisors - Emerging Markets Fund

    10 Feb 2004

    Type: OeicAim: Growth by investing passively in emerging markets excluding Russia, India and ChinaMinimum investment: £100,000Investment split: 100% in emerging markets excluding Russia, India and ChinaIsa link: NoPep transfers: NoCharges: Annual 0.5%Commission: NoneTel: 029 7930 0000

  • Downing offers £2m top-up issue for Electra VCT

    5 Feb 2004

    Downing Corporate Finance is offering a £2m top-up share issue for the Electra Kingsway VCT. Downing is expecting demand for the VCT to be high due to the small size of the issue, which takes place around February 6. The VCT's net asset value was109.8p per share as at December 31, 2003, which Downing says makes it the only generalist VCT launched in the 2001/02 tax year to show positive returns. Electra has made 13 qualifying investments to date, already making two partial ...

  • DWS Investments - Corporate Bond Fund

    10 Feb 2004

    Type: OeicAim: Income and growth by investing globally in investment-grade bondsMinimum investment: Lump sum £1,000, monthly £25Investment split: 100% in investment-grade corporate bondsIsa link: YesPep transfers: YesCharges: Initial 4%, Isa 3.25%, Pep transfers 3%, annual 1%Commission: Initial 3%, annual 0.25%Tel: 0800 917 0003

  • Electronic commission is going missing

    5 Feb 2004

    Bankhall's IT director has slammed product providers for sending out electronic commission statements that do not match the amounts of money they pay into its bank accounts. Director Nigel Hopwood says companies are issuing inaccurate statements which reveal major discrepancies between Bankhall's paper records and the sums that reach the bank. The problem has reached such a scale that the latest research from Adviser Forum shows that more than 40 per cent of providers ...

  • Electronic shock on commission cash

    5 Feb 2004

    So providers have not been stumping up the commission promised in electronically processed statements, with less than promised being paid into the accounts of many IFAs. The issue is highlighted this week by Nigel Hopwood, one of smartest cookies on the technology block. Hopwood now works for Bankhall but served years on the other side of the fence with one of the biggest life and pension offices. He says simply that some providers are just not delivering what they say ...

  • Emergency treatment for critical-illness cover

    5 Feb 2004

    The critical-illness concept looks set to undergo surgery but in what shape will it emerge? Legal & General's recent survey on the future of the market confirmed that IFAs are keen to keep the guaranteed model. Life Policies Direct director Jason King says only 28 per cent of its CI sales since the beginning of December were reviewable. Lifesearch senior technical adviser Kevin Carr says: "A lot of people think guarantees will survive 2004 and if the market ...

  • Equitable clients in court bid over confidentiality

    5 Feb 2004

    A group of Equitable Life policyholders is taking its case for compensation from the troubled insurer to the High Court after disagreeing as to whether they have an agreement or not on the basis of confidentiality. Lawyer Robert Morfee, a partner at Bristol law firm Clarke Willmott, is representing four parties in the move. He says that while Clarke Willmott thought it had reached an agreement with Equitable's lawyers on the action, the company is now asking for a "very tight" ...

  • Equitable should back campaign for Gvt compensation - action groups

    4 Feb 2004

    Equitable Life Action groups have joined forces to strengthen calls for Equitable to back a campaign for Government compensation. Seven action groups have come together in a single movement called E7 which wants the society to put its weight behind calls for £3 billion of compensation from the Government. E7 spokeswoman Liz Kwantes says the insurer has the infrastructure, expertise and access to the evidence needed to co- rdinate such a case. Equitable has already said ...

  • Equitable should back campaign for Gvt compensation - action groups

    4 Feb 2004

    Equitable Life Action groups have joined forces to strengthen calls for Equitable to back a campaign for Government compensation. Seven action groups have come together in a single movement called E7 which wants the society to put its weight behind calls for £3 billion of compensation from the Government. E7 spokeswoman Liz Kwantes says the insurer has the infrastructure, expertise and access to the evidence needed to co-o rdinate such a case. Equitable has already said ...

  • Estate agency joins sellers' packs action group

    10 Feb 2004

    Estate agency Jackson-Stopps and Staff has added its support to sellers' packs group Splinta who are campaigning against the packs. The company says it has reached the conclusion that the home condition report contained in the home information pack is totally inappropriate for the type of property the firm deals with.

  • F&C set for flotation in Europe

    5 Feb 2004

    Public shares in F&C could soon be available after parent Eureko said it was considering seeking a stock exchange listing for the fund firm which is one of the UK's oldest. Eureko, the Amsterdam-registered financial services group, will look to retain a majority shareholding following an initial public offering, which it says will have no impact on F&C's position as its main asset management firm. The move has the full backing of F&C's senior management and ...

  • Fidelity and Threadneedle lead fund firms on assets

    5 Feb 2004

    Threadneedle has leapfrogged Invesco Perpetual and Scottish Widows Unit Trust Managers to become the UK's second-biggest fund company in terms of assets under management in 2003. IMA figures show that Threadneedle increased its funds under management by 26 per cent from £9.75bn to £12.36bn last year, ranking it behind only first-placed Fidelity, which grew its assets from £16.28bn to £22bn. Like most fund managers, both had seen their assets ...

  • Firms could face paying for pension advice to staff

    5 Feb 2004

    Companies that offer no contribution to staff pension plans may have to pay for face-to-face advice under plans unveiled by the Department for Work and Pensions this week. A 12-month pilot scheme will look at three ways that non-contributing employers could give pension information. The options are an ABI-backed employer's advice pack, a group advice session offering non-regulated advice and one-to-one advice sessions paid for by the employer. The DWP has also unveiled ...

  • Flight probes FSA fine-fee link

    5 Feb 2004

    Shadow Treasury Chief Secretary Howard Flight is calling for the Treasury to provide accurate figures to reveal if IFA regulatory fees have gone down in line with fines paid by the sector. Flight is looking across all sectors regulated by the FSA to see if areas hit by big fines see fees fall. He has raised his queries with Treasury Financial Secretary Ruth Kelly in a written question but says he intends to pursue Kelly for a more satisfactory and detailed answer. Kelly ...

  • Friends keeps on growing with 14% rise

    5 Feb 2004

    Friends Provident has bucked the industry trend with a 14 per cent boost to make 2003 its best-ever year for new business. Sales rose from £376.7m in 2002 to £429.2m in 2003 on an annual premium equivalent basis. Life and pension business in the fourth quarter of last year was up by 13 per cent from £103.1m to £116.7m. Protection business leapt by 54 per cent to £69.4m from £45.1m. Savings and investment sales increased by 18 per cent ...

  • Friends retain raising standards quality mark

    4 Feb 2004

    Friends Provident have been re-credited under the Raising Standards quality mark by the PPIAB -- an independent assessment body.PPIAB chief executive John Cox says: "The sustained commitment of Friends Provident and other accredited brands means more and more customers are enjoying the benefits of well presented documents, higher quality service and fair treatment."Friends Provident director of marketing Graham Harvey says: "We remain absolutely committed to providing our ...

  • FSA endowment complaints crackdown as waivers end

    5 Feb 2004

    The FSA says it will come down hard on life companies which do not reduce backlogs of mortgage endowment complaints, threatening fines for breaching complaint handling rules. In a letter to life office chief executives, the FSA warns that, from May 1, firms should be clearing complaints in line with its rules. The move comes after a dressing down for leading life office chief executives by the Treasury select committee last week over endowment misselling and is timed ...

  • FSA finds lenders have adequate controls for self-cert

    10 Feb 2004

    The FSA has freed mortgage lenders from the blame cast by TV and national press by releasing a review into self-certification mortgage application fraud which says lenders have adequate controls for dealing with application fraud.The research came off the back of the October 2003 screening of the BBC's Money Program, in which it was alleged Birmingham Midshires staff "may have encouraged BBC staff posing as prospective customers to inflate their earnings at the application stage".Howeve

  • FSA fines inividuals for distorting financial results

    5 Feb 2004

    The FSA has taken its first enforcement action in relation to senior management of an insurance company, banning six former directors of a UK insurance company called Chiyoda Fire and Marine Insurance Company for their role in distorting financial results in 1999 and 2000.Three individuals, Yoshiaki Yamazaki, Hiroshi Okazaki and Robert McKibbin are prohibited from working in any regulated activity. The remaining three individuals -- Kazuhide Oda, Toru Morota and David Titterington ...

  • FSA says others could charge like Standard

    5 Feb 2004

    The FSA has warned that other insurers may be forced to charge policyholders for guarantees in the same way that Standard Life is proposing to do. The warning comes as the regulator made public a response to Liberal Democrat Treasury spokesman Vincent Cable. Cable had written to FSA chief executive John Tiner, questioning whether the FSA had recommended Standard Life to demutualise, following recent announcements by the life office that it will conduct a strategic review ...

  • FSA wants digital agency to boost its image

    5 Feb 2004

    The FSA is hiring a high-tech digital marketing agency in a bid to update its image and help boost its profile among consumers. The move is believed to be part of an initiative by the regulator to make itself more consumer-friendly through better marketing and communications. Digital agencies supply clients with various ways of promoting and advertising through digital media predominantly online but also via text messaging and interactive TV. The services include ...

  • GMAC Residential Funding - Two Year Express Discount

    5 Feb 2004

    Type: Discounted-rate mortgageDiscounted term: Until April 1, 2006Discount: 1.85%Payable rate: 3.89%Minimum loan: £25,001Maximum loan: Up to 90% of valuation subject to a maximum of £350,000, up to 85% of valuation subject to a maximum of £500,000, up to 75% of valuation subject to a maximum of £750,000Income multiples: Up to 90% of valuation -up to 3.3 times principal income ...

  • Goodfellows launches new income protection product

    10 Feb 2004

    Insurance broker Goodfellow is launching a new income protection policy that will offer a tax -free cushion of up to £12,000 irrespective of gender, age or occupation.

  • Growing problem of pension limit

    5 Feb 2004

    IFAs with clients who expect to break the £1.4m lifetime limit face an advice dilemma over the Inland Revenue's proposals for transitional protection, warns Scottish Life head of pensions strategy Steve Bee. Bee says IFAs face a difficult choice between recommending clients to leave their occupational scheme or stay in and risk being hit by the recovery charge. The Revenue's proposals say an individual wanting to protect rights they think may break the lifetime ...

  • Heir of competence

    5 Feb 2004

    No fewer than 65,000 advisers have passed accredited mortgage qualifications. With the onset of FSA regulation, advisers will have an obligation to demonstrate that they remain competent to give advice. Anyone employing advisers will have an obligation to review their competence. Unfortunately, the FSA has not stated what it will consider necessary to "review competence". Each principal needs to come to their own conclusions as to what meets their obligations. The same applies ...

  • Hope rises as Treasury sets CTF cap at 1.5%

    5 Feb 2004

    Product providers believe the Treasury's justification for raising the price cap to 1.5 per cent for child trust funds should have been applied to stakeholder pensions and should be introduced across the board for the Sandler range. The industry is calling for a more consistent approach to charge capping from the Treasury, which says it has set the cap at 1.5 per cent for CTFs because the plans will be very small funds and it wants to encourage a wide range of providers. But ...

  • House prices up by 12.62 per cent - Land Registry

    9 Feb 2004

    House prices increased by 12.62 per cent to £163,584 in the last quarter of 2003 compared to £145,251 for the same period in 2002, according to the latest statistics released by the Land Registry.The volume of sales increased by 2 per cent from 295,503 in 2002 to 301,405 for the same period in 2003, and all economic regions in England and Wales showed an increase in average prices.

  • How regulator is improving the way it works with IFAs

    5 Feb 2004

    It came as no surprise that the main finding of your IFA survey is that IFAs feel swamped by red tape and find regulation difficult. This is why we have been working hard for some time to improve the way we communicate and work with IFAs. I hope the initiatives we introduced last year, such as the regional roadshows and the dedicated IFA web pages, have gone some way to making us easier to do business with. Certainly, the feedback we have received suggests it has. However, there ...

  • IFAs' anger at HBOS rethink over BTL

    5 Feb 2004

    HBOS' restriction on the number of buy-to-let properties that an investor may hold in his portfolio has angered brokers. Residential property investors were previously able to have a maximum of 45 properties in their portfolios across the group, with 25 properties resting with BM Solutions, 10 pro-perties with The Mortgage Business and 10 with Bank of Scotland. HBOS has now reduced this number to 10 prop-erties across the whole group, a move which has angered brokers, ...

  • Independent view

    5 Feb 2004

    It was an early start as I was due in London for a couple of meetings with clients. I was running on time but, as I got into my car, I heard the sound of fabric ripping. My trousers had split right down the seam. As I ran back into my flat to change my suit, the birdsong outside was drowned by the sound of my cursing. Against all the odds, I got to my first meeting on time, having spent around an hour and a half stuck in traffic around Oxford. Despite the inauspicious ...

  • Industry at danger from weapons of mass regulatory destruction

    5 Feb 2004

    An open letter to Tony Blair I am not one to write to readers' columns, having done so only once before in my 30-year career in financial services. Total frustration and very long, unnecessary hours have prompted me to find the time to put pen to paper. Now that you have survived the Hutton report and the student top-up fees vote, perhaps you could turn your attention to an everyday issue which could vastly improve the quality of life for every one of Britain's citizens. ...

  • Intelligent Finance sets up fixed and tracker loans

    5 Feb 2004

    Intelligent Finance is offering fixed-rate and tracker mortgages for the first time. The HBOS subsidiary has set the fixed-rate mortgage at 5.19 per cent until July 2006 followed by a one-year discounted variable rate of 0.15 per cent below the bank's standalone variable rate, currently 4.95 per cent. The tracker mortgage is set at 4.19 per cent and will track the Bank of England base rate until July 2006. There are no extended tie-ins on either product. Intelligent ...

  • Internal priority for mortgage network

    5 Feb 2004

    Inter-Alliance is launching a mortgage and general insurance network this week. Mortgage development director Stuart Wilson says the priority will be to harness the advisers in the group, half of whom are qualified as mortgage advisers. Wilson says the network will be taking on qualified mortgage advisers and is unlikely to give a home to one-man bands. He says: "The small players have had their chance and now it is up to the big players to make their intentions clear. ...

  • Investment analysis

    5 Feb 2004

    The prospect of higher US interest rates coupled with slightly disappointing news on the economy gave investors an excuse to take profits last week and by Friday's close the FTSE World index was trading 1.6 per cent lower. Interest rates in the US were left at 1 per cent but it was the change of wording accompanying the announcement which gave cause for concern. The Fed made no mention of the fact that rates could stay on hold for a "considerable period" but instead stated ...

  • Investment Edge

    5 Feb 2004

    After all the wrangling, the FSA has finalised its rules on the use of past performance data in advertising. I could never comprehend the argument that past performance should be outlawed in ads and the U-turn by the FSA is welcomed. Anyone who has followed Fidelity's special situations fund for the past 20 years would find it hard to believe that its outstanding track record has no bearing on potential performance. It was ironic that one of the surveys used by the ...

  • Investment Edge

    5 Feb 2004

    Whether or not you believe in past performance as an accurate indicator of future performance, there is little doubt that misuse of the measure has been relied on to place billions of pounds of client assets. It seems to me that we should welcome the new rules on past performance with open arms. While I can imagine some parts of the market shrinking on the back of the new rules, surely the long-term interests of the industry are best served by being straight with consumers? Most ...

  • Investment trusts cost less than 1 per cent

    10 Feb 2004

    Association of Investment Trust Companies research on conventional investment trusts suggests for a significant proportion of investment trusts a 1 per cent charge cap could be comfortably met.The research comes after the Treasury has announced a 1.5 per cent cap on its Child Trust Fund, which is able to include investment in equities.Althought AITC commissioned research by Fitzrovia International shows for the global growth sector alone, some 63 per cent of AITC Member ...

  • Investment view

    5 Feb 2004

    How long is long term? Long-term, that is, as in "that will make a good long-term investment". It is, of course, a phrase that can mean precisely what you want it to mean but it is well used and understanding what is meant by "long-term" in the appropriate context is important. For investors, it can make the difference between making a wise decision when committing money and taking an outright gamble. At the risk of boring those who have heard this anecdote before, I would like ...

  • io fund gets inflation proofed

    5 Feb 2004

    io Investors has unveiled the io inflationplus fund, an Oeic fund of funds that aims for income and capital growth of 5 per cent above UK inflation.io Investors chose the Retail Prices Index as a benchmark because a direct link enable the fund's returns to outpace inflation. Inflation erodes purchasing power over time and io investors think it is more difficult to monitor this using traditional bond and equity indices.The fund will achieve its objective by investing ...

  • io Investors - io InflationPlus

    9 Feb 2004

    Type: Oeic fund of fundsAim: Income and growth in excess of UK inflation by investing globally in fixed-interest funds and equitiesMinimum investment: Lump sum £1,000Investment split: 100% fixed interest funds and equity fundsIsa link: YesPep transfers: YesCharges: Initial 5%, annual 1.5%Commission: Initial 3%, renewal 0.5%Special offer: Initial charge reduced to 4%Offer ...

  • It shouldn't happen to an advertising vet

    5 Feb 2004

    As the FSA looks to begin regulating financial advertising more intensively, many in the industry are questioning the directions and choices that the regulator seems to be taking. Last week, the FSA's new business plan announced the formation of a new department. It plans to hire 20-30 staff from the financial services and advertising industries and to set up a hotline to encourage the public to report any advertising that causes concern. But FSA spokesman Rob McIvor ...

  • John Malone

    5 Feb 2004

    Now that John Malone has passed the milestone of his 60th birthday, what lies ahead for the self-styled godfather of the mortgage industry? It certainly does not look as if a life of leisure is beckoning just yet as he has recently signed up for three more years with new parent company Bankhall and has the option to remain for a further two. Last month, Bankhall snapped up Prudential's Premier Mortgage Services - which Malone established in 1996 - after prolonged negotiations ...

  • Julian Gibbs

    5 Feb 2004

    Futurevc.co.uk has launched an enhanced range of research services which will give more added value to IFAs and protect them against recommending higherrisk products to clients without making it clear that they are higher risk. The risk map tool, which enables IFAs to search for and select products, has an improved scoring system which is more simple than the present system, with a score for each product corresponding to the tax status of the investor and the tax regime in which ...

  • Kreis plaices trust in Cod EIS

    10 Feb 2004

    KREIS CONSULTINGJohnson Seafarms - Cod 1Type: Enterprise investment schemeAim: Growth by investing in a Shetland-based cod farmMinimum investment: Lump sum £30,000Opening/closing date: January 1, 2004/March 1, 2004Charges: Initial 4%Commission: Initial 2%Tel: 0141 5641523Johnson Seafarms - Cod 1 is an enterprise investment scheme investing in a cod farm which will produce parasite-free ...

  • L&G launches free medical advice line

    9 Feb 2004

    Legal & General is offering its customers free medical advice. The L& G healthcare arm has set up a confidential medical advice line for customers that will provide them with a telephone consultation with a qualified doctor.

  • Legg Mason Investments - Legg Mason Asia Pacific Fund

    4 Feb 2004

    Type: OeicAim: Growth by investing in companies in the Asia Pacific region excluding JapanMinimum investment: Lump sum £3,000, monthly £50Investment split: Financials 22.47%, industrials 19.67%, Information technology 18.82%, materials 13.88%, consumer discretionary 6.26% telecoms services 4.7%, healthcare 4.58%, energy 2.11%consumer staples 0.99%, utilities 0.74%, cash 5.78% Isa link: YesPep transfers: YesCharges: ...

  • Lifesearch sends out Swiss Life admin call MCCB cuts firms' fees ahead of regulation

    5 Feb 2004

    The Mortgage Code Compliance Board has significantly reduced the fees that intermediaries and lenders will pay for their final period of registration before statutory regulation starts. There will no longer be a registration fee for intermediary firms and the staff fee will be less than half of the fee payable in 2003/04. The renewal fee for a sole trader will be £40, a firm with eight sales staff will pay £320 and firms with 12 salespeople will pay £420. ...

  • Liontrust in revamp of flagship fund

    5 Feb 2004

    Liontrust's flagship first income fund is undergoing its most radical overhaul for several years in a move that will transform one of the best performers of 2003 into a more traditional equity income fund. Manager Jeremy Lang is dramatically lowering the bias towards high-yielding companies in the £700m portfolio, which gave a total return of 33 per cent last year. By the time the repositioning is completed in three weeks, the portfolio's weighting in such ...

  • Longevity improvements add to pension problems

    5 Feb 2004

    Improved life expectancy has added £10bn to the pension deficits of FTSE 100 companies, says Aon Consulting. Figures from the Government Actuary's Department show the life expectancy of a 65-year-old man has increased by 10 per cent since its 2001 forecast, adding two years to average male life expectancy. Aon says the new mortality calculations are also likely to affect the strength of life companies that offer annuities. It predicts that pension costs ...

  • Look into the future

    5 Feb 2004

    One of the most important and under-rated business skills is understanding change and how to make it work for you and your business. The trouble is that change is easy to ignore, hard to implement and demands fresh thinking. Where does that leave the financial adviser faced with a world with endless change looming on the horizon? The important thing is to know what changes are coming along and then what opportunities will be created and finally how do to plan for the ...

  • Marlborough Stirling appoints new chief executive

    6 Feb 2004

    Marlborough Stirling has appointed Mike O'Leary as chief executive. He takes over from Huw Evans who reverts to his previous role of chairman.O'Leary previously served on the board of Misys plc from 1986 to 2000 and was chief executive of its financial services division between 1990 and 1997 and its US healthcare division from 1998 to 2000.Marlborough Stirling chairman Huw Evans says: "The combination of excellent operational management skills, knowledge of the financial ...

  • Matrix Money Management - Unicorn Aim VCT S2 Shares

    5 Feb 2004

    Type: Venture capital trustAim: Growth by investing in Aim companies and Unicorn investment fundsMinimum investment:Lump sum £2,500Investment split: 80% Aim companies, 20% in the Unicorn free spirit, Unicorn mastertrust and Unicorn smaller companies fundsOpening/closing date: January 20, 2004/April 2, 2004Charges: Initial 5.5%, annual 2%Commission: Initial 2.25%, renewal 0.375%Tel: 020 7292 ...

  • McFall's bonus of contention

    5 Feb 2004

    Chairman of the Treasury select committee John McFall has lashed out at life offices over their failure to accept responsibility for misselling endowments. Speaking to Money Marketing, McFall says he wants to see the big UK life and pension providers made more accountable for their actions over misselling and the increasing problem of mistrust in the financial services sector. After a blistering attack at the committee's meeting last week, McFall demanded that the ...

  • MLIM chief Jones leaves company

    5 Feb 2004

    Merrill Lynch Investment Managers head of UK retail Michael Jones is leaving the group this week, with MLIM refusing to comment on the reasons for his departure. Jones, who has been with MLIM for six years, is being replaced by marketing director Richard Royds, who joined the group in 1997 following its acquisition of Mercury Asset Management, where he ran the unit trust business. Jones's UK retail sales res-ponsibilities will be taken over by head of sales for continental ...

  • Money Programme to probe mortgage firms on fast-tracking

    5 Feb 2004

    The Money Programme's second investigation into fraud in the loan market is believed to be looking into lenders which fast-track applications through their systems. Portman director Matthew Wyles, who was interviewed for the second programme, expected to air on February 11, says the BBC appears to be interested in the extent to which lenders are taking reasonable steps to detect fraud which arises through fast-tracking the underwriting process. Last October, The Money ...

  • MP wins debate to put the case for appeals against watchdog...

    5 Feb 2004

    Nick Harvey, the Liberal Democrat MP fighting to save his local IFA's business, has won the right to an adjournment debate on retrospective appeals against the Financial Ombudsman Service. He will chair a discussion between MPs on retrospective appeals against the FOS with particular reference to IFAs. Harvey raised the issue to highlight the plight of one of his constituents whose business faces closure because it cannot afford to pay an award made by the watchdog. Building ...

  • MPs dig themselves out of trouble

    5 Feb 2004

    In a scene reminiscent of Shallow Grave, the Diary observed a series of shadowy figures gathering in the House of Commons car park this week. As the sky darkened and snow flurries started, the thudding of spades being thrown into the boots of cars could be heard from St Stephens Gate. The Diary hears several of the MPs returning to constituencies in the North had been warned of severe drifts of several feet of snow. They prepared to face oncoming blizzards in Yorkshire ...

  • Nationwide increases mortgage rates

    6 Feb 2004

    Nationwide has announced that it will increase its base mortgage rate by 0.25 per cent to 5.14 per cent, following the MPC's decision to increase base rate to 4 per cent.The change will take effect from 1 March 2004, and Nationwide says its base mortgage rate will be around 0.85 per cent lower than the standard variable rates of other high street lenders such as Abbey and Barclays/Woolwich.

  • Nearly half IFAP leads lead to IFAs

    6 Feb 2004

    Nearly half of people who make enquiries to IFA Promotion visit an IFA and 84 per cent are satisfied with the outcome, according to research for the promotional body by Citigate Dewe Rogerson ResearchThe data shows three quarters of IFA Promotion leads take further action having visited an IFA IFA Promotion chief executive David Elms says: "These findings confirm that the efforts we've put into improving the level of information we provide to consumers is bearing fruit ...

  • New buyers back in house market

    5 Feb 2004

    House prices went up by 0.3 per cent in January following a 0.2 per cent rise in December, according to Hometrack's monthly survey of the market. The biggest price rises were seen in Cornwall and South Yorkshire (1.1 per cent) followed by Hereford and Worcester and the West Midlands (0.9 per cent) and North Wales (0.8 per cent. Prices fell by 0.1 per cent in Central London and East Sussex. The survey shows that the average house cost £147,200 in January, ...

  • New online mortgage broker launches

    10 Feb 2004

    Mortgage Beaters, an online mortgage specialist, launched this week.Mortgage Beaters says that it will search the market for all available mortgage products without charging a fee on any mortgage worth more than £50,000. Those worth less than £50,000 will incur a charge of 0.5 per cent.Managing Director Roy Bookman says: "Mortgage Beaters is independent and competitive and will find the best mortgage from all of those available on the market to suit each individual ...

  • Noble & Company - F4G Software

    9 Feb 2004

    Type: Enterprise investment schemeAim: Growth by investing in the project management of computer and video gamesMinimum investment:Lump sum £3,000Opening/closing date: January 19, 2004-April 5, 2004 for 2003/04 tax year April 30, 2004 for 2004/5 tax yearCharges:Initial 5%Commission: Initial 2.5%Tel: 020 7367 5606

  • NU aggregates £500,000 critical cover cap

    5 Feb 2004

    Norwich Union is to extend its £500,000 cap on individual critical-illness cover to include other policies either with the company or with rivals. From August last year, a £500,000 cap was put on individual CI applications which will be imposed on an aggregate basis from March, meaning that other policies are to be counted into the total cover offered. Applications of more than £250,000 already have to go through financial underwriting but NU is changing ...

  • NU launches five-year guarantee on with-profits

    9 Feb 2004

    Norwich Union is to introduce a five-year money back guarantee on all new with-profits fund investments in its portfolio investment bond. The change means policyholders are guaranteed their original investment back on the policy's fifth anniversary, regardless of whether markets go up or down and applies to investments made up until the end of the year. It is also applicable to offshore with-profits investments in the NU international core fund bond and international ...

  • Out of context

    5 Feb 2004

    •"We want to be the Dyson of the hoover world but we're not reinventing the wheel here." - Bloomsbury Financial Planning managing director Jason Butler. •"He just wants an excuse to get more highlights in his hair." - Norwich Union PR Rob Pell on boss James Evans organising a Duran Duran concert invite. •"My two vice-chairmen have both been chairmen already so I won't have to do any work this year." - Sofa chairman Nick Bamford about Robert Reid and ...

  • Pension credit phone line staff receiving just 7 calls a day - Lib Dems

    10 Feb 2004

    Call centre staff at the Government's pension credit application phone line have been receiving an average of just 7 calls a day, according to the Liberal Democrats.The figures show that in December, the application line received 193,900 application calls, 8,430 a day. This means that of the 1,300 workers there, the average member of staff received only 7 applications a day.Further figures published today show the pension credit is only being paid to 2.62 million individuals, ...

  • Pieces of eight

    5 Feb 2004

    The long-awaited Inland Revenue paper on Pension simplification, which formed part of the Chancellor's pre-Budget review, has added some flesh to the bones of the original Green Paper. However, we are still in Limbo Land, as the Chancellor, in what appears to be an act of defiance against No 10's wish to withdraw/ increase the £1.4m lifetime cap, has threatened to throw his toys out of his pram if the National Audit Office does not provide him with the answer he wants ...

  • Platform bidding to build up its remortgage sales

    5 Feb 2004

    Platform is increasing its focus on remortgaging with a new range of products. The intermediary lending arm of Britannia Building Society has widened its criteria on remortgages and is now accepting unlimited capital-raising for any purpose up to the loan-to-value scheme limits across its entire range, which includes prime, buy to let, self-certification and sub-prime products. Head of sales and marketing Guy Batchelor says 65 per cent of Platform's business last year ...

  • Portman Building Society assets grow 36 per cent

    4 Feb 2004

    Portman Building Society has announced record results following a merger with Staffordshire Building Society last year. Total assets grew 36 per cent to £14.1bn from £10.37bn, while profit before tax increased by five per cent, to £67.4m from £64.1m. The society saw organic growth of 17 per cent, excluding the merger with the Staffordshire.

  • Press critical of life companies

    5 Feb 2004

    Life insurance companies got more national press coverage than mortgage firms last year but most of the life coverage was negative, according to the Presswatch 2003 annual financial products report. It says the reason why life insurance gained so much coverage was to do with problems in the sector such as the closure of life funds, endowment misselling, concerns over minimum solvency requirements and Equitable Life. Nationwide is top of the list with 520 positive mentions ...

  • Prestbury predicts industry staff to fall by 40-50% in 2004

    5 Feb 2004

    Prestbury Financial is predicting a 40-50 per cent reduction in the headcount in the financial services industry by the end of the year due to a big number of mortgage and protection brokers disappearing from the market. Prestbury believes these changes will allow major consolidation in the sector and it wants appointed representatives of its new IFA network Solution Network to take advantage of the opportunities for acquisition and growth. The group has launched a new ...

  • Professional touch Serve and protect Highs and lows of annuities

    5 Feb 2004

    I have never heard anybody suggest that annuities are exciting. Perhaps I just move in the wrong circles. But whether they are exciting or not, they are fundamental to pension provision in the UK. It is often suggested that annuities are bad value. People point to how much less somebody gets for each £ of purchase price than people of their age and sex did 10 or 20 years ago. This must mean that the life offices are ripping off the public and making huge profits, ...

  • Ready EDI

    5 Feb 2004

    Over the years, an EDI message statement service has never been widely promoted by providers. Looking at this from an IFA's perspective, it is perhaps easy to see why this has been kept quiet for so long. The quality of data from most providers is, at best, inconsistent and, at worst, consistently poor. I wonder how many management teams are aware of this shortfall and of the impact on their IFA partners who are relying on the data as a core part of the business case for investment ...

  • Redress paid only where it is due

    5 Feb 2004

    The letter from BMG Williams (Money Marketing, January 8) could have left readers with the impression that approaching the Financial Services Compensation Scheme is an easy way for consumers to get compensation. The FSCS is a fund of last resort for customers of authorised firms, not a bottomless pit. We only pay compensation if a claim is eligible under our rules, there is a limit to the amount of compensation we can pay and the scheme only provides compensation for financial ...

  • Regulation concerns of new CML chief Gunther

    5 Feb 2004

    The increasing costs of statutory regulation facing the mortgage industry is one of the most pressing issues on the agenda, according to new CML chairwoman Anne Gunther. Standard Life Bank chief executive Gunther, who last week replaced HSBC head of banking and mortgages Clive Wood, says one of the CML's primary responsibilities is to ensure that the cost of statutory regulation does not become disproportionate to the risks involved. Gunther, who has been at Standard ...

  • Revenue ready to look at passing on pensions

    5 Feb 2004

    Personal pension funds could be passed to family members as death benefits after age 75 under an amendment to the simplification proposals being considered by the Inland Revenue. Revenue simplification head Peter Hopkins is understood to have reacted positively at a recent industry meeting to a proposal to redress the inequality between occupational and personal pension regimes. The Revenue's pension simplification proposals published in December create an income drawdown-style ...

  • Richard Verdin on Protection

    5 Feb 2004

    The regulation of pure protection and general insurance sales from January 2005 is not simply going to affect the process of giving information and advice to customers, it is going to materially affect the way most advisers think. Selling insurance within a truly regulated environment will in part be about presenting the customer with the right information at the right time and in the right sequence, all the time creating an auditable trail. However, it should also make ...

  • Ritchie warning on A-Day delays

    5 Feb 2004

    Scottish Equitable pensions development director Stewart Ritchie has described the Chancellor's referral of the lifetime pension limit to the National Audit Office as bizarre but says advisers must still start planning for A-Day. Even though the final pension simplification rules will not be revealed until Budget day on March 17, Ritchie says advisers must start notifying clients about issues that could affect them. He says it is not only high-earners who face urgent ...

  • Sarasin Investment Management - Sarasin Guaranteed Portfolio - GlobalSar Principal Guaranteed Note

    6 Feb 2004

    Type: Capital-protected fundAim: Growth linked to the performance of the Sarasin CI GlobalSar sterling fundMinimum investment: Lump sum £7,000Investment split 100% linked to the performance of the Sarasin CI GlobalSar sterling fundTerm: Five yearsPlace of registration: GuernseyCharges: Initial 5%, annual 1.5%Commission: Initial 3%, renewal 0.25%Closing date: March 28, ...

  • Sarasin targets protection growth and income distribution

    6 Feb 2004

    Sarasin Investment Management has unveiled the Sarasin guaranteed portfolio, a capital protected fund linked to the Sarasin CI globalsar sterling balanced fund, which is a Guernsey-based unit trust. The underlying fund has a 16-year track record and invests globally in a combination of equities, bonds and cash. Its objective is to achieve capital growth with lower risks than a pure equity fund. Current holdings include gilts, Cisco Systems, Tesco and Vodafone.Investors will ...

  • Schroders Tokyo fund manager takes leave

    5 Feb 2004

    Schroders senior Japanese equities fund manager Denis Clough is taking leave of absence from May until April 2005. Clough, a Schroders veteran, will relinquish management of the £550m Toyko fund and £90m Japan growth investment trust on a permanent basis. It is unclear whether he will run money when he returns. Schroders says it will be subject to negotiation with Clough next year. Head of Japanese equities Andrew Rose - Clough's choice as his ...

  • ScotEq Protect slashes premiums by up to 30%

    5 Feb 2004

    Scottish Equitable Protect has cut rates on its mortgage protection products by up to 30 per cent in a radical overhaul of its menu. Taking effect from last week, premiums on level life, critical-illness cover and life insurance with critical-illness cover are down by up to 30 per cent, with decreasing life, CI and life with CI cover linked to a mortgage down by around 20 per cent. The company says the overhaul is part of making it more competitive, with the age definition ...

  • Scottish Widows provide quotes on The Exchange's Exweb

    4 Feb 2004

    Scottish Widows is now giving personal pension and stakeholder quotations via The Exchange's Exweb portal. IFAs can now request individual personal pensions and stakeholder quotations on a single company basis as well as in comparison with other companies.

  • Seasonal boost from Standard

    5 Feb 2004

    JP Morgan Fleming is offering a discount on its initial charge for investments of £7,000 or more into four funds until April 5. The initial charge will fall from 5.5 per cent to 3.5 per cent on the company's UK dynamic, UK strategic value, premier equity growth and Europe funds. JPMF is also waiving the 1 per cent transaction charge on all lump sum investments into any of its 22 investment trusts until April 30. MFS International is knocking 2 per cent off the initial ...

  • Second helping of Capital Pub EIS

    9 Feb 2004

    Noble & Company is aiming to raise up to £10m for the capital pub company 2 enterprise investment scheme (EIS), which will acquire an initial portfolio of 12 pubs over the next three years. The first capital pub company EIS was established in 2001 and has raised £15.4m through two share offers and a private placing. EIS rules prevent the company from raising ...

  • Sesame signs up Abbey and HBOS

    5 Feb 2004

    Sesame has signed up Abbey and HBOS to its new mortgage network proposition which it claims will be the industry's top best of breed mortgage panel for IFAs. These are the first providers to sign to the offering ahead of FSA regulation of mortgages later this year. The network is finalising its proposition and will be offering two regulated network options for members, with Sesame taking full regulatory responsibility for their mortgage business. The first is the panel, ...

  • SGAM's Sandhu says winning stocks are the same as 2003's

    6 Feb 2004

    SGAM special opportunities fund manager Hari Sandhu believes many of the stocks that helped his fund rise more than 50 per cent last year will be strong performers in 2004.Sandhu says that, while he does not expect returns this year to match those of last, 2004 will still be marked by improving growth prospects.He says: "Many of the stocks that served us well in 2003 will continue to do so in 2004. As we have said before, classic recovery stocks tend to recover over a two ...

  • Skipton assets up 9.6 per cent

    4 Feb 2004

    Skipton Building Society's results show an increase in group assets of 9.6 per cent to £7.3bn from £6.7bn. Group pre-tax profits are up £4.4m to £57.8m from £53.4m but the society's pre-tax profits fell to £41m from £52.4m in 2002. Skipton would not release figures for its two IFA subsidiaries Pearson Jones, which it acquired last year, and Skipton Financial Services.

  • Sofa's view

    5 Feb 2004

    So, this is the last column I shall be posting as managing director of Sofa. At the end of February, I become business development director of the Jelf Group. Since I started with Sofa, it has been quite a ride. Among other things, we have cracked the 10,000member mark. We are now progressing towards a final application to the Privy Council regarding chartered status for suitably qualified and experienced advisers and we have introduced some important new member benefits in the ...

  • Special offer on Friends investment bonds

    9 Feb 2004

    Friends Provident has launched a special offer on its investment bonds including increased allocation rates and extra commission for online business.The offer is available from February 6 to May 7 and applies to its investment portfolio bond and the income distribution bond, providing increased allocation on initial investments of over £10,000.Applications for the bonds submitted by IFAs online will receive commission uplift of 0.10 per cent on top of the extra 0.25 per cent ...

  • Splinta accuses ODPM of misleading figures for sellers packs

    4 Feb 2004

    Sellers pack campaign group Splinta is accusing the office of the deputy prime minister of using misleading statistics it uses to justify the case for the home information pack. Splinta joint organiser Nick Salmon says: "According to the department's own research the percentage of failed purchases due to an unfavourable survey in the period examined was just 13%, while unfavourable mortage valuation inspections accounted for a further 30%. A mortgage valuation inspection is ...

  • Squirrel sets up mortgage network SQ2

    5 Feb 2004

    Midlands IFA Squirrel Fin-ancial Management is setting up new mortgage network SQ2. SQ2 offers brokers the choice of taking appointed representative status, introducer status or registered individual status. Other services available from the network are training and compliance support, mortgage packaging, marketing and advertising support and free sourcing software. Packaged panel lenders include Bristol & West, GMAC-RFC, Plat-form, Mortgages plc, Royal Bank of Scotland, ...

  • Stamp collection

    5 Feb 2004

    I am about to buy a local business with residential property attached and will rent out both to tenants. I hear that stamp duty has changed but what else do I need to be aware of? Residential property continued to grow by around 15.4 per cent during 2003 and the yields from certain commercial rents remain attractive. Moving into 2004, there are clear signs of a slowdown, particularly in the South-east, but I assume you have taken the time to ensure your purchase is commercially ...

  • Standard aims cost plus PMI at big companies

    5 Feb 2004

    Standard Life Healthcare is entering the cost plus sector of the private medical insurance market to offer bigger companies with a sizeable and stable volume of claims an alternative to a fully insured scheme. Under cost plus, a company agrees a claims' fund with the insurer which manages the scheme on behalf of the company. Insurance cover protects the company against claims that significantly exceed the claims' fund. Big firms can cap their liability at an agreed level. SLHC ...

  • Standard bonuses better than feared

    5 Feb 2004

    IFAs have given a cautious welcome for Standard Life's bonus declaration, describing it as "marginally" better than expected. The company is cutting bonuses on with-profits pol-icies by up to 1 per cent, with payouts on conventional and unitised policies down by an average of 7 per cent. Standard says that a year of strong investment performance means that most policies have seen a return of more than 10 per cent on premium and surrender values in the past 12 months. The ...

  • Standard Life hire advisers for strategic review

    4 Feb 2004

    Standard Life has confirmed a team of advisers for its strategic review, expected to be completed by the summer. McKinsey & Company will advise on strategy, with Lazard and UBS acting as financial advisers. Clifford Chance will provide legal support, with Watson Wyatt acting as consulting actuaries and Price Waterhouse Coopers advising on taxation and accounting.

  • Talkback

    5 Feb 2004

    "Yes. I trust Clerical Medical. I have done business with it before and I can only welcome its re-entry into the market." Rimi Woodwai, R W Financial Services "Of course we will always consider every option but I doubt Clerical will be any good. I think they have shot themselves in the foot by staying out of the market for so long." Mike Simmons, Robert Langley Financial Management "They are a reputable company with good products and reasonable charges. As long ...

  • The Miles file

    5 Feb 2004

    What is the single most important determinant of success in investment? Stockpicking? Forget it. Choosing the right fund manager? Close but no cigar. No, the most important factor in any investment decision is asset allocation. Readers of this newspaper will be only too familiar with the business of assessing how much of a portfolio should go into equities, how much into bonds and how those investments should be spread around the globe and across industrial sectors. Alas, ...

  • Three into one from Invesco

    9 Feb 2004

    INVESCO PERPETUALDistribution FundType: OeicAim: Income and growth by investing in equities and bonds Minimum Investment:Lump sum £500, monthly £20 Investment split: At least 60% bonds, remainder in equitiesIsa link: Yes Pep transfers: Yes Charges: Initial 5%, annual 2% Commission: Initial 3%, renewal 0.5% Tel: 0800 028 2121Invesco Perpetual's ...

  • Trail on trial

    5 Feb 2004

    IFAs are about to become the target of a concerted campaign to persuade their clients to channel their trail payments to a firm that will rebate it back to them. The campaign is being organised by Intelligent Money, a new company run by former Willis Owen marketing director Julian Penniston-Hill, who believes that most IFAs do little to deserve ongoing commission. Over the coming weeks, he will appear on radio and TV urging clients to sign over trail commission to IM, which will ...

  • Trust territory

    5 Feb 2004

    This week I would like to continue my review of what was proposed in the pre-Budget report and accompanying documentation. I will start where I left off last week on the matter of capital gains tax and the fact that the trust rate will be 40 per cent from April 6, 2004 for income (32 per cent for dividend income) and capital gains, except for bare trusts and settlor-interested trusts where different rules apply. Under a bare trust, all gains and income are assessed on the beneficiary, ...

  • US research centre forecasts house prices will continue to rise

    6 Feb 2004

    A new index designed to predict changes in house prices suggests the property market will continue to head skywards, according to the Economic Cycle Research Institute.The U.S. research centre forecasts business cycles using composite indexes of economic indicators, says it has developed a home price index to gauge price pressures created by the housing market.The centre's researchers say that despite a slight dip in November, it is still climbing, indicating that no ...

  • Vested interest Fof for Charlotte

    5 Feb 2004

    Investment boutique Charlotte Square is launching a fund of funds that invests only in portfolios in which the manager has placed substantial amount of his or her own money. The vested interest performance fund will invest in around 10 unit trusts, Oeics and hedge funds, including the Fidelity special values trust managed by Anthony Bolton, Artemis' UK smaller companies fund, run by John Dodd, Odey's top-performing European hedge fund, run by Crispin Odey, and the Personal ...

  • Whitechurch complaints are no threat to business

    4 Feb 2004

    Whitechurch Securities chairman Kean Seager says he has only received 13 structured product related complaints against his firm, with two already having been decided in his favour. Following reports this week that Seager's Whitechurch Network has become embroiled in the structured products debacle, Seager says it is Securities not the network and any mistakes that may have been made pose no threat to the continuing viability of the business.

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