Money Marketing
5 June 2002

  • 'Darling has left the DWP with job only half done'

    6 Jun 2002

    Alistair Darling has departed as Work and Pensions Secretary leaving the job half-done, say product providers. Life offices say Darling has put the infrastructure in place but has failed to motivate more people to start saving through pensions. Others are more critical. Former welfare reform minister Frank Field says the Government's pension policy is a "shambles" which could spark a "mega-misselling scandal". Product providers say Darling, who last week moved to transport ...

  • 'Rising nursing fees will cancel out free Govt aid'

    6 Jun 2002

    Rising nursing home fees will offset free nursing care paid by the Government, leaving pensioners no better off in terms of long-term care costs, claim providers. Following a warning from the Residential Nursing Homes Association last week that fees may rise by at least £70 a week, providers say consumers will lose any benefit they may have gained from Government provision of free nursing care. For most people, this will mean there will be no effect on insurance premiums ...

  • 'Woolwich going back on Open Plan vow'

    6 Jun 2002

    IFAs are accusing the Woolwich of breaking its promise not to try to poach Open Plan mortgage clients for its own IFA arm if they stipulated not to be targeted. Last week's, Money Marketing revealed how Woolwich was targeting IFA clients with Open Plan mortgages through mailshots with leaflets selling the benefits of Woolwich Independent Financial Advisory Service. At that time, Woolwich reassured IFAs by claiming that it does not target clients with generic marketing leaflets ...

  • £10,000 prize from MI

    6 Jun 2002

    Broker club Mortgage Intelligence is giving intermediaries the chance to win £10,000 if England beat the odds and triumph in the World Cup. Following England's opening match with Sweden, the broker who places the most business through MI will win the money - if England win the final. MI managing director Sally Laker says she is launching this competition so the company feels part of the "World Cup fever" sweeping the UK. It hopes the opportunity to win a big award will ...

  • 102% tracker mortgage for new graduates from Widows Bank

    6 Jun 2002

    Scottish Widows Bank is introducing a graduate mortgage which should help IFAs develop a new client base. The loan offers up to 100 per cent of property value plus a further 2 per cent to cover buying costs, including stamp duty and legal fees. Parents can guarantee the loan so graduates are able to increase the amount borrowed. There is no mortgage indemnity guarantee and the loan can be repayment or interest-only or a combination. Widows Bank believes aiming at recent graduates ...

  • A consumer's view

    6 Jun 2002

    The FSA's review of with-profits is a damp squib, a missed opportunity and has been described by the Consumers' Association as "naive and pathetic". Many observers may think this is the understatement of the year. Howard Davies, the chief executive of the FSA who conducted the review, has failed to deal with most of the fundamental problems which are: •To clarify to whom withprofits assets really belong. •To lay down guidelines or restrict actuaries' total ...

  • A new dimension to UK fund management

    6 Jun 2002

    US fund management group Dimensional is launching into the UK this year, determined to make an impact on a retail market nearing the point of saturation. With almost $40bn in assets under management and a track record going back more than 20 years, Dimensional seems confident of making its mark but is likely to find the UK market cluttered and far from hospitable to newcomers. Bates Investment head of research James Dalby says: "It is incredibly difficult for firms starting from ...

  • A saving strategy

    6 Jun 2002

    Running alongside the continuing debate on depolarisation and how to make specific advice more accessible is a wider and potentially more significant concern about raising general awareness of personal finance issues. It is in this domain, in particular, that renewed interest has arisen both in the workplace and in school. The workplace has traditionally been a focus for financial welfare and planning for employees. Occupational pensions make this direct link and, as the recent ...

  • Abbey National Asset Managers appoints head of retail sales

    5 Jun 2002

    Abbey National Asset Managers has appointed Simon Gordon as head of retail sales in a bid to boost its unit trust presence in the UK IFA market.Gordon, who was head of retail sales at SLC Asset Management, has 15 years experience in the investment industry and joins as Abbey looks to expand its product offering to IFAs.The move follows the transfer of £10bn from Aberdeen to AAM in March as part of its acquisition of Scottish Provident. 

  • Abbey strengthens bond team

    6 Jun 2002

    Abbey National Asset Management is expanding its bond desk following the integration of assets from Scottish Provident. Sinead Cusack is joining the team from Unicredito Italiano Bank along with Alison Murdoch, who was investment manager on Abbey's UK equities team.

  • Actuaries in plea for final-salary pensions

    6 Jun 2002

    The Association of Consul-ting Actuaries is calling on the Government, the pension industry and employers to save occupational pensions. Speaking at the ACA's dinner in London last week, outgoing chairman Mike Arnold said more imaginative solutions are needed to promote occupational pensions or pensioner incomes will have to be met through tax rises. He said there was a danger of the Government being complacent about the pension crisis as many more employers review their occupational ...

  • Admin crisis on pension sharing

    6 Jun 2002

    IFAs are struggling to find product providers which offer a complete service for taking on pension funds split by a divorce 18 months after pension-sharing legislation was introduced. Pension sharing allows a pension fund to be split in the event of divorce. The divorced spouse gets a credit which can be moved elsewhere. Friends Provident, Scot-tish Equitable, Standard Life and Scottish Widows all accept pension credits into personal pensions and their stakeholder plans but do ...

  • Aifa wants more time for IFAs to recalculate redress

    6 Jun 2002

    Aifa is urging the FSA to push back the final deadline for pension review cases involving windfall benefits, arguing that IFAs need more time to recalculate redress in these cases. In the trade body's response to CP126 - The Treatment of Windfall Benefits for the Personal Pensions Review, the FSAVC Review and Mortgage Endowment Complaints - it claims that the deadline is unworkable because of the decision to exclude windfall payments from redress decisions. It says IFAs ...

  • Analyst finds UK IFAs in 'enviously' healthy financial position

    6 Jun 2002

    More than half of UK IFA firms are in a strong financial position with healthy balance sheets and low debt levels, according to research by analyst Plimsoll. The new study examining the finances of the 1,000 biggest IFAs, covering areas such as profit, debt, turnover and margins, rates 512 firms as "strong" with average margins of 12.7 per cent which it says puts them in an envious position. Plimsoll places firms in one of five categories, strong, good, mediocre, caution or danger, ...

  • ANAM appoints head of retail

    6 Jun 2002

    Abbey National Asset Managers has appointed Simon Gordon as head of retail sales in a bid to boost its unit trust presence in the UK IFA market.

  • Artemis and ABN Amro to merge

    11 Jun 2002

    ABN Amro Fund Managers and Artemis Investment Management are to merge to create a joint group with £2bn under management.

  • Artemis to take over ABN funds

    11 Jun 2002

    Artemis Investment's management team will assume investment responsibility for the combined product range following its merger with ABN Amro.

  • Asia set for strong recovery says Dresdner RCM

    5 Jun 2002

    An Asian economic recovery is imminent according to Dresdner RCM's Oriental Assets Fund manager Stuart Winchester.

  • Axa IoM's offshore bond offering hedge Fof for cautious investors

    6 Jun 2002

    Axa Isle of Man is launching a new offshore bond designed for cautious investors which invests in a fund of hedge funds. The defensive bond is an offshore unit-linked single premium bond investing in a low-risk fund of hedge funds. It aims to provide a return two to three times better than cash with low volatility. Axa Isle of Man believes that a fund of hedge funds offers increased diversification and consistent returns with lower volatility for the cautious investor. The ...

  • B&W combines income & growth

    11 Jun 2002

    Bristol & West is aiming to provide investors with a mixture of income and growth with it's latest combination product, issue 16 of the balanced guaranteed equity bond.

  • Base rate remains the same

    6 Jun 2002

    The Bank of England's Monetary Policy Committee has announced it is leaving the base rate unchanged at 4 per cent for the seventh consecutive month. The decision came despite calls for the rate to go up to cool off the housing market, but the MPC's decision is thought to have taken into account zero UK growth in Q1. 

  • BFS in bid to attract Invesco Peps

    6 Jun 2002

    BFS Investments is reducing its minimum Pep transfer value to £3,000 from £5,000 until the end of August to attract Invesco Perpetual investors wishing to retain their Pep status. The move follows Invesco's decision to stop managing Pep accounts with direct shareholdings. Investors have been asked to choose between selling their shares and switching them into an Invesco fund, continuing to hold them outside a Pep wrapper or transferring to another provider. BFS's ...

  • Blowing the whistle on World Cup skivers

    6 Jun 2002

    Although lazy, the Diary has never really been a skiver (putting on a croaky voice to call in sick is just too much effort). But the rest of the country is quite dedicated to the noble art, according to the latest study by the Centre of Economics & Business Research. Apparently, absenteeism will be so rife during the two weekdays that England is playing in the World Cup that 0.8 per cent could be knocked off second-quarter GDP and push the UK into recession (but not as depressed ...

  • BoI brings UK lending arms under one roof

    6 Jun 2002

    Bank of Ireland is shaking up its operations in the UK to create a new umbrella operation, Bank of Ireland UK Financial Services, to oversee Bristol & West and its IFA brands. The new operation will be headed by B&W Group chief executive Jeff Warren. Bank of Ireland personal lending UK is being created within this operation, comprising B&W Mortgages, BoI Mortgages and Northern Ireland Investment Banking. Former B&W Mortgages managing director Richard Brown is ...

  • Bristol & West - Balanced Guaranteed Equity Bond

    6 Jun 2002

    Thursday, June 6, 2002 Type: Guaranteed equity bond and high interest account GUARANTEED EQUITY BOND Aim: Growth linked to the FTSE100, Eurostoxx 50 and Nikkei 225 indices Minimum-maximum investment: £2,500-£1m Term: Six years Guarantee: Capital returned in full at end of term regardless of movement in indices Return: 70% of growth in indices Interest rate: 4% gross a year Closing date: July 31, ...

  • Bristol & West - Guaranteed Equity Bond

    5 Jun 2002

    Wednesday, 5 June 2002Type: Guaranteed equity bondAim: Growth linked to FTSE 100, Eurostoxx 50, Nikkei 225 indicesMinimum-maximum investment: £2,500-£1mTerm: Five yearsGuarantee: Original capital returned in full at end of termReturn: Up to 70% of growth in indicesClosing date: July 31, 2002Commission: Initial 3.5%Tel: 0845 1110118

  • Bristol & West - Guaranteed Equity Bond Cash Isa

    6 Jun 2002

    BRISTOL & WESTGuaranteed Equity Bond Cash Isa Wednesday, 5 June 2002Type: Guaranteed equity bondAim: Growth linked to FTSE 100, Eurostoxx 50, Nikkei 225 indicesMinimum-maximum investment: £3,000-£21,000Term: Five yearsGuarantee: Original capital returned in full at end of termReturn: Up to 70% of growth in indicesClosing date: July 31, 2002Commission: Initial 3.5%Tel: 0845 1110118

  • Bristol & West - Guaranteed Equity Bond Tessa Only Isa

    7 Jun 2002

    Wednesday, 5 June 2002Type: Guaranteed equity bondAim: Growth linked to FTSE 100, Eurostoxx 50, Nikkei 225 indicesMinimum-maximum investment: £3,000-£21,000Term: Five yearsGuarantee: Original capital returned in full at end of termReturn: Up to 70% of growth in indicesClosing date: July 31, 2002Commission: Initial 3.5%Tel: 0845 1110118

  • Bristol & West offers guaranteed bond range on IFA website

    6 Jun 2002

    Bristol & West is introducing a business-to-business website through which IFAs can access its range of guaranteed equity bonds and corporate accounts. B&W says the website, www.bristol-west.co.uk/b2b, will provide IFAs with a one-stop shop for guaranteed investments with the choice of five 100 per cent capital guaranteed bonds with unlimited growth potential. The bonds - non-Isa, balanced, income & growth, Tessa-only Isa and mini-cash Isa - are fixed for either five ...

  • BSA defends record on commercial lending

    6 Jun 2002

    The Building Societies Association is criticising FSA chairman Howard Davies for singling out the sector's approach to commercial lending. Speaking at the launch of at the De Montfort Study of the UK commercial property market last week, Davies said the FSA would be monitoring the "performance of a number of building societies whose commercial property loans are growing as a proportion of their total loanbooks". He pinpointed this as an area of concern, as some societies have ...

  • Bupa on starting line for 2002 games

    6 Jun 2002

    Bupa is offering free private medical insurance to athletes and support teams attending this summer's Commonwealth Games in Manchester. As part of its role as official health partner for the games, Bupa will be making medical advice available in more than 100 languages to the 5,000 athletes competing in July and August. It is also sending one of its doctors to form part of the medical team treating the athletes. Orthopaedic physician Dr Tom Crisp has been a member of the sports ...

  • CA calling for lower-tier advice network

    6 Jun 2002

    The Consumers' Association has this week issued details of its campaign to extend the availability of financial advice to consumers, which would see those with complex needs being referred to an IFA. As reported in last week's Money Marketing, the consumer champion is calling for the creation of a National Finance Advice Network which would operate for the needs of lower earners. Its lower-tier advisers would be based in Citizens' Advice Bureaux, local Government offices, ...

  • Call for FSA and Govt ads to boost savings

    6 Jun 2002

    The Government and the FSA should spend money on promoting a savings culture through advertising, says the trade body representing British advertisers. Isba, which counts several of the big financial services companies among its membership of 300, issued the call after a recent meeting with the FSA over its plans to reform the way advertisers are permitted to use past performance. It says providers are severely restricted in the way they advertise products so it should be up to ...

  • Cash benefits for sports injury treatment

    6 Jun 2002

    Pinnacle Insurance is offering four protection products to protect against sports injuries with premiums starting as low as £4.95 a month. There are four types of cover - junior, standard, plus and extra - all offering financial support to amateur athletes. They provide cash benefits for private treatment to speed recovery. Junior is aimed at youngsters up to 18 and has offers cash towards physiotherapy, broken bones, dental costs and hospitalisation. The plus and extra ...

  • Charging interest on overdue debts

    6 Jun 2002

    Robin Hunter (Money Marketing, May 9) is correct in stating that IFAs may charge interest on overdue debts but I thought I would bring to your attention the changes to the Late Payment of Commercial Debts (Interest) Act 1998 that will come into effect in August. From August 7, 2002, UK businesses will benefit from new European legislation. The new legislation will complement the UK's existing Late Payment of Commercial Debts (Interest) Act, which was to have been introduced in three ...

  • CII puts 20th century online

    10 Jun 2002

    The CII is putting over 1,000 documents from its archives onto its CII Library Online.The online library contains documents delivered to the CII between 1926 and 1996, ranging from the case for and overhaul of the agency system in 1948, through automation in insurance in 1959 to the effect of mergers and large office units on staff and service to the public in 1964.To date 300 documents have been put online, with another 700 to go live this year. The site is at www.ciilo.org

  • Clerical Medical boosts allocation for bond

    6 Jun 2002

    Clerical Medical is offering increased allocations on its investment bond and "bond fee" version of its distribution bond. The offer will apply to all new investments and top-ups to existing bonds until further notice. The move increases the allocation on the investment bond to 101 per cent from 100 per cent. For distribution bonds, the allocation increases to 101 per cent for investment of £5,000 to £9,999, 101.5 per cent for £10,000 to £14,999, 102.25 for ...

  • Cliff Lockyer

    6 Jun 2002

    Cliff Lockyer is aiming to challenge the traditional dominance of product providers by building Berkeley Berry Birch into a multi-channel distribution giant. He sees the end of polarisation as the catalyst for change which will give him the opportunity to set up a distribution network and establish a national brand. Lockyer describes his career in 10-year chunks: "The 1970s was about becoming a good salesman. In the 1980s, I put that knowledge in practice as an adviser. I developed ...

  • Close Venture Management - The Healthcare and Leisure Property Trust

    7 Jun 2002

    Friday, June 7, 2002 Type: Unit trust Aim: Income and growth by investing in the hotel, care home and residential development sectors Minimum investment: Lump sum £11,000 Place of registration: Isle of Man Investment split: 100% in the hotel, care home and residential development sectors Yield: 7.5% gross a year Isa link: No Charges: Initial 5%, annual 2% Commission: Initial 3% until August 30, 2002, ...

  • Davies defends FSA's endowment role

    6 Jun 2002

    FSA chairman Howard Davies has written to the Consumers' Association defending its handling of the endowment crisis and repeating there will be no full-scale misselling review. The letter, dated June 5 2001, says it would not be right to identify the worst-performing companies, claiming "such information could provide an exaggerated incentive to complain". It adds that legal reasons prevent the regulator from disclosing the records of individual firms. The one CA point the FSA ...

  • Depolarisation will bring costly misrepresentation

    6 Jun 2002

    I have just had a potential client contact me regarding insurance he took out with an agent when arranging his mortgage. He was astounded to learn that I can provide individual cover for him and his wife, saving some £110 a month on the premiums. That equates to £30,000 saved over the lifetime of the plan - and at guaranteed (not reviewable) rates. He could not understand why the person who arranged the cover was so much more expensive as he thought he was independent. ...

  • Develop business by building client trust

    6 Jun 2002

    Management consultancy Taff Associates has set up a new business development service designed to help IFAs build trust with clients and cope in a fee-based environment. Taff is adding its Educating Clients service to its business development portfolio programme to assist advisers in tackling the lack of consumer understanding of financial services identified by the FSA. Educating Clients is available as an ongoing consultancy service, a one-day seminar or a combination of both. Taff ...

  • Equitable can not lay blame on IFAs

    6 Jun 2002

    I read the article headlined, Equitable Life accuses IFAs of urging policyholders to quit (Money Marketing, May 30) with interest and anger. I can understand Equitable Life being worried about its members now jumping ship due to fear about its current and future viability but to blame IFAs for encouraging this to happen is a bit rich. Equitable Life must know of the regulatory hoops imposed by the FSA upon IFAs with regard to advising on transfers away from their with-profits funds, ...

  • Euro Star

    6 Jun 2002

    New Star has introduced the European leaders fund, an Oeic that invests in Europe excluding the UK. The fund was originally an institutional fund from World Invest, a company taken over by New Star. It was transferred across to the retail business because New Star's existing European growth fund focuses only on small and mid-caps, leaving a gap for a large-cap fund. European leaders invests in large-caps the fund manager views as market leaders in Europe. The fund is managed ...

  • F&C Management lowers entry to investment trust mini Isa

    7 Jun 2002

    F&C Management I improving the flexibility of its investment trust mini Isa so that investors can now invest lump sums from £1,000 and direct debits from £100 a month.

  • Fees will not work for most IFAs

    6 Jun 2002

    I refer to Julian Stevens's letter (Money Marketing, May 23) issue concerning fees • commission is the first sensible letter on this debate that I have read. I wish I had the time to write similar letters to other interested parties. I agree whole-heartedly with his comments and criticisms, which are well founded and hopefully thought provoking for the fee-encouragers. Of course, fees will not work for the majority of small to medium-sized IFAs -it is totally impractical. What ...

  • Financial needs of 'jigsaw families'

    6 Jun 2002

    The idea of the traditional average married couple with 2.4 children is being replaced by men and women remarrying to bring "jigsaw families" together, according to Virgin One research. The lender says Britain's new breed of "step-families" are unlikely to turn to each other to be bailed out of financial difficulties, increasing the demand for flexible financial products such as its current account mortgage. Virgin One's report, New British Families, identifies 10 new types ...

  • Forums focus on depolarisation

    6 Jun 2002

    Fund supermarket FundsNetwork's annual series of E-volution adviser forums will take place this year at seven venues around the country throughout June. They will focus on the implications and opportunities of depolarisation for IFAs and consider the new types of relationships advisers are likely to have with providers. The forums start in Belfast on June 7 and take in Edinburgh, Harrogate, Manchester, Birmingham and Bristol before finishing in London on June 14.

  • Friendlies angry over Govt barring gateway

    6 Jun 2002

    The Association of Friendly Societies has attacked the Government for using HBOS "fat cats" to pilot the savings gateway scheme. AFS president Colin Paskell is disappointed that the Government has failed to involve friendly societies in the project. He says the Treasury ignored repeated requests from the AFS not to restrict the pilot to a single provider. Under the scheme, people can make savings of up to £25 a month and £1,000 over five years, with the Government matching ...

  • Friends buys Royal & Sun Alliance offshore arms

    11 Jun 2002

    Friends Provident has bought the offshore arms of Royal & Sun Alliance for £133m, following the Friends Ivory & Sime deal for its fund management business. Friends has now acquired the Isle of Man based life operations of R&SA, and the Luxembourg operations of R&SA Investment Management. The deal bumps up Friends' offshore market share to 9 per cent.

  • FSA 'safe harbour' on promotions

    6 Jun 2002

    The FSA has provided what it calls a "safe harbour" to authorised firms in spelling out how they are allowed to word financial promotions. The move will affect IFAs who conduct direct-offer business on the internet and those who send out Isa guides or similar promotions. It aims to clarify the position on what firms "can and cannot say and how they can and cannot say it" according to the FSA. The group most affected will be law practices which advise authorised firms about ...

  • FSA logo to be 'badge of legitimacy'

    6 Jun 2002

    IFAs will be able to use the FSA's insignia in their marketing literature as a way of demonstrating their authorised status if proposals in its latest consultation paper are implemented. Consultation paper 138, Disclosure of Status under the Financial Services and Markets Act 2000 and Use of the FSA Logo, proposes to determine how authorised firms must disclose that they are regulated. The FSA says it hopes the framework will in time raise consumer awareness of authorisation ...

  • Govett predicts US economy recovery

    5 Jun 2002

    Govett Investments is predicting economic recovery in the US following its first quarter figures but says interest rates will rise.

  • Has FSA done enough to shake up with-profits?

    6 Jun 2002

    The FSA was once again at the heart of controversy last week with the publication of its much awaited plans for cleaning up the with-profits industry. Not surprisingly, the feedback paper evoked nearly as much criticism as it did applause. Some have attacked the report for not going far enough, saying the proposed changes are simply window dressing rather than root reforms. Then there are inevitably those who fear the FSA may have gone too far and is threatening the very existence ...

  • Homeowners strike gold in Jubilee year

    6 Jun 2002

    House prices in the UK are 54 times higher than when the Queen came to the throne in 1952, according to Nationwide Building Society. Its analysis of the housing market reveals that the average property price rose by 2.1 per cent to £102,086 in May from £100,726 the previous month. Annual house price inflation increased to 17.9 per cent, the highest figure since 1989. Nationwide says lending for house purchase and completions rose sharply in May. It expects the strong ...

  • HSBC International - Select

    10 Jun 2002

    Monday, June 10, 2002Type: Fund of fundsAim: Growth by investing in choice of adventurous, balanced or cautious portfoliosMinimum investment: Lump sum £5,000, $5,000, euro 5,000. Monthly £250, $250, euro 250Place of registration: LuxemburgInvestment split: Choice of adventurous, balanced or cautious portfoliosIsa link: NoCharges: Initial 5.25%, annual 1.25%Commission: Initial 3%Tel: 01534 616111

  • IFA firm again sponsors

    6 Jun 2002

    Brentford FC West London-based IFA G Buckingham & Company has renewed its sponsorship agreement with Brentford Football Club. For the 16th consecutive year, the firm will sponsor the team's fixture cards, which are distributed to hotels, tourist attractions, pubs and newsagents in and around West London.

  • IFAP highlights £4bn tax waste

    6 Jun 2002

    IFA Promotion is urging taxpayers to stop handing over £4bn a year to the Government through financial inertia and lack of awareness. It has issued the warning to mark June 5, the theoretical date after which annual earnings go into our own pockets instead of to the Government in tax. It claims that many people continue to pay tax after this date that they might otherwise have kept for themselves. IFAP says £253m a year in tax could be avoided by sheltering investments ...

  • IFAs offered aid to CPD on investments

    6 Jun 2002

    The CII and the IMA have teamed up to publish a continuing professional development workbook on investment products for IFAs following concerns raised by Sandler over the quality of investment advice. The workbook, available on CII's website, is aimed at IFAs who have the FPC qualification but no specialist investment qualifications.

  • Incorporation nation?

    6 Jun 2002

    As I kick off my last column, I would like to thank both my avid readers for sticking with me - it is much appreciated. Sometimes some quite devious results come from tax changes. One has occurred again following the Budget and Finance Bill. Are you self-employed? Do you have self-employed clients? If so (numerically only) you and they are possibly operating under the wrong tax code. People used to stay self-employed "for tax reasons" but now it may be that nearly everybody ...

  • Independent view

    6 Jun 2002

    A crucial factor in closing the savings gap is increasing consumer awareness of the need to save. This seems quite obvious to me - and I am sure to most of you. However, the powers that be seem more interested in education about product features than in increasing understanding about the benefits of said products. Any good adviser worth his or her salt will know that it is what a product can do for a client not what it does per se that is the important factor. Agreed, it is very ...

  • Inside edge:

    6 Jun 2002

    Every week brings news of fund manager changes and an inevitable raft of comment from IFAs and others. Some will say that there is nothing to be concerned about. There is a good team, there is a process at the investment house. Other fund manager departures will lead to funds being placed on a "watch" list. There was a well argued editorial in the Evening Standard saying that it was nothing to worry about since most fund managers make no difference anyway - they are kept in a ...

  • Investment analysis

    6 Jun 2002

    Global equities, which have struggled to find direction recently, continued to fall during the last week of May, as the India-Pakistan confrontation continued to dissuade investors in the short term. US markets, which were closed on Monday for Memorial Day, continued to dominate investor sentiment. Earlier in the week, the outlook for the economy and renewed concerns about corporate profits sent Wall Street sharply lower. While personal income rose by 0.3 per cent and existing home ...

  • Investment IFA takes Aim with expansion bid

    6 Jun 2002

    Major Leeds investment IFA Bates Investment Services is aiming to float on the Alternative Investment Market when it completes a planned expansion. Chairman Graham Bates says he will move towards a listing for the firm he founded in 1993 as soon as his ambitious plans, which include doubling the number of RIs to 80 by late next year, have gone through. The company has 30,000 clients and an annual turnover of more than £6m. It is spending a six-figure sum to rebrand in the ...

  • Investment view

    6 Jun 2002

    Why does it always rain when I visit Birmingham? Is it because I once worked in that fair city and married a Brummie girl, now part of that affluent group known as the ex-wives of Brian Tora? Is it just a reflection that April appears to have arrived late this year? Or could it be that Birmingham does not wish to be upstaged by Manchester? Whatever, I succeeded in achieving a serious soaking as I made, by the skin of my teeth, the International Conference Centre for yet another IFA Events ...

  • Irish Life International - Secured Growth Bond 8 - Protected Plus A

    6 Jun 2002

    Thursday, June 6, 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the Dow Jones Global Titans indexMinimum investment: £10,000, euro10,000, $10,000Place of registration: DublinInvestment split: 100% linked to the performance of the Dow Jones Global Titans indexGuarantee: Capital returned in full regardless of movement in indexYield: Sterling 75% of average growth, euro 60% of average growth, dollar 55% ...

  • Irish Life International - Secured Growth Bond 8 - Protected Plus B

    6 Jun 2002

    Thursday, June 6, 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the Dow Jones Global Titans indexMinimum investment: £10,000, euro10,000, $10,000Place of registration: DublinInvestment split: 100% linked to the performance of the Dow Jones Global Titans indexGuarantee: Capital returned in full along with 10% growth regardless of movement in indexYield: Sterling 75% of average growth, euro and dollar ...

  • Julian Gibbs

    6 Jun 2002

    Stockbroker Cazenove has linked up with international insurer AIG to launch the AIG Cazenove universal investment bond. This combines the tax advantages of unit trusts and investment bonds in that, because of the AIG's tax position, unlike other bond funds, there is no deduction against the underlying funds to meet the tax payable by AIG Life. All returns, therefore, have tax paid at the basic level, giving a reduction of tax of up to 22 per cent. The minimum investment is £50,000,a ...

  • Kelly keeps control of financial services

    6 Jun 2002

    Ruth Kelly was promoted to Treasury financial secretary in last week's cabinet reshuffle but has retained responsibility for retail financial services. The decision to keep Kelly in charge of the industry is a first in recent memory as normally a minister's responsibilities change when they change titles. Industry sources say the move is an indication of Kelly's performance over the last year. At a time when financial services has become very important to the Government, ...

  • Kempster leaving in major Pru reshuffle

    6 Jun 2002

    Prudential director of intermediaries Tony Kempster and European managing director Chris Evans have been replaced in a major reshuffle at board level. Kempster, the former DBS chief executive who had been with the Pru for less than a year, and Evans, who had served for 19 years, will be replaced by former Norwich Union managing director (UK life and pensions) Nick Smith in the new role of distribution director. Smith was most recently managing director of CGNU's wealth management ...

  • Kingsbridge announces board shake up

    6 Jun 2002

    IFA Kingsbridge Holdings, which focuses on sports clients, is making a number of changes to its board after a series of acquisitions to improve the balance of non-executive directors.

  • L&G refuses to pay critical child claim

    6 Jun 2002

    Legal & General is refusing to pay out a £15,000 critical-illness claim for a child diagnosed with bacterial meningitis in March 2001 despite stating the condition was covered on its key features document. IFA John Lismore Associates arranged critical-illness cover for a couple and their children in May 2000. Ten months later, their daughter was found to have bacterial meningitis at the age of 13 months. Despite the L&G key features documentation stating "children's cover ...

  • Legal threat to FSA over cash-laundering claims

    6 Jun 2002

    A Belfast IFA is threatening to sue the FSA after it announced it was preventing the firm from conducting any business over money-laundering concerns. The firm, Northern Ireland Insurance Brokers, of 147 Stranmillis Road, Belfast, has been banned from carrying out any form of regulated activities because of an investigation into £8m which the FSA says app-ears to have been laundered through the firm. But NIIB denies the allegations and says it is pursuing legal action against ...

  • Lenders deny boom is over for BTL

    6 Jun 2002

    Lenders are hitting back at warnings from analysts and estate agents that the buy-to-let boom will soon be over. Specialist lenders The Mortgage Business and Future Mortgages dispute claims that buy-to-let is set to decline because of slowing rental demand, a poss-ible increase in interest rates and a recovering equities market. TMB argues that, contrary to concerns that people are borrowing more than they can afford, it has figures to show that investors are being prudent. Of ...

  • Let buy to let alone

    6 Jun 2002

    The press carries many articles suggesting that buy-to-let ought to be regulated. Why? If someone wants to purchase a business, whose responsibility is it that the individual should proceed?The broker who arranged the finance? The solicitor who did the legal work? The bank who parted with the cash? Or could it be the individual who purchased the business? Suppose the individual in question made some serious money in the transaction. Whose profit is this? It is not the agents who ...

  • M&G's Isa women are on top of the world

    6 Jun 2002

    Two British women explorers have walked their way into the record books as part of the first all-female expedition to reach both geographic poles on foot. They reached the North Pole on Sunday as part of the M&G Isa Expedition which set off on March 12 from Canada after reaching the South Pole in January 2000. Single mother Caroline Hamilton and former banker Ann Daniels fought off frostbite, three storms, a constantly moving icepack and the repatriation of a team member due to ...

  • Momentum appoints Leeds regional head

    11 Jun 2002

    Momentum Financial Services is appointing Wendy Linnie as financial services manager at its Leeds office. Linnie joins Momentum from Dutch financial consultancy Eeuwijk Accountancy and has worked in financial services for 14 years, including 12 years with Standard Life.

  • Mortgage Placement Co in own-brand link-up with non-conforming lender

    6 Jun 2002

    Non-conforming lender Mortgages plc is teaming up with The Mortgage Placement Company to offer its products to its 8,000 members. Mortgages plc hopes the deal, which will allow TMPC to brand the lender's product range as its own, will lead to the introduction of more than £120m of new mortgage business. Mortgages plc offers a range of non-conforming loans, including self-certification, right to buy and mortgages for borrowers with a poor or irregular credit history. Mortgages ...

  • Mortgages plc appointed to Mortgageforce panel

    10 Jun 2002

    Broker franchise Mortgageforce has appointed non-conforming lender Mortgages plc as an approved product provider.This gives its franchisees access to all of Mortgages plc's product range including right to buy and buy to let.Mortgages plc sales and marketing director Peter Beaumont says: "We are delighted to be forging a partnership with Mortgageforce which has demonstrated impressive growth in its network over the last year."

  • Mortgages plc links with Mortgageforce

    11 Jun 2002

    Non-conforming lender Mortgages plc has been appointed by Mortgageforce as an approved product provider for its network of 87 independent mortgage franchises. Mortgageforce franchisees will have access to all of Mortgage plc's range, including buy to let and right to buy.

  • New capped rate mortgages from Coventry

    7 Jun 2002

    Coventry Building Society has launched two capped rate mortgages intended to provide borrowers with protection against future rate increases.One is capped at 5.75 per cent until January 31 2005 and has a current rate of 4.49 per cent. The second is capped at 5.99 per cent until September 30 2007 with a current rate of 4.99 per cent.

  • New chief Smith takes over at critical time for pensions

    6 Jun 2002

    Pension experts are hoping the appointment of a new Work and Pensions Secretary will not derail the process to simplify pensions. The Pickering and Inland Revenue reviews are both due to report in the next month along with the Sandler review so former chief secretary to the Treasury Andrew Smith is joining the DWP at a critical time. His appointment comes only a few weeks after Alistair Darling revealed plans to develop a new range of price-capped pension products. At the Treasury, ...

  • New Star International - New Star Capital Guaranteed Asian Hedge Fund

    7 Jun 2002

    Friday, June 7, 2002Type: Hedge fundAim: Growth by investing in Asian equitiesMinimum investment: Lump sum $50,000Place of registration: BermudaInvestment split: 100% in Asian equitiesGuarantee: Capital returned in full at end of six year termIsa link: NoCharges: Initial 3%, annual 2%Commission: Subject to negotiationTel: 00 353 147 58000

  • New Star International creates Asian hedge fund

    10 Jun 2002

    New Star International Investment Products has expanded its stable of guaranteed hedge funds with the New Star capital guaranteed Asian hedge fund.

  • Nightmare is a dream come true

    6 Jun 2002

    Since January, IFAs have been battling it out in the Scottish Life Fantasy Football League. Featuring all the Premiership matches, this fantasy league has been fought just as fiercely as the Premiership and we can now announce the top team. The overall winner is Simon Bonnett, manager of Nightmare Returns, who has won a fantastic trip of a lifetime to Japan to watch England • Argentina on Friday. Included in the prize is a five-day stay in Tokyo so he can enjoy the sights ...

  • Offshore objectives

    6 Jun 2002

    Having looked at the current rules on domicile and residence, and assessed the potential outcome of the forthcoming review of those rules, I would now like to turn to the consultation on the taxation of offshore bonds. The consultation document starts with a clear summary of the scope and intention of the review. It is made clear that, in the Inland Revenue's view, the time has come to review the appropriateness of legislation that dates from 1984 (the offshore funds regime) and ...

  • One-quarter of borrowers fear mortgage debt

    6 Jun 2002

    One in four people aged between 25 and 44 fear they will not be able to meet their mortgage repayments in the next four months, according to Debt Management Associates. The company says the findings show that borrowers are taking on more than they can afford. It says while debate focuses on what people can afford to buy, the real issue is that they will not be able to sustain their level of borrowing. DMA asked 2,000 people about their debt worries over the next four months. ...

  • Only 21% of companies have keyperson cover

    6 Jun 2002

    A staggering 79 per cent of UK businesses risk financial ruin because of lack of insurance, according to research by Legal & General. Its business intentions research into levels of awareness and take-up of business protection among decision-makers, such as owners, managers and directors, found that every company has at least one person vital to the firm while 71 per cent have two or more. But only 21 per cent of firms have keyperson insurance while 42 per cent have no business ...

  • Outside edge

    6 Jun 2002

    An outsider could be forgiven for assuming that the movers and shakers of the fund management industry would be those responsible for running the companies. Increasingly, however, it is portfolio managers who have been moving and shaking the most. Staff departures are scarcely new. They are treated as regrettable, nonetheless "local" difficulties. In a market suffering from a combination of lower sales, diminishing margins and greater competition, arguably, an industrywide problem ...

  • Pan-European pensions get the go ahead

    7 Jun 2002

    Pan-European occupational pension schemes are set to become a reality after European leaders reached a political agreement.

  • Peace and quiet tops the list for househunters

    6 Jun 2002

    Peace and quiet is the most important consideration for one in five prospective homebuyers, according to research for Alliance & Leicester's quarterly movingimproving index. A&L says its latest findings shatter the assumption that homebuying habits are normally driven by house price trends and trying to find the next up and coming area to make a fortune. It says only 3 per cent of respondents rated house price movements as their main reason for moving while 17 per cent ...

  • Pension firms struggling with divorce transfers

    6 Jun 2002

    IFAs are struggling to find pension providers fully equipped to accept pension transfer business arising from divorce. Since December 2000, pension funds can be split on divorce and given to an ex-spouse in the form of a pension credit which can be placed theoretically elsewhere with another provider. But IFAs say many pension companies are unable to accept the business, with many offering only a limited service. Advisers claim life offices are missing out on big money transfers. Legal ...

  • Pickering to reinstate compulsory employer pensions

    7 Jun 2002

    Alan Pickering is set to propose restoring the right for employers to force staff to join company pension schemes, according to an interview he gave to the Financial Times.Pensions experts have welcomed the move, saying the move has been on the cards for some time and will improve pension provision.In his report on how to simplify pensions regime, Pickering is also likely to propose scrapping the second state pension.

  • Polly puts the mettle on for Tilney

    6 Jun 2002

    Tilney Investment Management's sponsorship of UK three-day eventers has paid off, with one of its competitors being selected for the British team. Polly Stockton, 28, has been chosen to represent the UK in the World Equestrian Games, taking place this September in Jerez, Spain. She has a three-year sponsorship deal with Tilney. This is Stockton's first appearance in the senior squad and follows a series of strong performances this season, notably coming seventh at Badminton ...

  • Product matters

    6 Jun 2002

    The New Start mortgage for divorcees from The Mortgage Business is the second mortgage this year targeted at the increasing number of divorcees in the UK. The first, from Charcol, enabled a divorced partner to use maintenance income without a court order as a source of income for a mortgage. The New Start loan, marketed by The Mortgage Partnership, not only helps in this way for the partner receiving maintenance but also assists the partner who is paying the maintenance to buy ...

  • PwC Consulting changes name to Monday

    11 Jun 2002

    PwC Consulting is to rebrand itself as Monday. The change of name and rebrand of the global consultanting company comes as it separates from PricewaterhouseCoopers with the aim of floating this Autumn. It says the name will distinguish itself from it rivals and stands for "real people, real experience, real business…and that means real results."

  • Revenue files secret pension plan

    6 Jun 2002

    The Inland Revenue has filed its closely guarded report on simplifying the pension tax regime to ministers and now awaits publication this month. The review has been kept under wraps since it was announced by the Treasury in March 2001. It is believed to contain radical proposals on pension complexity. Without close co-operation with the Revenue, it is unlikely that the DWP's simplification review, headed by Alan Pickering, will be able to achieve change. Pickering says ...

  • Royal & Sun Alliance sets out guide to S2P

    6 Jun 2002

    Royal & Sun Alliance has produced a support pack for IFAs to tackle consumer apathy and confusion surrounding the new state second pension. The main aim of the pack is to help IFAs and their clients make informed decisions about whether or not to contract out of S2P. The pack contains a range of information, including a special calculator spreadsheet developed by R&SA, which calculates an individual's pivotal age for contracting out or back in. The pack also contains ...

  • Royal & Sun Alliance to face misselling fine

    6 Jun 2002

    Royal & Sun Alliance is facing an as-yet-unknown fine from the FSA for pensions misselling as part of the pensions review. The group, which has been trying to sell off parts of its life business this year, admits in its latest Treasury returns it is expecting a fine by the FSA following an inspection of R&SA’s pension transfer business in August 2000. R&SA has also set aside around £8.2m for mortgage endowment compensation.

  • Royal Bank of Scotland - Guaranteed Income and Growth Account

    5 Jun 2002

    Wednesday, June 5, 2002 Type: Guaranteed equity bond and high interest account GUARANTEED EQUITY BOND Aim: Growth linked to the FTSE 100 index Minimum-maximum investment: £5,000-£500,000 Term: Three years Guarantee: Capital returned in full at end of term regardless of movement in FTSE 100 index Return: Capital returned in full along with 50% of any growth in FTSE 100 index Closing date: Until further ...

  • Scottish Life Mortgages in partnership with Personal Touch Insurance

    5 Jun 2002

  • Scottish Mutual chief executive steps down

    6 Jun 2002

    Scottish Mutual chief executive Graham Pottinger is leaving the Abbey National group at the end of June. His departure follows a restructuring of the Abbey’s long term savings businesses. The businesses are being brought in to one division which will be headed up by Mac Millington who was formerly managing director of its business to consumer banking division.

  • Scottish Mutual chief executive steps down

    6 Jun 2002

    Scottish Mutual chief executive Graham Pottinger is leaving the Abbey National group at the end of June. His departure follows a restructuring of the Abbey’s long term savings businesses. The businesses are being brought in to one division which will be headed up by Mac Millington who was formerly managing director of its business to consumer banking division.

  • Scottish Mutual links to Eurostoxx

    5 Jun 2002

    Scottish Mutual has introduced the third issue of its income and growth plan, a guaranteed equity bond that is linked to the Eurostoxx 50 index through a Dublin-based company called Quaich Investments 5.

  • Sipp audit as Revenue gets tough on rules

    6 Jun 2002

    The Inland Revenue is planning to audit self-invested personal pensions as part of a crackdown on investments that may breach its strict rules on pension funding. The Revenue has had the power to audit Sipps for the past three years but has so far not taken any action. It is now keen to make sure that the tax breaks Sipps enjoy are not being flouted and that scheme reports are being filed accurately. Investments in commercial property are understood to be of concern, particularly ...

  • Sipp gives people chance to make their own choices

    6 Jun 2002

    Following Philip Rose's comments about the launch of our Sipp (Money Marketing, May 16) I wish to clarify the position. Our Sipp will be a framework for investment. It is a wrapper, not an investment product - therefore not subject to the "better than best rules". Investment can be made to absolutely any collective or share available (within Sipp rules) - 4,000-plus holdings. The Sipp will work on the same basis as our Vantage Isa which has more investment options than many ...

  • Skandia business targets global funds

    6 Jun 2002

    Skandia is setting up a global asset management business offering outsourced offshore mutual funds across different asset classes, industries, countries, company sizes and investment types. Skandia Global Funds will determine the objective, investment mandate and manager of 20 offshore funds, which will be domiciled in Dublin and sold in more than 20 countries outside the UK. By the end of the year, it hopes to have increased the number of funds it is offering to around 30.

  • SLI aiming to be major investment trust player

    6 Jun 2002

    Standard Life Investments plans to become a major player in the investment trust sector buoyed by strong retail fund sales in the first half of the year. The move forms part of ambitious plans to make SLI into a leading international investment house. The firm is unable to say whether it will set up investment trusts from scratch or buy existing companies or managers. Despite difficult market conditions over the last year, SLI has seen sales rise. Interim results show total sales ...

  • SLI boosts sales by 42%

    6 Jun 2002

    Standard Life Investments saw sales rocket by more than 40 per cent in the six months to May after it won several new mandates. Total sales rose by 42 per cent to £1.7bn from £1.2bn in the same period last year as funds benefited from the addition of mandates including the £220m segregated property portfolio of South Yorkshire Local Authority. Assets under management rose to £80bn from £75bn while sales of mutual funds rose by 55 per cent to £207m ...

  • Small firms shut DB schemes

    6 Jun 2002

    Small businesses are following the pension lead set by bigger companies with a quarter of those with a final-salary scheme intending to close or wind up their plans in the next year, according to research from consulting actuary Hazell Carr. The firm is concerned that only 31 per cent of firms have had professional advice about its options and fears companies may take the wrong action. Many do not understand the difference between winding up a scheme, which means all liabilities ...

  • Solus loses two fund managers

    6 Jun 2002

    Solus Investment Funds managing director John Eckersley and investment director David Soutar are leaving the company to set up an investment boutique.

  • Spotlight on tax and financial planning

    6 Jun 2002

    Tax and financial planning opportunities thrown up by regulatory changes will be given a thorough examination at a conference held by Taxbriefs in July. Speakers will look at the new tax and National Insurance contribution regime, the state second pension, pension annuities and lump-sum IHT schemes. Technical Connection partner Tony Wickenden will talk about offshore planning changes and opportunities, including the review of the domicile and residence rules and the suitability ...

  • Staffordshire BS to close 9 branches

    6 Jun 2002

    Staffordshire Building Society is closing nine of its 48 branches which it says are no longer economical to run. The closures taking place by August 3 are in north Wales and the Midlands where it says the number of customers has fallen as more people deal with their finances by mail, phone or email. But Staffordshire says it is investing in its busier branches which are being refurbished to improve the service to customers. 

  • Standard Life keeps its triple A rating

    10 Jun 2002

    Standard Life has had its AAA rating reaffirmed by independent ratings agency Standard & Poor’s. S&P says the triple A rating for financial strength, the highest possible, was awarded for the company’s "extremely strong capitalisation, extremely strong business position, very strong operating performance, and strong management team."

  • SWIP to convert unit trusts to OEICs

    6 Jun 2002

    Scottish Widows Investment Partnership is asking investors to approve proposals to convert its range of 74 unit trusts into 40 Oeics. In a move it says would create a more focused fund range, SWIP will convert the funds in three stages from July if it receives the backing of 75 per cent of investors. SWIP has also announced the departure of global marketing director Fiach Maguire, who has left the company by mutual consent. 

  • Talkback

    6 Jun 2002

    Is there room for new entrants into the retail fund management market? "No, I think it is very crowded. In the UK, we have so much choice in terms of fund managers and types of funds already." Ian Shipway, Lauren Charles Financial Management "Yes. There is always room in the market if they are bringing in quality funds. The more there is in the market, the less dross there is about." Neal Greenslade, Taxbreaks "It depends on whether they are innovative and have something ...

  • The Darling legacy

    6 Jun 2002

    The Secretary of State for the 1 per cent World has moved to Transport. But is pension policy about to hit the buffers? Alistair Darling has, according to the UK's political correspondents, established his reputation as a safe pair of hands at the DWP. One wonders if this elite bunch of hacks bother to read their own newspapers which are warning of a pension crisis. In a narrow political sense, Darling succeeded, avoiding the unseemly rows of Harriet Harman's tenure but the ...

  • The full Monte Carlo

    6 Jun 2002

    As DB goes to DC it reminds me of that line from Joni Mitchell's Big Yellow Taxi "You don't know what you've got till its gone." I can remember many instances of talking to groups of workers about changes to their pension schemes. I have been doing this since 1978 or the best part of 25 years. My first presentation at the tender age of 22 found me nervous but my fears were removed by my boss who reminded me that the audience knew nothing about the existing scheme anyway ...

  • The prodigal son

    6 Jun 2002

    My son is due to graduate from university later this year and I am conscious of the fact that he is likely to have incurred a considerable amount of debt. I am keen to help in any way I can, both with advice and financially, if possible, but I am unsure where to start. Could you give me some pointers? Reports on the increasing level of student debt are sadly frequent and recent figures from the National Union of Students suggest that the average debt on graduation is £12,000 ...

  • TMB offers self-cert self-build loan

    6 Jun 2002

    The Mortgage Business is offering a self-build mortgage through industry specialist BuildStore. The loan, which will be marketed by BuildStore under its BuildLoan banner, will be available exclusively through intermediaries. The mortgage is available up to 95 per cent for both land and construction costs and is subject to an overall maximum of 85 per cent of the final LTV. The interest rate charged is 1.49 per cent above the Bank of England base rate. The loan features staged ...

  • UBS Global Asset Management - Global Optimal Fund

    11 Jun 2002

    Tuesday, June 11, 2002 Type: Oeic Aim: Growth by investing in global equities excluding UK Minimum investment: Lump sum £1,000, monthly £50 Investment split: US and Canada 60%, Europe excluding UK 29%, Japan 6%, Asia-Pacific ex Japan 5% Isa link: Yes Pep transfers: Yes Charges: Annual 1.5% Commission: Initial 3%, renewal 0.5% Tel: 0800 5872111

  • UBS Global Asset Management - Managed Fund

    11 Jun 2002

    Tuesday, June 11, 2002 Type: Oeic Aim: Growth by investing in equities, bonds and cash Minimum investment: Lump sum £1,000, monthly £50 Investment split: 100% in equities, bonds and cash Isa link: Yes Pep transfers: Yes Charges: Annual 1.5% Commission: Initial 3%, renewal 0.5% Tel: 0800 5872111

  • Up, up and away in a hot-air balloon

    6 Jun 2002

    To celebrate its promotion of Family Income Benefit, Swiss Life (UK) plc is offering IFAs the chance to win a fantastic hot-air ballooning weekend for two in Chateau d'Oex, Switzerland. Chateau d'Oex is renowned as an international mecca for hot-air ballooning. Its exceptional micro-climate creates such ideal flight conditions that people flock to this part of Switzerland from all over the world. The winning IFA and partner will fly to Geneva and then travel by train through ...

  • Value-added facts

    6 Jun 2002

    I have been outlining certain aspects of target benefit-driven financial planning recommendations, where a client is encouraged to quantify the level of income he will require from a specified date in the future. After establishing a target level of benefit, which in earlier articles we have uplifted to take account of the assumed future effects of inflation, we can consider what other forms of future income or capital there might be to deduct from this target figure. Having focused ...

  • Watson Wyatt attacks actuary changes

    6 Jun 2002

    Watson Wyatt is criticising the FSA's with-profits proposals, saying changes to the role of the appointed actuary weaken protection for consumers. The firm of consulting actuaries says the FSA's changes - which significantly reduce the role of the app-ointed actuary and place more responsibility in the hands of company directors - will not make for better regulation. It is concerned that the appointed actuary's role to monitor a firm's financial position continuously ...

  • Watson Wyatt attacks actuary proposals

    6 Jun 2002

    Watson Wyatt has slammed the FSA proposals to change the role of an appointed actuary, saying they will not strengthen regulation or protect consumers. It believes the FSA's plans, announced in its with-profits paper, to remove an actuary's monitoring responsibilities weakens the protection for consumers. It also says passing the duty to report on reserves to auditors is a bad step given the recent concerns over the effectiveness of the audit process. The firm wants to see the ...

  • What about performance on new funds?

    6 Jun 2002

    The 50 per cent fall in value of Aberdeen's zero-dividend progressive growth fund over its first year does raise a question or two about the efficacy of the standard risk warning "past performance is not necessarily a guide to future performance". The issue in this particular scenario is - what past performance? Of what value or relevance is a risk warning prescribed by the regulator which has no relevance at all to the fund or investment in question? None at all as far as I can ...

  • Why are providers so optimistic?

    6 Jun 2002

    With very few exceptions, the major product providers in the insurance and investment world are reporting impressive results, with increased sales and optimistic forecasts for the future. We all know that pension business is dramatically down. Executive pensions to a large extent, FSAVCs and even personal pensions are becoming a memory. If pension business is being written, then it is stakeholder - and we know that, according to all the surveys, the sales of stakeholder plans are disappointing.

  • Win a bottle of soccer bubbly a day

    6 Jun 2002

    With the World Cup under way, IFAs have the chance to enter Scottish Life International's daily draw for a bottle of champagne. All readers have to do is predict the scoreline correctly on the featured games on its website - www.sli.co.im/worldcup.htm - and automatically be entered into the draw. To play: 1: Predict the score of the specified game by 4pm GMT each business day, completing the form online. 2: Check the website after 3pm on the following working day (that is, ...

  • Yodlee in aggregate warning to IFAs as it closes in on UK

    6 Jun 2002

    The US firm warns IFAs that failure to come to terms with the new technology could mean them losing selling opportunities to high-street banks. Aggregation, which is widespread in the US, gathers information from all a client's different accounts and presents it on one website with one password. UK banks had refused to pass on data to Citibank amid concerned over possible brea-ches of data protection legislation and a lack of industry guidelines. Guidelines were drawn up ...

  • Zurich bids to topple NU from mutual slot

    6 Jun 2002

    Zurich Financial Services is on a drive to tie with building societies and knock Norwich Union from its position as the most popular life office partner for mutuals. Last month, Zurich formed a tied relationship with Market Harborough, its first agreement in the sector, which will see the society sell Threadneedle Isas and Oeics and Zurich's life insurance, critical-illness insurance and pensions from July 1. Zurich says other deals are in the offing. This ends Market Harborough's ...

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