Money Marketing
5 May 2004

  • 'Budget changes will not affect ScotEq RIT'

    6 May 2004

    Scottish Equitable says changes to the taxation of gifts with a reservation announced in the Budget will not affect the relaunch of its reserved interest trust. The company says the product is the first discounted gift trust to allow a choice in the way withdrawals from capital are made. The RIT allows investors to potentially reduce the amount of inheritance tax payable on their estate after death while at the same time allowing them to take regular withdrawals from ...

  • 'Complaints charge for consumers needs act of Parliament'

    6 May 2004

    The Financial Ombudsman Service is very unlikely to charge consumers for lodging complaints because such a policy change would require an act of Parliament, the Money Marketing IFA round table heard last week. FSA managing director David Kenmir said that while he understood IFA concerns at the way that consumers are encouraged to complain, he said Parliament had explicitly required complaints to be free. IFAs at the round table discussion last week said it was unfair ...

  • 'Demand for long fixes rising'

    6 May 2004

    Consumer interest in long-term fixed-rate mortgages is on the rise, according to Cheshire Building Society. CBS marketing director Jason Gaunt, speaking at the Marketing Week Mortgage Lending Strategy Summit in London last week, said there is a clear increase in demand from borrowers for loans fixed over a long period. According to a survey in March by pollsters YouGov and Cheshire, 23 per cent of those questioned would consider taking out a 25-year fixed-rate mortgage ...

  • 'Home reversion regulation will take some time' - SHIP

    10 May 2004

    Safe Home Income Plans, the voluntary regulator for equity release, says there is likely to be a long delay before home reversion regulation becomes effective.Chairman Jon King is delighted that home reversion will be regulated but points to the fact that the Treasury will now consult on the definition of home reversion plans, and when this is complete and the scope of regulation has been defined the FSA will consult on the details of the regulatory regime.Financial Secretary ...

  • 'IFA networks will lose market share to banks'

    6 May 2004

    Squeezing margins will force IFA networks to move towards multi-ties following depolarisation, losing market share to highstreet banks in the process, according to John Scott & Partners chief executive Toby Strauss. He told the MM round table that depolarisation would likely have a significant impact on the IFA sector. Strauss, who until he joined JS&P last year was managing director of Charcol and one of the industry's most well-known commentators, said the ...

  • 'UK ready to meet EU insurance standards'

    6 May 2004

    UK insurance companies will have a significant advantage over their European rivals when it comes to implementing new EU-wide reporting standards, according to a report published by analyst Fitch this week. The principal advantages of the forthcoming International Financial Reporting Standards, which aim to provide an EU-wide set of standards for insurance companies, include transparency, consistency and improved management, according to Fitch. But it predicts that the ...

  • 'Wraps will eliminate providers from chain'

    6 May 2004

    Wraps could see product providers eliminated from the IFA distribution chain altogether, according to financial services software company Aquera. Managing director Ed Holt believes the introduction of fully functioning wrap platforms will see providers made redundant. He thinks big brands entering the market and bancassurers in the future will choose to access IFAs, other distributors and fund managers direct through wrap platforms. Holt believes this might be ...

  • 1st Software revamps to aid advisers

    6 May 2004

    Technology provider 1st Software is expanding its services to help IFAs develop their businesses post-depolarisation. 1st Software is rebranding as First as part of a change in direction for the firm. It will now offer IFAs business consultancy and time management services under the slogan "create time for advice". Executive chairman Rory Curran is writing a White Paper for advisers explaining how they can develop their businesses. He believes IFAs need to look ...

  • 61% of advisers say FSA struggling to do its job

    6 May 2004

    The FSA once more received a vote of no confidence last week as 61 per cent of advisers indicated they believe the regulator is struggling to do a good job. Results from a poll of 600 advisers at the LIA conference revealed that there is still deep dissatisfaction with the regulator in light of the Equitable Life debacle and rising professional indemnity insurance rates. The poll also found that 96 per cent of advisers believe the price cap for stakeholder products should ...

  • A consumer's view

    6 May 2004

    The revelation that high-street banks have been using an estimated £15bn lying in dormant bank accounts to boost their profits paints an unedifying picture of these institutions. Since the money quite clearly belongs to customers, why not do the decent thing and use it to reduce bank charges across the board or some other such improvement for accountholders, rather than tuck the spare funds in their back pockets? The Government seems determined to get its grubby ...

  • A lot of FOS about nothing?

    6 May 2004

    Can you advise me about trying to get compensation from my previous financial adviser, who I believe gave me incorrect advice. What do I need to do and what will happen to him? It is important that in cases where a financial services professional has done wrong, for example, by knowingly misleading a client, the details of the case are looked at and appropriate action taken against that individual or their firm. However, as we move closer to practice in the US, where ...

  • A woad off their minds

    6 May 2004

    The Halifax traditionally provides a useful guide to upcoming events for journalists and The Diary is grateful for the help. It also points out special days such as Mother's Day and Father's Day. You may not have known this but April was National Home Improvement Month. Hold your head in shame if you did not build that carport. June is National Move Your Mortgage Month, that traditional festival of remortgaging that extends back into the mists of time. Perhaps ...

  • ABI to publish CI jargon busting guide for IFAs

    7 May 2004

    The ABI has begun consulting on a guide to critical illness insurance definitions. As revealed in Money Marketing last month, the guide will be an aid to IFAs, customers and claims assessors, to help them understand the meanings of medical definitions. The trade body hopes it will result in improved information through advisers and fewer disputed claims. The ABI is seeking the views of insurers, IFAs, consumer organisations and the Financial Ombudsmen Service in ...

  • ACA elects Adrian Waddingham as chairman

    11 May 2004

    The Association of Consulting Actuaries has elected Adrian Waddingham as its new chairman. Waddingham, a founding partner of actuaries and consultants Barnett Waddingham, will take office from June 1st. He replaces Mercer HR Consulting worldwide partner Gordon Pollock, who had been in the position for two years.Waddingham is also vice chairman of the International Association of Consulting Actuaries and a former chairman of the Association of Pensioneer Trustees, and a member of ...

  • Advisers must account for CI rebroking to get PI renewed

    6 May 2004

    Professional indemnity insurers are turning their attention to critical-illness insurance rebroking, telling IFAs they will have to account for any of this business before they see their coverage renewed. Speaking at the Money Marketing Fair Deal for IFAs round table, Direct Life & Pensions sales and marketing director Richard Verdin said his firm was told by their PI broker that they would have to disclose any critical illness rebroking they have been involved in before their ...

  • Aifa's view

    6 May 2004

    I would like to start with some comments on VAT. I once went on a course where I was told this is the most off-putting start conceivable to a speech or article. But since Money Marketing's recent revelations, the most unlikely people have been talking to me about VAT. Will VAT be a new cost burden on some of you? We will not know for some time. HM Customs and Excise has been quick to point out that recent publicity in MM is case-specific and we should not anticipate an imminent ...

  • AIG extends multi-manager Fof range

    5 May 2004

    AIG Life is extending its multi-manager fund of funds range with a new managed income fund. The fund will provide an income-oriented portfolio with a gross yield in the range of 1-2 per cent over the base rate. The fund's assets will be in a combination of externally managed funds from AIG's range in the UK corporate, high yield corporate, government and global bond markets as well as the commercial property sector. The fund may also invest up to 20 per cent in UK equity income ...

  • AIG Life - Managed Income Multi-Manager Fund of Funds

    10 May 2004

    Type: Unit-linked fund of fundsAim; Income and growth by investing in bond funds, property funds and equity income fundsMinimum investment: Lump sum £500Investment split: 39.20% UK corporate bond funds, 18% UK equity income funds, 11.8% UK high yield bond funds, 12.% property funds, 13% global bond funds, 6% UK gilt fundsCharges: Annual up to 0.75%, performance fee up to 0.25%Commission: NoneTel: 0700 244 5433

  • AMI says reversion workable definition next challenge

    10 May 2004

    The Association of Mortgage Intermediaries has welcomed the Treasury decision to bring home reversion schemes under FSA regulation.AMI policy advisor Ben Stafford says: "AMI lobbied hard for this and welcomes the decision. Consumers in this market are amongst the most vulnerable in society and need to receive professional advice from qualified and regulated mortgage intermediaries."It's important that the Treasury finds a workable definition on which to draft its proposals ...

  • Axa appoints new marketing director

    10 May 2004

    Axa has announced the appointment of Dave Whitaker as its marketing director. Whitaker joins having spent 20 years at Clerical Medical where he was a director responsible for retail marketing. At Axa he will be take control of design and development as well as promotion of Axa's life, pensions and investment products and manage a department of around 100 people. Axa chief executive Paul Evans says: "Dave brings significant experience of working closely with IFAs ...

  • Bad heir day

    6 May 2004

    The post-war baby boomers are approaching retirement and in the next five years we are going to see an increase in the number of people aged over 65. Some will have made adequate provision for their retirement but many will not. The recent expansion in the equity-release market seems set to continue as property markets soar on. Advising on equity-release products can be a complex task and one factor not always considered is the impact that products might have on any surviving ...

  • Bankhall and e.surv announce partnership

    10 May 2004

    UK market leading firm e.surv Chartered Surveyors and intermediary services provider Bankhall have announced a new partnership to provide valuation services.The arrangement follows Bankhall's acquisition of the Norwich Union Mortgage Club and is the latest in a series of strategic announcements from Bankhall regarding the mortgage market.Managing director of e.surv Paul Latham says: "This is a fantastic deal not only for both parties, but also for our lender relationships. ...

  • BBB and Inter call off merger talks

    5 May 2004

    Berkeley Berry Birch and Inter-Alliance have announced they have broken off merger talks.A stock exchange announcement issued today confirmed talks have been abandoned. Had it been successful the merger, which was originally announced in January, would have created the fourth largest IFA. Following the announcement Inter-Alliance's share price increased slightly to 1.32p from 1.25p and BBB's remained unchanged at 18p.

  • BBB claims VAT bills will see IFAs quit networks

    6 May 2004

    IFAs looking for more protection from VAT bills, escalating regulation and astronomic professional indemnity insurance will jump ship from networks to nationals, says Berkeley Berry Birch. BBB chief executive (network division) Richard Howells believes the VAT issue could be the last straw for many small IFAs who could find their networks passing on the cost of unforeseen VAT bills and penalties to members. Assuming that Customs & Excise goes ahead with measures to ...

  • BBB issues trading statement

    5 May 2004

    Berkeley Berry Birch has released a trading statement saying for the year ending March 31, 2004 its results have been in line with market expectations.Based on unaudited management accounts, the listed IFA has reported an operating profit in both the months of February and March, achieved one month ahead of expectations.The trading update came just minutes after a separate stock exchange announcement stating merger talks with rival Inter-Alliance have been abandoned. It ...

  • BGI ETF adds to IFA toolkit

    5 May 2004

    BARCLAYS GLOBAL INVESTORSI-SHARES FTSE 250 FUNDType:Exchange-traded fund Aim: Growth by tracking the FTSE 250 Index Minimum investment: Subject to negotiation with stockbroker Investment split: 100% tracking the FTSE 250 Index Place of registration: Dublin Isa link: Yes Pep transfers: Yes Charges: Annual 0.4% Commission: NoneTel: 020 7668 8007Barclays Global ...

  • Bright Grey raising reviewable CI rates

    6 May 2004

    Bright Grey is increasing its reviewable critical-illness rates from this week, soon after it found itself on the receiving end of IFA criticism for delays to its service. The delays are significant for the Royal London-owned protection specialist as, at launch last year, it boasted of the levels of service it planned to provide to IFAs. The insurer has not raised rates in the last nine months, despite several other providers doing so, and this hike will bring it in line ...

  • Bristol & West - 4.89% Easyflex Offset Capped Mortgage

    5 May 2004

    Type: Capped-rate offset tracker mortgageTracker term: Lifetime of loanTracker rate: 0.89% above Bank of England base ratePayable rate: 4.89%Capped term: Until June 30, 2006Capped rate: 5.89%Minimum loan: £25,001Maximum loan: Up to 90% of valuation subject to a maximum of £500,000, up to 75% of valuation subject to a maximum of £1m, up to 70% of valuation subject to a maximum ...

  • Bristol & West - 4.89% Easyflex Offset Capped Mortgage

    5 May 2004

    Type: Capped-rate offset tracker mortgageTracker term: Lifetime of loanTracker rate: 0.89% above Bank of England base ratePayable rate: 4.89%Capped term: Until June 30, 2006Capped rate: 5.89%Minimum loan: £25,001Maximum loan: Up to 90% of valuation subject to a maximum of £500,000, up to 70% of valuation subject to a maximum of £1m, up to 70% of valuation subject to a maximum ...

  • Brodie warns FSA to keep its eye on big listed firms

    6 May 2004

    The FSA needs to spend more time and resources monitoring the activities of the listed IFAs according to Master Adviser director Doug Brodie, who warned that a Mack truck may be heading the regulator's way without it even being aware. Brodie, one of Sesame's biggest member firms, told FSA managing director David Kenmir that the regulator does not appear to be paying enough attention to the IFAs, who are collectively losing "thousands of pounds each day". He said ...

  • BSA elects Stroud and Swindon BS chief executive John Parker as new chairman

    10 May 2004

    The Building Societies Association has named Stroud and Swindon Building Society chief executive John Parker as its new chairman, replacing Skipton Building Society chief executive John Goodfellow.Nationwide chief executive Philip Williamson has taken over as deputy chairman.Parker says: "I am honoured and delighted to become chairman of the Association. Having worked in the industry for 20 years, I know that societies have a major role in providing diversity and choice ...

  • BSA welcomes move to regulate home reversion

    10 May 2004

    The Building Societies Association welcomes the move by the Treasury to bring home reversion under the scope of FSA regulation.Press officer Rachel Blackmore says: "This is a sensible move and will be welcomed by the industry and consumers alike as it offers vulnerable consumers protection."

  • Bupa International - Lifeline International, Company International

    10 May 2004

    Product types: Individual and group private medical insurance for expatriatesUpdates: Premiums now based on country of residence, Lifeline International premiums based on actual age of policyholder not age bandTel: 01273 208181

  • Bupa plans simple route to success

    11 May 2004

    BUPABUPA DENTAL PLANType: Group healthcare cash plan for dental cover Minimum premium: Dependent on group size and age of employees Minimum group size: Three Minimum-maximum ages: 18-no maximum Cover provided: Up to two examinations a year, up to two scale & polish treatments a year, x-rays, fillings & root canal treatment, extractions, crowns, bridges & dentures Maximum benefit: Routine dental treatment - level ...

  • Call for IFA aid on menu system

    6 May 2004

    The FSA has accepted it is having problems designing a workable menu system that covers three sets of conduct of business rules and says it is not too late for IFAs to influence the debate. Managing director David Kenmir told a gathering of IFAs he wants to find a way around the complexity of its current plans which would see a customer wanting an Isa mortgage with protection alongside receiving three different sets of menu papers. IFA delegates blasted the proposals ...

  • Call for Treasury to end unease on home reversions

    6 May 2004

    The Treasury must move to introduce regulation of home reversion schemes because its failure to do so is continuing to cause unease in the mortgage industry, according to the Consumers' Association. Senior policy adviser Laurence Baxter expressed concern over the issue of equity release in a speech at last week's mortgage lending strategy summit. The Treasury is maintaining its decision that home reversion, which currently makes up only 10 per cent of the equity ...

  • Churchill to leave Zurich

    7 May 2004

    Lawrence Churchill is stepping down as chief executive officer of Zurich Financial Services UK, Ireland and international life business.Until a replacement is found his responsibilities will be covered by Zurich chief executive, global life insurance business Paul van de Geijn.Van de Geijn says: "I thank Lawrence for his leadership at an important juncture in the turnaround of the life business and wish him well in his personal and professional future."

  • Close edges towards hedge

    10 May 2004

    Close Fund Management has teamed up with hedge fund specialist Man Investments to offer the Close Man hedge fund, a capital protected fund of hedge funds.This Guernsey-domiciled product is available to investors with a minimum of £10,000, which is low for a hedge fund product. It aims to provide a return of between 13 per cent and 15 per cent a year during the investment term of eight years and six months.The fund invests in a range of hedge funds selected by Man ...

  • Close Fund Management - The Close Man Hedge Fund

    11 May 2004

    Type: Capital-protected fund of hedge fundsAim: Growth linked to the performance of a portfolio of hedge fundsMinimum-maximum investment: Lump sum £10,000Investment split: 100% in hedge fundsTerm: Eight years and six monthsReturn: 13%-15% growth a yearGuarantee: Original capital returned in full regardless of performance of under- lying investmentsPlace of registration: GuernseyCharges: Annual ...

  • Consumer watchdog calls on FSA to look at CitiSolutions

    6 May 2004

    The Consumers' Association is urging the FSA to investigate Citigroup's UK home-service business ahead of mortgage regulation in October. CA principal researcher Teresa Fritz says it is extremely concerned that consumers may be offered unsuitable life and mortgage products by agents with minimal training from CitiSolutions, the home-service division of Citigroup's UK financial arm. CitiSolutions agents visit clients in their homes and complete a financial needs ...

  • Consumers' Association calls for a cautious approach

    11 May 2004

    The Consumers' Association has vowed to remain vigilant to ensure consumers get the best possible protection when entering home reversion schemes and called for a cautious approach.Responding to news that the schemes are to be regulated CA senior policy advisor Laurence Baxter says: "This is a great day for consumers. The Consumers' Association is very pleased to see that the Treasury has realised the high risk nature of home reversion schemes and that they should be regulated ...

  • Correspondent's week

    6 May 2004

    As your latest fix of Correspondent's Week is being filed from the Cotswolds, it seems appropriate that it should be accompanied by a quick blast of the theme tune from The Archers. "Tum-tee, tum-tee, tum-tee, tum, Tum-tee, tum-tee, tum-tum…" Sunday can be a slow day in this neck of the woods. Fortunately, I remember that Alan Bannister, my neighbour and a partner at City law firm Vizards Wyeth, has forsaken his London pad to visit his country bolthole this weekend. ...

  • Coventry Building Society - First Time Buyer 1.69% Discount

    6 May 2004

    Type: Discounted-rate mortgageDiscounted term: Until May 31, 2007Discount: 1.69%Payable rate: 4.35%Minimum loan: £1Maximum loan: Up to 90% of valuation subject to a maximum of £200,000Income multiples: Up to 3.75 times principal income plus second or three times jointConditions: Capital repayments of up to 5% a year allowed without penaltyArrangement fee: £199Redemption ...

  • Davy dismissive of FSA 'plot' to oust small IFAs

    6 May 2004

    DBS and SimplyBiz founder Ken Davy has hit out at Scottish Widows' claim that the FSA is using the professional indemnity insurance crisis to push IFAs into consolidation. Widows chief executive Archie Kane told Money Marketing last week that he believes the FSA is pushing IFAs towards consolidation by increasing the regulatory burden and through PI insurance. But Davy says Kane is wrong about the future of small IFAs and rejects any suggestion that the FSA has a hidden ...

  • Duty is in the eye of the beholder

    6 May 2004

    Some months ago, Hargreaves Lansdown decided not to offer with-profits bonds and Prudential UK chief executive Mark Wood is reported to have described this as a "dereliction of duty" in Money Marketing's recent round table on with-profits. I found it an astonishing attack. It is the adviser's job to advise on suitable products. Many IFAs and investors have been let down badly by with-profits over the last few years and consider it to be no longer viable. IFAs have no duty ...

  • Emergency surgery for CI cover

    6 May 2004

    Last year saw turmoil in the critical-illness market. The long-term future of guaranteed rates came under pressure as reassurers pulled out of the market and those supporting guaranteed rates pushed their prices ever higher. Some insurance companies were raising their prices on a monthly basis - some changing rates twice in one month. IFAs feared that one of the most successful products of the last decade would be removed from the market or priced out of a client's budget, ...

  • Endowment complaints set to continue says FOS

    6 May 2004

    Numbers of mortgage endowment complaints will likely continue to increase for the next two years according to the Financial Ombudsman Service.Speaking at the Building Societies Association's annual conference in Manchester yeasterday, principle Ombudsman (banking and loans) David Thomas told delegates he believed the number of mortgage endowment complaints was likely to continue to increase for the next two years, and then to remain at a steady level or diminish.Thomas ...

  • Expunging avoidance

    6 May 2004

    In the wake of the publication of the Finance Bill, I would like to look at the background to the new disclosure rules for tax avoidance. When new disclosure provisions for promoters of tax-avoidance schemes were announced on Budget day, tax planners had already been alerted to the possibility by rumours that gathered pace in the days before the speech. Apparently, both the US and Australian models had been considered, with what emerged being closer to the former than the more Draconian ...

  • First 'minded to authorise' letters are sent out by FSA

    6 May 2004

    The FSA has sent the first batch of 1,000 letters to firms it is "minded to authorise" to carry on mortgage and general insurance business. Firms getting MTA letters are set to receive formal authorisation later this year unless significant changes in their circumstances lead to reconsideration by the FSA. Formal authorisation will be given to firms nearer the relevant dates for the start of regulation - October 31, 2004 for mortgages and January 14, 2005 for general ...

  • First State's Jefferson joins Henderson

    5 May 2004

    First State head of UK and European retail sales Phil Jefferson is joining Henderson Global Investors in a similar role. He will be reporting to UK and Asia managing director Mike Clare. His replacement at First State will be Richard Jones, who is currently director of UK retail sales. The Henderson position has been vacant since Simon Ellis departed for Axa Investment Managers at the beginning of the year.

  • Focus to offer online mortgages for Kensington

    11 May 2004

    Technology provider Focus Solutions has signed a deal with Kensington Mortgages to provide online mortgage applications.Focus will provide sub-prime lender Kensington with an online mortgage application system to enable brokers and intermediaries to transact electronic new mortgage business directly with Kensington via the Internet.

  • Folkard warning of Govt pressure on pension IFAs

    6 May 2004

    UK consumers could face a wave of misselling from foreign financial services providers right under the FSA's nose, a member of the Financial Services Practitioner's Panel has warned. IFA Thomson's Group chief executive and panel member Douglas Gardner says the implementation of the Investment Services Directive in January will allow firms from other EU countries to sell into the UK under their home state's jurisdiction rather than that of the FSA. Gardner, ...

  • Free FSA from political pressure to achieve more effective regulation

    6 May 2004

    Several years ago, on a visit to my tailor, he measured me carefully and discussed the sort of style that would be appropriate for my envisaged usage. After a few weeks, the suit was finished and I was delighted with it. However, I wonder today if I was missold? The lapels were four inches wide, the trousers had 22-inch bottoms and the waist and jacket are now too tight. Should I to complain to the Tailors' Guild and ask for redress? Likewise, several years ago, somebody ...

  • FSA calls on EU to review £1m PI requirement

    6 May 2004

    The FSA is calling on the European Commission for an early review of the directive that has poured fuel on the fire which is the IFA professional indemnity crisis by requiring £1m cover for all firms. FSA managing director David Kenmir told the Money Marketing IFA round table last week that he favours dropping the £1m per firm requirement, replacing it with a flexible system allowing com-panies to reserve capital against liabilities based on potential risks in their ...

  • FSA Chief Executive calls for common sense from lenders

    6 May 2004

    Speaking at the BSA Conference today, FSA chief executive John Tiner called for lenders to use common sense when assessing borrowers' ability to repay mortgages.Tiner said lenders should be satisfied a borrower had sufficient income to meet monthly installments, not only at the beginning of a loan but also when rates normalise.He said that the lenders' assessment should also look at the borrowers' ability to repay the capital amount, not just the interest on a mortgage.

  • FSA may re-open endowments claims

    5 May 2004

    Reynolds Porter Chamberlain has warned the FSA could attempt to re-open mortgage endowment misselling claims which are currently time barred on the back of the Treasury Select Committee's report into the matter. The law firm predicts an increase in the volume of misselling claims would be "almost inevitable" as a result.

  • FSA receives 5,580 registrations for authorisation

    6 May 2004

    The FSA has today revealed that by the end of April, it had received 15,046 registrations to obtain an application pack and 5,580 applications for authorisation. 8,675 registrations were from insurance businesses and 6,371 for mortgages.Out of those that have already applied for authorisation, 3,684 were mortgage firms and 1,896 were general insurance firms.So far the FSA has given authorisation to 1,135 firms to carry out mortgage or general insurance business.Of ...

  • FSA says too early to say how regulation will work

    10 May 2004

    The FSA has welcomed the Treasury announcement on home reversion plans, saying it will bring clarity for consumers and that reversions carry comparable risks to lifetime mortgages.Press officer Robin Gordon-Walker it is too early to say how it will regulate home reversion but it will go through a consultation process in due course.The FSA confirmed the decision would not affect mortgage regulation in October and that regulation would include lifetime mortgages providing ...

  • Going overboard

    6 May 2004

    Before to the launch of Safe Home Income Plans in 1991, the waters in the equity-release market had become decidedly choppy. But this non-profit-making body for product providers, whose 18 members account for over 90 per cent of equity-release business, has played a vital role in restoring confidence in a product that had become synonymous with scandal during the 1980s. Consumers who deal with a Ship member have a number of valuable safeguards, the most important being ...

  • Government u-turn on Equitable - Tories

    11 May 2004

    Shadow Financial Secretary Andrew Tyrie says he has received a letter from Financial Secretary Ruth Kelly saying she would consider a request from the Parliamentary Ombudsman to bring the Government Actuary's Department within her jurisdiction.Previously Kelly said she remained confident that the Penrose report does not provide evidence proving that any of the relevant regulatory bodies including GAD acted maladministratively in relation to Equitable Life.Tyrie says: ...

  • Heading for a fall?

    6 May 2004

    Probably the biggest single question taxing the minds of those whose business it is to predict the UK economy is whether the soaring housing market is a bubble about to burst. With newspapers splashing massive house price increases and TV programmes telling viewers how to make a fortune out of property, some experts believe a public with £ signs in their eyes has fallen fatally in love with bricks and mortar. This is a debate that pits big names against each other ...

  • Hit and myth

    6 May 2004

    There have been criticisms of equity-release schemes in the media, including Which? magazine, and this article is intended to respond to those criticisms and to dispel some of the widely held myths about equity release. First, there are two types of equity release. The first is where you sell your property or part of it. This is known as a reversionary scheme. The second is where you borrow against your property either for a lump sum or for the payment of a monthly income. This ...

  • Home on the range

    6 May 2004

    The Government is fostering a Wild West for home-reversion cowboys, concentrating regulation on the safe majority of the market and leaving the frontier open to lawlessness, according to many industry commentators. And unfortunately, it seems the industry is not bound to get its wish for regulation of home-reversion schemes when the Treasury lays down its verdict later this month. Political lobbyists are expecting the Treasury to make its announcement in the last week ...

  • Home reversion plans to be regulated

    10 May 2004

    Home reversion plans are to be regulated by the FSA following consultation by the Treasury.Financial secretary Ruth Kelly says: "Buying a home reversion policy is a huge financial decision involving the most important, and sometimes only significant, asset of elderly people. It can have significant implications for tax, benefits, inheritance and long-term financial planning. Regulation will help people to make informed choices, offer valuable consumer protection and ensure that ...

  • House prices rise by 2.1%

    6 May 2004

    House prices rose by 2.1 per cent in April, taking the average price of a home to £145,918, according to the Nationwide monthly house price index. The annual increase now stands at 18.9 per cent and prices are rising at more than £100 a day. However, group economist Alex Bannister warned that the pace of growth would slow over the medium term and forecasted a 15 per cent rise over the year. Bannister says: "The number of market house purchase approvals ...

  • IFA Promotion offers consumers a free guide to equity release

    11 May 2004

    IFA Promotion is offering consumers a free guide to equity release and urging people to seek independent financial advice before cashing in on their homes.The guide aims to help consumers decide whether cashing in on a home's value is right for them and addresses issues such as how equity release plans work, the different schemes available, the alternatives and benefits and where to go for advice.The guide "Equity release - unlocking money from your home" aims to demystify ...

  • IHI targets expats

    7 May 2004

    International Health Insurance has established a corporate private medical insurance plan for small to medium sized companies with at least three expatriate employees.The plan has a modular structure which allows the company to build the cover they need for employees up to an annual maximum of £1m. Module one provides core cover for hospitalisation and inpatient treatment. It provides 100 per cent cover for surgery, chemotherapy and organ transplant while in hospital. It ...

  • Independent view

    6 May 2004

    I recently completed the London Marathon, which was quite a painful experience. As I was trotting around, trying desperately to think of anything other than the ruptured hamstring I acquired at 19 miles, it occurred to me that setting up and maintaining an IFA practice in today's financial services industry is not too dissimilar to long-distance running. I began my marathon training with the same conviction and naivety I had as a fledgling IFA. I did both because I ...

  • Inter look for further capital and cost cutting

    6 May 2004

    Inter-Alliance has indicated it will need to find alternate ways to raise capital following yesterday announcement that merger talks with Berkeley Berry Birch had collapsed.The company says it is pleased with progress made in improving its operating loss but that further "cost saving initiatives across the Inter-Alliance Group" were necessary.It says it now has new plans which "include the continuation of further cost saving initiatives."

  • Inter/BBB breakdown shows industry trends

    7 May 2004

    Durlacher analyst David Pannell says the breakdown of merger talks between Inter-Alliance and Berkley Berry Birch demonstrates the significant issues facing the IFA industry.He says personality, misselling liabilities, and the inability of the sector to demonstrate a profitable business model all lead to the decline in talks.Pannell believes until the larger IFAs consolidate, quoted IFAs will continue to experience low market ratings and little interest from investors.However, ...

  • Inter-Alliance will struggle to find another buyer - Pannell

    5 May 2004

    A leading IFA analyst believes news that IFAs Berkeley Berry Birch and Inter-Alliance have called off a deal to merge will see Inter struggle to find another buyer. Durlacher analyst David Pannell says: "Given the amount of time the deal has taken to negotiate I'm not surprised. It could be due to insufficient cash to fund the deal or it could be something uncovered in the due diligence. He says: "BBB still has the same strategy issues it had before it started talking ...

  • Investment edge

    6 May 2004

    I was recently explaining the concept of fund supermarkets to a client and suggested that, in many ways, they were akin to a food supermarket, such as Sainsbury. At this point, the lady recoiled in horror, exclaiming that she was a loyal Tesco customer. I have now learned not to use such analogies unless knowing your customer extends to knowing your customer's supermarket preferences. Such loyalty to food supermarkets would be manna from heaven for our fund supermarkets ...

  • Investment edge

    6 May 2004

    Is Fidelity's incentive of £50 for IFAs and £25 for their clients a bribe too far for reregistering existing holdings on FundsNetwork? Is this the next misselling scandal? Most IFAs will have clients who have accumulated Peps, Isas and other investments with a number of different fund managers. Suppose for a moment they are all progressing exactly in the manner the client hoped for when they were acquired, such that the client has no desire to alter any individual ...

  • Investment view

    6 May 2004

    Today we will learn if the Bank of England decided to raise interest rates again. Most of the betting is that they will. A major reason for people considering a rate rise to be inevitable is the continued strength of the housing market. It would appear, though, that, not only is house price inflation not the sole reason for the hawkish attitude of the monetary policy committee, it is not even the most important one. Evidence exists to suggest that, despite the evidence of remortgaging, ...

  • Julian Gibbs

    6 May 2004

    Over the longer term, UK smaller company funds generally outperform blue-chip funds. While smaller companies have performed particularly well over the past year, some well-managed UK smaller company funds should continue to outperform the FTSE 100 index. Over the past 48 years, the UK small-cap index has outperformed large caps by 3 per cent a year. This means that if you had put money into smaller companies, you would now have more than five times more money than if you had invested ...

  • Keep it in the family

    6 May 2004

    Simplification is set to change the world of pensions forever. Due to take effect from April 2006, the sweeping reforms outlined in the Inland Revenue Green Paper which are due to be enshrined in the Finance Act 2004, will usher in a whole new way of investing in pensions. Gone will be the pettifogging rules and regulations applying to eight different tax regimes, with just one annual limit of £215,000 and a lifetime limit of £1.5m to watch out for. The ...

  • Kenmir predicts four-tiered adviser sector

    6 May 2004

    Depolarisation will see the IFA sector develop into a four-tiered market as it segments to reveal the extent to which advisers actually are independent, says FSA managing director David Kenmir. Speaking at a Money Marketing round table last week, Kenmir said many IFAs are not truly independent and predicted that the new depolarised regime would make it easier for consumers to understand the status of an intermediary. He predicted a multi-level market with, at its base, ...

  • Kenmir says FSA stands by promise to IFAs

    6 May 2004

    The FSA should be taken to task if it tries to place a retrospective review on IFAs,says managing director David Kenmir. Speaking at the Money Marketing IFA round table last week, Kenmir said it would stand by its promise to deal with IFAs on the basis of the standards current at the time that the advice was given. Kenmir admitted that the way previous regulators "moved the goalposts" in the pension review had added to the problems IFAs face in getting professional indemnity ...

  • Kevin Duffy on mortgages

    6 May 2004

    Of the many changes to the mortgage industry which FSA regulation provokes, one of the most profound but least documented is the impact it will surely have on recruitment. In certain ways, what is happening in our market has its closest parallel with the world of football. Older readers may recall the Bosman ruling of the late 1980s. This permitted players at the end of a contract to leave their club on their own terms and seek work elsewhere. It completely liberated football's ...

  • Keydata Investments - Dynamic Growth Plan 9

    7 May 2004

    Type: Capital-protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £3,000-no maximum, Isa £7,000Term: Six yearsReturn: Up to 3% growth for every 1% rise in index up to a maximum of 60%Guarantee: Original capital returned in full provided index does not fall by more than 40% and returns to at least its initial level Closing date: June 11, 2004, Pep/Isa ...

  • Keydata presses accelerator

    6 May 2004

    Keydata is offering a stockmarket accelerator plan that triples any growth in the FTSE 100 index over a six-year period up to a maximum of 60 per cent. Capital invested in the Keydata dynamic growth plan 9 product is guaranteed unless the index falls by more than 40 per cent over the period and fails to recover, when capital would be reduced by 1 per cent for every 1 per cent fall in the index. Minimum investment is £5,000 for direct share investments, £3,000 ...

  • L&G: ISA best for retirement saving

    6 May 2004

    Saving in an ISA retirement plan beats regular contributions into a stakeholder pension, says L&G pensions strategy director Adrian Boulding.Boulding told delegates at Money Marketing live in London today that saving in an ISA with the option of moving funds into a pension later meant individuals could still benefit from full pension tax relief.Boulding said: "We are looking at a stakeholder/ISA combination product which will allow access to capital and give tax relief ...

  • Making trends meet

    6 May 2004

    The National Association of Pension Funds conducts a yearly survey to ascertain various aspects of the establishment, running and membership of occupational pension schemes. I have commented in previous years about the importance to financial advisers of many of the results and this year's publication continues to highlight a number of interesting trends and developments. Probably the most important trend reported is the continuing closure of many finalsalary schemes. Three ...

  • Morgan Stanley - FTSE Capital Plus Plan

    6 May 2004

    Type: Capital-protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £5,000-no maximum, Isa £3,000-£7.000Term: Six yearsReturn: The greater of 26% of original capital or 60% growth in index at end of termGuarantee: Original capital returned in full plus 26% growth regardless of performance of indexClosing date June 18, 2004, Pep/Isa transfers June ...

  • Mortgage Next launches two self-cert mortgages

    11 May 2004

    Mortgage Next has launched two new self-certification mortgages, both funded by BM Solutions and available exclusively via Mortgage Next members.Both products are Bank of England base rate trackers and available for the employed and self-employed and for purchase or remortgage.The first product is the base rate plus 0.55 per cent for two years and then the base rate plus 1.75 per cent for life. There is no extended tie-in and it is available up to a maximum loan to value ...

  • MPC raises rates 0.25 per cent

    6 May 2004

    The Monetary Policy Committee has today announced interest rates will rise 0.25 per cent to 4.25 per cent.But in response National Association of Estate Agents chief executive Peter Bolton King says rates were likely to climb to around 4.75 per cent by the end of 2004.He says whenever the Bank of England puts up rates inevitably a sense of uncertainty is created.He believes rises in themselves will not damage the housing market because affordability is healthy in ...

  • NDF European bond stands alone

    5 May 2004

    NDF's European defined bonus plan is a capital-protected bond that is linked to the performance of the Dow Jones Eurostoxx 50 index for six years. However, it could mature in years one to five, depending on the level of the index at each anniversary.Assuming the product runs full term, investors will get 100 per cent of any rise in the index plus all their original capital back unless the index falls by at least 50 per cent does not recover to its original value by the end ...

  • NDF launches two new plans

    10 May 2004

    NDF's two latest plans, the UK defined bonus plan and the European defined bonus plan, are opening to investors today.Growth potential for both is linked to the performance of either the FTSE 100 or the Dow Jones Eurostoxx 50 index, with a term of up to six years. The plans offer the potential for early maturity with growth equivalent to either 7.5 per cent (UK defined bonus plan) or 10 per cent (European defined bonus plan) each year.

  • New appointment at Baillee Gifford

    11 May 2004

    Baillie Gifford has appointed Kevin Sime as head of investment trust marketing with effect from July.Sime joins the fund manager from Scottish Widows where he is head of brand and corporate communications.Baillie Gifford has recently been appointed to manage two long established investment trusts, the Scottish American Investment Company and the Edinburgh Worldwide Investment Trust. The firm currently manages eight investment trusts valued at £2.7bn in total.Sime ...

  • New Europe comes in from the cold

    6 May 2004

    This month marks the expansion of the European Union to create the world's biggest single market. The inclusion of New Europe will see the EU grow from 15 to 25 members. Poland, Hungary and the Czech Republic, which together represent more than 80 per cent of GDP in the region, are likely be the primary targets for investors. Also joining the alliance will be Cyprus, Estonia, Latvia, Lithuania, Malta, Slovakia and Slovenia. UK investment houses are gearing themselves ...

  • New hope for Equitable investors

    6 May 2004

    Equitable Life policyholders have new hope of compensation following a High Court ruling giving them the right to challenge the Parliamentary Ombudsman's dismissal of a test case. The decision marks a small victory for Equitable investors, putting ombudsman Ann Abraham under pressure to reopen her inquiry. Mr Justice Moses ruled last week that the Parliamentary Ombudsman's test case should be opened to judicial scrutiny. The Equitable Members' Action ...

  • NU hits back at Nationwide's criticism of equity release schemes

    10 May 2004

    Norwich Union has responded to Nationwide's prediction that equity release will be the next misselling scandal, saying the comments are alarmist and do not paint a fair picture of a growing market.Personal finance director Mark Kelly says: "Equity release plans do have their place but, like any other financial product, will not be suited to everyone. It is dangerous and harmful to assert that because equity release plans are sold to the over 55s, that they are being missold."

  • Omam blow as Ross is among four to quit firm

    6 May 2004

    Old Mutual Asset Management is the latest fund manager to suffer a high-profile departure as head of its quants team David Ross is leaving, taking three members of his team with him. All four will serve out their notices, ranging from three and six months, which Omam says will give it time to find replacements. It expects to initially replace them internally and will recruit external replacements later. Ross, who has developed a high profile among independent ...

  • Out of context

    6 May 2004

    •"I have never understood why people who save money are called consumers." - Scottish Life pension guru Steve Bee. •"Over there in Westminster, we have got a whole load of Claudio Ranieris. They do tinker a lot." - Bee on our esteemed politicians. •"I look like a Swan Vesta." - Group 300 chief executive Chris Batten on his sunburnt bald head. •"That's Tracey with an e. It's the posh way of spelling Tracey, if there is such a thing." ...

  • Parliamentary summit looks at home packs

    6 May 2004

    Mortgage and property industry representatives were brought together with members of the Houses of Commons and Lords last week in a meeting hosted by the National Association of Estate Agents which looked at the Government's controversial home information packs. The meeting was chaired by Labour peer Lord Corbett and views were heard from the CML, the Law Society, the Royal Institution of Chartered Surveyors, the Consumers' Association and the NAEA. Which? senior ...

  • Pink Home Loans - Freedom Finance FS 1 Year Discount

    11 May 2004

    Type: Discounted-rate mortgageDiscounted term: One yearDiscount: 1%Payable rate: 4.58%Minimum loan: £25,001Maximum loan: Up to 90% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £500,000Income multiples: Based on affordability calculation and credit scoreArrangement fee:£385Redemption fee:5% of amount repaid in year one, ...

  • Porteous dismisses claims on price levels

    6 May 2004

    Growing concerns that house prices are nearing unsustainable levels have been rubbished by RBS senior economist Stuart Porteous. Porteous' claims go against those made by several fund managers and analysts, who expect to see a dramatic crash in the housing market in the next two years. Before we witness a dramatic decline in the UK property market, Porteous told the summit that interest rates would have to rise sharply and unemployment would have to rocket. Both ...

  • Prime example from GMAC

    6 May 2004

    GMAC-RFCStatus Near Prime 4.85%Type: Adverse credit tracker mortgage with discountDiscounted term: Six monthsDiscount: 1%Payable rate: 4.85%Tracker term: Lifetime of loanTracker rate: 1.85% above Bank of England base rateMinimum loan:£25,001Maximum loan: Up to 90% of valuation subject to a maximum of £250,000Income multiples: Up to 90% of valuation - up to ...

  • Product matters

    6 May 2004

    You may groan at the thought of another New Star fund and wonder how this one can differentiate itself from some of the other funds in the stable. Well, for a start, its UK special situations offering is a tiny fund at only £2.5m and it is not being run by a fund manager you will have heard of. His name is James Ridgewell. Ridgewell has been working in the City for six years, spending time with Abbey Life and then World Invest prior to its takeover by New Star. For ...

  • Pru seeking new high-street deal

    6 May 2004

    Prudential is looking to sign another deal with a major high-street bank to boost its distribution post-depolarisation. In an interview with Cantos last week, Prudential chief executive Mark Wood confirmed that the insurer is looking to multi-tie with another bank. The move follows the success of its deals with Abbey in 2002 and more recently with Lloyds TSB and Alliance & Leicester to distribute protection products. Wood sees the market shifting towards ...

  • Reality bites into EU's PI policy

    6 May 2004

    Perhaps some sanity may prevail over European Union policy on PI insurance when it runs into that reliable frustrator of many a political initiative - reality. The EU is requiring intermediaries to have h1.5m of cover from next year. This is bad news for the UK's IFAs which could see their burden increase even further. The FSA has accepted that it will not be able to stop the insurance mediation directive bringing in this onerous and, in Money Marketing's view, ...

  • Regulation 'most sensible way forward' says ABI

    10 May 2004

    The ABI has welcomed the Treasury's decision to regulate home reversion schemes, calling it the 'most sensible way forward'.The trade body, like many industry groups, has lobbied the Treasury extensively to change its mind and introduce legislation to regulate home reversion.Until now, the Treasury has resisted, saying there has been no evidence of consumer detriment and therefore no need to regulate.ABI spokeswoman Emma Quantrill says: "We are very pleased, ...

  • Regulator is praised for alleviating crisis

    6 May 2004

    The FSA should be praised for the work it has done to alleviate the profess-ional indemnity insurance crisis for IFAs over the last 12 months, says Chadney Bulgin partner David Thomas. Thomas told the Money Marketing Fair Deal for IFAs round table that huge rises in PI cover slowed down considerably last year when the FSA introduced emergency measures to allow IFAs to deal with cover in more flexible ways. Thomas's firm, which has 36 RIs, saw its PI bill soar from ...

  • S&P launches hedge funds ratings

    11 May 2004

    Standard & Poor's is launching a European-based ratings service for funds of hedge funds. The new ratings reflect S&P's opinion as to a fund of hedge fund's quality based on its investment process, team's experience, control of risks and consistency of performance relative to its own objectives.S&P dirctor James Tew says: "The growing fund of hedge fund industry and changes in the regulatory environment have led to surging interest in this market. At times ...

  • Sarasin wrapper out for fifth time

    11 May 2004

    Sarasin has brought out another issue of Sarasin Guaranteed Portfolio - globalsar principal guaranteed note.Issue five of this capital-protected fund invests entirely in the Sarasin CI globalsar sterling balanced fund, which is a Guernsey-based unit trust. The underlying fund has a 16-year track record and invests globally in a combination of equities, bonds and cash. Its objective is to achieve capital growth with lower risks than a pure equity fund.Investors will get ...

  • Selestia chief says IFAs have no duty to sell WP

    6 May 2004

    Selestia managing director Brett Williams has hit out at Prudential UK chief executive Mark Wood's stance on with-profits, saying his comments stem from a vested interest. Wood criticised Hargreaves Lansdown at a Money Marketing round table on with-profits last month, saying its decision not to offer with-profits bonds was a "dereliction of duty". But Williams says this is wrong, pointing out that IFAs have no duty to sell "life offices' old-fashioned products" ...

  • Ship sets a course

    6 May 2004

    The industry is unanimously opposed to the absence of any clear plans to regulate home-reversion schemes. The regulatory no man's land in which home reversion resides needs to be managed by providers and advisers to ensure that customers not only receive appropriate advice but also the product which is most suitable for their needs. Lifetime mortgages will be regulated by the FSA this year but so far there are no proposals to regulate home-reversion plans where policyholders ...

  • SIM 'exceeds forecasts' as it sees in first year

    6 May 2004

    Skandia Investment Management celebrated its first birthday last month, saying it has £1.25bn under management and that more than 2,500 IFA firms have placed business with the firm. SIM, launched by Skandia last year, says it is the secondbiggest seller of multi-manager funds and is in the top 10 for total net sales across the entire UK funds. Last September, SIM set up two income funds which it says have more than £70m assets under management. During the year, ...

  • Skandia surprised by negative views on enhanced bond

    6 May 2004

    I read the commentary from Hargreaves Lansdown on Skandia's new enhanced allocation bond (Money Marketing, April 29) with some surprise. At Skandia, we are constantly striving to provide innovative solutions to meet differing client needs. This pioneering approach has brought many new ideas and products to the market which have generally been well received by IFAs and often copied by our competitors. Of course, not all new products will be liked by everyone or be suitable for ...

  • Skills Council role misrepresented

    6 May 2004

    Your article, Aifa brands Skills Council vague and inadequate, (Money Marketing, April 22), did not convey the Skills Coun-cil's position that the comments and queries of all of those in the industry regarding the exam review process will be add-ressed in detail in our feedback paper, to be issued in May. We have been pleased with the response from the industry to this consultation paper. This has been largely positive and supportive of our work so far and includes some detailed ...

  • SLI picks Asian investment director

    5 May 2004

    Standard Life Investments has announced the appointment of Aaron Pong as an Asian investment director. Pong, who will be based in Hong Kong, will be focusing on China. He joins Standard Life from the Royal Bank of Canada Investments Management (Asia) where he was the senior portfolio manager responsible for non-Japan Asia regional portfolios.

  • Smalls talk

    6 May 2004

    Jeff Prestridge's pants might not be most people's choice of topic for after-dinner speaking and nor were they for Headlinemoney supremo Roger Anderson. Instead, he raised the unsavoury subject before dinner at the Headlinemoney Awards last week, conjuring up an enduring image of the campaigning hack spending the day going commando because he had forgotten to take his clean smalls into the shower with him. The exposure came in a list of "things journalists hate", ...

  • Split-cap firms to see evidence of collusion

    6 May 2004

    Split-cap providers and stockbrokers which have agreed to take part in the FSA's compensation package for investors are to be shown specific evidence of what they did wrong this week. Until now, the 22 firms the regulator has pinpointed as being potentially culpable have only been shown generic evidence of wrong-doing and this will be the first time they are presented with specific evidence about alleged collusion. The FSA will not say how many firms have agreed to ...

  • Standard Life in Sigma deal with Co-op Bank Financial Advisers

    11 May 2004

    Standard Life has signed a distribution deal with Co-operative Bank Financial Advisers that will give the firm's intermediaries access to the 25 funds in its Sigma range.The agreement follows a similar deal with Bradford & Bingley last month.Standard Life spokesman Allan MacLean says: "We believe Sigma's combination of investment flexibility, value for money and quality service will prove to be valuable to intermediaries."

  • Star Japan manager to leave Framlington

    5 May 2004

    Star Japan fund manager David Mitchinson is to leave Framlington to join J P Morgan Fleming in a shock departure. Mitchinson, 27, is manager of the highly successful Framlington Japan fund. It has been the number one fund in the Japan sector, with IFAs saying not only has it topped the performance tables, but has left rivals well in the distance recently.He will manage the fund until the end of July, with Framlington saying it will find a suitable replacement by then. His ...

  • Structured products to be next misselling risk - FOS

    6 May 2004

    The FOS has predicted that structured products could become the next misselling scandal to follow from the current spate of mortgage-endowment related complaints.Speaking at the Building Societies Association's annual conference in Manchester, Ombudsman Caroline Mitchell said she revealed numbers of complaints about these products have been increasing saying she is currently receiving around 70 a week, still a long way from the 1,000 endowment complaints received a week.But ...

  • Sun sets on Newton

    6 May 2004

    Newton Investment Management has announced that Asian equity fund manager Ezra Sun is to leave only a month after star fund manager Clive Beagles departed. The fund house insists the two departures are unrelated but IFAs have expressed concern about the timing. However, they say Newton can justifiably claim that Sun's loss is less of a blow because of the team investment process it employs. Newton's Asian equity team runs four funds totalling £600m. Sun joined ...

  • SVM fund shows recovery in house building and property sectors

    10 May 2004

    SVM's UK Opportunites fund has showed recovery in various sectors in April including house building, property and telecoms and pub management. The £8.4m fund aims to achieve long term capital growth from a UK equity portfolio within the UK mid and small cap sector.

  • Swip opening the door to European corporate bonds

    6 May 2004

    Norwich Union has published the principles and practices of financial management for its with-profits funds which all life offices must publish under the FSA's new realistic reporting regime. The firm has also introduced a 0.75 per cent charge to pay for guarantees on its NU life & pensions with-profits fund to allow it to maintain a 52 per cent equity backing ratio. Designed to increase the transparency of with-profits, PPFMs are complex documents which set out ...

  • Talkback

    6 May 2004

    "No. I think it's a step in the right direction to raise charges. At the end of the day, these products will only work if advisers want to offer them." David Rollo, D K R Financial Services "Yes. I can understand that the Government needs to offer advisers more and that 1 per cent was too close to the bone but consumers need to be reassured that charges will not continue to rise." Samuel Quaye Sowah, Corporate & General Finance "No, I don't agree with the ...

  • Thinc gets 'massive backing' for major acquisition drive

    6 May 2004

    Multi-distribution platform Thinc Group is set to announce "massive institutional backing" which will allow it to expand aggressively both through acquisition and poaching rivals' advisers. The firm, which made the announcement to its staff at its annual conference last week, would not confirm who the backer is but says it plans to announce in the next few weeks who is providing the funding for what it says will be a major acquisition drive. Thinc also announced it ...

  • Tilney American fund cracks IFA market

    10 May 2004

    TILNEY INVESTMENT MANAGEMENTAMERICAN GROWTH FUNDType: Oeic Aim: Growth by investing in US equitiesMinimum investment: Lump sum £500, monthly £100 Investment split: 100% US equities Isa link: Yes Pep transfers: Yes Charges: Initial 4%, annual 1.25% Commission: Initial 3%, renewal 0.5%Tel: 0808 100 8878 Tilney Investment Management's American growth ...

  • Tiner warns lenders they should not be complacent over self-cert

    6 May 2004

    Speaking at the Building Societies Association's annual conference in Manchester today, FSA chief executive John Tiner told delegates that there is no room for complacency over self-certification mortgages.Tiner said that although the FSA's investigation into self-cert concluded that lenders' systems and controls over such lending were broadly adequate to counter the risk of financial crime, he nonetheless expects all regulated firms to have in place systems to detect ...

  • TLI on the hedge of a global battle

    6 May 2004

    Towry Law faces prolonged and expensive legal action that could result in the IFA firm paying compensation of more than £300m to disgruntled offshore investors. It has been alleged by investors that Towry Law International has missold hedge funds and geared with-profits policies around the world. The Hong Kong Securities and Futures Commission and the Commercial Crime Bureau of the Police are investigating the collapse of two hedge funds sold by TLI. An ...

  • Tom Baigrie

    6 May 2004

    The managing director of Lifesearch Tom Baigrie has a particular bugbear - execution-only protection sales. His argument runs that some of the biggest marketing budgets on the planet - namely the supermarkets - are putting across the message that protection is a commodity product. But Baigrie is adamant that it is no such thing. "I want to challenge the concept that a layperson can make the right decisions in protecting their family when they do not know what the initials ...

  • Tories will offer compensation if they win election

    6 May 2004

    The Conservatives have for the first time vowed to offer compensation to Equitable Life investors if the Government is found to be at fault and they are re-elected. In a letter to Parliamentary Ombudsman Ann Abraham, shadow financial secretary Andrew Tyrie said that the party should award compensation if maladministration was found. He is asking the Ombudsman to reopen her inquiry into Equitable, calling on her to investigate whether the Government and the Government ...

  • Towry Law Intl could face £300m misselling claims

    6 May 2004

    Towry Law's offshore subsidiary is facing legal action that could result in compensation of more than £300m. Clients in Cyprus, the Middle East and Asia have alleged that Towry Law International missold hedge funds and geared with-profits bonds. An action group of clients in Cyprus has started legal proceedings against TLI. It argues that the IFA firm did not adequately explain the risks of gearing with-profits, including the possibility that the bank lending ...

  • Treasury must avoid costly regulation - Cable

    10 May 2004

    Liberal Democrat Treasury spokesman Vince Cable welcomed the Treasury's decision to regulate home reversion schemes, and said home reversion providers that have already set their own reputation on the line with self regulation would be pleased.But he says there will always be problems with introducing regulation as it can be costly and intrusive or effectively box ticking. He underlines the need for it to be done intelligently.He says: "If equity release is going to ...

  • TUC urges jobseekers to prioritise pensions

    10 May 2004

    The TUC is launching a campaign to urge job seekers to look at the detail of an employer's pension offer when deciding whether to accept a job.The TUC says that too many job seekers, particularly young people, fail to understand how much a good pension scheme contributes to the pay and conditions of a job, and do not understand how to make comparisons between different types of pensions scheme.It is also calling on employers to include clear information about their pensions ...

  • Wicks closing the pension loophole

    6 May 2004

    A new package of retrospective measures designed to stop employers sidestepping their pension obligations was unveiled last week by pensions minister Malcolm Wicks. The new clauses introduced into the Pensions Bill aim to address the risk of employers trying to dump their liabilities on the Pension Protection Fund, which the Department for Work and Pensions says is already happening. The measures will allow the new pension regulator to require an individual or company ...

  • Widow's closing pre-funded LTC plan

    5 May 2004

    Scottish Widows is closing its pre-funded long term care plan to new business from the end of May. Widows says it has taken the decision due to reduced lack of demand for the product. The cost of cover has also increased due to poor claims experience. Existing customers' policies will remain unaffected. BUPA is now the sole provider in the pre-funded LTC market

  • Widows urges caution on financial strength

    6 May 2004

    Scottish Widows is advising caution when comparing the financial strength of its competitors because of the different reporting measures that life offices are using. Widows says it has arguably the strongest with-profits fund of the major life offices but warns IFAs to distinguish between life offices using ABI and FSA reporting protocols. Widows' WP fund has a risk capital margin coverage ratio of more than six under ABI assumptions but says this will fall to around ...

  • Woolwich and Barclays - Tracker + 0.04%

    5 May 2004

    Type: Discounted rate flexible tracker mortgageDiscounted term: Two yearsDiscount: 0.91%Payable rate: 4.04%Tracker term: Lifetime of loanTracker rate: 0.95% above Bank of England base rateMinimum loan:£5,000Maximum loan: Up to 85% of valuation subject to a maximum of £500,000, up to 80% of valuation subject to a maximum of £1mIncome multiples: Up to 3.25 times principal ...

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