Money Marketing
5 November 2003

  • 'Act now on discount deadline'

    6 Nov 2003

    The LIA is telling mortgage advisers to act promptly or miss out on the FSA's regulation discount offer. The first application deadline is March 31, 2004 and intermediaries applying by then qualify for an early application fee discount, meaning that small intermediaries with between one and 25 advisers applying electronically could cut £1,125 off the £5,550 fee. Applicants need to apply by April 30, 2004 to be certain of making the October 31, 2004 M-Day start date. But ...

  • 'Court case won't hamper inquiry on Equitable Life'

    6 Nov 2003

    The Penrose inquiry team says its probe into the Equitable Life debacle will give "a full and accurate account" of what happened and will be unhampered by current court proceedings. There have been concerns that former directors and auditors of the society will not be criticised in the report because of the court proceedings that Equitable has started against them. The FSA, the Treasury and the Department of Trade & Industry have reportedly all been sent draft copies of the ...

  • 'Education has vital role to end misselling'

    6 Nov 2003

    Most advisers do not believe the Government is doing enough to educate consumers to help prevent misselling, according to the Institute of Financial Services. Its figures show that 70 per cent of advisers think education is more important than tighter regulation for reducing misselling. The majority also believe that the Government, not the FSA, should be directly responsible for educating consumers about financial literacy Ninety-one per cent believe educating children in the ...

  • 'Networks aren't working for IFAs'

    6 Nov 2003

    Former Misys and Country-wide chairman Jim Gaskin has lashed out networks, singling out Misys in his attack, criticising them for not providing a fair deal to members. The comments come as Gaskin launches IFA Mutual, a new national IFA network, claiming that present networks are not providing IFAs with the service and strategy they want. Gaskin sees himself in the position of an IFAs' champion after 20 years in financial services. He says IFAs have been asking for something ...

  • 'Structured factors led Nairn to leave Swip'

    6 Nov 2003

    Scottish Widows' insistence on manufacturing the structured product missold by Lloyds TSB was a major factor behind Sandy Nairn leaving to establish his own business, according to industry sources. It is believed that Nairn, formerly Widows' highly rated chief investment officer, resigned partly in protest at the group's decision to produce the extra income and growth plan despite his objections. In September, the FSA hit Lloyds TSB with a £1.9m fine for misselling ...

  • 1,000th member joins Origo Standards

    7 Nov 2003

    Origo Standards has announced that over 1,000 users have registered on its website since its launch in November 2002. The industry standards body's aim is to deliver common capabilities that enable the financial services industry to develop cost-effective ways of dealing with customers and to promote the efficient use of e-business.The 1,000th user to register is Des Matthewman, a senior program developer from Orbit Benefits, a consultancy specialising in the creation ...

  • 1st Software seeks £5m business to complement service

    6 Nov 2003

    Software provider 1st Software is looking to buy another technology company to boost its client management software, Adviser Office 2. The company says it is talking to a number of firms and is looking to buy a £5m business that will offer a complementary service to its system, which is used by 10,000 advisers. 1st Software is aiming to grow its turnover in the next four years to £20m from £7m. It plans to do this by splitting its distribution channels into financial ...

  • A consumer's view

    6 Nov 2003

    Research by Egg, which reveals that most banks and building societies pay better rates on instant access accounts than notice accounts, highlights once again how the institutions cynically exploit the apathy and ignorance of their customers. Most savers assume that they will earn a higher rate on their savings in return for tying up their money for a period or being prepared to give notice of withdrawal. But Egg reveals that easy access accounts from the top 20 UK providers now pay ...

  • A very good Reid

    6 Nov 2003

    What an extraordinary week it has been. Two new campaigns that I am aware of have been started with a view to reminding the public that IFAs altruistically have only their concerns at heart. The first I read about is the Survival of the IFA. It is well intentioned but has no detail. Oh, the irony. The second calls upon the public to understand that one man's complaint is another man's compensation payout. Again, it is laudable but where detail exists it is wildly misguided, equating ...

  • Abbey promotes multi simplicity

    10 Nov 2003

    ABBEYMULTI-MANAGER FUNDS - EQUITY FUNDType: Oeic fund of fundsAim: Growth by investing globally in equity funds Minimum investment: Lump sum £500, monthly £25 Investment split: UK equity 50%, US equity 16.66%, Europe exc UK equity 16.66%, Japan equity 6.66%, Pacific Basin equity 10% Isa link: Yes Pep transfers: Yes Charges: Initial 4.5%, annual 1.15% Special offer: Initial charge reduced to 3% on ...

  • Abbey responds to base rate increase

    11 Nov 2003

    Abbey will increase its standard variable rate by 0.21 per cent to 5.75 per cent following last week's rise in base rate of 0.25 per cent to 3.75 per cent. Its variable rate mortgages, which follow the base rate, will increase by 0.25 per cent.Customer director Angus Porter says: "This is the first increase in the base rate since February 2000 and homeowners are still enjoying historically low rates. We're balancing the needs of borrowers and savers, and have now narrowed ...

  • Actuaries warn Govt over protection fund costing

    6 Nov 2003

    Costing for the Government's proposed pension protection fund could be too optimistic, warns the Association of Consulting Actuaries. It is recommending that the scheme begins with a modest package of benefits and says it is alarmed that the model for the scheme, the US Pensions Benefit Guaranty Corporation, recently announced a deficit of up to £5.2bn. The ACA says the Government's costing of £340m-£375m a year could prove too low, especially if economic ...

  • Aurora buys Chantrey Vellacott finance arm

    6 Nov 2003

    Aurora Financial Services is buying Chantrey Vellacott Financial Management, part of the Chantrey Vellacott DFK accountancy practice. The London-based accountants is one of the biggest practices in the UK with 50 partners and an annual fee income of £24m. Aurora will be offering advice through all the firm's offices in Croydon, Hove, Leicester, London, Northampton, Reading and Watford. Aurora, formed through a merger between Jackson Batten and Advisory & Planning ...

  • Axa launches salary exchange scheme

    5 Nov 2003

    Axa is launching a salary exchange service to its group pension scheme, which allows an employee to exchange a portion of salary to increase their pension contributions. Employees are allowed to increase contributions by up to 31 per cent for a basic rate taxpayer or 14 per cent for a higher rate taxpayer, incurring no changes to the employee's net spendable income or employer's costs. Axa head of pensions marketing Steve Folkard says: "This new salary service underlines ...

  • AXA opportunities fund surpasses £25m in assets

    10 Nov 2003

    The AXA UK opportunities fund has surpassed £25 million assets under management. Managed by head of the UK equity team Stuart Fowler, the Fund is gaining an ever-increasing level of support from intermediaries around the UK.With the backing of a highly experienced team of analysts, AXA says Fowler is focused on a primary objective of delivering top-decile performance over rolling three-year periods by investing in a focused portfolio of 'best ideas' stocks. With the ...

  • Base rate increased by 0.25 per cent

    6 Nov 2003

    The base rate has been increased by 0.25 per cent to 3.75 per cent by the MPC today. An increase was widely expected although some predicted a hike of 0.5 per cent.Mortgage Advice Bureau chief executive Peter Brodnicki says: "This rise in interest rates will not have a huge effect on the current housing market and borrowing."

  • Basic instinct

    6 Nov 2003

    In many ways, the new Conservative pension policy is a step in the right direction towards an adequate basic state pension. It would improve savings incentives for low earners and would eventually reduce the complexity of the pension environment. However, as it stands, it would have a severe impact on some of the poorest pensioners and it is certainly regressive. We can consider it in terms of the four criteria of adequacy, incentives, affordability and complexity. Adequacy The ...

  • BBC has failed to understand the nature of self-cert

    6 Nov 2003

    BBC's programme on self-cert mortgages highlighted the issue with fraudulent mortgage applications but was expectedly one-sided and headline-seeking. To use self-cert to explain the buoyant housing market was unbelievably naive. There are several other factors that more readily qualify: •Supply/demand imbalance - a simple economic principle. I am surprised the BBC's expert missed this one. •Property is currently the hot investment medium. •Equity market ...

  • Bloomer to chair FSA industry liaison panel

    6 Nov 2003

    Prudential group chief executive Jonathan Bloomer is the new chairman of the Financial Services Practitioners' Panel. The panel is an FSA committee which represents the industry's views to the FSA board. Bloomer succeeds Axa Investment Managers chairman Donald Brydon, who is standing down after two years, becoming deputy chairman for a year. Bloomer takes over at a crucial time for the FSA's regulatory development as it establishes a new regime for mortgage and general ...

  • Boulger fears over Mortgage 2000's self-cert sourcing

    6 Nov 2003

    Mortgage 2000's sourcing system has been slammed by Charcol senior technical manager Ray Boulger, citing concerns over sourcing of self-cert mortgages. Boulger says the Mortgage 2000 sourcing system does not let a broker enter an income when apply- ing for a self-certification mortgage. If self-cert is selected as the income-type option, the sourcing system greys out the income box and will not allow a figure to be entered. In light of the self-cert controversy after last ...

  • Britannic Retirement Solutions closes to new business

    10 Nov 2003

    Britannic Retirement Solutions is closing to new business with immediate effect in a move that could see the loss of around 200 jobs.BRS had rapidly created a presence in the enhanced annuity market, increasing sales to £362m in 2002 from £166m in 2001.Britannic Group says despite this improved performance return on capital is not sufficient to justify continuing to write business.Britannic chief executive Paul Thompson says: "This is a decision taken ...

  • Britons sceptical of attractive interest rates on savings

    7 Nov 2003

    British savers are sceptics when it comes to head-line grabbing rates, according to research from National Savings and Investments. Fifty-five per cent of Britons refuse to believe in the current attractive rates on offer and think that the same enticing rates won't be available next year. NS&I head of customer offers Peter Cornish says: "Value for money and consistency are the watchwords for British savers who are cynical about headline-grabbing rates."This ...

  • Business units set up by FSA

    6 Nov 2003

    The FSA this week revealed a management restructure which largely revolves around the creation of three new business units and the development of a system of cross-division checks. It says it will set up wholesale and institutional markets, regulatory services and retail markets units, with the latter providing services to consumers as well as services for existing firms and firms seeking authorisation. The new structure is intended to be in place by April next year and should ...

  • Carrot cake

    6 Nov 2003

    Is the current voluntarist approach ever going to provide retirement savings for the millions of people who currently save nothing or is an increase in the compulsion already in the UK system the only realistic solution for this group? Bee: The voluntarist system we currently have has to be made to work. It is the most successful voluntary system in Europe by far and has made the UK the most pensioned country in Europe. Our problem is that the coverage of pensions is starkly polarised, ...

  • Clerical backs our campaign

    6 Nov 2003

    As Money Marketing's campaign for a Fair Deal for IFAs gathers pace, product providers are recognising the need to offer advisers fairer terms, conditions and service. Clerical Medical has come on board, pledging its commitment to offer a fair deal. In a letter published in MM this week, Clerical Medical sales director Graeme Riddoch has lent his full support to the importance of giving good advice and says Clerical is fully committed to the independent market and does all its ...

  • Cofunds cuts losses and says it will double assets

    6 Nov 2003

    The financial problems facing fund supermarket Cofunds appear to have eased after the platform posted losses of £23.8m for the year to December 2002, significantly down from £32.7m in 2001. Cofunds, which has grown its assets under management to more than £1.5bn, expects similar losses next year and predicts it will need further funding in the future. But the company says it expects to break even in 2006 based on the assumption that it will accumulate a further ...

  • Compliance Solutions launch service for GISC members

    11 Nov 2003

    Compliance Solutions has launched an independent compliance support service for GISC's 7,000 members. Compliance Solutions is already one of the leading providers of advice to Independent Financial Advisers (IFAs) and other regulated firms.Managing Director Gary Dixon said: "Large numbers of general insurance intermediaries are rejecting the networks that are springing up and seeking to ensnare them. Traditional owner-controlled high street brokers are right to be sceptical ...

  • Correspondent's week

    6 Nov 2003

    I have spent the weekend away and only mention it because it is the only chance I get these days to indulge my passion for womens' magazines. I always find it amazing what passes for personal finance advice, though. It is hardly surprising, considering most of what is written is that young women are accumulating debt like never before. My week gets off to a great start as I click open my inbox to find yet another PR has decided to play to what they mistakenly think is my newly ...

  • Credit Suisse backs Russia

    6 Nov 2003

    A leading emerging markets analyst believes Russia is a good investment prospect despite recent worries over its political stability. Credit Suisse Asset Management head of emerging markets Neil Gregson says despite a 15 per cent dip in shares after the arrest of the chief executive of Russia's biggest oil company Yukos, he expects to see recovery following the Duma elections in December. Yukos chief executive Mikhail Khordorkovsky was arrested after failing to appear in court ...

  • Dead cert

    6 Nov 2003

    Self-certification mortgages are under the spotlight after an undercover investigation by the BBC showed mortgage brokers encouraging consumers to inflate their incomes when applying for a loan. The Money Programme, broadcast last week, showed reporters posing as first-time buyers speaking to advisers recommended by 10 estate agents. Nine out of these ten advised the buyers to take out self-cert mortgages and the nine advised the buyers to lie about their true income. One of the ...

  • Digest

    6 Nov 2003

    A somewhat embarrassed Birmingham Midshires' employee skulked up to collect what many believe will go down as the most ironic award in history at the Pink Home Loans awards do last week. BM is now proud owner of the Pink award for best self-cert mortgage. Given that the lender is involved in a TV-led controversy over income exaggeration on self-cert mortgages, this award is, the Diary feels, divinely inspired in its timing. It is also good to hear that the mortgage industry ...

  • Dirty laundry

    6 Nov 2003

    "Name and address supplied" drew attention to the large organisation which requires money laundering when money is withdrawn (Money Marketing, October 9). I recently had the somewhat surprising experience of instructing a unit trust manager to repurchase some units. The proceeds did not arrive. They were chased for late settlement. We were told that there was no money laundering in place. This unsettled us. The units had originally been purchased by the client prior to the introduction ...

  • Dogged determination

    6 Nov 2003

    Does anyone else out there feel like one of those cartoon characters who suddenly find themselves beyond the edge of a cliff, paddling furiously in thin air to get back on to solid ground before plunging miles into a ravine? Perhaps the analogy of IFAs and Wile E Coyote is not the most comfortable but you get my drift. However, while cartoons are funny, being an IFA at the moment is not. Maybe I am being paranoid but I get the feeling that anyone in a suit who earns a regular ...

  • Dunbar Bank takes mature view

    10 Nov 2003

    Dunbar Bank has unveiled the Zurich guaranteed account 5, a capital protected bond that could mature after three years or at the end of its term of five years and six months.The bond is linked to the FTSE 100 index and the original capital will be returned to investors whatever happens to the index during the term. It will mature in year three, providing 30 per cent growth plus the original capital, if the index has risen by at least 30 per cent. Otherwise, ...

  • DWS introduces performance fees

    11 Nov 2003

    DWS Investments will introduce performance fees for its UK and European opportunities funds from 2 January 2004 subject to regulatory approval.DWS initially plans to offer a separate "P" share class on the funds in addition to the existing share class, which has a standard management fee of 1.5% per annum. The effective fee charged in the "P" share class will depend upon performance of the funds over a 12-month rolling period.Managing director Michael Warren says: "I firmly ...

  • Exchange opens non-regulated business portal

    6 Nov 2003

    The Exchange is setting up a portal for brokers doing nonregulated business and believes it could attract more than 40,000 new users to its services. The Exchange is hoping to boost its numbers by aiming at mortgage and general insurance networks with its new service Exweb Broker. It believes a large number will opt for regulation and that they represent a big chunk of the market not currently using its services. Users will be able to sign up for a filtered version of the current ...

  • Exclusive Connections launches new network

    7 Nov 2003

    Packager Exclusive Connections is launching new network the Mortgage Union for intermediaries who want to become appointed representatives.

  • Fidelity paints multi-manager pictures

    7 Nov 2003

    FIDELITYMULTI-MANAGER INCOME PORTFOLIOType: Oeic fund of funds Aim: Income and growth by investing in UK equity funds and bond fundsMinimum investment: Lump sum £1,000, monthly £50 Investment split: Equity funds 55%, bond funds 45% Isa link: Yes Pep transfers: Yes Charges: Initial 3.25%, annual 1% Special offer: Initial charge reduced to 3% on lump sum investments Offer period: Until November ...

  • Friends takes principal role with loan network

    6 Nov 2003

    Friends Provident is to take principal status when mortgage regulation begins next year and is looking to recruit advisers for its network. The provider says it hopes to recruit a significant number of advisers. It has around 300 tied agents and hopes that many of its direct salesforce, which is under review and may be closed, will also join the network. It intends to act as a principal from May 1 as it says this will help advisers who would otherwise have to renew their MCCB membership. The ...

  • FSA probe aims to uncover data on closed funds

    6 Nov 2003

    The FSA is probing closed life office funds in a bid to ensure that policyholders get a fair deal and advisers get enough information to make decisions. Spokesman Rob McIvor says the regulator has been carrying out a "data gathering" exercise into both open and closed funds to identify issues it may need to look at further. It is also making customer factsheets available in the next few weeks. The FSA will not reveal information relating to individual companies but says on a 25-year ...

  • FSA reviews enforcement policy

    6 Nov 2003

    The FSA is conducting a review of the enforcement process to see if the process can be shortened without losing the 'fairness' built into the system.Speaking today at the FSA's enforcement and law conference in London FSA director of enforcement Andrew Procter said as it stands, the enforcement process it takes too long to complete in some cases.He said the end to end review will include reviewing the decision making process.He said: "There are some very ...

  • Fund firms bear up under pressure

    6 Nov 2003

    Pressure on margins and falling assets under management are often cited as the main challenges facing fund groups in the current environment. But research by management consultancy Troika suggests their fears extend far beyond the financial squeeze of the bear market. The Morley-sponsored research, which sought the anonymous views of seven major fund managers, has revealed that groups are concerned about failing to secure slots on the panels of third-party distributors and life companies, ...

  • Fundsdirect signs partnership deals

    6 Nov 2003

    Fundsdirect has struck partnership deals with Etrade and Personal Pension Management in a move the supermarket says will bolster its bid to create the UK's most comprehensive wrap platform. Etrade will deliver equity dealing, settlement and admin services for Fundsdirect, enabling the platform to compete in the private client stockbroking market. Third-party pension company PPML, part of the Winterthur Group, will administer a full Sipp, inclusive of commercial property, in ...

  • Garrett-Cox quits Aberdeen to join Morley as chief investment officer

    6 Nov 2003

    Katherine Garrett-Cox, Aberdeen Asset Management's high-profile chief investment officer, is leaving to become CIO at Morley Fund Management. Garrett-Cox, who will join Morley's board, will take on the role in early 2004 before the departure of incumbent Gerry Holtham, who is retiring. She has been on maternity leave at Aberdeen and will not return to the company which has appointed Anne Richards, previously joint managing director at Edinburgh Fund Managers, as her replacement. Garrett-

  • Gartmore buys Govett funds

    6 Nov 2003

    Gartmore has acquired the majority of Govett's management contracts from Allied Irish Bank in the first of a series of deals it hopes to strike with firms looking to withdraw from fund management. It is paying AIB an initial £4m in cash for £1bn of assets in onshore and offshore funds, investment trusts and institutional and private client mandates. The fee is expected to rise by £10m over the next three years depending on the level of funds retained and fees. The ...

  • Gartmore snaps up Govett for £14m

    5 Nov 2003

    Gartmore has acquired the majority of Govett's management contracts from Allied Irish Banks in the first of a series of deals Gartmore hopes to strike with companies looking to withdraw from fund management. Gartmore is paying AIB an initial £4m in cash to acquire £1bn of assets in onshore and offshore funds, investment trusts and institutional and private client mandates. The fee is expected to rise by a further £10m over the next three years depending on ...

  • General insurance network launches range of services

    10 Nov 2003

    Ceta, the general insurance network, has announced plans to provide brokers with an extensive range of support services. This will come into effect in January 2005, on the regulation of the general insurance market. This service is open to brokers across the industry and aims to supply support and freedom to choose appropriate product providers. It will also help brokers becoming appointed representatives, introducers or those leaving the industry all together.The ...

  • Genesis Home Loans - Gemstones - Onyx

    6 Nov 2003

    Type: Fixed-rate self-cert adverse credit mortgageFixed term: Until April 1, 2005Fixed rate 4.5%Minimum loan: £25,001Maximum loan: Up to 80% of valuation subject to a maximum of £250,000, up to 75% of valuation subject to a maximum of £400,000Income multiples: 3.75 times principal income plus second or 3.25 times jointRedemption fee: 6% of amount repaid in year one, 5% in year two, 4% in year threeConditions: ...

  • Global Asset Management - GAM UK Dynamic Fund

    11 Nov 2003

    Type: UcitsAim: Growth by investing in UK stocksMinimum investment: Lump sum £3,000Investment split:100% UK equitiesCharges: Initial up to 5%, annual 1.5%Commission: Initial 3%Tel: 020 7393 8724

  • Government reiterates support for sellers' packs

    10 Nov 2003

    The Government has said that it will press ahead with the introduction of Home Information Packs. It says: "Buying and selling a home will be made easier with the packs making the process more certain, transparent, and consumer friendly. They will reduce the stress and wasted costs suffered by hundreds of thousands of homebuyers and sellers each year. "

  • Griffin quits M&G as new star takes control of flagship fund

    6 Nov 2003

    M&G's flagship corporate bond fund manager Anna Griffin has left the group after its decision to replace her with incoming star manager Richard Woolnough. Griffin had managed the £1.4bn fund since 2000, returning 19 per cent against a UK corporate bond sector average of 18.5 per cent. She was told last week that Woolnough, who joins M&G from Old Mutual in January, would be running the corporate bond fund in addition to the strategic bond fund that the firm is launching ...

  • Group 300 affinity deal with trade union could boost sales by £40m

    6 Nov 2003

    Group 300 has signed a lucrative deal with one of the UK's biggest trade unions which it says could boost its turnover by more than £40m next year. It will be offering financial advice to the union's one million members through its advice software Adviser 300. Until the deal is finalised, Group 300 does not want to name the union involved. Chief executive Chris Batten says if just 10 per cent of the union's members do business through the platform, the IFA stands ...

  • High property prices are forcing first time buyers abroad - Conti

    5 Nov 2003

    According to a leading overseas mortgage specialist over the last two years there has been a sharp rise in the number of first time buyers buying their first home abroad. Conti Financial Services Simon Conn says: "The attraction of owning a holiday home in the sun or a buy-to-let investment that can one day be sold is attractive an becoming particularly popular with people in their mid-twenties."

  • Hometrack says talk of a crash is misguided

    6 Nov 2003

    House prices have increased for the second month, the latest Hometrack national survey has found. Prices are up by 0.4 per cent nationally, with the highest rises in the Midlands and the North. Hometrack believes these figures confirm the market is recovering after several months of stagnation. Housing economist John Wriglesworth believes as long as interest rate rises are kept below 1 per cent, the market should remain robust. He says: "There is no doubt the year is finishing ...

  • House prices up 10.6 per cent - Land Registry

    10 Nov 2003

    The price of the average house in England and Wales rose 10.6 per cent to £161,665 in the quarter to September from £146,150 in June, according to figures from the Land Registry.All regions of England saw year on year house price increases, with the greatest annual house inflation in the North at 24.3 per cent while the lowest increases were in Greater London averaging 5.6 per cent for the year to September. The volume of properties sold fell 11.4 per cent to ...

  • How not to give advice

    6 Nov 2003

    Threadneedle has published a guide to defined-contribution schemes that aims to explain to trustees and pension managers how much they can tell staff without giving advice. The short brochure explains that pension managers can make a general statement to employees that a scheme is good, as long as they do not say it is good for the individual to join it. Threadneedle says delivering a string of carefully worded positive statements about the benefits of a scheme without actually ...

  • Howard's way

    6 Nov 2003

    IFAs with long memories may not be too pleased at Michael Howard's appointment as the man to take over IDS's crown. In the mid-1980s when Department of Trade and Industry under-secretary, Howard held some resp-onsibility for IFA issues. When asked by the then MM editor who he would go to for financial advice, Howard said he would see his bank manager. Let us hope he is getting better advice now. p The spirit of Ebeneezer Scrooge has come early to Professional Adviser. Despite ...

  • HSBC provides a step up

    7 Nov 2003

    HSBC Asset Management has established the ladder plan, a capital-protected bond that is linked to the FTSE 100 index through shares in a Dublin-based closed-ended fund.With the ladder plan, investors will get all their original capital back plus six per cent growth regardless of how the index performs during the five-year term. The final returns are calculated using a cliquet structure, which monitors the gains and losses in the index every month during ...

  • Ian Muirhead: Where there's a will

    6 Nov 2003

    In the fifth article in the series on making professional connections, Ian Muirhead, of Solicitors for Independent Financial Advice, explains the main types of financial services work which arise out of solicitors' legal business. Trusts, tax and probate Of all the departments in the law firm, it is the trust/tax/probate department which has the most direct and necessary connection with financial services. Consequently, it is more often than not the trust/tax/probate ...

  • IFA getting £16k a year from life office bungles

    6 Nov 2003

    A South coast IFA is getting an average of £16,000 a year from compensation for life office admin bungles. Eveleigh & Huckle, which has 10 RIs, says it decided to formalise its approach to claiming compensation after a shift to a fee-paying regime revealed how much time it spent chasing provider errors. The move by the Bournemouth-based firm comes as Money Marketing has issued a challenge to product providers to offer better levels of service to IFAs as part of our Fair Deal ...

  • IFAs complain at lack of support

    6 Nov 2003

    Intermediaries are unhappy with the support they get from lenders, packagers and network partners, according to a survey by networkone. The survey, which covered 900 respondents, shows that 45 per cent of intermediaries say the support they have had from lenders has deteriorated over the past year. Eighteen per cent say it has imp- roved and 36 per cent say it has stayed the same. Five per cent of intermediaries say they get regular IT support from their lender partners. Forty-seven ...

  • IFAs demand better service from networks and providers

    6 Nov 2003

    IFAs are crying out for greater service from their networks and providers and a level playing field from the regulator. Berkeley Berry Birch chief executive Stephen Ingledew believes whether they are a one man band or a national IFA, many advisers are facing the same problems. He says IFAs need a level playing field from the regulator and the FSA needs to understand the commercial pressures on advisers. He thinks the FSA is beginning to show that it understands these pressures ...

  • Independence assured for Bestinvest

    6 Nov 2003

    IFA Bestinvest has seen record profits for the year ending May 31, up to £1.8m from a loss of £0.3m last year. The London IFA, which has total assets of £3.2m, says its strong financial position means it does not need to raise capital from life companies as others have and is not at risk of jeopardising its independence. Chairman John Spiers says 2002/03 was one of the most challenging to run a financial services business. Since its year-end, Bestinvest has ...

  • Investec signs up to EMX

    10 Nov 2003

    Investec Asset Management has become the latest fund manager to sign up with fund trading platform EMX Message System. Investec says its decision is based on the fact that EMX has now fully established its business in the UK, having routed more than 90,000 messages in September. EMX moves more than one in five of all UK mutual fund transactions.EMX chief executive Max Wright says: "EMX ix seeing a fantastic growth in business levels and there is certainly a momentum sweepng the ...

  • Investment analysis

    6 Nov 2003

    Stockmarkets around the world resumed their upward path last week although gains were somewhat short of what may have been expected, given that both economic and corporate data again surprised on the upside while there was also a substantial increase in M&A activity. Over the week, the FTSE world index gained 1.8 per cent while a rise of just under 6 per cent in October was its best monthly return since April. In the US, equity markets were given a boost early in the week following ...

  • Investment view

    6 Nov 2003

    Will we get fireworks from the monetary policy committee this week? Aside from its Guy Fawkes Day meeting, interest rates are very much in the news just now. A report from HSBC has suggested that the level of personal indebtedness is now of such a scale that even a modest rise in interest rates will have an impact upon consumer behaviour. And, unlike the American central bank, it is the level of inflation that the Bank of England has to concern itself with, not the overall health of the ...

  • Julian Gibbs

    6 Nov 2003

    I have just read the best summing up of the current fixed-interest scenario. This is Baring Asset Management's document, Fixed Income in a Rising Yield Environment, which I recommend as essential reading for all IFAs. While it is likely that interest rates will rise a little in the short term, by long-term standards bonds remain reasonable value and substantial rises in yields are much more unlikely than in the past. Barings believes that in the short term it is more likely ...

  • Kelly says the FOS will be covered in FSMA review

    6 Nov 2003

    By Bruce Love The Financial Ombudsman Service will be included in the two-year review of the Financial Services and Markets Act 2000, says Treasury Financial Secretary Ruth Kelly. For the first time, the minister has outlined the make-up of the Office of Fair Trading's review, which is expected to take a year to complete. Kelly says the FSA and the FOS must look at when regulatory action by the FSA should replace decisions on individual cases by the ombudsman as well as ...

  • Kenmir is tipped as natural choice for retail MD

    6 Nov 2003

    FSA director of investment firms David Kenmir has been widely tipped as the only realistic in-house candidate for current chief executive John Tiner's previous job as managing director responsible for retail markets. Senior industry sources have tipped Kenmir as the obvious choice for Tiner's old position of consumer, investment and insurance directorate managing director. Kenmir has forged a name for himself as a staunch defender of the IFA channel over the professional ...

  • Keydata - Extra Income Plan Issue 7

    10 Nov 2003

    Type: Guaranteed equity bondAim: Income or growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: Lump sum £5,000-no maximum, Isa £7,000Term: Five yearsReturn: Option one - 7.5% income a year, 1.8% income a quarter, 40% growth at end of term. Option two LJ.75% income a year, 1.38% income a quarter, 30% growth at end of termGuarantee: Options one and two - original capital returned in ...

  • Labour MP slams MCCB over self-cert and calls for FSA to speak out

    6 Nov 2003

    Labour MP and Treasury select committee member James Plaskitt has hit out at the MCCB, saying it is not a robust enough regulator, pointing to the recent controversy over self-certification mortgages. He is voicing his concern that until the FSA takes ontrol, there is a hole in mortgage regulation on self-certification mortgages and he is calling on the FSA to use its knowledge to speak out until it can intervene directly. Plaskitt believes the self-cert controversy after a BBC ...

  • Letwin favourite for shadow Chancellor

    10 Nov 2003

    Oliver Letwin is expected to take the role of shadow chancellor in Conservative leader Michael Howard's shadow cabinet. David Davis looks likely to take over as home affairs minister in Howard's streamlined frontbench team of twelve that will see some members covering two of Tony Blair's ministers.

  • LMS Home Loans joins Platform

    7 Nov 2003

    LMS Homeloans has joined Platform, the intermediary mortgage lender of the Britannia Building Society, as one of its branded lenders.LMS, based in Essex will join five other branded lenders working with Platform. It hopes to provide an efficient range of products including self-certification, buy to let and non-conforming to mortgage intermediaries. Platform will be providing to intermediaries LMS Homeloans with one of their mobile underwriters.LMS sales and marketing associate ...

  • Maersk reverses scheme decision

    11 Nov 2003

    Shipping group Maersk has reversed its decision against paying all promised retirement benefits to pension scheme members. The group says it will meet its promises in full after previously insisting it would only make up shortfalls - thought to be up to £5m - to their legal limit when winding up the scheme, a move which prompted Government reforms earlier this year.The decision has been welcomed by pension experts, who believe it sets a precedent making it far harder for ...

  • Majority of public want financial education on national curriculum

    11 Nov 2003

    An overwhelming majority of Britons want to see personal financial management taught to children in schools, according to a new report from Insight Investment.The survey shows 87 per cent of Britons, irrespective of age, want to see money management introduced to school curricula with immediate effect. Insight Investment managing director, business partnerships David Norman says: "Thousands of Britons face serious financial pressures today and have real concerns for their ...

  • Man Investments - Man Multi-Strategy Series 6

    7 Nov 2003

    Type: Multi-manager hedge fund portfolioAim: Income or growth by investing in hedge fundsMinimum investment: Lump sum $ 50,000, euros 50,000Place of registration: BermudaInvestment split: 100% in hedge fundsGuarantee: 120% of capital returned regardless of performance of underlying investments at maturityCharges: Annual 3%, performance fee 20%Commission: Subject to negotiationTel: 020 7285 2000

  • Martin Currie Alternative Investment Funds - Global Resources Fund

    5 Nov 2003

    Type: Hedge fundAim: Growth by investing long and short in global energy and basic materialsMinimum investment: Lump sum US$100,000Place of registration: DublinInvestment split: 100% global energy and basic materials Charges: Annual 1.5%Commission: Subject to negotiationTel: 0808 1002125

  • Matrix Money Management - Foresight technology VCT

    5 Nov 2003

    MATRIX MONEY MANAGEMENTFORESIGHT TECHNOLOGY VCTType: Venture capital trust Aim: Growth by investing in unquoted technology-based companies Minimum investment: Lump sum £2,500 Opening/closing date: September 22, 2003/ March 31 for 2003/2004 tax year, April 30, 2004 for 2004/2005 tax year Charges: Initial 5.5%, annual 2% Commission: Initial 2.25%, renewal 0.375% Tel 020 7292 0825The Foresight technology VCT ...

  • McDonald Glencross adds to EIS fund stable

    11 Nov 2003

    McDonald Glencross, a company that specialises in enterprise investment scheme funds, has created a fifth fund that invests in a portfolio of between 10 and 12 unquoted companies.Like the previous funds, which are now fully invested, the McDonald Glencross approved EIS fund 5 aims to provide capital growth and tax benefits to experienced investors. It will invest in a range of unquoted companies at different stages of development, including early stage companies ...

  • Millfield to offer Sipp to link with wrap deal

    6 Nov 2003

    Millfield is planning a Sipp offering in the first quarter of next week which will stand alongside its lifetime portfolio services wrap operation. The company is understood to be looking at white-labelling a Sipp from an existing administrator to satisfy clients it says feel let down by managed funds and want the investment flexibility of Sipps. Millfield's target market is individuals with upwards of £100,000 who want to consolidate their pension arrangements in the run-up ...

  • Money Marketing is IFAs' top read

    6 Nov 2003

    Money Marketing is the newspaper that IFAs cannot do without, according to independent market research. Forty-nine per cent of IFAs questioned say it is the publication they would miss most. Its nearest rival, Financial Adviser, only achieved a score of 34 per cent while 4 per cent say they would miss Investment Week most and 1 per cent each favour Investment Adviser and Professional Adviser. The research, based on 461 phone interviews with a random selection of network IFAs ...

  • Mortgage brokers prefer direct authorisation - survey

    7 Nov 2003

    Eighty eight per cent of mortgage brokers prefer direct authorisation to taking appointed representative status, according to research carried out by Mortgage Promotions in association with Mortgages plc.The majority (70 per cent) of brokers will make their final decision about their future status during the period between December and March next year. Some of the key services identified by brokers as being important included a direct access lending panel (93 per cent), provision ...

  • Mortgage Next - Fast Track Openplan Stepped Discount

    11 Nov 2003

    Type: Stepped discounted rate remortgage productDiscounted term: Two yearsDiscount: 2.1% in year one, 1.7% in year twoPayable rate: 3.44% in year one, 3.84% in year twoMinimum loan: £25,001Maximum loan: Up to 90% of valuation subject to a maximum of £500,000, up to 80% of valuation subject to no maximumIncome multiples: 3.25 times principal income plus second or 3.25 times jointConditions: Free valuation, choice ...

  • Most IFAs have no business plan - Clerical Medical

    10 Nov 2003

    Clerical Medical's latest research shows that more than 80 per cent of the IFAs it surveyed do not have a business plan and consequently their businesses are dictated by events rather than strategy.

  • MP wants more FTBs to go for long-term fixes

    6 Nov 2003

    A Labour MP is calling for the Government to push more first-time buyers and lower earners into adopting long-term fixed-rate mortgages. MP Barry Gardiner wants to see the UK move closer towards the German model where homeowners buy at a later age, with a big number of buyers opting for long-term fixes. He says he welcomes Chancellor Gordon Brown's interest in long-term fixes - popular in countries such as Austria and Sweden - and believes that a wider range of these products ...

  • MPs blast insurance sector for complacency

    11 Nov 2003

    The Treasury Select Committee has taken the insurance industry to task over its complacent attitude to consumer complaints on endowments and structured products.

  • Nationwide - 2 Year Fixed Rate

    6 Nov 2003

    Type: Fixed-rate mortgageFixed term: Two yearsFixed rate: Up to 95% of valuation 5.29%, up to 90% of valuation 4.89 %, up to 75% of valuation 4.79%Minimum loan: £1Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £700,000, up to 75% ...

  • Network edge

    6 Nov 2003

    Trinity House Group is not structured like a traditional financial services network. We have established the business to provide a brand community for the small to medium-sized intermediary business that values independence through direct regulation or those firms that aspire to be directly authorised. We offer a stepping-stone to this end goal through Bankhall's network services subsidiary, for new joiners from a tied background, who are not able to progress towards direct regulation ...

  • Network edge

    6 Nov 2003

    I read the recent article in Money Marketing regarding Trinity House Group with interest. While I applaud the efforts to provide a new style of home for IFAs and do not doubt the intentions of Mr Collinson, the idea of this equal ownership co-operative is ludicrous. I could see a situation where a group of equal-sized IFA businesses would want to pool resources and own an equal share in a new entity but the idea that this can continue to grow and everyone has an equal slice is a guaranteed ...

  • New mortgage network 'The Mortgage Union' launched

    10 Nov 2003

    Packaging network Exclusive Connections is launching a national mortgage network, The Mortgage Union, which will take principal status under mortgage regulation next year.Managing director Patrick Day says: " For the many intermediaries who are still undecided about their future October 2004 represents a potential threat, but the appropriate strategic response will turn that threat into an opportunity. Our response is based on the fact that regulation will affect both brokers ...

  • New range of fixed rate bonds from Portman Channel Islands

    7 Nov 2003

    Portman Channel Islands is launching a new range of offshore bonds with fixed rate terms of one, two and three years. The one, two and three year fixed rate bonds pays 4.65 per cent, 5 per cent and 5.35 per cent respectivelyNo withdrawals are permitted and minimum investment for all products is £10,000 with a maximum of £500,000.Press Officer Lynsey Hallam said, "Fixed rate products are very popular for savers who want the security of a guaranteed return. ...

  • No slump in sight, says Nationwide

    6 Nov 2003

    House prices rose by 2 per cent in October, up from 1 per cent in September, according to Nationwide's monthly house price index. The index reveals that the average price of a house was £131,947 in October, compared with £130,473 in September. The annual rate of house price inflation stands at 16.1 per cent, up from 15.5 per cent in September. Nationwide says this relatively rapid rise in prices indicates that some strength has returned to the housing market. It ...

  • NU Healthcare chooses new managing director

    6 Nov 2003

    Norwich Union Healthcare says Cathryn Riley is to take over as managing director. Riley comes from Norwich Union Insurance, the firm's general insurance business, where she was retail business director responsible for Norwich Union Direct and broker Hill House Hammond. She moved to NU in 1996 from Bupa and so has a strong grasp of the health insurance market. Riley will be based in Eastleigh, Hampshire and takes over from David Rogers, who is moving to the Royal Bank of ...

  • Odey Asset Management - Odey Japan Fund

    10 Nov 2003

    Type: OeicAim: Growth by investing in Japanese equitiesMinimum investment: Lump sum £5,000Investment split: 100% Japanese equitiesIsa link: YesPap transfers: Yes:Charges: Initial 4%, annual 1.5%Commission: Initial 3%Tel: 020 7208 1400

  • OFT halts Unum Provident deal with Swiss Life

    6 Nov 2003

    Unum Provident's move to take over Swiss Life UK's employee benefits business has been stalled after the Office of Fair Trading said it was referring the deal to the Competition Commission. The OFT believes such the merger could substantially reduce competition in the group income protection, group life and group critical-illness insurance provision markets. It says those with big contracts would be particularly badly affected, with the number of competitors in the market ...

  • On protection

    6 Nov 2003

    Following the spate of renegotiations between insurers and reinsurers over the last 12 months, how many conversations between the insurers do you think have gone something like this? Executive A: "It comes down to a straightforward decision. We have to put our prices up for term insurance or we have to cut commission." Executive B: "There is no easy answer here. If we cut commission, we will become an industry pariah. If we increase premiums, we will lose market share. Are you ...

  • Optoma launches mortgage network

    11 Nov 2003

    Optoma is launching mortgage network Optoma InterPartners. The principal is aiming to attract 500 brokers into the new network.

  • Origo chief says wraps won't work as providers refuse to collaborate

    6 Nov 2003

    One of the industry's leading technology experts has branded wrap accounts an "unworkable" idea that will not get off the ground until providers decide to collaborate to share information. Origo managing director Paul Pettitt says that while the technology already exists to build a fully functioning wrap offering, providers are still refusing to share client data. Providers give information to portals and software groups such as First Software and Key Data but they do not share ...

  • Out of context

    6 Nov 2003

    •"I need at least 10 more men." - Mainland PR Rosanna Crawley on organising a conference. •"Here it is, freshly circumcised for you." - NU Healthcare PR Lorna Wiltshire hands MM hack a clipped cigar. •"It's great - you can run around naked letting off fireworks and screaming." - Eveleigh & Huckle pensions director Julie Kelway on how the Dorset countryside is better than city life. •"Oh good, she's coming over here - it's always good to get ...

  • Out of the frying pan...

    6 Nov 2003

    The truth is out about what Scottish Life pension guru Steve Bee does when he's not travelling round the UK talking about pensions - he is wearing a pinnie and serving sausage, egg, bacon, beans, tea and toast for £3.75.

  • Peter Holden

    6 Nov 2003

    Peter Holden, one of the two founders of Holden Meehan, quit the business with dreams of living a Good Life-style existence of self-sufficiency, environmental responsibility and vegetable growing in Devon. That was four years ago. But since this summer, he has been back in business with his own IFA and he still has not quit London. Many world-weary IFAs might ask why. There are two reasons he says - the first is that his wife was less willing to play the new-age role than Felicity ...

  • Product automates phased retirement

    6 Nov 2003

    A new at-retirement product that spreads the risk of buying an annuity over several years and preserves funds for inheritance is being developed by technology solutions provider Retirement-Navigator.com. The process uses technology to automate phased retirement over several years using annuity, tax-free cash and income drawdown to achieve a smooth income while preserving maximum death benefits. Retirement-Navigator.com is in talks with asset managers to launch the product, saying ...

  • Product matters

    6 Nov 2003

    Increasing difficulty in finding suitable staff means an early resolution to long-term claims under a group income protection policy is important but this can be problematical. A claim includes the insurer's intervention and rehabilitation services, maximising the chances of an early return to work. But what happens if it is concluded this is unlikely ever to happen? More claims are occurring for younger people. Providing the traditional early retirement pension alternative ...

  • Providers make call for clarity on child trusts

    6 Nov 2003

    Savings plan providers are calling for a final decision on the 1 per cent price cap from the Treasury before they will consider adopting the child trust fund. ABI director general Mary Francis says she welcomes the proposals but backs calls from providers for clarity on the price cap, saying that a realistic decision on charges is essential. Scottish Widows and Liverpool Victoria have expressed doubts that the products would be workable if the 1 per cent cap is imposed. The ...

  • Pru plan offers free fund switches

    6 Nov 2003

    Prudential is offering a flexible investment plan which lets investors switch between funds as circumstances in their lives or the market change. The plan, starting on November 17, will be available only through IFAs and is built around five bonds, the Prudence with-profits bond, cautious bond, corporate bond, property bond and managed bond, and there is access to 41 different risk-graded funds. Investors can make 12 free switches a year. The Pru says the funds are "handpicked" ...

  • Radcliffe's 'costly' comment was not a criticism of FSCS

    6 Nov 2003

    The Financial Services Compensation Scheme would challenge Money Marketing's summary of Complaints Commissioner Rosemary Radcliffe's recent appearance before the Treasury select committee. Ms Radcliffe did not describe the FSCS as "costly and deficient", as your report suggested (Money Marketing, October 30). She was acknowledging that the FSA, the ombudsman and FSCS all have separate procedures for dealing with complaints made about them. However, she was not referring to ...

  • Regulation packs now available for loan and general insurance firms

    6 Nov 2003

    The FSA has fired the starting gun for mortgage and general insurance regulation by announcing that firms can now register for an application pack for regulation. FSA director of high-street firms Sarah Wilson says firms which want to be directly authorised can get their application packs now, giving them a couple of months to consider what they need to do. Wilson expects 20,000 mortgage and general insurance firms to apply for direct authorisation and says firms should be thinking ...

  • Reid between the lines

    6 Nov 2003

    Watching Pop Idol recently, at the insistence of my 11-year-old daughter, my mind began to wander, a bit like some of the contestants did to judge from the selected key. Just as all these kids think they are talented, all too many of us hold the view that the banner of independence is more than enough to ensure success for ever more. For the message about independence to have real potency, we need to consistently deliver a high-quality service. The equation that leads to success ...

  • Research shows public want personal finance on national curriculum

    11 Nov 2003

    An overwhelming majority of Britons want to see personal finance education taught in schools, according to a new report from Insight Investment.The research shows the public see money management - wanted on the national curriculum by 87 per cent of those surveyed - as of more benefit to children's' wellbeing than many other subjects currently on the school agenda. Insight Investment managing director, business partnerships David Norman says: "Thousands of Britons ...

  • Rooms for manoeuvre

    6 Nov 2003

    In last week's instalment, I looked at the change of use provisions and their impact on capital gains tax relief on the disposal of a principal private residence. As I stated, there will rarely be any need for most UK-resident householders to bother about anything other than a straightforward 100 per cent relief on gains made on the disposal of their main home. However, as the relief is so valuable (and is thought by many to be a significant contributory factor in the continuing rise ...

  • Royal Liver planning 'revolution' for IFAs

    6 Nov 2003

    Royal Liver is planning to launch into the IFA market in the middle of next year as it continues its push into the IFA arena. IFA and new ventures business unit market manager Andy Milburn says it hopes to bring developments to the sector that IFAs will see as "fairly revolutionary". Milburn says the firm is planning its strategy and is developing new products for the launch, which follows its purchase of IFA group Park Row in March. He says: "It is a fantastic opportunity for ...

  • Russell brings £400m into Cazenove UK fund

    6 Nov 2003

    Cazenove Fund Management's UK growth & income fund, run by star manager Tim Russell, has attracted more than £400m since it was set up 10 months ago. The fund, which has returned 20.3 per cent since the end of December compared with the FTSE All Share's 16 per cent gain, has amassed more than £420m, making its launch one of the most successful of recent times. Most of the money, however, has been injected by fund of funds and discretionary managers, with retail ...

  • Schroder builds property funds portfolio

    5 Nov 2003

    Schroder Property Investment Management has established a property fund of funds that enables investors with at least £25,000 to gain exposure to a £52bn property portfolio.The Schroder Indirect Real Estate Fund can invest in different types of property fund such as unit trusts and limited partnerships, plus property shares. The fund will also be able to invest in property index certificates which are a type of derivatives, which could become more popular in the future.The ...

  • Schroder Property Investment - Schroder Indirect Real Estate Fund

    5 Nov 2003

    Type: Property fund of fundsAim: Income and growth by investing in a portfolio of property funds and property sharesMinimum investment: Lump sum £25,000Investment split: Retail warehouse 24%, industrial 18%, shops 16%, central London offices 16%, offices excluding London 16%,shopping centre 4%, other 6%Charges: Annual 0.8%Commission: Subject to negotiationTel: 020 7658 6787

  • ScotEq Protect in IFA bid to reduce non-disclosure

    6 Nov 2003

    Scottish Equitable Protect is working with IFAs in a bid to reduce non-disclosure of medical information, which it says can lead to rejected claims, tarnishing the protection industry's reputation. The company says eliminating non-disclosure of medical information in life and protection policies is vital to the success of the protection industry as clients can be left exposed financially. ScotEq has produced two IFA newsletters, one aimed at helping advisers identify what constitutes ...

  • ScotLife Intl protected fund beats the market

    6 Nov 2003

    Scottish Life International says its protected Japan fund's performance proves that capital-protected investments can provide strong performance while limiting downside. SLI says over the five years since the Protected Japan Index 95 per cent-protected fund was launched in June 1998, it has achieved a return of 6.12 per cent compared with a fall in the Japanese market of 28.69 per cent. At the same time, the Protected Japan Index 100 fund, which offers 100 per cent protection, made ...

  • Self-cert remortgages

    6 Nov 2003

    Mortgage distributor Mortgage Next is offering two exclusive self-certification remortgage products. The first, funded by BM Solutions, is a stepped tracker at 1.75 per cent above Bank of England base rate for life, with a 0.9 per cent discount for the first three years. It has early redemption charges of 5 per cent in year one, 4 per cent in year two and 3 per cent in year three. The second, backed by Platform, is also a stepped tracker at 1.75 per cent above base rate for ...

  • Sergeant needs bank's backing

    6 Nov 2003

    It would have been worse if she had gone the other way, as one IFA remarked. Carol Sergeant's move from heading enforcement at the FSA to heading group risk at Lloyds TSB a few weeks after the group was hit with a hefty fine from the FSA for misselling will cause a few eyebrows to be raised. Sergeant was always likely to quit at some stage, having seen managing director John Tiner preferred for the top role. Lloyds TSB was clearly casting around for some solution to its recent ...

  • Sergeant quits FSA for Lloyds TSB

    6 Nov 2003

    FSA managing director Carol Sergeant has quit to join Lloyds TSB as chief risk director just weeks after the bank was fined £1.9m by the FSA for misselling structured products. Sergeant was responsible at the FSA for enforcement and fines. FSA deposit and markets directorate managing director Michael Foot is also leaving the regulator, announcing his retirement for May 2004. The moves leaves three senior positions open at the FSA, with chief executive John Tiner's ...

  • Sipp firm tells Revenue to allow residential property

    5 Nov 2003

    Specialist advice firm Central Financial Planning is calling on the Inland Revenue to allow residential property investment within pensions. CFP, which specialises in advising on Sipps, says its conditions include a tax penalty on individuals or immediate family to make occupying the property itself undesirable and to ensure investment remains on a commercial basis. Secondly, the pension plans should be on a shared ownership basis.To allay fears that these proposals ...

  • Six firms shut by FSA over PI

    6 Nov 2003

    The FSA says it forced national IFA Eurosure out of business in September over professional indemnity insurance, a move which led the IFA to sell its 170 RIs to network Virtual Net. When the deal was announced, Eurosure said it had decided not to renew its PI cover because it was too expensive. This latest admission from FSA director of investment firms division David Kenmir reveals it had no choice. In the past six months, the FSA has compelled six companies to shut their ...

  • Smee says no to new trade body

    6 Nov 2003

    Aifa director general Paul Smee says the trade body will work with any group of its members to provide a voice for the IFA community but does not see the need for another trade organisation. Last week, IFA Langton principal Colin Langton said he was gathering grassroots support for a new "campaigning" trade organisation to represent wrongdoing against IFAs. Although he has said the organisation is aiming to complement rather than replace industry trade bodies, Langton believes ...

  • St James' Place sees upturn after flat Q3

    6 Nov 2003

    Protection sales provided a boost for St James' Place's third-quarter business which was flat in several areas but the firm says September and October business has shown a big upturn. Protection sales rose to £6.5m from £5m but long-term savings business fell to £34.1m from £34.7m in the same period last year. Investment business fell to £17.6m from £17.8m and pension business was down to £10m from £11.9m. Fees for wealth management ...

  • Staff communication is firms' pension priority

    6 Nov 2003

    Communicating the value of pension benefits to employees is more important to UK businesses than dealing with the implications of the Government's pension proposals, new research has revealed. A survey of 389 UK companies, including a third of FTSE 100 companies, carried out by consultantcy Hewitt Bacon & Woodrow has revealed that 31 per cent of companies think communication is the highest priority, with only 26 per cent saying Government legislation is their immediate concern. The ...

  • Standard Life Investments - LIquidity Plus Fund

    7 Nov 2003

    Type: Offshore OeicAim: Income by investing in money market assetsMinimum investment: Lump sum £100,000Investment split: 100% money market assetsPlace of registration: DublinYield: Libor plus 15%Charges: Annual 0.15%Commission: Subject to negotiationTel: 0131 245 7148

  • Stars of the big scheme

    6 Nov 2003

    I have recently been told by a friend that it is possible to invest in film partnerships which give very attractive tax breaks. Can you tell me how these work and whether they would be suitable for me to consider. Also, why is it so difficult to find out information about these investments? I have never seen any advertised anywhere. Last week, I began by explaining that there are two main types of film partnership scheme - sale and leaseback and film production. Having ...

  • Swip announces two UK equity appointments

    10 Nov 2003

    Scottish Widows Investment Partnership has announced two appointments to its UK equity fund management team. Joel Marks will join Swip on November 17 as investment director, UK equities. He will be joined by David Urch, who will assume responsibility as investment director, UK equities retail on December 1. Both will report directly to the head of UK equities, Robert Waugh. Joel Marks is a chartered accountant bringing eight years of experience from Insight Investment ...

  • Taking the pledge

    6 Nov 2003

    Guaranteed products were one of the beneficiaries of the bear market. It is estimated that over £6bn was invested in them in 2002 alone. It is not hard to understand why they have proved so popular. They offer the possibility of having the best of both worlds - equity-linked returns but with lower risk to capital. It would be overly simplistic to view all investors in guaranteed products as having a cautious attitude to risk. This description covers a considerable proportion ...

  • Talkback

    6 Nov 2003

    "Yes, there might be. It is bad practice and the implication is that genuine users of the product will not have the opportunity." Keith Hughes, Maxim Insurance Services "I do not think it is widespread but I am sure it goes on." Michael Sherrard, Sherrard Financial Management "I think these were a few isolated cases. I certainly would not encourage anyone to inflate their earnings." Bridget Pearson, Manners Harrison & Mould "Yes, I do feel it is a problem. ...

  • Tax and regulation thwart pan-Euro consolidation

    6 Nov 2003

    Consolidation in the European fund management industry is being significantly hampered by regulatory and tax barriers and prohibitively high costs, according to research by PricewaterhouseCoopers. Its global investment management survey reveals that more than half of fund groups expect the number of funds and providers in Europe to fall by 30 per cent. But many feel consolidation is being thwarted by tax and regulation, particularly in terms of cross-border distribution. Global ...

  • Telekurs mixes it with Morgan

    6 Nov 2003

    Congratulations to all the participants in fund data specialist Financial Express's soccer sixes tournament that raised £7,000 for Breast Cancer Campaign. Applause in particular goes to the women and men of Telekurs Financial which pipped Morgan Independent Advisers in the mixed team tournament.

  • The impact Of Ucits III

    6 Nov 2003

    The European Commission started encouraging the crossborder sale of investment funds with the original Ucits directive in 1985. The proliferation of Luxemburgand Dublindomiciled funds sold throughout Europe is testament to the broad success of the directive's aims but more recent moves to continue this liberalising trend have not to date had a visible impact in the UK. Recently, there has been substantial press coverage about the impact of Ucits III on the European fund markets. ...

  • The key to retirement?

    6 Nov 2003

    Proof that pension returns beat buy to let is unlikely to daunt amateur landlords or build the same zeal for pensions. How do advisers cope with clients carried away on the buy-to-let bandwagon and how do they respond to the pensions versus property debate? Recent analysis by Standard Life shows that pension returns over the last 25 years beat residential property yields. Despite the downturn in equities and high sale values on residential property, pensions have still provided ...

  • The naked truth about Calder

    6 Nov 2003

    Prudential's kilt-wearing Brian Calder is expected to be steering clear of female Dorset IFAs this festive season after last year's high jinx. The Diary under-stands that last year, he was grabbed at a do at the Gleneagles Hotel by Eveleigh & Huckle pensions director Julie Kelway and a colleague, who held him in a bearhug while Julie lifted his tartan. Expecting to find some Marks & Spencer pants, Julie was shocked to see nothing was worn under the kilt.

  • The PI picture

    6 Nov 2003

    Various articles have recently appeared in the financial press, together with comments written on behalf of Glyn Morris, board director of Magian Underwriting. Letters have also appeared from Fergus Chappel of Collegiate Insurance Brokers. These particular articles, while highlighting and advertising the name of Collegiate and Magian, (basically the same firm) would signal that Magian are in the market for writing PI. It should be noted, however, that over the last six years, ...

  • The write stuff

    6 Nov 2003

    The FSA requires advisers to provide their clients who are classified as private customers with a written explanation of their recommendations. The following points are closely based on the FSA’ conduct of business rules and guidance.These documents are now called suitability letters although they were previously referred to as reason why letters. Strictly speaking, they do not need to be letters. A suitability letter could be a prominent part of a financial report to the client ...

  • Treasury consults on home reversion plans

    11 Nov 2003

    The Treasury is seeking views on whether home reversion plans should be regulated by the FSA despite finding no initial evidence of consumer detriment from their sale. Announcing the publication of consultation paper 'Regulating Home Reversion Plans', financial secretary to the Treasury Ruth Kelly says that, although informal discussions have found no signs of consumer disadvantage, the rapid growth in the market has prompted the Government to consider regulation. The paper ...

  • Two firms resist Inter-Alliance Restructure

    6 Nov 2003

    Inter-Alliance has written to two of its associate firms pressing for payment of overdrafts with Royal Bank of Scotland. The move is one of the final steps in the integration of the 90 regional practices that formed Inter-Alliance under former chief executive Stuart McGreevy and group managing director David Garofalo before its takeover by Keith Carby in January 2001. Chairman and chief executive Carby has been bringing all the firms on to the Inter-Alliance plc books. He says ...

  • Two thirds of adults cannot afford to save - IFAP

    7 Nov 2003

    UK adults are living in a self-imposed state of "can't save, won't save" claims a study by IFA Promotion. The study looks at the boom in retail spending, consumer debt and the continuing slump in UK savings.Two thirds of UK adults say that they cannot afford to save more than they currently do and 27 per cent claim that they cannot save anything. Research has shown though that over 3m of these non-savers are building up debts in order to fuel their appetite ...

  • Union is suing DWP on steel pensions

    6 Nov 2003

    Trade unions representing 1,000 steelworkers served a writ on the Department for Work and Pensions this week, claiming that Government failures were responsible for the loss of their occupational pensions. The Amicus and ISTC unions are taking the case to the Court of European Justice for employees of Allied Steel and Wire whose pension benefits were hit after the company went bust in 2002. The case could open the door for compensation of thousands of people hit by shortfalls in schemes. The ...

  • Upskilling in savings and investments continues

    11 Nov 2003

    Another 759 candidates have passed the CII's new savings and investments exam in the second sitting to date.This means a total of 1447 have passed, after the first sitting was held in April. The exam is designed to bridge the gap in knowledge in the investments market highlighted in the Sandler report and in the feedback to the FSA consultation paper 157 on exam framework.

  • Value victors

    6 Nov 2003

    This second article in a series of three seeks to develop further the hypothesis that the evolution of wrap platforms creates the potential for significant value transformation in the IFA community. Value is usually constrained in the IFA market within the generalised observation that these are lifestyle businesses. As with most cliches, this observation encompasses both great strengths in the market and great weaknesses. The advice market in most countries, very much including ...

  • Watch the watchdog on LTC overcharging

    6 Nov 2003

    Long-term care insurance specialists say IFAs must ensure they are up to speed with ombudsmen reports on wrongful charging for care and they should not be afraid to tackle local authorities on the issue. Nursing Home Fees Agency principal Philip Spiers says he always looks at clients' entitlement to state assistance for LTC before "looking at other matters", saying it is all part of giving appropriate financial advice. In February, Health Service Ombudsman Ann Abraham presented ...

  • Watchdog to axe IFA complaint fees

    6 Nov 2003

    The vast majority of IFAs look set to escape having to pay complaint fees to the Financial Ombudsman Service as the FOS plans to scrap them for the first two complaints made against a company each year. Research shows that half of the FOS's work on complaints comes from 20 per cent of big firms so it is planning a new pricing structure. Money Marketing can reveal that in January the FOS will propose that firms will not pay any case fees for the first two complaints made to the ...

  • We must all join the fight for a fair deal for IFAs

    6 Nov 2003

    At Clerical Medical, we applaud Money Marketing's fight for a Fair Deal for IFAs. We say this with the knowledge that the advice that they give will take on even greater significance as we move to the menu system and changes in the polarisation regime in 2005. However, IFAs also need to recognise that financial services is still evolving and there is no turning back to the way things were. Product providers are under immense pressure to simplify products and reduce costs to meet ...

  • WIFAS director Chris Regan resigns

    5 Nov 2003

    Woolwich IFA Services director of the IFA sales force Chris Regan resigned with immediate effect on October 31st. WIFAS says he resigned for his own reasons.Sales director Dawn Johnson will be caretaking the role in the short term as WIFAS looks for a successor to Regan.

  • Win a Christmas shopping trip to New York

    10 Nov 2003

    Franklin Templeton Investments, one of the world's biggest mutual fund managers with assets over $300bn, is celebrating the launch of its four new funds for UK investors, and would like to offer you and your partner the chance to win a shopping trip to New York. New York can fulfil every shopping desire with some of its greatest stores. It is home to Macy's, the world's biggest department store and Bloomingdale's on Third Avenue. After a hard day's shopping, why ...

  • With-profits home truths

    6 Nov 2003

    Much of the criticism of with-profits has failed to differentiate between weak and strong, between stealth-like management of life funds and a reckless approach to setting bonus rates and allocation of asset classes. Thankfully, this is beginning to change. Weaker funds are damaging the reputation of the sector and the ability of advisers to carry out business. Sadly, much of the focus is on negative issues rather than the positive elements of strong companies delivering sound returns. ...

  • Wrapping up the market

    6 Nov 2003

    We hear many times that it is not possible to produce new low-cost products and provide customer advice within the fee structures required. This debate will continue while we have high costs of delivery for providers, advisers and asset managers. The emerging raft of wrap platforms has the potential to answer some of the questions posed of the industry. Unfortunately, as long as providers have closed platforms that promote their own products, IFAs will not achieve the full benefit ...

  • Zurich launches last guaranteed account for the year

    5 Nov 2003

    Zurich Financial Services is launching its fifth and final guaranteed account for this year. Coming out on November 10, the Zurich Guaranteed Account has already brought in more than £200m since it was first offered in March this year. Applications must be in before December 15.Zurich research also reveals that increasing numbers of young people are interested in the account, with three times more 30 to 34 year olds investing in it than would usually invest in a standard ...

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