Money Marketing
6 August 2003

  • 'A&L gives too little notice of rate closures'

    7 Aug 2003

    European mortgage markets are showing a huge disparity, with Scandinavian countries and the UK seeing significant rises in gross lending while Germany is in decline. Figures from the European Mortgage Federation show Denmark saw a 103 per cent rise in gross lending in the first quarter compared with the same period in 2002. Other countries that saw big increases include Finland (42 per cent), Sweden (22 per cent) and the UK (17 per cent). But gross lending in Germany fell by 23 ...

  • 'Duty for Pensions is on the individual'

    7 Aug 2003

    The public believe the responsibility for ensuring people have enough to live on in retirement should be on the individual or the Government but not the employer, according to a survey of attitudes to pensions by the Department for Work and Pensions. The research reveals 46 per cent of people believe the individual should be responsible for their retirement income, with 44 per cent saying the Government should provide the lion's share of pension income. Only 7 per cent thought that ...

  • 'Shortfall in pensions may bring calls to reopen misselling review'

    7 Aug 2003

    A leading pension IFA is warning that the industry could face calls to reopen the pension review as compensation from misselling is buying policyholders only half the benefits of those who stayed in their final-salary schemes. Richard Jacobs Pension & Trustee Services director Richard Jacobs says poor investment returns and annuity rates are leaving compensated pensionholders with retirement income less than half than that received by colleagues who remained in their schemes. Jacobs ...

  • £3bn wasted on mortgages says HSBC

    11 Aug 2003

    UK homeowners are being charged almost £3 billion over the odds by lenders with high standard variable rates, says HSBC. The bank dropped its Home Buyer Mortgage variable rate to 4.49 per cent last week, and says that 7 out of the country’s top 10 lenders charge their customers at least £14,000 more than its own 4.49 per cent.

  • Abbey says clients are missing benefits as IFAs ignore S32 plans

    7 Aug 2003

    IFAs are shunning S32 buyout plans in favour of straightforward personal pensions, even though they have valuable benefits for clients, says Abbey National for Intermediaries. Head of pensions and retirement Mike Brown says clients may be missing out on improved death benefits and tax-free cash over 25 per cent if they choose to transfer their occupational scheme to a personal pension rather than S32 contracts, which were previously seen as the more traditional transfer policy. But ...

  • Active funds beat trackers, says HL

    7 Aug 2003

    Actively managed funds are better value for money than index-hugging funds in both bear and bull markets, according to research by Hargreaves Lansdown. HL compared the annual compound growth rate of funds in the all companies sector over one, three, five and 10 years with the return from the FTSE All-Share index. It then broke down this return - positive or negative - to determine the outperformance or underperformance for each 0.1 per cent of the annual management charge. The ...

  • Advantage to run network for packagers

    7 Aug 2003

    Sub-prime packager Advantage Mortgage Services is starting a national network for mortgage packagers. The network will provide a range of products for members along with mortgage processing software and a training and development programme. Advantage has already signed up one packager, Derby-based Future Finance, and hopes that 50 others will join. It says it has 20 further possibilities lined up but it will be very selective about which ones it takes on. It says it has lent ...

  • Albert Goodwin takes art

    6 Aug 2003

    Albert Goodwin is an enterprise investment scheme (EIS) aiming to raise up to £4.95m to finance a London-based art dealing business.The business will be run on the back of an existing business, the Chris Beetles gallery. Chris Beetles has been trading for 22 years and deals in art from affordable illustrations and cartoons to more expensive Victorian and 20th century oil paintings.According to Chris Beetles there is a higher demand for art within the £5,000 ...

  • AMI in warning over fact-finds

    7 Aug 2003

    FSA plans to force mortgage brokers to conduct a fact-find before offering rate quotes over the phone could severely damage high-street intermediaries, the Association of Mortgage Intermediaries has warned. AMI director Chris Cummings is concerned that if potential clients are subject to lengthy interviews when all they want is a quick answer, they may be put off and the business could dry up. He is urging the FSA to be pragmatic in designing the new regime, saying there is no ...

  • Axa Isle of Man - Evolution Extra Income Fund

    8 Aug 2003

    Type: Unit-linked fundAim: Growth by investing in the Axa Extra Income FundMinimum investment: £15,000Place of registration: Isle of ManInvestment split: 100% in the Axa Extra Income FundCharges: Annual 0.5% Commission: Subject to negotiationTel: 01624 643345

  • Axa set for move into protection

    7 Aug 2003

    Axa has signalled its intention to break into the protection market with the appointment of Iain Mallon as head of protection marketing. Mallon's appointment was confirmed in a press release last week which said he will be responsible for "spearheading the development of Axa's new protection business". Despite this, the company says it is only considering entering the market and that Mallon's role will be to consider the possibilities available. Axa has a limited presence ...

  • Bank base rate remains unchanged

    7 Aug 2003

    The Bank of England’s Monetary Policy Committee has decided to leave the base rate unchanged at 3.5 per cent. This was largely expected by the market given a recent pick up in economic activity. Last month the MPC cut rates by 0.25 per cent.

  • Bee puts forward pension deal to stop misbuying risk

    7 Aug 2003

    A pension product allowing low earners to unravel their retirement saving if they are at risk of losing out under means-testing on retirement would remove the risk of misbuying, says Scottish Life pensions guru Steve Bee. Bee says the pension industry should accept that the Government will not back down on the Pension Credit and means-testing in this round of consultation and the industry should fight for changes to the rules that have some chance of succeeding. Bee's proposal ...

  • Britannic appoints UK manager

    12 Aug 2003

    Britannic Asset Management has appointed Finlay MacDonald as investment manager on its UK desk.

  • Buy to let benefits from fall in first-time buyers

    7 Aug 2003

    Buy to let is booming as house price inflation forces potential first-time buyers into renting rather than buying. Seventy-one per cent of landlords say the lack of first-time buyers has boosted the buy-to-let market, according to a survey of property investors attending this year's Property Investor Show. Over half of landlords (53 per cent) believe the buy-to-let market will grow over the next 21 months while 21 per cent think it will remain stable. CML figures show that ...

  • C&G announces rate changes

    11 Aug 2003

    Cheltenham & Gloucester has announced its is re-pricing its fixed and capped-rate mortgages, replacing its existing range which were last altered on July 14.Borrowers can now fix their rates between 4.49 per cent and 5.29 per cent on each of C&G's two, three, five and seven-year offers. Its capped-rate loan now sits at 4.89 per cent. To benefit from any of the new deals, loans must have started by December 19.

  • Chelsea BS pulls the plug on two fixed rate loans

    11 Aug 2003

    Chelsea Building Society has announced the withdrawal of two of its fixed rate mortgages.

  • CII believes chartered status could boost IFAs

    7 Aug 2003

    The CII is considering applying for chartered status for Sofa in the belief that it would create a professional image for financial advisers. But the move has been criticised as confusing and unnecessary by rival body the Institute of Financial Planning, which says chartered status would not add value to the profession. The CII says if the Privy Council granted chartered status to Sofa, it would lead to the public associating advisers with other professions such as surveyors, architects ...

  • Circus Capital - Smoothed Diversified Growth Fund

    8 Aug 2003

    Type: Offshore Oeic Aim: Growth by investing in with-profits funds Minimum investment: $10,000 Investment split: Equities 40-60%, cash and fixed interest 20-40%, commercial property 5-15% Place of registration: Cayman Islands Charges: Annual 1.25% Commission: Initial up to 4% Tel 01179 575556

  • Close Property investment - Quartet

    7 Aug 2003

    Type: Exempt unit trustAim: Growth by investing in a portfolio of 13 UK commercial propertiesMinimum investment: £25,000Place of registration: Isle of ManInvestment split: 100% in commercial propertyCharges: Initial 2%, annual 5.5%Commission: Initial 5%, renewal 1%Tel: 0800 917 7107

  • CML highlights lending issues

    7 Aug 2003

    The Council of Mortgage Lenders Scotland is holding its annual conference in Edinburgh in September, with Lloyds TSB Scotland chief executive Susan Rice giving the keynote speech. Being held at the Sheraton Grand Hotel on September 10, the conference is aimed at lenders and those interested in housing policy, including the private housing market, and those involved with social housing issues. The conference will divide into two strands in the afternoon to separately look at lending ...

  • Consumers should beware equity release - Which?

    6 Aug 2003

    Equity release schemes should only be used as a last resort because they can be expensive and inflexible says Consumers' Association publication Which?

  • Correspondent's week

    7 Aug 2003

    Shirt buying - is this a viable business expense and am I supposed to put this exorbitant yet increasing cost on my Inland Revenue self-assessment form? Since the start of the year, the pace of life has been frantic for this discount broker, with so many imminent possible acquisitions and fund launches, resulting in many overnight stays in London, away from the bosom of my family in Bucks, and therefore the regular purchase of a new shirt. Monday starts with a round of press meetings ...

  • Crowd control

    7 Aug 2003

    UK retail investors are faced with an enormous choice of unit trusts and Oeics. Bloomberg identifies more than 2,100 funds in the UK managed by over 135 asset managers with some £240bn of funds under management in 2003. These funds range in size from the top 30, with between £1bn and £5bn under management, all the way down to the bottom 40, each of which has less than £1m under management. So what? Consumer choice is generally a good thing, with competition ...

  • Davies suggests FSA could name firms under investigation

    7 Aug 2003

    The FSA is planning to name companies it is investigating as a means of reminding consumers of caveat emptor, according to outgoing chairman Sir Howard Davies. In an interview with a national newspaper, Davies, who is leaving the regulator in September, said the FSA will change its policy in the autumn as to what it can reveal about ongoing investigations. But the suggestion that firms may be publicly named before they have been found to have done anything wrong has been met with ...

  • Dial hard with a vengeance

    7 Aug 2003

    The Diary hears rumours of how the boss at a big IFA firm used to have a very different take on cold-calling. He would play pranks on passers-by by taking advantage of two phone boxes situated across the road from his office. On slow days, he would wait until one phone box was occupied, then ring the number of the second phone box. Anyone answering would be told that MI5 wanted to apprehend the person in the neighbouring phone box and would they mind awfully trying to delay him until ...

  • Directive selling

    7 Aug 2003

    PI is turning into a conflicting calculation for IFAs, with the FSA seeming to be intent on freeing IFAs from many of the constraints of the current PI regime while the EU may force it to increase the PI burden. The FSA pledged last week to make life easier for IFAs struggling in the constrained professional indemnity insurance market but in the very same set of proposals it admitted that many smaller IFAs will see their cover requirement nearly double in less than two years time due ...

  • Don't look discounted gift trust in mouth

    7 Aug 2003

    Following the Inland Revenue's announcement on so-called spouse interest trusts in June, advisers will look for more detailed comment on the inheritance tax treatment of discounted gift trusts. These arrangements enable investors to give away assets but keep the right to an income without creating a gift with reservation. Under the capital transfer tax regime, which existed until March 1986, an individual who disposed of an asset but kept the ability to benefit from it nevertheless ...

  • Ex-Aberdeen chief takes on Invesco Euro fund

    7 Aug 2003

    Stephanie Gerrard, former head of pan-European equities at Aberdeen Asset Management, is taking over Invesco Perpetual's £915m European growth fund in a bid to reverse its ailing performance. Gerrard, a highly respected European manager, is replacing Alister Hibbert, who has failed to dislodge the fund from the bottom of the performance tables since taking over in late 2001. Under his tenure, the fund has fallen by 21.1 per cent while, over three years, it is down by 61.19 ...

  • Exeter FS acquires further PMI assets

    8 Aug 2003

    Exeter Friendly Society has announced it is acquiring the private medical insurance book of the Royal Bank of Scotland Staff Healthcare Friendly Society, in a move which expands its membership base to around 65,000.

  • Express acquires further tranche from GMAC-RFC

    7 Aug 2003

    Mortgage Express has bought a further tranche of mortgages worth £151m from GMAC-RFC. The Bradford & Bingley subsidiary announced in April that it would buy three more mortgage loan portfolios from GMAC-RFC during the remainder of 2003 up to a total of £1.05bn. This tranche follows three mortgage portfolio acquisitions from GMAC-RFC totalling £1.38bn in September 2002, March 2003 and May 2003. Mortgage Express says the loan portfolio will increase its managed ...

  • Franchise is given go-ahead for VAT-free fees

    7 Aug 2003

    A Leeds-based IFA franchise says it has received a concession from Customs & Excise allowing it to charge clients fees without having to hit them with VAT. True Financial Planning says its advice process has been approved by the Finance Unit of Expertise within C&E. It means that as long as advisers adhere specifically to its guidelines, VAT is not applicable. The process is not completely free of VAT if the adviser decides not to recommend a product purchase, when the ...

  • Goodfellows plan easy as ASU

    8 Aug 2003

    Goodfellows has established IncomeInsurance, an accident, sickness and unemployment policy for a mortgage or any other purpose. IncomeInsurance was designed in response to a survey by the British Association for Protection Brokers. It found half of UK workers do not have savings or insurance to fall back on if they were unable to find a job within a month of redundancy. Unemployment cover under IncomeInsurance costs £3.50 per £100 of monthly benefit and disability ...

  • Half UK SMEs have no key worker cover - L&G

    12 Aug 2003

    Half of the UK's small firms would collapse within a year if a key worker such as a director or partner was seriously ill or died, according to research from Legal & General.

  • HBOS throws down challenge to rivals

    7 Aug 2003

    HBOS has thrown down the gauntlet to rival groups Standard Life and Aviva by stating that it aims to be the UK's number-one seller of pensions, life insurance and other investment products. Group chief executive James Crosby laid down the challenge last week at the publication of HBOS's interim results. Crosby said that the company's distribution and capital advantages mean that it is well positioned to take advantage of falling stockmarkets and become the biggest UK seller ...

  • Head of FSA consumer panel to join OFT

    7 Aug 2003

    FSA consumer panel chairman Colin Brown is quitting his role after just two-and-a-half years to take up a post with the Office of Fair Trading. Brown will depart six months earlier than expected on November 1. He will be replaced by Ann Foster, who has been vice-chairman of the panel since January 1, 2001. Brown is best known for his recommendation to the FSA that it should limit its plans for depolarisation to stakeholder pensions and execution-only business during phase one of ...

  • IFAs merge in move to boost RIs

    7 Aug 2003

    Norwich IFA Crossley Mackenzie is merging with City of London-based Helm Godfrey Partners to form a 28 RI group. The merger is part of Helm Godfrey's plans to boost its RI count to 50 by the end of 2004. It also plans to increase group turnover from around £3.5m to £7m over the same period. IFA Helm Godfrey was formed from an amalgamation of nine IFA firms in 1999 and has advisers in Bournemouth, Brighton, Chester and Richmond. Chairman is Tax Briefs editorial director ...

  • IFAs spend only 35% of their time in giving advice

    7 Aug 2003

    Most IFAs spend only a third of their time advising clients, reveals research by technology specialist 1st Software. Its online poll, 1st Impressions, found that not one of the more than 200 IFA firms polled spend more than half their time advising clients, with 80 per cent spending less than 35 per cent in front of customers. A follow-up poll showed 55 per cent of advisers believe improved technology would improve this and 36 per cent reduced legislation. Sofa vice-chairman ...

  • Independent view

    7 Aug 2003

    The new proposals for Sandler products and their sales systems looks like another set-back for IFAs as, initially, the preferred sales system is to be guided self-help rather than advice. Now we will have to wait for the autumn to see if the 1 per cent charging cap will be increased so that advice might become a more viable option, at least. Whatever the outcome, we have to make it work and ensure we can still earn a proper return for providing what the majority of the public needs ...

  • Inside edge

    7 Aug 2003

    Anyone with a mortgage would vote for the Bank of England's base rate reductions to be fully passed on by lenders to borrowers but this could be a shortsighted demand with negative consequences in terms of the long-term viability of a lender's products. As such, it could threaten product innovation and consumer choice in the future. Many economic experts never had a problem with lenders operating autonomously - critics would say secretly and unpredictably - in the heady days ...

  • Interview techniques

    7 Aug 2003

    IFAs often believe it is only after they have taken someone on that the complications start over workers' rights and employment law legislation. This is wrong. Even at interviews, bosses are wide open to potential discrimination claims in the current claims-obsessed environment. For IFAs, the process is complicated as there are rules and regulations governing the recruitment of new staff, especially for sales teams. The FSA has set stringent guidelines on the recruitment of ...

  • Invesco's caution on UK fund seen as bid to avoid Euro growth repeat

    7 Aug 2003

    Invesco Perpetual is calling on IFAs not to treat its top-performing UK aggressive fund as a core holding in a bid to avoid the problems that beset its giant European growth fund. The European fund, now on the sell lists of many IFAs, was one of the star performers of the 1990s under Rory Powe, reaching £3bn in 1999. But its high exposure to technology stocks hit it hard when the TMT bubble burst, leaving investors - many of whom had been sold the fund as a core holding - out ...

  • Investment analysis

    7 Aug 2003

    It was a mixed week for global stockmarkets. A drop in US consumer confidence in July and the release of a disappointing economic report on employment in the world's leading economy dampened investor confidence and provoked some profit-taking around the globe. By Friday's close, the benchmark FTSE World index had fallen by 1.5 per cent. However, European and Asian markets continued to advance. In the US, markets were swayed by economic data. The release of the Conference Board's ...

  • Investment view

    7 Aug 2003

    There is something about our two principal seats of learning that sets them apart from other cities. Aside from the inevitable clutch of young and exuberant foreign students taking advantage of the availability of cheap accommodation during the summer recess to brush up on their English, the atmosphere feels highly charged. Perhaps it is the accumulation of brainpower that somehow permeates the minds of those less well-endowed in grey matter. Whatever, Oxford and Cambridge are always a ...

  • Investors saving for education costs - Fidelity

    12 Aug 2003

    Eleven per cent of those investing in ISAs, PEPs, unit trusts and OEICS are saving for education costs according to the latest figures from Fidelity Investments.

  • Ireland in danger of asset price bubble warns iimia

    11 Aug 2003

    There are signs of an asset price bubble in Ireland, triggered by negative real interest rates, according to fund manager iimia.

  • Julian Gibbs

    7 Aug 2003

    The Far East excluding Japan is my nap selection for the best-performing sector over the next year. This is for several reasons. First, when the US economy recovers - and it looks likely to grow by nearly 4 per cent next year - the Far Eastern economies and stockmarkets will recover even quicker. Second, growth rates in the Far East are mainly already high and fast improving. Third, earnings' growth is likely to rise by an average of 20 per cent a year over the next two years, ...

  • Key Man cheaper than businesses think says L&G

    11 Aug 2003

  • L&G offer Protected Index Plan 5 from August 18

    12 Aug 2003

    Legal & General is now offering Protected Index Plan 5 as part of its protected investment series, available from August 18 to October 10.

  • Lean markets expected to trim sales staff at St James's Place

    7 Aug 2003

    St James's Place Capital says it expects a drop in adviser numbers this year as its sales staff struggle to meet targets in the tough market. Applications for jobs at St James's Place in the first half of this year rose by 63 per cent compared with last year but the firm says the total number of its partners is likely to fall as underperformers leave. SJPC says 42 per cent of applications were from IFAs. The firm's results to June 30 show a 2 per cent increase in partners ...

  • Lemming firms are leaping off the 1% cliff

    7 Aug 2003

    Having read the article headlined, Bamford urges Davies to lead Sandler revolt (Money Marketing, July 24),I am struck by how the emphasis is all wrong. The 1 per cent world is not really Sandler's fault but that of the lemming product providers. For example, one or two sought to talk to our firm before they introduced stakeholder pensions. They were convinced that they would be highly successful and considered they had the ability to capture 10-15 per cent of the market. "What ...

  • Life offices have power to end cap

    7 Aug 2003

    Why is Nick Bamford wasting his time calling on Howard Davies to use his final months as chief executive of the FSA to push the Treasury to drop the price capping and filtered questions from the Sandler proposals? We already know that: 1: Howard Davies does not think either is a good idea(he has already said so more than once). 2: The Treasury takes little, if any, notice of anything that anyone says regarding its plans to reshape the financial services industry in whatever way ...

  • Magian could hit IFAs with charge of up to £3,000

    7 Aug 2003

    IFAs applying for professional indemnity insurance from Magian Mutual could find themselves hit with an upfront charge of up to £3,000 before Magian decides if it will offer them cover. Magian claims that the fee is currently only charged to a minority of applicants which are undergoing risk assessments because of the nature of their business but the company predicts that in the future, more firms will also be hit. The average cost is bet-ween £2,000 and £2,500 ...

  • MediQuote adds Health-on-Line products

    11 Aug 2003

    Comparative private medical insurance and cash plan portal MediQuote has added individual products from Health-on-Line to its offering. Group Company Choice plans will also be offered from September.

  • Meet the legal challenge

    7 Aug 2003

    One of the major challenges facing organisations trying to build a financial advice brand is how to achieve a consistent quality of advice and documentation across many hundreds of registered individuals. This can be a problem particularly in a network situation where there are underlying corporate members each with their own procedures and practices. Last week, I looked at a software package which has been created specifically to address this challenge and to do so in a way that ...

  • Millions benefiting from Child and Working Tax Credits

    11 Aug 2003

    More than five and three quarter million families are already receiving the Child and Working Tax Credits, according to the Inland Revenue.

  • Moneysupermarket in link-up with press sites

    7 Aug 2003

    Moneysupermarket.com is white-labelling its comparative account aggregation system in partnerships with national press personal finance websites Money Telegraph and the Mail's This Is Money. The deal will allow users of the thisismoney.co.uk and money.telegraph.co.uk websites to access their current and savings accounts, mortgage, credit card, Isa and travel insurance details online. The system displays the customer's own products together with a list of best-buy products. Once ...

  • More misselling claims on the way City law firm warns

    6 Aug 2003

  • More woe for IFAs as FSA seeks to redefine advice

    7 Aug 2003

    IFAs are set to be subjected to yet another retail review as the FSA attempts to match its consumer education budget with the types of financial advice available in the market. In a paper seen by Money Marketing, expected to be published by the end of the year, the FSA has outlined its belief that consumers should identify financial advice with particular stages in their lives. It plans to encourage advisers to specialise in particular areas of business and spend its resources ...

  • Mortgage Express boosts B&B results

    8 Aug 2003

    Bradford & Bingley specialist lending arm Mortgage Express’ mortgage book has grown £3.49bn since December 2002 from £7.2bn to £10.69bn. 

  • Music to advisers' ears

    7 Aug 2003

    Mellon Financial Corporation, supporters of the Mellon Pittsburgh Symphony European Tour 2003, is offering Money Marketing readers the opportunity to join the company at one of the orchestra's performances as part of the BBC Proms series on August 30 at the Royal Albert Hall. Mellon has donated four pairs of their highly coveted tickets for you to win in our competition. Not only will you get to see this world-renowned orchestra conducted by the legendary Mariss Jansons, your ...

  • New Standard WP bonus cuts

    7 Aug 2003

    •Standard Life announced another round of with-profits bonus rate cuts, reducing payouts by an average of 6 per cent. This means that a £50 a month 25-year with-profits endowment policy is now worth £69,386 down from £75,984, an annual return of 10.7 per cent on total premiums of £15,000. There is to be no change to annual bonus rates. Standard's interim results also show its UK new business dropped by 27 per cent to £507m EPI from £694 ...

  • New Star in £9m deal to buy up Exeter funds

    7 Aug 2003

    New Star has struck a £9m deal to acquire 13 unit trust and Oeic sub-funds from Exeter Investment Group in a move which boosts the acquisitive fund manager's quest for critical mass. New Star is assuming management of £310m of funds - 80 per cent of which invest in investment trusts, including splits - for 50,000 retail investors, bringing its funds to over £4bn. The agreement represents another return to pre-bear market prices as New Star will pay around 3 ...

  • Norma's conquest

    7 Aug 2003

    Last week, I looked at a simple piece of tax planning for a couple aged under 65. Here's another which applies when both spouses are aged 65 or over. A few bullet points will help us. •When both spouses are aged 65 or over, it is beneficial if the total income of each is kept below £18,300 so each receives the full benefit of higher allowance. Income over £18,300, which leads to a loss of higher allowance, effectively suffers tax between 25 and 33 per cent. •To ...

  • NU's Withers turns focus on 5% cap for suite

    7 Aug 2003

    Norwich Union Life chief executive Gary Withers is reinforcing the firm's stance on the proposed new Sandler investment range, suggesting that a 5 per cent initial charge cap, as currently used in Ireland, will get a lot of focus. Speaking to Money Marketing following the release of parent company Aviva's interim results, Withers reiterated that NU will only write economic business and said that 5 per cent works in Ireland and he suspects that will be put under the spotlight. Aviva's ..

  • Old Mutual bond star joins M&G

    8 Aug 2003

    Richard Woolnough, star manager of Old Mutual's top performing corporate bond fund, is leaving the group to join M&G's fixed income team in the New Year.

  • Online service for human resources

    7 Aug 2003

    IFA network Group 300 is offering an internet-based tool to help advisers with their human resources' responsibilities. The Evolution 300 package allows IFAs to manage their HR requirements by enabling them to maintain employee records and audit trails online. It can be used to create terms and conditions contracts, letters, health and safety documents and staff handbooks. It includes a facility that allows employees to make holiday requests online with an email sent to a manager ...

  • Out of context

    7 Aug 2003

    •"I am crap at being intelligent." - Clark again on what it takes to set up a successful business. •"Maybe there's been a trade of employees between the Food Standards Authority and Canary Wharf." - Fee-Based Advice sales director Nick Peters on the mysteries of the latest FSA response to DP19. •"My lovelife is more complicated than a structured capital at risk product." - Abacus director David Ferguson on the FSA's new name for precipice bonds. •"I ...

  • Outside edge

    7 Aug 2003

    By the time you read this, we will have heard the result of the Bank of England's August interest rate deliberations and the betting is on no change. Indeed, I believe the base rate may be in for another relatively long period of stability. This will inevitably lead to a wringing of hands among personal finance journalists as they will not be able to recycle one of their longest repeat pieces. The press's constant criticism of how banks and building societies respond to interest ...

  • Pension trustees calling for more training - F&C

    8 Aug 2003

    Training is the most important issue facing trustees and pension fund representatives, while compulsory membership is the least important, according to a survey by F&C Management.

  • Pension trustees calling for more training - F&C

    8 Aug 2003

    Training is the most important issue facing trustees and pension fund representatives, while compulsory membership is the least important, according to a survey by F&C Management.

  • Phil Wagstaff

    7 Aug 2003

    Those who know M&G UK retail managing director Phil Wagstaff are never surprised by his straight-shooting way of looking at the industry. He is never one to jump on industry bandwagons, preferring to use his own gut instinct. So while there is presently a lot of talk about a "bond bubble" about to burst, Wagstaff sees no credence in this opinion. But he thinks it is time to move from investment-grade bonds to high-yield and he seems to have the figures to back it up. For the ...

  • PI questions that need answering

    7 Aug 2003

    Why does the EU believe PI cover for smaller intermediaries has to double in 2005. What committee or committees came to this conclusion? What research found this figure to be acceptable? What interest either for the public or the industry is served? The questions should be addressed to the European Union first and foremost. If the EU ramparts prove impenetrable, then, at the very least, the FSA should provide an adequate explanation of its view of the EU's thinking. There is, ...

  • Picking a punch

    7 Aug 2003

    The active v passive management debate has sparked many a war of words between tracker advocates and those who extol the virtues of stockpicking but the topic has lain almost dormant since Ron Sandler, in his savings review, argued that no correlation exists between charges and performance. Although his contention that tracker funds, due to their low cost, are superior to actively managed funds sparked a wave of protest at the time - not least from the IMA, which rubbished his interpretation ...

  • Pioneer promotes pure protection

    12 Aug 2003

    Pioneer Friendly Society is targeting people in occupation classes three and four with pure protection, a new individual income protection plan. The society's existing income protection product has a savings element that is payable on retirement that Pure Protection - as an unregulated product -does not have. Pioneer says income protection has traditionally been targeted at class one occupations. It sees a gap in the market for an income protection policy with ...

  • Private investor activity up 20 per cent in last quarter

    11 Aug 2003

    Private investor activity increased by 20 per cent between April and June this year according to the Association of Private Client Investment Managers Stockbrokers.

  • Product matters

    7 Aug 2003

    Skandia is one of the last offices to unveil a full range of single-charged pension plans. Skandia always tries to be innovative and has taken on board some of the FSA's comments by breaking down the fees into three components - its admin charge, a fund management charge and an advice fee. Like many offices, Skandia is keen to get transfers and big single premiums so it will reduce its annual admin fee from 0.75 per cent to just 0.25 per cent on its personal pension, executive ...

  • Profits slide at Widows

    7 Aug 2003

    Scottish Widows' financial performance helped cast a sha-dow over Lloyds TSB's interim results, with the subsidiary's profits dropping £114m to £194m. Scottish Widows Investment Partnership added to the woes with a loss of £1m from a £6m profit at the same time last year. The results show that Scottish Widows' profits dropped to £194m from £308m, with the now closed Abbey Life achieving £41m down from £57m. Lloyds ...

  • Pru and Essential join the AMI

    11 Aug 2003

  • Royal London - Royal London Sterling Liquidity Fund

    6 Aug 2003

    Type: Ucits Aim: Income by investing in short-term money market assets Minimum investment: Lump sum £100,000 Place of registration: Dublin Investment split: 100% short-term money market assets Charges: Annual 0.15% Commission: None Tel: 020 7506 6629

  • Royal London - Sterling Extra Yield Bond Fund

    7 Aug 2003

    Type: Ucits Aim: Income by investing in a portfolio of fixed-interest securities Minimum investment: Lump sum £1,000 Place of registration: Dublin Investment split: 100% in a portfolio of fixed interest securities Charges: Initial 4%, annual 1.25% Commission: Initial 3% Tel: 08456 040404

  • Savills launches three-year tracker

    12 Aug 2003

    Savills Private Finance is launching a three year tracker mortgage for purchases and remortgages. The product tracks the Bank of England base rate plus 0.15 per cent for three years and then reverts to base rate plus 1 per cent for the life of the loan. The current pay rate is 3.65 per cent. Minimum loan size is £25,001 and maximum is £2 million. There is an arrangement fee of £395 and loan to value is 95 per cent for up to £100,000, 90 per cent to £300,000, ...

  • Scottish Widows - Guaranteed Investment Bond

    6 Aug 2003

    Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £2,000-£100,000 Term: Six years Guarantee: Original capital returned in full regardless of performance of index Return: Up to 60% growth at end of term Closing date: August 24, 2003 Commission: Initial 3% Tel: 0845 843 2222

  • Scottish Widows ignores bond bubble

    11 Aug 2003

    Scottish Widows has created three unit-linked corporate bond funds for its Investment Solutions range of funds for its life and pension products. The funds are available through Scottish Widows' flexible options bond, regular savings plan, personal pension, group personal pension, and executive pension plan and income drawdown products. The corporate bond assurance/pension fund and strategic income bond assurance/pension funds are also available through stakeholder, but the ...

  • Singing the blues

    7 Aug 2003

    Skandia global marketing manager Andre Ozmann is rueing events after marital pressure caused him to let go of his Chelsea season ticket - days before the football club's takeover by Russian oil magnate Roman Abramovich. Cowes resident Andre - who goes to work in Southampton on a rigid inflatable boat - was the proud owner of a pair of prime tickets at Stamford Bridge, bang on the halfway line. But since Mrs O made him cancel his subscription, Andre will now be missing out on ...

  • Spanish inquisition

    7 Aug 2003

    I intend to buy a property in Spain and retire there. What I need to do to be treated as a non-UK resident and how I can establish my domicile in Spain? The terms residence and ordinary residence are not defined in the Taxes Acts and are based largely on court rulings. To be regarded as resident in the UK, you must normally be physically present in the country at some time in the tax year. You will always be resident if you are here for 183 days or more in the tax year. There ...

  • Staffordshire Building Society - Secure Capital Account

    12 Aug 2003

    Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £3,000-no maximum, Isa £3,000-£9,000 Term: Six years Guarantee: Original capital returned in full along with 10% growth at end of term Return: Between 10% and 60% growth at end of term Closing date: September 30, 2003 Commission: None Tel: 0800 216121

  • Stand up and be counted on PI

    7 Aug 2003

    I note with interest that some of the letters you are printing in your paper on PI and other regulatory subjects are becoming anonymous as far as the authors are concerned, presumably on the grounds of fear of retribution. This matter is far too serious for those with a grievance to remain anonymous. From what I can gather, there are probably 1,000 firms without compliant PI cover or any PI cover and probably the matter is getting worse on a daily basis. Although the FSA staff are ...

  • Standard abandoning break-even ages for contracting back in

    7 Aug 2003

    Standard Life is scrapping break-even ages as the criteria for deciding whether IFA clients should be advised to contract back in to the state second pension. The life office says it is adopting critical yields instead. It believes giving a critical yield that investments must achieve to make contracting out worthwhile is a more accurate way of presenting the information to the client. It says a simple age cutoff point based on age after which everyone should contract back in does ...

  • Standard Life Bank extends overpayment facility

    8 Aug 2003

    Standard Life Bank is extending the overpayment facility on its full range of fixed rate mortgages. Customers will be able to overpay by up to 10 per cent on any fixed rate, and make unlimited overpayments on the bank's Freestyle variable rate products. This means that a customer with a £120,000 capital mortgage on Standard Life Bank's 5 year fixed rate could cut their mortgage term by 84 months by overpaying £200 a month.

  • Talkback

    7 Aug 2003

    Is it fair that small IFAs will have to nearly double their professional indemnity insurance cover in two years time? "It is a known trend and, no, it certainly is not fair. It is a reflection of a change in the global economy that has severely impacted on the insurance companies but IFAs are now bearing the brunt. It may be worth lobbying or forming an action group to raise the issue in Parliament because at some point these costs are going to start impacting on the consumer." Andrew ...

  • The fax of life

    7 Aug 2003

    Am I alone in suffering the curse of the black hole? This black hole has attached itself to the bottom of every life office fax line and greedily eats up any fax message that I try to send them. There is a particularly big hole at the Pru in their annuity department which has eaten the same fax message four time. Swiss Life, Norwich Union, Dunbar and Axa Sun Life have also suffered from this affliction. Please, drag yourselves into the 21st century. Can I please use email? Emails ...

  • The miles file

    7 Aug 2003

    New Star has made much of its performance record of late, centred on the statement that all but one of its equity funds is top-quartile since launch. After all, John Duffield, former head of Jupiter Asset Management and now the driving force behind New Star, has never been one to make little of his achievements. Judged by its own standards, New Star has made an impressive debut. Its performance relative to the peer group has been top-notch and when the ship has gone off keel - ...

  • Top 10 funds take an 11% slice of total sales

    7 Aug 2003

    The top 10 biggest-selling funds last year took in 11 per cent of total sales, with Isis Asset Management's money markets fund raking in more than £900m alone, according to new figures. The 2003 edition of the UK Fund Review & Directory reveals that £5.4bn of the £47.6bn of total gross sales in 2002 was directed into the top 10 biggest sellers dominated by cash and bond funds. In a measure of how investor sentiment has changed, none of these funds made the ...

  • UK workers missing out on tax breaks says IFAP

    12 Aug 2003

    UK workers are missing out on £350m in tax breaks by ignoring employee share plans IFAP has revealed.

  • Wesleyan Savings Bank - Wesleyan Guaranteed Deposit Bond

    11 Aug 2003

    Type: Guaranteed equity bond and high interest account GUARANTEED EQUITY BOND Aim: Growth linked to the FTSE 100, S&P 500, Nikkei 225 and Swiss Market indices Minimum-maximum investment: £2,000-£1m Term: Seven years Guarantee: Original capital returned in full regardless of performance in index Return: Up to 70% growth at end of term Closing date: September 30, 2003 Commission: None HIGH INTEREST ...

  • When will it stop?

    7 Aug 2003

    The FSA is set to issue a paper which will attempt to organise financial advice into different product and service areas or perhaps into advice based in different stages of life. It notes this may change business models. The aim appears to be joined-up thinking but all it may be doing is changing things for change sake. IFAs must be asking themselves when is this going to stop?

  • Would you buy a used car from an ombudsman?

    7 Aug 2003

    I have just re-read an article in CTC Compensation Bulletin - Issue 10 (June 17) and part of it highlighted how totally unfair our financial services world has become. The part I refer to is as follows. A client invested £7,500 in a firm's corporate bond and gilt fund. Three years later, the client wrote to the adviser because she was concerned about the poor performance. The adviser replied: "You may wish to consider transferring your plan into another fund, such as the European, ...

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