Money Marketing
5 February 2003

  • 'DC plans getting a bad name'

    6 Feb 2003

    A number of employers have given defined-contribution pensions "a bad name" by cutting contributions after switching their occupational schemes from defined-benefit schemes, according to pensions minister Ian McCartney. He was challenged by MPs on the committee about how the Government plans to prevent employers from reducing or stopping contributions when they move from DB to DC. Labour MP committee member Andrew Dismore asked McCartney what action he planned to take ...

  • 'Investors must heed emerging market volatility'

    6 Feb 2003

    The AITC is warning investors to be aware of volatility in investments in emerging markets, stressing the need to take a long-term view. It gives the example of the Eastern European trust, which is the fourth-best-performing investment trust over the last year. Investing £1,000 would have returned £1,170 over 12 months to December 2002 but £670 over five years. The Baring Emerging Europe trust would have returned £1,255 in 2002 and £2,060 ...

  • 'Polarisation should be considerably loosened but how far do you go?'

    6 Feb 2003

    MM: Has the time come for polarisation to end? MW: Polarisation was the right thing for 1988. At the time, there was no way of distinguishing between who was a broker and who was a tied salesman. Everyone had two business cards and called themselves whatever they wanted. The only way of brin-ging some order into the market was to introduce a strict structure. The feeling was that all these people who had been misrepresenting themselves would still say 'I can represent ...

  • 'With-profits are beating the bear'

    6 Feb 2003

    Life office with-profits bonus cuts have been blown out of proportion compared with the slump in equities over the past three years, according to Bates Investment Services. Head of research James Dalby says that despite big falls in bonuses, many with-profits policies are providing a significant buffer against the bear market, with total returns falling by as little as a third of those posted by stockmarkets. He gives the example of the FTSE All-Share index which has ...

  • A greater understanding

    6 Feb 2003

    Over the last couple of years, with-profits has come in for a great deal of criticism. Initially, much of the criticism focused on discretion, transparency and governance issues. The FSA, Sandler and the industry generally have been busy dealing with these issues and today, as I write, the FSA has released consultation paper 167 which deals with a lot of them. More recently, though, a new wave of criticism has emerged. This time, targets have included falling bonus rates ...

  • A walk in the perks

    6 Feb 2003

    I want to provide employee benefits to keep key personnel within my company. What is the most cost-effective way to do so? What dangers are there if I keep costs to a minimum? I hear that salary sacrifice is a great way for me to save corporation tax. Is this true? The level and type of benefits provided to each employee is a choice to be taken by the employer. Benefits are generally selected according to the importance attached to each of the benefits and the cost. Each ...

  • Abbey sells off First National to GE for £848m

    6 Feb 2003

    Abbey National is selling its First National mortgage and unsecured lending business, which deals exclusively through intermediaries, to GE Consumer Finance, owner of sub-prime lender igroup, for £848m. Abbey says First National operates largely independently of the group's other businesses, under its own brand and in different market segments where there were limited cross-selling opportunities. The sale fits with Abbey's plans to sell off non-core businesses. GE ...

  • Ad power to the tower

    6 Feb 2003

    Consumer groups are calling for the FSA to get the powers to protect the public from misleading advertisements. Financial services consumer panel chairman Colin Brown says when the Treasury reviews the legislation underpinning the FSA in December it should give more authority to the FSA to police ads. His main complaint is when the FSA get complaints about ads, it often takes months to investigate the complaint and take action. The panel says even if the FSA ...

  • AITC attacks Higgs' curbs on non-execs

    6 Feb 2003

    The AITC says limits on non-executive directors proposed by the FSA and the Higgs review could damage boards running investment trusts. At the AITC director conference in London this week, director general Daniel Godfrey said boards could lose their better directors unless amendments are made for trusts. His main concern was the Higgs review's recommendation that non-executive directors should only serve two terms of three years, which he said would result in the loss ...

  • Allianz revamp spells end of Dresdner brand

    6 Feb 2003

    The Dresdner RCM Global Investors brand is finally set to disappear in the UK following the fund firm's rebrand as Allianz Dresdner Asset Management. The rebrand comes almost two years after the March 2001 deal which saw Allianz - one of Germany's leading insurers - acquire Dresdner Bank. The various fund management arms of Allianz adopted the Adam brand last March but Dresdner arms have only recently started to be brought under the parent umbrella. Adam ...

  • Angry CA attack on panel's 'ivory tower' Brown

    6 Feb 2003

    The Consumers' Association has launched a blistering attack on Financial Services Consumer Panel chairman Colin Brown, branding him "an ivory tower academic" for claiming that a complicated depolarised world will not necessarily be detrimental to consumers. The spat follows Brown disagreeing with criticisms from the CA that the FSA's draft rules for depolarisation outlined in CP166 will create a "charter for consumer confusion." He says it is too easy for opponents of the ...

  • Annuity Bureau attacks 'poor' provider admin

    6 Feb 2003

    The Annuity Bureau is accusing product providers of unacceptable and costly delays in producing pension fund data and payments which it says is costing annuitants lost income and lower annuity rates. The company has pointed to Abbey Life, Barclays, Pearl, Royal London and Windsor Life, saying their poor back-up is costing clients money on open market options. It says pension fund and annuity details are regularly delayed by at least four weeks, so clients miss out on competitive ...

  • Another hold-up in RJ Temple stake talks

    6 Feb 2003

    IFA RJ Temple has suffered another delay in its search for an investor to buy a stake in the firm. The closure of a new deal was due to be announced at the company's annual conference in Lon-don last week but, as part of his introductory speech, chairman and chief executive Geoffrey Morphitis warned employees that they would have to wait until March at the earliest for further information. The company started looking for an investor in 2001 and this is believed to ...

  • Backing for CML proposals

    6 Feb 2003

    Mortgage broker MX Moneyextra Mortgages has welcomed the Council of Mortgage Lenders' initiative to keep the level of house repossessions low. The company warns there will be more repossessions if interest rates rise to 6 per cent or 7 per cent. It suggest that the most practical app-roach for homeowners would be to consider how manageable their repayments would be if interest rates were increased to 10 per cent. Head of contact centres Vicky Hodgson says: "Individuals ...

  • Bank of England cuts interest rates by 0.25 per cent to 3.75 per cent

    6 Feb 2003

    The Bank of England's Monetary Policy Committee today voted to cut the Bank base rate by 0.25 per cent to 3.75 per cent from 4 per cent.This the first change in the rate following a status quo of 14 months.The MPC says it reviewed monetary and economic developments in the light of its latest quarterly projections for output and inflation to be published next month.Over the next two years, the prospects for demand, both globally and domestically, are somewhat weaker ...

  • Barclays Private Clients International - HI-ILDA 5

    10 Feb 2003

    Monday, 10 February 2003 Type: Guaranteed equity bond and high interest accountGUARANTEED EQUITY BONDAim: Sterling version - growth linked to the performance of FTSE 100 index, US dollar version - growth linked to the performance of S&P 500 index Minimum-maximum investment: £5,000, $9,000-£500,000, $900,000Term: Five yearsInterest rates: Sterling version - 7% gross a year, US dollar version - 5% gross a yearGuarantee: ...

  • Boomer business

    6 Feb 2003

    As baby boomers start to reach retirement age, there will be an explosion in demand for what are known as at-retirement products. Do not forget that, in the post-war era, this generation has driven most of the advances in finance which we currently enjoy. They also hold a huge proportion of the country's assets, which they will be looking to realise as they approach retirement. As the first of them start to consider their "third age", a great deal of attention is being ...

  • Can the bondwagon keep rolling?

    6 Feb 2003

    As equity markets continue on their downward spiral, investors are boosting their bond weightings. According to the IMA, net sales of funds in the UK corporate bond sector reached £2.6bn last year - almost double the £1.4bn invested in UK equity income funds. But some in the industry are less convinced by the bond story. Bates Investment Services head of research James Dalby says: "The bottom line is that investors always chase the market and it is the worse thing ...

  • Casting a spell

    6 Feb 2003

    The spellcheck function on modern computers could be described as a first step towards artificial intelligence. When writing "Fishwick", the computer suggests "fishlike", Alistair Darling becomes Alligator Darling, Skandia is "squander" and multi-tie turns into "mullet-tie". Bankhall becomes "bankroll", Fatchett turns into "fattest", Carby becomes "crabby" and Ritchie is "retch". Some of the alternative spellings of financial services individuals' names could ...

  • Children prefer piggy bank to a savings account

    6 Feb 2003

    Many children are failing to earn interest on their pocket money or wages because they put the cash in a piggy bank instead of a savings account, according to the Halifax. Half the 1,005 children questioned in a survey said they keep their money in a piggy bank while 6 per cent entrust it to their parents. Only around a third put their cash in a bank or building society account. The survey of children aged between seven and 16 shows that boys get an average of ...

  • Consumers give their health cover a workout

    6 Feb 2003

    Gym memberships increase in the new year as more people resolve to get fit and sales of health insurance policies also rise, according to IFA Hacker Young. The firm says it has seen a surge in interest in protection products as people consider their financial health as well as their physical well-being. It points out that the younger and fitter an applicant is, the cheaper a product such as critical-illness cover will be. Partner Harvey Rosenfield says: "There ...

  • Correspondent's week

    6 Feb 2003

    Looking back on a week that involved an out-of-body experience, four seminars, over 200 IFAs, 72 virgins, a one-legged man, a TV remote control, a Skoda Fabia, gridlock on the M25, a farm in Dunstable, a cockerel and my daughter's birthday. It was always going to be an interesting one. Straight to head office in Southampton. Five meetings later, I finish at 2pm and pick up a hire car for travel to Luton Airport. The 6pm Easyjet leaves on time (for a change) so I arrive home ...

  • Countrywide to sue PI firm over £5.5m in payouts

    6 Feb 2003

    Countrywide Assurance is aiming to recover £5.5m it paid out in compensation for pension misselling by its direct salesforce by suing its professional indemnity insurer. It follows PI insurer Marshal's refusal to reimburse the firm, claiming that Country-wide had paid more compensation than it needed as some clients were compensated even though there was no negligence by its salespeople. Countrywide aims to recover a £5,000 excess it paid out on 1,100 pension ...

  • Crisis points

    6 Feb 2003

    It has been much trumpeted in the national press but is there really a pension crisis? Stammers: I believe there is and it is a crisis of confidence. Consumer trust in the pension system is at an all-time low and employer commitment to work-based provision has been greatly reduced by financial pressures and red tape. There is no single, easy, solution but incentivising employers to offer schemes and contribute to them, which, in turn, encourages employees to join, would be a significant ...

  • Define tuning

    6 Feb 2003

    Does your firm have corporate clients with 100 or more employees? Does it have access to businesses of this type through its connections with other professional advisers such as accountants and solicitors? Do any of these clients run a defined-benefit pension scheme for their workforce? Are they finding the red tape and expense too much for them? If the answer to these questions is yes, then read on. For some years, employers have been steadily moving their pension schemes from ...

  • Don't cash in pension too early, warns FSA

    6 Feb 2003

    The FSA is warning consumers of the pitfalls of accessing their pension pot before they retire. It says people should consider cashing in other investments before accessing the tax-free cash in their pension. The regulator says its initiative is aiming to counter recent TV, press and mail campaigns that have targeted over-50s who have occupational or personal pension plans. Director of investment firms David Kenmir says: "Releasing cash may sound very tempting ...

  • Driving down costs

    6 Feb 2003

    Most of the post-Sandler debate on the UK mutual fund industry has focused on increased transparency, price caps and the issues raised by a new breed of low-cost, no-advice products. But I have been struck by the lack of discussion on what all this means for the future cost base of the industry. My perception is that much of the industry has yet to move on from the short-term worries of: "How is this going to work?" to the longer-term issues of: "If this works, what are the implications ...

  • DWS puts Ashby in the saddle of new runner

    6 Feb 2003

    DWS Investments has expanded its stable of funds with the UK equity income plus fund. This Oeic aims to produce a rising level of income with some scope for capital growth by investing in 40 UK stocks. It will have an initial target yield of 6 per cent and each of the 40 stocks will be equally weighted at 2.5 per cent of the portfolio. However, weightings are allowed to move 1 per cent either side of this target. The portfolio will be a more concentrated version of the existing ...

  • Edinburgh Fund Managers - Classic PEP Transfers

    6 Feb 2003

    Thursday, 6 February 2003Type: Oeic or unit trustAim: Income or growth by investing Pep transfers in a choice of four fundsMinimum investment: Lump sum £7,000Investment split: Choice of Edinburgh performance portfolio, Edinburgh fund of funds portfolio, Edinburgh managed growth portfolio or Edinburgh monthly income portfolioCharges: Initial up to 4.25%, annual 1.5%Commission: Initial up to 3%, renewal 0.5%Tel: 0800 9175678

  • Equity content capped at 60 per cent

    5 Feb 2003

    The equity-based product in the Sandler suite of products will have a maximum exposure to equities of 60 per cent with further requirements to be diversified across a range of companies, markets and sectors.The Treasury consultation on the products published today also sets out that the equity products will be able to take the form of either a mutual fund or a unitised life product as the Government says consumers are not aware of a difference between the two.It is looking ...

  • Fidelity says Sandler suite will miss target audience

    6 Feb 2003

    Fidelity has criticised the Government for not considering where buyers for its proposed Sandler suite proposals will come from or providing any incentives.While saying that supply side solutions do nothing to alter a lack of demand, Fidelity has welcomed the Government's endorsement of active fund management.It suggests that the Sandler suite of safe haven products should be life styled - rather than a 60 per cent limit on equity content as proposed by the Government ...

  • Final-salary shortfalls sparks drive towards transferring

    6 Feb 2003

    Fears of shortfalls in finalsalary schemes are driving more people to look at transferring preserved pension rights, says Millfield. The company says media coverage of the £100bn black hole in final-salary schemes and pension shortfalls on schemes winding up is pushing clients towards transferring. Millfield says many advisers are steering clear of pension transfers after getting problems in the pension review or they are not registered to conduct transfer business. But ...

  • GMAC appoints new chief executive

    10 Feb 2003

    Mortgage lender GMAC-RFC has appointed Robert Appel as chief executive officer to replace Colin Duggleby who has stepped down as a result of a serious illness. Appel joined GMAC-RFC in 1999 as managing director. The lender has also appointed Barry Searle to the newly created position of commercial director, David House as product development manager and Christine O'Grady as PR manager.

  • Govt has no estimate of tax revenue if savings rise

    6 Feb 2003

    The Government admits it has not estimated how much increased tax revenue would be generated if consumers started saving more. Paul Gray, second permanent secretary at the Department for Work & Pensions told the committee there were no official estimates of the revenue implications of people saving more. He was asked by Labour MP Karen Buck what thinking the Government had done on the subject as part of its Pensions Green Paper. Gray said that, while tax revenue would ...

  • Has regulation brought any benefits?

    6 Feb 2003

    The 1986 Financial Services Act introduced a regime of investor protection the like that had never been seen before. It brought peace of mind to every UK investor that they would never again have to worry about being mislead,misadvised or missold an investment as the industry would be cleansed of all its undesirables and allowed to prosper. Isn't it ironic then that here we are some 15 or so years later, after regulating the industry into submission and at a cost running into ...

  • Headhunt saboteurs

    6 Feb 2003

    The team at MM would like to say it is flattered by the attentions paid to it by recruitment firm Latimer International. In a bid to poach staff at MM for no less than - wait for it, mega-network Misys - as press and communications manager, the headhunters approached three different MM reporters. The delicate operation of subtly contacting people was done by email. When Corey Boles complained about his misspelled name, the headhunter banned him from any future opportunities ...

  • Heirs and graces

    6 Feb 2003

    Tax remains the key driver for going offshore so, with intelligent fund choices, there is no need for falling stockmarkets to affect the offshore market. The worst bear market for decades has spooked much of the personal investment market. But the offshore market need not suffer to the same extent. The motivation behind offshore products is tax planning - a client requirement which remains constant, no matter what happens to stockmarkets. Offshore providers are increasingly ...

  • Homebuyers are 'better insulated' against slump

    6 Feb 2003

    Nationwide says borrowers are better protected from a slump in house prices than in the past by having put down bigger deposits. But it warns lenders to stay cautious and test borrowers' ability to meet repayments. The society says house prices increased by 1.7 per cent last month and 26.5 per cent over the last year. The average price of a property is now £117,905. It predicts that house price inflation will be considerably lower over the next year. Nationwide

  • IFA research reveals most protection policies include critical illness

    10 Feb 2003

    More than half of the protection policies sold to IFA clients include critical illness cover according to Liverpool Victoria's latest research.The friendly society's figures show that 54 per cent of policies include critical illness but only 24 per cent include income protection.

  • IFAP bringing in leads for £23m commission

    6 Feb 2003

    Over 315,000 people contacted IFA Promotion last year to look for an IFA, producing up to £23m in commission and £16.5m in profit for members. According to research by actuaries William M Mercer, the total of people approaching IFAP was up by 20 per cent to 315,000 from 263,000 in 2001. Of those people contacting IFAP by phone, 43 per cent then contacted an IFA and 37 per cent used the internet. Once people had met an IFA, they bought an average of ...

  • IFP call to scrap plan for adviser retesting

    6 Feb 2003

    The IFP is calling on the FSA to abandon its proposal for annual or biennial retesting of IFAs and instead leave it up to firms to ensure the competence of advisers. In its response to CP157: Examination Framework for Retail Financial Services Advisers, the IFP argues that the FSA's proposal will cost too much to implement and is not necessary because it is in a firm's interest to be represented by competent advisers. IFP chief executive Nick Cann says the idea, ...

  • IMA slams IPPR Isa research

    11 Feb 2003

    The Investment Management Association has slammed the Institute for Public Policy Research's call for the scrapping of Isas, saying its conclusions are misguided and its proposals unlikely to lead to increased saving amongst low earners.The IPPR says Isas have failed to penetrate those earning £10,000 to £15,600, but the IMA said Isas have continued the momentum started by Peps and Tessas in pushing flexible medium-term savings down the income spectrum.IMA ...

  • Independent view

    6 Feb 2003

    As I write this article, the FTSE 100 has just fallen below 3,500 and I am starting to wonder whether turning down the offer to be vocalist in a young Parisian snowboarder's band back in 1993 was, in hindsight, a bad career move. The music business did not offer much in the way of job security although the pay can be very attractive. Like most women, I doubted my abilities, particularly as a chanteuse (although the inability to hold a tune does not appear to have hindered many ...

  • Industry in talks to set up IFA-only PI insurer

    6 Feb 2003

    Aifa is in talks with the ABI, the FSA, product providers and professional indemnity underwriters about the possibility of forming a captive PI insurer selling cover exclusively to IFAs. In CP169, Professional Indemnity Insurance for Personal Investment Firms, published this week, the FSA outlines the possibility of a mutually run scheme to cover IFAs'PI needs but this is already being overshadowed by talk of an IFA-only PI underwriter. FSA director of investment firms ...

  • Insight discretionary Europe

    5 Feb 2003

    INSIGHT INVESTMENTSInsight Investments European Discretionary FundType: Oeic Aim: Income by investing in European (excluding UK) companies Minimum investment: Lump sum £2,000, monthly £100 Investment split: 100 per cent in European (excluding UK) companies Isa link: Yes Pep transfers: Yes Charges: Initial 5.25%, annual 1.5% Commission: Initial 3%, renewal 0.5%Tel: 0845 8506050 Broker panel:David ...

  • Insight Investment - Insight Investment

    6 Feb 2003

    Thursday, 6 February 2003Type: Oeic mini or maxi IsaAim: Income and growth by investing in four fundsMinimum investment: Lump sum £3,000Catmarked: NoInvestment choice: Income - Foundation income, growth - UK discretionary, European discretionary, US equityYield: Depends on fundCharges: Initial 5.25%, annual 1.15% - 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0845 8506050

  • Insight Investment - Insight Investment Focus Plan

    5 Feb 2003

    Wednesday, 5 February 2003Type: Oeic mini or maxi IsaAim: Income or growth by investing in a choice of six fundsMinimum investment: Lump sum £3,000Catmarked: NoInvestment choice: Income - equity high income, monthly income, global bond funds. Growth - UK discretionary, UK select opportunities, European discretionary fundsYield: Depends on fundCharges: Initial 5.25%, annual 1.15% - 1.5%Commission: Initial 3%, renewal ...

  • Insight Investment builds portfolio

    11 Feb 2003

    Insight Investment has created the Insight Investment portfolio builder plan for this year's Isa season. This Oeic-based Isa is aimed at clients who are new to stockmarket investing, who want to build a diverse investment portfolio, but who are worried about current stockmarket volatility. It initially invests all investors' capital in the Insight Investment foundation income fund, a bond fund which is Insight's lowest risk fund. The investment is then phased equally ...

  • Interesting times

    6 Feb 2003

    The historical decision by EU finance ministers to agree the savings tax directive will change the face of offshore tax planning forever. The agreement may have some private investors quaking in their boots but the radical changes in banking secrecy offer a huge planning opportunity for IFAs. By agreeing to the savings tax directive, all EU member states, with the exception of Austria, Luxemburg and Belgium, will automatically exchange information about cross-border EU ...

  • Internal critic of FSA's handling of Equitable Life debacle is retiring

    6 Feb 2003

    Ronnie Baird, the author of the Baird Report, which accused the FSA of severe shortfalls over its handling of the Equitable Life debacle, is retiring from the regulator at the end of March. His damning report accused the FSA of failing to spot the issues that needed to be addressed or, having spotted them, failing to follow them up. Following the decision by the Equitable to close its doors to new business in December 2000, Baird was asked by the FSA to conduct an inquiry ...

  • Investment analysis

    6 Feb 2003

    Strong economic data from the US helped stabilise global markets at the end of the week but it was not enough to prevent the benchmark FTSE World Index from ending the week 1.3 per cent lower. Earlier in the week, concerns about the Iraqi situation and the health of corporate America weighed heavy on Wall Street , with the Dow falling below 8,000. However there was some positive corporate news, with Procter & Gamble, Merck, American Express and Walt Disney reporting stronger ...

  • Investment view

    6 Feb 2003

    In markets such as those we have been experiencing in this country over recent weeks, investors must be tempted to cast their net further to see if there are value-enhancing strategies available elsewhere. It was with such a thought in mind that I attended a lunch at which I learned about one major investment house's approach to emerging markets. The house was Baring Asset Management and the fund was Baring Emerging Europe, an investment trust. It is, as the name suggests, ...

  • Irish Life International - International Property Multi-Fund

    11 Feb 2003

    Tuesday, 11 February 2003Type: Offshore whole of life fundAim: Growth by investing in performance bond, self-directed bondMinimum investment: Performance bond - £10,000, self-directed bond - £50,000Place of registration: DublinInvestment split: Choice of performance bond, self-directed bondIsa link: NoCharges: Performance bond - initial 1.25% a year for five years, annual 1.35%. Self-directed bond - Option A initial ...

  • Isa investors favour UK, says Jupiter

    6 Feb 2003

    The UK is the most popular home for Isa investors this tax year, with 42 per cent investing domestically and 15 per cent choosing Europe, according to Jupiter. From a sector viewpoint, income funds were selected by 21 per cent of its investors, with financials the second most popular sector, chosen by 11 per cent. Pharmaceuticals attracted 9 per cent of investors, corporate bonds saw 7 per cent take-up and technology was favoured by 5 per cent. With two months to go to ...

  • Isis goes for another VCT investment round

    7 Feb 2003

    ISIS EQUITY PARTNERSBARONSMEAD VCTAim: Growth by investing in established but unquoted UK companies Minimum investment: Lump sum £3,000Opening-closing date: October 25, 2002-April 3, 2003 for 2002/2003 tax year, May 23, 2004 for 2003/2004 tax year Charges: Initial 5%, annual 3.5% Commission: Initial 3% or initial 2%, renewal 0.5% for five years Tel: 0845 6006166The panel: Graeme Currie, Director, Alan Steel Asset Management, ...

  • Jersey quality

    6 Feb 2003

    For the second successive year, Jersey intends to showcase its diverse and sophisticated range of financial services to intermediaries when an industry delegation visits London in the spring. Building on the success of the first London conference organised by Jersey Finance Limited in May 2002, the decision to return is an indication of the value and importance of the UK intermediary market to the island's leading industry. Marketing activity by the offshore finance ...

  • Julian Gibbs

    6 Feb 2003

    The stockmarket-linked product which currently receives the highest rating from independent analyst Future Value Consultants is the Nvesta Triple Tracker plan. It is rated 9.25 out of 10 both for higher-rate and basic-rate taxpayers, who can invest in it via an Isa or directly to take advantage of capital gains tax allowances. This plan gives a return of three times the growth in the FTSE 100 index over a five-and-a-half-year period up to a maximum of 75 per cent, with full capital ...

  • Kelly says fund firms and life offices can offer child trust fund

    6 Feb 2003

    Fund firms and life offices will be included in the distribution plans for the child trust fund, ending concerns that only banks and building societies would be allowed to sell CTFs. Statements accompanying the pre-Budget report last November raised doubts among fund companies because, although it said the products would be sold on an open market basis, it only mentioned banks, building societies and friendly societies within that framework. But in response to questions ...

  • Laundering laugh that's no joke

    6 Feb 2003

    I am an IFA and, under money-laundering regulations, I am obliged, even when transacting a £10 a month insurance or savings scheme, to see, for example, a passport and a council tax bill (or similar documents) as evidence of identity, etc. I am required to record the details and to fill in a form for the company I deal with. If sent to me, I will usually need to return them by registered post. In other words, about one hour is wasted in this messing about. I got some premium ...

  • Legal & General - Protected Index Plan

    10 Feb 2003

    Monday, 10 February 2003Type: Guaranteed equity bondAim: Growth linked the performance of the FTSE 100 indexMinimum-maximum investment: £1,000-no maximum, £7,000 IsaTerm: Five years six monthsGuarantee: Capital returned in full regardless of the performance in the indexReturn: 100% of any growth up to 60%Closing date: March 14, 2003 Commission: Initial 3%Tel: 020 7528 6773

  • Liverpool Vic cuts payouts

    6 Feb 2003

    Liverpool Victoria is reducing with-profits payouts by between 13 and 18 per cent due to continuing difficulties in the equity markets. Reversionary bonuses are cut from 4.5 to 3.85 per cent for conventional with-profits and from 4.5 to 2.25 per cent on its unitised with-profits bond. The mutual says the payout on a £50 a month 25-year policy will be £93,503 compared with £113,456 last year. An equivalent 10-year policy will pay out £9,489 compared ...

  • Lloyds TSB Scotland joins BuildStore panel

    11 Feb 2003

    Lloyds TSB Scotland has signed up with self build specialist BuildStore to offer its intermediary mortgage product, BuildLoan. The new product is a base rate tracker set at 1 per cent above bank base rate until the end of 2007. Brokers' clients can borrow up to 95 per cent of land costs and 95 per cent of build costs.

  • M&G Investments - M&G Balanced Portfolio

    5 Feb 2003

    Wednesday, 5 February 2003 Type: OeicAim: Growth by investing in international equitiesMinimum investment: Lump sum £1,000, monthly £100Investment split: UK equities 55.41%, European equities 3.78%, North American equities 12.12%, Japan 1.96%, Pacific 0.89%, UK bonds 9.95%, UK corporate bonds 9.98%, cash 5.92%Isa link: YesPep transfers: YesCharges: Initial 4%, annual 1.5%Special offer: 1% discount on initial chargeOffer ...

  • M2's target

    6 Feb 2003

    It is not in my nature to sell myself short. However, I need to clarify that M2 Financial will, in fact, not be looking to purchase "up to a 100 firms…" within the next 12 months as stated in Money Marketing (January 23). M2 is certainly ambitious but operating very much within the realms of reality. This claim was a reference to our plans to recruit up to 100 RIs by the end of the year, whether by acquiring sole trader IFAs or small and medium-sized operations. A year or two from ...

  • Matrix continues private equity project

    5 Feb 2003

    Matrix Private Equity has established its second Matrix enterprise fund, a managed portfolio of between four and six enterprise investment schemes (EISs).The fund aims to provide capital growth and is similar to the previous fund which was introduced last year. It will be fully invested by April 2003 and has made two investments to date. These are security services firm FSG Security group and Signature Brands, a fashion retailer.This second Matrix offering will make use ...

  • McCartney admits firms are not paying into stakeholder

    6 Feb 2003

    Pensions minister Ian McCartney has admitted that a significant proportion of employers have set up a stakeholder pension scheme simply to comply with the law but are not making contributions. Testifying at the final oral evidence session of the Parliamentary Work & Pensions select committee's inquiry into the pension regime, this was the first time that the Government has conceded that stakeholder has failed to increase pension savings significantly. In response ...

  • Mentor updates VCT guide

    6 Feb 2003

    IFA group and product provider Mentor Financial Services is publishing a guide to this year's venture capital trusts and enterprise investment schemes. It will be the ninth edition of the free guide, which explains how EISs and VCTs work and gives a risk rating of plans. It details the tax breaks available through each type of investment and shows how they can be used to reclaim capital gains tax that has already been paid. The guide been written as an educational ...

  • Morgan joining Newton

    6 Feb 2003

    Newton Investment Management has appointed Harry Morgan as head of its private client business in Scotland. Morgan was formerly director and head of Edinburgh Fund Managers' private client arm, where he doubled assets under management to £300m in the five years to his departure at the end of 2002. He will have the task of performing a similar feat at Newton's private investment management division, which has £4bn under management, with £400m-£500m ...

  • Moving goalposts of exemption

    6 Feb 2003

    Last week, I looked at the important conditions that must be satisfied in securing exemption from tax on redundancy payments. Having finished that analysis, it occurred to me that I really should have preceded it with a consideration of whether a payment was, by its nature, one that could qualify for the special exemptions in respect of redundancy payments as opposed to being one assessable under the general rules of Schedule E. In the latter case, there is no chance that any exemption ...

  • Name change for Namba in bid to attract loan advisers

    6 Feb 2003

    The National Association of Mortgage Brokers and Advisers is renaming itself the Association of Mortgage Intermediaries. The name change follows Namba's alliance with the Association of IFAs last August. It has also secured funding from the Council of Mortgage Lenders and the backing of the Intermediary Mortgage Lenders' Association for the first time this week although the amount of funding is yet to be decided. The name change to the AMI is intended to ...

  • Nationwide and Halifax making no immediate change to rates following BoE cut

    6 Feb 2003

    The largest lenders including Halifax and Nationwide say they will monitor the reaction in the market to the Bank of England's move to cut rates to 3.75 per cent before deciding on their next move.Both lenders say they will make decisions about their rates in due course, but The One Account, owned by Royal Bank of Scotland, has already announced it will reduce its variable mortgage rates by the full 0.25 per cent.The new headline rate for The One Account will be 4.95 ...

  • New loan range for Platform relaunch

    6 Feb 2003

    Platform, the intermediary lending subsidiary of Britannia Building Society, is relaunching with a new product range following its merger with Verso, the society's other specialist division. The Platform Home Loans and Verso brands were brought together to eliminate overlap and bring the new firm under the Platform brand. Platform says this will end the confusion brokers faced when dealing with two Britannia brands and will be the one point of contact for a full product ...

  • New Star rethinks roles for AAM funds

    6 Feb 2003

    New Star is teaming up former Aberdeen Asset Management fund manager Neil Campling with ex-colleague John Pullar-Strecker to manage the technology funds it recently acquired from AAM. The firm is also switching managers which it had previously announced would run the other funds bought from AAM in January. Campling, currently working in the US after eight years with AAM, will be second manager of the £400m tech fund under Pullar-Strecker. He is also expected to ...

  • Newcastle Building Society - Guaranteed Five Star Bond

    7 Feb 2003

    Friday, 7 February 2003Type: Guaranteed equity bondAim: Growth linked to the performance of Credit Suisse US$ bond, Fidelity Funds European growth, Franklin Templeton mutual beacon, GAM UK diversified, Schroder ISF Japan equity fundsMinimum-maximum investment: £1,000-£500,000Term: Five yearsGuarantee: Capital returned in full at end of term regardless of performance of fundsReturn: 75% of fund growth at end of termClosing ...

  • No compensation for drawdown, says Equitable

    6 Feb 2003

    Up to 81,000 policyholders who consider they could have misselling claims against Equitable Life for being sold income drawdown instead of guaranteed annuities have been told they will not receive compensation. A letter to policyholders from the stricken insurer states that, under clause 17b of the rectification scheme, compensation is not payable unless policyholders can prove they would have chosen a guaranteed annuity. The rectification scheme was set up, with £430m ...

  • Noble Fund Managers - Enterprise Venture Capital Trust

    7 Feb 2003

    Friday, 7 February 2003Aim: Growth by investing in quoted and unquoted companiesMinimum investment: Lump sum £1,000Opening/closing date: December 19, 2002/April 2, 2003 Charges: Subject to negotiationCommission: Initial 3%Tel: 080 7367 5606

  • Noble tops up Enterprise

    7 Feb 2003

    Noble Fund Managers is raising up to £1.5m to top up its enterprise venture capital trust.The trust was established in 1996 and has raised £20.6m to date, which has been invested in 45 unquoted companies. The directors of the VCT believe there will be enough interest from investors for a further share issue, which will make use of the investment opportunities that come to the attention of the fund managers through their offices across the UK.The VCT will maintain ...

  • Norwich Union praises Government for Sandler suite announcement

    6 Feb 2003

    Norwich Union has responded enthusiastically to the Government's decision to reconsider the price cap on the stakeholder suite of products.It believes if the price cap is lifted the products will have stronger backing from providers and a greater chance of success with the public.NU has also welcomed the endorsement of the with-profits concept with the inclusion of a smoothed equity product within the suite and believes that adopting existing stakeholder pensions into ...

  • NU backs search for sports stars

    6 Feb 2003

    Norwich Union is sponsoring a BBC TV show designed to discover talented young athletes. Born to Win will be run as a Pop Idol-style competition and is open to anyone aged between 16 and 18. They can be involved in any sport. NU is already heavily involved in grassroots athletics and will be the sole sponsor of the programme. Hopeful contestants can apply via the BBC website until February 21. Those selected will go through to regional trials followed by national ...

  • nvesta freshens up bond theme

    6 Feb 2003

    nvesta has established a guaranteed equity bond that pays three times the growth in the index to which it is linked.The triple tracker plan is linked to the FTSE 100 index for a term of five and half years. Investors will get their original capital returned in full provided the FSTE 100 never falls by more than 50 per cent during the term. If it does fall by this amount, investors will still get a full capital return if the index recovers to at least its level at the start of the ...

  • Nvesta hopes consumers will warm to its products

    6 Feb 2003

    Structured product provider Nvesta is running an advertising campaign aimed at creating awareness of its brand and promoting its products. The ads feature a model head with phrenological markings, wearing a woolly bobble-hat and scarf. Nvesta says this image represents the need for careful consideration of investments in a "chilly" market. The ads will carry the slogan: "In today's chilly climate, our carefully structured products can keep your clients from catching ...

  • Older and wiser

    6 Feb 2003

    One of the key themes of the Government's Pensions Green Paper was the need to encourage greater labour market participation among older workers. Our analysis shows that delayed retirement could ind-eed have a significant impact on the savings gap but only if there is a massive shift in attitudes towards older workers. The Green Paper proposals, although they are a start, will not be adequate to achieve this. Benefits for consumers and product providers There is ...

  • Personal touch

    6 Feb 2003

    The Witan investment trust is now available within a pension wrapper, the Witan simple contribution pension. Looking at the pension's suitability to the market, Bumford says: "Few mainstream providers have yet to forge external fund links with the investment trust sector. This new contract will provide easy access to a generalist investment trust." Leonard says: "As the scheme only accepts contributions up to £3,600, it is really aiming for the non-workers and ...

  • PI is still crumbling

    6 Feb 2003

    I read with interest the article by Junior Sobowale (Money Marketing, January 23).While I agree with some of the general points he put forward, I was astounded to read his observations about the professional indemnity difficulties being experienced by IFAs. These comments exhibit a total detachment from the plight that is being felt currently by large numbers of IFAs. While more capacity may be forthcoming, there is certainly no indication of that now and, if anything, it is getting ...

  • Product matters

    6 Feb 2003

    Royal Bank of Scotland's relaunch of Virgin One as The One Account is a missed opportunity. It includes a few helpful criteria changes but this tinkering does not address the main defects. The previous compulsory requirement of having one's income credited to the account has sensibly been dropped although in practice Virgin One had already stopped enforcing this. Although crediting one's income to a current account mortgage makes perfect sense to get maximum benefit from ...

  • R&SA admits it needed loans as payouts slide

    6 Feb 2003

    Royal & Sun Alliance has revealed it called on contingent loans from its general insurance parent last year and in January to maintain regulatory solvency and admits some of its with-profits policies are not keeping pace with inflation. In its annual bonus declaration, the company slashed payouts on with-profits by up to 22 per cent. All contracts with terms of under 10 years and some 10-year pension contracts will have no terminal bonus because they have built-in guarantees. The ...

  • Regulator to lower limit for waiver and offer offset

    6 Feb 2003

    IFAs would be able to offset their professional indemnity insurance excess against their capital reserves and firms with annual turnovers of £10m or more would be exempt from PI cover under proposals outlined by the FSA this week. Director of investment firms David Kenmir says the 5 per cent of IFA firms with £10m or more in annual turnover, such as IFA Falcon Group, as reported in last week's issue of Money Marketing, would be able to apply for an exemption from ...

  • Repossessions are lowest for 20 years

    6 Feb 2003

    Arrears and repossessions have fallen to their lowest levels for 20 years, with only 0.11 per cent of all borrowers repossessed by lenders last year, according to the Council of Mortgage Lenders. Its latest figures reveal that 11,970 properties were repossessed last year compared with 18,280 in 2001. Only 50,510 mortgages were in arrears for more than six months in 2002 compared with 62,840 in 2001. But the CML warns that arrears and possessions reflect recent ...

  • Rock sees record profits

    6 Feb 2003

    Northern Rock saw record profits last year with an 18 per cent rise to £326m from £276m in 2001. Income rose to £561m from £476m. Gross mortgage lending rose to the highest-ever level for the firm at £14.1bn, with £1.5bn from the acquisition of Legal & General Bank. The lending figure was a 60 per cent leap from 2001's total of £8.9bn. Net lending amounted to £8.2bn, up by 61 per cent from £5.1bn. On ...

  • Saga offers guide to annuities

    6 Feb 2003

    Saga is publishing an annuity guide to help those approaching retirement through the maze of options. It says as annuity rates fell by 12 per cent last year- the second-biggest decline in eight year - the choices that people make are especially critical. The guide covers a variety of topics, including descriptions of the different types of annuities. It discusses the right time to start choosing an annuity, which type may be appropriate and the open market option. It ...

  • Sandler will not work with price cap warns IMA

    5 Feb 2003

    The Investment Management Association has warned the 1 per cent cap proposed by the Sandler review for the stakeholder suite of products will not work.In its response to the Treasury consultation on the Sandler products, the trade body says if the Government is to be successful in attracting lower earners of the market to the new product range, it has to be able to attract product providers, otherwise the products will flop.But it has welcomed the focus on simplicity, transparency ...

  • Savills calls on mainstream lenders to cut rates

    6 Feb 2003

    National mortgage broker Savills Private Finance is calling on mainstream lenders to cut their variable rates following today's announcement that the Bank of England is reducing rates to 3.75 per cent from 4 per cent.But Savills says fixed rates are unlikely to fall immediately.Associate director Simon Jones says: "The rate cut has not come as a complete surprise. There are clearly concerns over the underlying strength of the economy, with the stockmarket having fallen considerably ...

  • Scale tips balance

    6 Feb 2003

    It is hard to think of any document last year that stimulated more opposition from the IFA community than CP121. A year has passed and a great deal of good work has been carried out, especially by Paul Smee and his colleagues at Aifa, and finally the FSA has come up with proposals on how it will put a depolarised regime in place. Although clearly the battle is not yet won, there will be many more consultation documents before the year is out that will have an important ...

  • Scottish Life International - Protected Bonus Bond Series 2

    11 Feb 2003

    Tuesday, 11 February 2003Type: Guaranteed equity bondAim: Growth linked to the performance of FTSE 100, Eurostoxx 50 and S&P 500 indicesMinimum investment: Lump sum £10,000Place of registration: Isle of ManInvestment Split: 100% linked to the performance of FTSE 100, Eurostoxx 50 and S&P 500 indicesGuarantee: Capital returned in full regardless of performance of indicesYield: Up to 54% growth over six year two month termIsa ...

  • SEI trust pushes 5% withdrawals

    6 Feb 2003

    Scottish Equitable International is urging IFAs to take advantage of the 5 per cent withdrawal facility on life bonds ahead of its possible abolition in this year's Budget. The company has launched the reserved interest trust to enable tax-deferred withdrawals to be made. The product works by establishing a trust which purchases an offshore bond. The client can take 5 per cent withdrawals for the next 20 years. As the rules stand, this income is not liable immediately ...

  • Serpentine sums

    6 Feb 2003

    The decision on whether to contract out of Serps and invest the rebates in a personal pension was fairly straightforward in the past. Based on the earnings and risk profile of a client, a pivotal age was calculated to find the point beyond which contracting out of Serps became less attractive than opting in. But things have changed and the criteria are not clear-cut. A suitable recommendation is difficult to assess. Fundamental changes The introduction of ...

  • Simple saving

    6 Feb 2003

    The Pensions Green Paper might have been disappointing but the same cannot be said of the proposals for tax simplification, launched in a simultaneous consultation paper. Consider the joint objectives: •Providing choice for everyone by simplifying the structure and removing the mystique born of years of legislative "tinkering". •Increase protection for members of occupational schemes, especially where schemes close or wind up. •Promote ...

  • Smooth move as going gets rough

    6 Feb 2003

    The with-profits bonus declaration season is in full swing and there have been some big cuts in bonus rates. The cuts will be disappointing to policyholders and may lessen the attraction for new investors. What has been happening and what is the impact for new investors in with-profits? Putting investment conditions into context, last year saw another fall in the UK stockmarket making a string of three down years - the worst bear market for more than a quarter ...

  • Solvency lifeline saves insurers selling equities in vicious circle

    6 Feb 2003

    The FSA is easing regulatory solvency margins as it admits that life companies are pressing or failing the requirements in the stockmarket slump. In a letter sent to chief executives of all life insurers last Friday, FSA managing director John Tiner says the move is to avoid panic dumping of equities when the markets fall as life offices try to preserve regulatory margins. He writes: "There is a risk that these sales cause further falls which, in turn, trigger additional ...

  • Split-cap 'spider's web' is biggest FSA probe

    6 Feb 2003

    The FSA says its enforcement division has significantly widened the scope of its investigation into possible collusion between companies in the split-capital investment trust sector. Speaking at the AITC conference for directors in London this week, FSA managing director John Tiner said the FSA had stepped up the initially small investigation to encompass many more fund firms and brokers. He said the inquiry was now the biggest that the regulator has taken on, as it has ...

  • Split-cap charity to help investors

    6 Feb 2003

    The AITC is setting up a charitable foundation it hopes will raise millions of pounds to provide financial support to victims of the split-capital investment trust fiasco. Announced by director general Daniel Godfrey at the AITC conference for directors in London this week, the foundation is seeking to establish a hardship fund for investors who have suffered. The AITC says the foundation hopes to raise up to £10m for the fund from companies it believes have done ...

  • Staffs creates subsidiary for non-standard lending

    6 Feb 2003

    Staffordshire Building Society is setting up a subsidiary to help borrowers who do not fit its normal lending criteria. The service will give customers access to a panel of alternative lenders. The society is training branch staff to become mortgage advisers with Staffordshire Lending Services, which will start doing business in May. It is talking to a number of lenders about joining the panel. Staffordshire says it is being forced to turn away potential ...

  • Stakeholder pension could become Sandler pension

    5 Feb 2003

    The existing stakeholder pension will form the basis for the pensions product to be included in the Sandler suite of products the Treasury has said today.As with the other products to be included in the suite, the pensions product will have strict limits on features, a 1 per cent annual management charge and limits on investment risk. The Treasury consultation on the suite published today says other than the investment risk element the existing stakeholder pension satisfies ...

  • Standard smoothing shock

    6 Feb 2003

    Standard Life is to stop smoothing except on maturity and will not be paying terminal bonuses on shorter contracts as its slashes with-profits payouts by up to 15 per cent. The company is warning that payouts will continue to fall over the next year and it will start making bonus declarations every three months, starting in May. Offering smoothing only on maturity or retirement will adversely affect many policyholders. For a regular-premium pension pol-icy taken out in ...

  • Sub-prime predicted to be biggest growth area

    6 Feb 2003

    Mortgage intermediaries expect sub-prime lending to be the biggest growth area this quarter, according to research by BM Solutions. Although mainstream mortgages accounted for 55 per cent of all business introduced in the last three months of 2002, intermediaries believe sub-prime will take the lead. Predictions for the growth of sub-prime business in the next quarter average 4.9 per cent compared with 4.3 per cent for self-certification, 2.4 per cent for mainstream and ...

  • Sue Summers

    6 Feb 2003

    Turning The Exchange into more than an IFA quote engine is the challenge for managing director Sue Summers. Achieving the goal of full end-to-end processing for intermediaries would mean success for the woman who has spent 22 years working to smooth out the sales process. She says she often thought her career would take her to The Exchange. "The Exchange is a company I had watched from a distance and I often envisaged myself working here. It has incredible reach in the IFA sector ...

  • Sway recruits Cockerill for top 200 IFAs study

    6 Feb 2003

    Sway Consulting has recruited former Chartwell Asset Management investment manager Tim Cockerill as consultant on its Senate Programme conference brand. Cockerill will help develop Sway's Senate Programme awards, which launch this year. The awards aim to draw upon the investment opinions of the UK's top 200 investment IFAs. Sway will publish a study of the investment opinions, with analysis of buying patterns and trends. Cockerill started his career ...

  • Taking a slice of the mutual PI

    6 Feb 2003

    The FSA looks set to formalise its proposals for a mutual PI scheme for the IFA industry. If such a scheme gets off the ground, the regulator will have proved itself capable of the management of at least one crisis and will receive widespread acclaim from advisers. The flexibility demonstrated by the regulator in examining IFAs on a case-by-case basis is also to be welcomed although this is cold comfort to smaller IFAs, many of which have had few or even no review claims, ...

  • Talkback

    6 Feb 2003

    The FSA has given the Falcon group a waiver for its PI cover. Will this open the floodgates for more firms? "Yes, I don't see why not. I see no problem with firms self-insuring, provided that firms have sufficient capital adequacy." John Crayden, Fleet Mortgage, Insurance & Finance services "No, I don't think it is a good idea to grant waivers for this kind of cover. PI is important and people need to have adequate cover." Peter West, Fiveways Life ...

  • TD Waterhouse - Protected Investment Plan

    6 Feb 2003

    Thursday, 6 February 2003Type: Capital protected bondAim: Growth linked to the performance of FTSE 100 indexMinimum-maximum investment: £3,000-£1mTerm: Five yearsGuarantee: Capital returned in full regardless of performance in indexReturn: Up to 75% growth at end of termClosing date: March 18, 2003Commission: Initial 3%Tel: 0845 6010402

  • The lure is an ass

    6 Feb 2003

    The debate on savings policy often focuses on retirement provision and the so-called £27bn savings gap. But it is too simplistic to argue that, as people are not saving enough to enjoy retirement, they need to put more in their pensions. Policymakers sometimes ignore more subtle factors that shape savings needs and habits. For many people, rainy-day saving should take priority over pensions. Rainy day saving is important because it can help develop a savings culture. ...

  • The pension message is to get out and stay out

    6 Feb 2003

    We recently got Scottish Widows' guide to contracting out (via personal pensions started before June 4, 2001) for the 2002/03 tax year. Then we got another guide to contracting out, this one in respect of personal pensions started on or after June 4, 2001. Then we got a third one, this in respect of stakeholder pensions although this one seems to bear identical age bands to the second guide. All figures are based on the assumption of standard commission (whatever that ...

  • Treasury publishes long awaited Sandler consultation

    5 Feb 2003

    The Treasury has published its long awaited consultation on the make-up of the Sandler suite of products, setting out the specifications for the products.The suite will include an equity based product, a with-profits product and a pensions product although the Treasury says there is a case for including other products within the suite.The main candidates for this extension are a guaranteed product, a term assurance, a deposit account, an annuity, a financial health-check ...

  • Treasury shows willingness to listen on 1 per cent says ABI

    5 Feb 2003

    The ABI has welcomed the Treasury's willingness to consult on the 1 per cent cap revealed in its proposals for Sandler products.It has also welcomed the decision to treat the existing stakeholder pension as part of the Sandler package rather than create two types of simple pension product.The ABI says the Treasury proposals open the door to a realistic partnership between Government and the savings industry to opening up saving.ABI head of life and pensions Alan ...

  • Verity's view

    6 Feb 2003

    If the FPC was a truly relevant exam that asked all the tough questions, the last page of the 2003 summer paper would read something like this: "A client aged 30 turns up at your office. He has started work at a medium-sized, long-established steel company which has, according to the personnel department, one of the best forms of final-salary scheme around based on 60ths, with an employer contribution of 4 per cent matched by an employee contribution of the same amount. The scheme ...

  • Warning of 20,000 'rogue traders'

    6 Feb 2003

    As many as 20,000 unq-ualified mortgage brokers may be offering advice to unsuspecting customers and abusing public trust, according to Campbell Dallas Financial Services. The Scottish firm is warning of "rogue advisers" giving mortgage advice without having the minimum Cemap or Maq qualification they should have gained by December 31 under Mortgage Code Compliance Board rules. It says nearly 45,000 mortgage brokers got the professional qualification by the December 31 ...

  • Weinberg says he warned FSA over the dangers of multi-ties

    6 Feb 2003

    The creation of multi-ties heightens the risk of misselling and makes the job of the FSA more difficult, according to one of the architects of polarisation, Sir Mark Weinberg. St James' Place chairman Weinberg says gap-filling would have been sufficient to give tied consumers access to a better range of advice and products and would not have the risks associated with multi-ties. In an interview in this issue of Money Marketing, Weinberg says he made the argument to ...

  • With-profits name could go for Sandler product

    5 Feb 2003

    The Treasury has confirmed the with-profits element of the Sandler suite will have four additional product features as outlined in the Sandler report published in the summer.They will have a fund structure of 100/0, explicit management charging, a separate smoothing account and full consumer disclosure in order to cut down on what the Government calls the "opaque nature" of with-profits.Much of the terminology may change as the Treasury paper on Sandler published today ...

  • Work to prove our reputation

    6 Feb 2003

    I was interested to read Derek Forbes' letter in the January 23 edition of Money Marketing in response to my article. The subject is, of course, the fraught question of ethics and I am not sure I would go along with the headline, Ellis is a little too late with a lesson in ethics. Derek has made some very pertinent comments. The only response I would make is that, as professional people, financial advisers need to make sure that they approach their business with appropriate ...

  • Yorkshire aims to strike right Accord

    6 Feb 2003

    Yorkshire Building Society is setting up an intermediary subsidiary, Accord Mortgages, to extend its lending criteria away from the traditional society approach to lending. It says the launch of Accord in March or April will give it freedom to develop products that are wanted by brokers such as loans with higher income multiples. Yorkshire Building Society will stop paying procuration fees when Accord starts operations. Accord will aim to issue an offer within ...

  • Zurich Financial Services - Sterling Isa, Sterling Investment Account, Investment Bond

    6 Feb 2003

    Thursday, 6 FebruaryType: Fund link added - protected profits fundTel: 0500 546546

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