Money Marketing
6 November 2002

  • ཮,000 lost split cash as IFAs did not know risks'

    7 Nov 2002

    Up to 50,000 investors have lost money through the collapse of split-cap investment trusts because most IFAs were una-ware of the risks involved, according to Labour MP and chairman of the Treasury select committee John McFall. Writing in this week's Money Marketing, McFall attacks some of the "leading firms" involved in marketing the trusts for refusing to acknowledge the crucial role they have played as the crisis deepens. The all-party committee has been holding a high-profile ...

  • 'Public want annuity reform and a gradual retirement'

    7 Nov 2002

    The Government should introduce gradual retirement, equal-ised tax incentives and moneyback annuities as they all have strong public support, says Downing Street pension adviser Dr Ros Altmann. But the public would reject using a flexible retirement policy as a cover for raising the state pension age to 70, according to extensive research by pollster YouGov conducted for Altmann, with 63 per cent rejecting moving the retirement age back five years even if it was sweetened with a big ...

  • ...but market-makers see a massive boost

    7 Nov 2002

    Traded endowment market-makers say the FSA's new rule forcing life offices to tell policyholders about the option to sell their policy on the open market has provided a "massive" boost to the industry. As a result of the regulator's policy statement 106 introduced in September, Tep provider Surrenda-link says enquiries from people looking to sell their policies on the open market rocketed by around 50 per cent between August and September. Breaking down the increase, it says ...

  • 2000 AD EIS brings comic to life

    6 Nov 2002

    2000 AD Films is an enterprise investment scheme that aims to translate characters from the sci-fi comic 2000 AD to the cinema screen.This EIS aims to raise between £250,000 and £2.5m to help finance a film which will follow in the footsteps of the 1995 production Judge Dredd which starred Sylvester Stallone. The company believes that worldwide interest in the 2000 AD brand will give it the edge over other film companies seeking funding for productions through an EIS.The ...

  • 2000 AD Films - Enterprise Investment Schemes

    11 Nov 2002

    Monday, 11 November 2002Aim: Growth by investing in the development and production of screenplays adapted from the comic 2000 ADMinimum investment: Lump sum £2,000Opening/closing date: October 11, 2002/November 19, 2002 Charges: ImplicitCommission: Subject to negotiationTel: 01753 657104

  • A consumer's view

    7 Nov 2002

    With unit trust sales and commission going rapidly down the pan, IFAs will have to scratch around for alternative sources of income. And long-term care provision provides plenty of opportunities. We are supposedly all motivated by fear or greed. But if that is the case, then the findings of a recent survey by NOP, conducted on behalf of Age Concern, apparently buck this trend. There is no doubt that the elderly fear becoming decrepit and in need of long-term care. But the NOP survey ...

  • Aberdeen to float property arm

    7 Nov 2002

    Aberdeen Asset Management is to float its property management division and has cut the size of its board of directors by almost half. Aberdeen Property Investors represents 26 per cent of the overall group's assets under management, with earnings in the year to September 30 reaching £10m. The company at the centre of the split-cap investment trust crisis has cut the number of board directors from 19 to 11. Only chief executive Martin Gilbert and finance director Bill Rattray ...

  • Aberdeen unit trust has default holdings

    7 Nov 2002

    Fifty of the holdings in Aberdeen Asset Management's high-yield bond unit trust have defaulted or are close to default. In addition to its Argentinian bond holdings, the unit trust also has exposure to split caps through holdings in Aberdeen preferred income and the real estate opportunities trust, which it formerly managed. Aberdeen has told IFAs that defaults are only to be expected and that the fund had outperformed its benchmark over one, three and six years. It says it is working ...

  • ABI rethinks plan to close savings gap

    7 Nov 2002

    The ABI has revamped one of its key proposals to close the savings gap, cutting to £100m from the original £500m it wants the Government to spend on tax breaks for employers which provide their staff with access to financial advice. Presented as part of a package of measures to persuade people to increase saving at its first Saver Summit last week, the ABI says if the Government spends £100m on tax credits it will be able to close the savings gap by £2bn. It ...

  • Abroad range

    7 Nov 2002

    IFAs are divided on the future of the Tep sector and some companies are trying to widen their appeal by moving into international markets. Falling bonus rates and scare stories in the media have seen policyholders in panic-selling mode, flooding the market with second-hand policies. In the 1980s, Teps were often used by IFAs to diversify high-net-worth clients' portfolio. They are now sold primarily as tax vehicles for rich clients. Towry Law product research manager Simon ...

  • Aegon is shutting eight retail funds

    7 Nov 2002

    Aegon Asset Management is closing eight of its retail funds, cutting the number in the range from 23 to 15 and, as a result, is pulling out of the Asian and emerging markets sectors. The move is part of a wider review of the firm's retail presence. It says the funds being closed are not part of its core retail proposition. The eight funds being shut early next year are American smaller companies, European smaller companies, Far East, Japan, Latin America, socially responsible ...

  • Aegon pays out £1m for 9.2% stake in Lighthouse

    7 Nov 2002

    Aegon is continuing its distribution purchases by taking a 9.2 per cent stake in national IFA group Lighthouse worth £1m. At an EGM this week, the Aim-listed IFA also approved a similar stake taken by Skandia, announced last month, for £1.2m. Lighthouse has so far attracted 170 of Canada Life's recently offloaded direct salesforce of 200 on to its books. Lighthouse says funds raised will be used as part of the company's recruitment drive. Aegon has a twin ...

  • AMP warns 'don't rely on state benefits'

    7 Nov 2002

    AMP is warning families not to depend on state benefits to protect them if they are affected by illness, accident or death. It says if the main family earner is not working, living standards could suffer considerably if they have not bought a protection product. They could also have additional costs relating to illness such as nursing or adapting the home. In its factsheet, State Benefits -- Can You Rely on Them? - published this week, AMP points out that statutory sick pay, which ...

  • Aviva explores Euro small caps

    12 Nov 2002

    Aviva Funds International has established the Privilege Portfolio Euro smaller companies fund, which aims for growth by investing in European companies with a market cap of below Î2.5bn.

  • Aviva Funds International - Privilege Portfolio Euro Smaller Companies Fund

    7 Nov 2002

    Thursday, 7 November 2002Type: SicavAim: Growth by investing in euro-zone smaller companiesMinimum investment: Lump sum euros 3,000Place of registration: LuxemburgInvestment split: 100% in euro-zone smaller companiesIsa link: NoCharges: Initial up to 6%, annual 1.25%Commission: Subject to negotiationTel: 00 352 40 28 20 261

  • Axa - Capital Protected Distribution Bond

    7 Nov 2002

    Type: Guaranteed equity bondAim: Growth by investing in Axa deferred distribution fundMinimum-maximum: £15,000-no maximumTerm: 7 yearsGuarantee: Original capital returned in full at end of term regardless of performance of underlying investmentReturn: Up to 80% growth over the termClosing date: January 17, 2003Commission: Initial 6.25%Tel: 0117 989 9000

  • Base-rate trackers from Mortgage Next

    7 Nov 2002

    Broker network Mortgage Next has added a new range of base-rate tracker loans funded by Halifax to its selection of products. The range has mortgages for first-time buyers, other homebuyers and borrowers remortgaging, all tracked until November 30, 2005. First-time buyers qualify for £250 cashback and a refund of up to £435 when using a Halifax valuation report while remortgage customers get a free property assessment and have their legal fees paid. There is no ...

  • Bercow quits over adoption vote

    7 Nov 2002

    Conservative Shadow pensions minister John Bercow has resigned from the front bench rather than give into pressure from the party to vote against Government plans to allow gay and unmarried partners to adopt children. He has been replaced on the pensions front by former social security minister Oliver Heald, who served in John Major's Government in the mid-1990s. Bercow's departure will be a blow for the party as he has been seen by many as a forward-thinking liberal MP who ...

  • Branded loan firm gets B&W backing

    7 Nov 2002

    A new branded lending company, Abacus Permanent, is being set up this month by the directors of Moneysuper market.com and Mortgage 2000, with Bristol & West and Preferred Mortgages backing the scheme. The move comes despite industry experts warning of the dangers associated with branded or correspondent lending due to the lack of transparency caused by blurring the line between manufacturer and retailer. IFA Holden Meehan warns that correspondent lenders can hide behind a branded ...

  • Buckles deal takes Zurich RI signings to 200

    7 Nov 2002

    Zurich Advice Network is continuing to lure IFAs over to its side of the fence with the signing of IFA Buckles, which claims independence is no longer viable. The North Wales firm has an annual turnover of £3m. Nineteen advisers are currently being trained by Zurich. Zan has also signed North London IFA Chenkin James Associates, bringing the number of RIs it has signed this year to 200. The move means the firms lose their independent status and join Zan's tied proposition, ...

  • Business down at St James's Place

    6 Nov 2002

    St James's Place Capital's new business figure show new sales down by nearly a quarter. For the three months leading up to Sept 2002 sales were £35m - down from £45m the year before. It says the figure reflect the continuing difficult investment conditions. 

  • Canada Life enters onshore bond market

    8 Nov 2002

    Canada Life has moved into the market for onshore unit-linked bonds with the introduction of the select investment bond.

  • Catering to the menu system

    7 Nov 2002

    The TV show Can't Cook Won't Cook is a favourite of my daughter's and I have to admit having seen it more than once. All this talk of menus reminded me of this and I started to see some uncanny parallels. In the show, the two sides have a limited budget from which they buy the ingredients and the two chefs then have to conjure up an appealing meal. Under the proposed menu system, we too have a limited menu as the ingredients seem to be limited to the "super-products" such ...

  • Cazalet tells industry to stand up and fight price caps

    7 Nov 2002

    Life analyst Ned Cazalet has hit out at product providers for not standing up to Government ministers over price-capping and has described the £27bn savings gap as a "leap of fantasy". Cazalet, speaking at the Investment and Life Assurance Group annual dinner in London last week, said product providers had to tell the Government that price-capping was stopping them from making a profit. He suggested that despite the fact that the Sandler products would do exactly what they ...

  • Change will rock you, L&G warns mortgage advisers

    12 Nov 2002

    Mortgage advisers face significant changes that will strain their businesses or sink them unless they take action now, warns Legal & General. L&G says advisers will have to adapt their business models to deal with mortgage regulation, general insurance regulation, margin pressures and sellers packs if they want to survive.  

  • Clamour is growing in compensation culture

    7 Nov 2002

    Last week was a poor one for the financial services and the Government. At the same time as former Aberdeen Asset Management head of investments Chris Fishwick was giving evidence to the Treasury select committee, all seven Equitable policyholder action groups were assembling outside the Houses of Parliament, demanding £4bn in compensation from the Government. For some, both are clear-cut examples of a burgeoning compensation culture in the UK. Litigation on behalf of split-cap ...

  • Close Brothers tops up VCT

    12 Nov 2002

    Close Brothers is raising up to £20m for its development venture capital trust (VCT), which was established in 1999.

  • Corporation street

    7 Nov 2002

    The Inland Revenue is seeking to consult with a view to modernising corporation tax to: •Improve business competitiveness. Of interest to advisers is the intention to look closely at the removal of tax distortions that affect commercial decision-making. The expressed aim is that business decisions should be made on commercial rather than tax grounds. •Maintain fairness in taxation, especially ensuring that individual businesses pay their fair share of tax in relation ...

  • Correspondent's week

    7 Nov 2002

    Changing jobs can be likened to the same turmoil that you go through when you change school as a child. For any of you that have ever started at a new school on the first day of term not knowing a single soul, you will know how I feel. Of course, as a child, you tend not to reflect upon the amount of time in a week spent at school. At work, however, it is fairly straightforward to clock up in excess of 2,500 working hours in a year. I was with my previous employer for six years. That ...

  • Dampier reclaims pundit top spot

    7 Nov 2002

    Hargreaves Lansdown head of research Mark Dampier has regained top spot in the PressWatch pundits table for September. David Hollingworth, of London & Country Mortgages, came a close second, with 28 mentions during the month, only one fewer than Dampier, while Chartwell Investment Management associate director Patrick Connolly took third place with 25 mentions. Dampier's colleagues at HL, Tom McPhail and Ben Yearsley, came in at fourth and 13th respectively, helping the ...

  • Ditch stakeholder pensions and bring back profits

    7 Nov 2002

    Following my questioning of Norwich Union's ability to predict the length of time before they can make a profit out of a stakeholder pension (Money Marketing, August 29), it has not taken long for them to decide that they will never make a profit out of some of these policies (Money Marketing, October 31). I don't suppose that there is any point in asking how much they will lose on these policies. Presumably, the same person will be asked to give his best guess again. Now ...

  • Drawing lessons from exams

    7 Nov 2002

    Who is testing the testers? I am not a lover of exams.I think they are great for people with short-term memories but not so good for the others.I have to accept that some form of testing is required but who regulates the people who write the questions, etc? We all know, for example, that the Cemap paper is a complete waste of time for advisers unless you are a member of the legal profession specialising in conveyancing but the law of the land dictates we have to pass the thing. ...

  • EIS brings sci-fi comic to life

    6 Nov 2002

    2000 AD Films is an enterprise investment scheme that aims to translate characters from the sci-fi comic 2000 AD to the cinema screen.

  • Fears that FSA filter puts public at risk

    7 Nov 2002

    Mortgage experts are warning that the FSA's proposal to introduce filtered questions which are not categorised as advice as part of its regime for the regulation of mortgage advice will put consumers at risk and could lead to misbuying. With the deadline for responses to CP146, The FSA's Approach to Regulating Mortgage Sales, set for November 11, lenders and brokers are listing "non-advised filtering questions" as one of the main bones of contention. Other issues being raised ...

  • Figuring out the shock 'plunge' in fund sales

    7 Nov 2002

    The Investment Management Association caused jaws to drop last week when it published figures showing that industry net retail sales plummeted by 83 per cent in September. According to the IMA's monthly statistics, net sales were down to £97.3m last month from £557.5m in August while net intermediary sales - accounting for two-thirds of unit trust and Oeic purchases - slid to £79.3m from £457.1m. But not everyone believes the figures are accurate. Several ...

  • Flight gives FSA low marks for handling of crises

    7 Nov 2002

    The FSA deserves only six out of 10 at best for its performance in trying to head off regulatory crises before they blow up, according to Conservative Shadow paymaster general Howard Flight. Flight says while he welcomed the statement by FSA chairman Howard Davies that it is the job of the regulator to identify and avert crises, he believes the FSA has failed in this respect. Citing examples such as the Equitable Life debacle and the split-cap investment trust crisis, Flight says ...

  • From here to maturity

    7 Nov 2002

    There is a distinct possibility that this year will see the third annual decline in a row in the UK stockmarket. Escape from this gloom has not been available by diversifying into overseas equity markets as most are also suffering. However, despite the negative publicity surrounding the performance of endowments, Teps continue to buck the trend. We are confident that the Tep market is here to stay. There are fewer new policies being issued but there are millions of policies that ...

  • FSA acts against accountants

    7 Nov 2002

    The FSA has taken action in the High Court against two accountancy firms it believes have been running unlawful investment schemes which have taken more than £11.6m from UK investors. The regulator has been granted interim injunctions against Dobb White & Co and Morris White & Co, and the two partners of both firms, Mr Shinder Singh Gangar and Mr Alan White. Both firms have offices at Lyn House, 39 Parade, Oadby, Leicester. Dobb White also has offices at 139 and 141 ...

  • FSA ready to look at target-related fee deals

    7 Nov 2002

    Fund firms could be allowed to offer performance-related fees after the FSA admitted there is a greater case for them than ever before. At the Investment Management conference in London this week, FSA head of collective investment schemes Kevin Tomlin said the regulator was looking at more flexible pricing, including performance-based fees. Currently, investors can only access adjusted fees through offshore funds although some firms offer partial rebate of fees if a fund does not ...

  • Fund firm aims for gold with property fund

    7 Nov 2002

    Fund manager Pinder Fry & Benjamin is launching a commercial property investment vehicle aiming to return 9 per cent a year over a term of seven or eight years. The £185m Gold - geared opportunity limited downside - property partnership will acq-uire an office building in London's Victoria that is partially let to the Government until 2021. PFB says the rent due from the Government, which amounts to around 98 per cent of the building's total rental income, is not ...

  • Fund firms get freedom mix

    7 Nov 2002

    Unit trust and Oeic managers will see the majority of new funds launched classed as mixed funds, allowing them greater freedom in investing under new FSA rules on classification of asset classes. Most new funds after November 1 will be classified as mixed funds and will be allowed to hold a greater mix of assets including property, bonds, equities and cash. The rules are detailed in Feedback to CP135 published last week. The plans were outlined in CP135, New Collective Investment ...

  • Gartmore appoints commercial director

    12 Nov 2002

    Fund manager Gartmore has announced it has appointed David Middleton as its new head of commercial development. He joins from Coutts Group where he is currently commercial director and responsible for all product development with the private client bank. When Middleton joins Gartmore in early 2003, he will report to head of UK retail Paul Feeney and take control for all product development.

  • Green Paper will not review pension credit

    7 Nov 2002

    The pension credit and the interface between state and private pensions will not be reviewed in the pensions Green Paper, Downing Street economic adviser Derek Scott has told Money Marketing. Scott, the Prime Minister's personal economic adviser, says the Government has no appetite for a rethink on the pension credit which is due to be introduced next autumn. But pension policy adviser Dr Ros Altmann has branded the Government's current position as dishonest, saying the credit ...

  • Henderson Global Investors - FTSE 100 income or Growth Plan

    11 Nov 2002

    Monday, 11 November 2002Type: Guaranteed equity bondAim: Growth linked to the performance of FTSE 100 indexMinimum-maximum investment: £7,000-£5mTerm: Five yearsGuarantee: Capital returned in full provided the index does not fall by more than 30% in last two yearsReturn: Choice of 6.5% income a year, 0.52% income a month or 35% growth at end of termClosing date: December 16, 2002Commission: Initial 3%Tel: ...

  • Highest monthly house price rise says Halifax

    8 Nov 2002

    UK house prices rose by 4.7% in October, the biggest recorded monthly increase yet, according to figures from Halifax.

  • Homebuyers in London must find £80,000 deposit

    7 Nov 2002

    London residents have to find around £81,650 as a deposit to afford an average-priced home compared with only £15,000 in 1997, according to personal finance website Moneynet. This finding, basing affordability on someone borrowing three and a half times their salary, comes from a survey by Moneynet to track changes in finance since the website's launch five years ago. It reveals that while house prices have increased by a national average of 64 per cent over the ...

  • Honesty is best policy

    7 Nov 2002

    The split-capital investment trust industry is in crisis. The reputation of what was once a growing and successful sector has been battered by the behaviour of some of its leading firms which has led to the impoverishment of up to 50,000 investors. The familiar refrain that markets can go down as well as up does not offer absolution to those who sold investments on the basis of safety and then stood back and watched their clients lose everything. People were told that these investments ...

  • Horlick gives up her fund role to run SG business

    7 Nov 2002

    SG Asset Management's high-profile fund manager and chief executive Nicola Horlick is relinquishing her role as joint chief investment officer to concentrate on running the business. Horlick, who is also giving up the management of SG's income fund to her assistant Adrian Gosden, will hand the CIO role to John Richards, who is quitting as lead manager of the UK growth unit trust to assume the position on his own. Management of the UK growth fund will be taken over by Hugh ...

  • House price rises to continue but at lower annual rate

    7 Nov 2002

    House prices have resumed strong growth after a temporary cooling over the summer with a downturn looking unlikely, according to Nationwide. In its monthly house price index, the building society says the market saw prices rise by an average of 1.4 per cent in October and 24 per cent over the year. The average price of a home is now £113,665. Nationwide does, however, predict that house prices will not increase at the same rate over the coming year. But it believes there ...

  • How many courses?

    7 Nov 2002

    The Diary wants to find out who has been to the most IMA dinners One person, who, for reasons of chivalry will remain nameless, is understood to have been to the investment houses' tea party for the last 19 years - albeit in its various UTA and Autif guises. If you or anyone you know can beat this tally please email the Diary at the usual address.

  • IFA chief Childs quits F&C after 20 years

    7 Nov 2002

    F&C head of UK IFA operations Philip Childs has left the firm after 20 years' service. UK sales director Jamie Farquhar is taking interim responsibility for IFA relations, reporting to new head of retail business Laurence Llewellyn. Childs has been largely responsible for a major expansion by F&C in the retail market. Up to 10 products are expected to be launched over the next years, with two on the market - Blue and With Prospects. Llewellyn joins this week from ...

  • IFAs forecast the end of the line for Tep sector...

    7 Nov 2002

    The death of the Tep market is nigh, according to some of the UK's biggest IFAs, who no longer recommend the products as investment vehicles. Some have compared estimates on policies with a "game of poker," with only life office actuaries having any idea as to their real value. Firms such as Towry Law will not recommend Teps because of the financial headache of plummeting bonus rates and the difficulties of accurately assessing the value of policies. Falcon Group regional ...

  • IMA chief blasts fund firms over past performance ads

    7 Nov 2002

    IMA chief executive Dick Saunders has sharply criticised his own industry, claiming fund companies have used past performance in advertising in a way of which "no one can be proud". Speaking at the Investment Management conference in London this week, Saunders said the industry had to acknowledge where it could do better. He said: "The industry needs to be ready to behave with responsibility when it comes to advertising its products. A lot of the current focus on the use of performance ...

  • Independent view

    7 Nov 2002

    It is probably close enough to the end of the calendar year for me to draft my wish list for 2003. The advantage of a wish list is that it can be a complete fantasy list - and mine is no exception. The stockmarket steadies and rallies. This promotes instant investor confidence. People pile into the stockmarket as they see this as a growth area, their buy-to-let property projects fall to the wayside. People also develop a real understanding of equities, and coupled with this a real ...

  • Inside edge

    7 Nov 2002

    Is there a future for with-profits? It might have seemed unthinkable only a few years ago to ask such a question. How could a product with over£480bn invested in it and providing long-term returns of up to 11 per cent after tax become the subject of such negativity? Well, volatile investment conditions, falling bonus rates, market value reductions and concerns about the black box of with-profits have all focused attention on this stalwart of the investment market. Some forthright ...

  • Intelligent approach

    7 Nov 2002

    Scottish Mutual's multi-manager portfolio service, Investment Intelligence, provides access to three pre-packaged funds from its sister company Inscape. Or investors can choose from a range of six multi-manager funds from institutional fund management group Attica. Assessing how II fits into the market, Gilbey says: "It is a sophisticated, flexible and structured multi-manager investment option within the Scottish Mutual flexible investment bond and complete retirement package products. ...

  • Inter-Alliance suspends director at Mayfair base

    7 Nov 2002

    National IFA Inter-Alliance has suspended London-based regional director Tony Davis while it says "certain matters are being investigated". Lawyers are believed to be involved and Inter-Alliance chairman and chief executive Keith Carby says he cannot discuss the reasons for suspending Davis from the Mayfair practice while the situation is being looked into. But Money Marketing understands that some of the IFA firm's franchisees have misgivings about contractual changes which ...

  • Investment analysis

    7 Nov 2002

    It was a mixed week for equity markets with gains in the US and the major European indices ensuring a positive return of 0.7 per cent for the representative FTSE world index. Equities in the UK, Japan and Hong Kong finished lower. October was the best month for US equities this year despite worsening economic data, the latest of which was the conference board's index on consumer confidence which fell to a nine-year low. October's decline was the fourth consecutive monthly fall ...

  • Investment view

    7 Nov 2002

    With the UK stockmarket undecided as to which side of the 4,000 level it feels most comfortable on, last week was a time to search for good news. There was not a lot of it to be found. Aside from the shine fading from BP and Lord Browne, Diageo's trading statement was enough to drive you to drink. The smell of disappointment was in the air - and nowhere more so than with American consumers. The rapid expansion of the US economy during the second half of the 1990s was built in no ...

  • ISIS Equity Partners - Baronsmead VCT

    12 Nov 2002

    Tuesday, 12 November 2002Aim: Growth by investing in established but unquoted UK companiesMinimum investment: Lump sum £3,000Opening-closing date: October 25, 2002-April 3, 2003 for 2002/2003 tax year, May 23, 2004 for 2003/2004 tax yearCharges: Initial 5%, annual 3.5%Commission: Initial 3% or initial 2%, renewal 0.5% for five yearsTel: 0845 6006166

  • Isis tops up baronsmead

    7 Nov 2002

    Isis Equity Partners is seeking a £14m top-up investment for its baronsmead venture capital trust (VCT), allowing it to make between 10 and 20 additional investments.

  • Julian Gibbs

    7 Nov 2002

    Keydata has introduced an exciting new investment called the dynamic growth plan which should appeal to all stockmarket investors as well as to conservative and realistic ones who are risk-averse. It offers double the return on the FTSE 100 Index performance capped at a maximum investment return of 80 per cent, that is, twice a 40 per cent rise, over a five-year period with full capital repayment unless the FTSE 100 falls by more than 50 per cent and does not recover to at least its ...

  • Keydata Toisa is FTSE mad

    11 Nov 2002

    Keydata Investment Services has established the capital plus account, a Tessa-only Isa (Toisa) that is linked to the FTSE 100 index for five years.

  • L&G tracking fund offers links to 100 global companies

    7 Nov 2002

    Legal & General has set up a tracking fund, the global 100 index trust, giving investors exposure to 100 of the biggest international companies. It says with forecasters, including the G7 economic intelligence unit, predicting growth in some of the world's major markets over the next five years, global companies could be the right sector to invest in for the future. The fund, which opens on November 22, will track the Standard & Poor's Global 100 index made up of ...

  • Leeds & Holbeck opens Gibraltar office

    12 Nov 2002

    Leeds & Holbeck Building Society is expanding its wings beyond the UK for the first time by opening an office in Gibraltar. The Society will offer a range of mortgages to residents of the Gibraltar and British ex-patriots. It then plans to expand its business into Spain and begin accepting to deposits in 2003 with more ambitious plans to expand across Europe.

  • LIA backs menu

    7 Nov 2002

    I was interested to read in the leader of the October 31 issue of Money Marketing: "Aifa is the menu master", that it is perceived that "the LIA is still warning of a great deal of upheaval among intermediaries". I would just like to put on record that the LIA is totally supportive of the concept of the menu. Indeed, we have put forward our own ideas on this on a number of occasions - following the publication of CP121 and during the Sandler investigation. As you quite rightly ...

  • Lifequote adds Scot Am menu protection product

    7 Nov 2002

    Scottish Amicable's menu protection product is now available on the comparative quotes search engine run by Lifequote, an intermediary network offering advice on life and protection insurance. The network's 900 members, including IFAs and general insurance and mortgage brokers, can access quotes through Lifequote's website on Scot Am's life,critical-illness cover, unemployment cover and mortgage payment benefit. Scot Am says it has been working with Lifequote to build ...

  • Man Investment Products - Man Multi-Strategy Series 4

    12 Nov 2002

    Tuesday, 12 November 2002Type: Multi-manager hedge fund portfolioAim: 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 investmentsIsa link: NoCharges: Annual 3%Commission: Subject to negotiationTel: 020 7285 2000

  • Marketing toolbox online

    7 Nov 2002

    Specialist lender Future Mortgages has launched a free online "marketing toolbox" for brokers. The new facility hopes to dispel the myth that marketing is complicated and expensive and aims to add value for the intermediary. The marketing toolbox offers useful hints and tips on advertising, public relations, direct mail and sponsorship for intermediaries who are interested in building up their local marketing base but are not sure how to go about it. By logging on to the site at ...

  • McBrien stepping down at IFAP

    6 Nov 2002

    IFAP has announced chairman Kevin McBrien is stepping down at the body's November board meeting and is being temporarily replaced by former Scottish Amicable chief executive and current Advice First chairman Roy Nicolson. McBrien, who is the former chief executive of pensions provider NPI and joined IFAP in June 2001, is resigning for personal reasons. Nicolson is only taking over until a permanent replacement for McBrien is found. 

  • Momentum picks corporate chief

    6 Nov 2002

    IFA Momentum Financial Services has appointed Tony Shepherd to head up its national corporate development team. As corporate development director he will manage a team of 12 corporate development consultants across the UK and be responsible for driving Momentum's sales expansion plans. Shepherd joins with 22 years' sales and senior management experience working with a range of companies including Xerox, Yellow Pages and BP Oil. 

  • More firms offer PHI cover to all employees

    7 Nov 2002

    More companies are offering private health insurance to all employees in a bid to beat NHS waiting lists and get people back to work, according to benefits consultant Towers Perrin. The company says this is a key finding from its sec-ond corporate healthcare survey of 120 top UK companies, representing more than two million employees. An increasing concern of employers identified is the increasing premium costs and claims of incidences. The survey reveals that 38 per cent companies ...

  • National Business Angels Network publishes guide

    12 Nov 2002

    The National Business Angels Network, a national organisation supporting start-ups, has published the latest edition of its investment directory, Business Angel Finance.

  • New business development manager at Winterthur

    12 Nov 2002

    Winterthur Life is appointing Laurence Toft as business development manager. Toft previously worked for Scottish Amicable and has worked in financial services for 20 years. He will report to Winterthur regional sales manager for the South Frank Parsons, and will work from the Reading office.  

  • Nichola Pease

    7 Nov 2002

    Northerners often refer to themselves as no-nonsense straight-talkers and JO Hambro Capital Management chief executive Nichola Pease is no exception. Northumberland-born Pease may be the chief executive of a fund management house but she has none of the associated pinstriped trappings. Power-dressing and talking herself up are most definitely not the way Pease operates. The 41-year-old has an air of understated authority and composure. She comes across as being sure of herself ...

  • No compulsory Amicus redundancies

    6 Nov 2002

    Prudential has averted threatened strike action by promising Amicus there will be no compulsory redundancies at its Reading call centre. This follows Pru's decision to move its call centre to India which threatened 850 jobs. The union is recommending acceptance of the offer. 

  • Norwich Union - Norwich Union Distribution Fund

    12 Nov 2002

    Tuesday, 12 November 2002Type: OeicAim: Income and growth by investing in fixed interest securities and UK equitiesMinimum investment: Lump sum £1,000, £500 Isa, monthly £50Investment split: 65% fixed interest securities, 35% UK equitiesYield: 5.7% gross a yearIsa link: YesPep transfers: YesCharges: Initial 4%, annual 1.25%Commission: Initial 3%, renewal 0.5%Tel: 0845 6072438

  • Norwich Union - Prosper Bond Issue 4

    8 Nov 2002

    Friday, 8 November 2002Type: Guaranteed equity bondAim: Growth linked to the performance of FTSE 100 indexMinimum-maximum investment: £3,500-no maximumTerm: 5 yearsGuarantee: Original capital returned in full regardless of movements in indexReturn: Up to 62.5% growthClosing date: December 27, 2002Commission: Initial 3.5%Tel: 0845 9444800

  • NU slashes Isa Catmarks

    7 Nov 2002

    The Government's Cat standards suffered a further blow this week after Norwich Union said it was slashing the number of Catmarked Isas it offers because they are too expensive. NU is stripping Catmarks from all eight of its actively managed funds from February because it says the 1 per cent cap is uneconomic and hinders its efforts to move further into the IFA market. The funds, which include UK equity income, UK growth, European equity and UK ethical, will switch to annual ...

  • Octopus Asset Management - Phoenix UK VCT

    12 Nov 2002

    Tuesday, 12 November 2002Aim: Income by investing in Aim companiesMinimum investment: Lump sum £3,000Opening/closing date: November 18, 2002/April 4, 2003 for 2002/2003 tax year, July 31, 2003 for 2003/2004 tax yearCharges: Initial 5%, annual 2%Special offer: 2% discount on initial chargeOffer period: Until December 31, 2002Commission: Initial 2.25%, renewal 0.375%Tel: 0800 2792501

  • Outside edge

    7 Nov 2002

    I just know that opposite this page, someone will be saying that with-profits was, is and always will be wonderful and that nothing else in the world will ever quite capture those special places in the hearts and wallets of Mr and Mrs UK that are reserved in perpetuity for their pet actuary. Worse still, the ABI might be there, trumpeting again what marvellous value with-profits has delivered and how it has comfortably outpaced the best of the unit trusts. Now I am no great fan ...

  • Pensions high on US election agendas

    7 Nov 2002

    Democrat and Republican candidates have put pensions and financial advice high on their campaign agendas as voting closes in the US mid-term elections. With the ageing US electorate growing increasingly concerned with retirement issues, both parties are promoting policies that will make pensions more secure, says American Benefits Council retirement policy director John C Scott. Scott, who was in the UK last week speaking at the ABI Saver Summit, told Money Marketing that a backdrop ...

  • ProACT service aids IFAs on claims

    6 Nov 2002

    ProACT Legal is launching a service to counter the class actions on split caps and endowments affecting IFAs. Partner Gareth Fatchett says many claims are being manufactured by "trying it on" assuming that IFAs will pay up. The firm offers IFAs a package service including standard letters. 

  • Product matters

    7 Nov 2002

    The Scottish Mutual commercial property plan will probably interest a fair proportion of the investing public who are to some extent being led by the nose away from equities and into property. Buying an office block or factory is out of the reach of most people so a collective-type investment presents the answer. The plan will mature on January 15, 2013 at the latest. We have all seen what has happened with a number of structured products with fixed maturity dates. If on January ...

  • Property matters

    7 Nov 2002

    A client who has recently sold his property consultancy business in order to take an employed position wants to additionally fund for his retirement. He is nervous of the current stockmarket and states that he is looking for reduced volatility from his holdings. He does not know when he will start to drawdown the fund but he is 60 in seven years time. He wants to pay a fee to explore which pension product suits his needs and what asset classes and investments should he be looking at for ...

  • Protection boosted with cap on units

    7 Nov 2002

    The new FSA regulations mean fund managers will be able to cap the number of units in funds giving them greater ability to move their holdings and provide more protection to investors. The regulations, aimed at reforming the structure of unit trusts and Oeics, published last week offer up a substantial number of new changes to how funds operate, a key one of which is allowing a cap. The FSA says this move will offer a degree of protection to investors as funds with a smaller number ...

  • Prudential - Prudential Growth & Income Plan

    6 Nov 2002

    Wednesday, 6 November 2002Type: Guaranteed equity bondAim: Income or growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £7,000-£1mTerm: 5 yearsGuarantee: Original capital returned in full at end of term provided the index does not fall by more than 40%Return: 8% gross a year income, 0.62% gross income a month, 42% growth over the termClosing date: December 6, 2002Commission: Initial 3%Contact: ...

  • Real message of the pension age debate

    7 Nov 2002

    The transition to a state pension age of 65 for women to equal that of men will not be complete until 2020. Yet we are already debating a further rise in state pension age for both sexes. The Institute for Public Policy Research proposed 67 in June. In September, the Pensions Policy Institute published a detailed research paper about a possible increase in state pension age to 70 for people who are under age 40 today. Then in October, the National Association of Pension Funds threw ...

  • Risky business

    7 Nov 2002

    The Diary's favourite all-action hero Skandia's Matt Davies has made his TV debut duelling with a fencing instructor and street fighting. Channel 4's Faking It documentary challenged the mild-mannered Davies to convince a panel of judges that he was a professional stuntman. He was shown anxiously confessing to a video diary that he thought he was being asked to take far too many risks and play up to the cameras. A Skandia spokesman said: "We would never have insured him ...

  • Savills in self-cert warning

    7 Nov 2002

    Brokers and lenders benefit from the higher margins available on self-certification products but borrowers are usually better off with a mainstream loan, says mortgage IFA Savills. The Council of Mortgage Lenders says it would be foolish not to acknowledge that a client might exaggerate their income to get a bigger loan. The Mortgage Code Compliance Board says self-cert should not be recommended where affordability is an issue. Holden Meehan mortgage manager Steve Smith says ...

  • Savings plan as a child's Xmas present

    7 Nov 2002

    Royal Liver Assurance is promoting its children's tax-exempt savings policy in the run-up to Christmas. The campaign was devised after a financial awareness report by opinion poll by Mori, commissioned by Royal Liver, showed many people are not aware of how simple investments can be. The campaign urges parents and grandparents to save for a child's education, wedding or for a deposit on their first house. The policy can be set up for a 10 to 25-year period with the investment ...

  • School of thought

    7 Nov 2002

    Sometimes, the financial services industry seems to be under siege from all sides. Often, the policy response to such challenging times is short term. The public pressures politicians for quick-fix solutions. Often, long-term strategies are crowded out of political debate. However, it is just such long-term and fundamental policies and, specifically, investment in financial education which are required. The financial services industry certainly faces considerable challenges. First, ...

  • ScotLife tells MPs of pension tests

    7 Nov 2002

    Scottish Life has set MPs its four pension tests to pass for a simpler system. The tests, which have been detailed previously in Money Marketing by ScotLife head of pension strategy Steve Bee, aim to ensure changes work to better the system instead of adding complications. In its response to the Parliamentary work and pensions select committee inquiry, Scottish Life warns that simply creating more rules will not achieve anything. It says the existing system should be ringfenced ...

  • Scottish Life Mortgages goes national with loan club

    7 Nov 2002

    Scottish Life Mortgages is starting the national roll-out of the mortgage club it has been piloting over the summer. The club has also announced a deal with Trigold to use its sourcing platform. SLM says it becomes the only life office to have a packaging arm and a club, which will negotiate deals for brokers, initially with a panel of 10 lenders, and pay procuration fees as competitive as rivals such as Legal & General and Prudential. This national expansion of the service, ...

  • Serps and drawdown the next scandals?

    7 Nov 2002

    Contracting out of Serps and the state second pension and income drawdown are the most likely candidates for the next misselling scandals, warns consultant PricewaterhouseCoopers. The consultant says some of the five million people who contracted out of Serps might have been better off if they had stayed in, particularly among the lower-paid. It argues that someone approaching 65 this year who contracted out for five years in the late 1980s and early 1990s would have a pension ...

  • Sippdeal offers online plan exclusive to IFAs

    7 Nov 2002

    Self-invested pension plan provider Sippdeal is offering an online Sipp product featuring advisory and execution-only options as well as links to 10 discretionary fund managers. Available exclusively to IFAs, Sippcentre gives access to online calculation tools for income withdrawal illustrations, critical yield analysis projections and Sipp protections. The service also incorporates online listings of all Sipp clients, cash balances and investment portfolio valuations, transaction ...

  • Smith says Govt is not bringing in compulsion

    7 Nov 2002

    Work and Pensions Secretary Andrew Smith has indicated that the Government will not introduce pension compulsion on employers or employees and has issued a call for an employer taskforce to aid the Green Paper consultation. Smith told a CBI conference in London this week that he wanted to build on Britain's tradition of voluntary occupational provision, leaving delegates in little doubt that compulsion beyond current National Insurance contribution limits is not on the Government's ...

  • Smooth talkers debate the prospects for with-profits

    7 Nov 2002

    Proactive IFAs could replace with-profits, claimed Skandia UK co-founder Paul Bradshaw at a debate last week where Standard Life's David Hare said the product is here to stay although it may be altered in the future. The two were debating the future of with-profits at an event hosted in London by the Financial Services Forum with Money Marketing. Standard's head of with-profits communications Hare declared the vehicle remains a good investment. He was opposed by Bradshaw, ...

  • Soaring PI cover is putting IFAs in critical condition

    7 Nov 2002

    You many be interested in my professional indemnity story. I have been trading as an IFA in Maidstone since 1976. We provide a bespoke service to our clients, most of whom are local but, over time, our clientele have extended to all parts of the UK and abroad. We mainly specialise in investment and pension planning in retirement and operate on either a fee or commission basis. I am the principal Adviser with three admin staff dealing with the 3,000 plus clients. Following the ...

  • Split decision on with-profits

    7 Nov 2002

    The great and the good of financial services turned up last week at the Bloomberg head office in the City to hear the case for and against the future of with-profits. Proposing the motion that With-profits Remains a Good Investment for the 21st Century Investor was Standard Life head of with-profits marketing David Hare. Opposing was Skandia UK founder Paul Bradshaw. A show of hands at the start of the event, hosted by the Financial Services Forum and chaired by chairman of the ...

  • Split-cap pressure is mounting on FSA

    7 Nov 2002

    Industry opinion is growing that the FSA should have intervened and forced split-capital product companies to include risk warnings in their UK prospectuses. Although the official scope of the regulator only stretches to marketing literature, industry sources believe that the FSA should have acted to ensure adequate warnings were included in prospectuses issued before flotation. The FSA says regulation of prospectuses falls under the jurisdiction of the UK London Listings Authority. ...

  • Splits personality

    7 Nov 2002

    Like Channel Islands' detective Jim Bergerac, it looks like director of investment business for the Guernsey regulator Peter Moffat was always ahead of the game, raising the alarm on split caps almost two years ago. The Guernsey Financial Services Commission regulator was arguably faster than the FSA to spot the potential for a split-cap crisis by insisting that split-cap funds registered on the island included more specific risk warnings in their prospectuses. Two issues are ...

  • Standard Life scorns 'stake success'

    7 Nov 2002

    Standard Life has poured scorn on Government claims that stakeholder pensions have been a success. At the Saver Summit, Baroness Hollis described the sale of over a million stakeholder pensions as a success. But Standard managing director, marketing Simon Douglas pointed out that while 42 per cent of stakeholder policies sold have gone to the Government's £10,000-£20,000 target market, this only represents 2 per cent of the 13.2 million Britons without a pension. Hollis ...

  • Stepped discount from Skipton

    7 Nov 2002

    Skipton Building Society has launched a new four-year stepped discount mortgage which is currently paying rates starting from 3.55 per cent. The greatest discount is in the first year when it is 2.15 per cent off Skipton's variable rate, which is currently 5.70 per cent. In the second year the discount is 0.85 per cent off the variable rate, dropping to a 0.5 per cent in years three and four. The four-year stepped product has a LTV of up to 85 per cent and flexible benefits ...

  • Talkback

    7 Nov 2002

    "Yes, because there was a failure to monitor its position, which was down to the DTI and therefore the Government." John Simpson, Smith & Pinching Financial Services "No, why should the British taxpayer subsidise the poor management of an insurance company?" Howard Cook, Talbot Insurance Services "No, if they do it for Equitable they will have to do it for everyone." David Kennedy, Premier Financial Planning Group "No, responsibility should ...

  • Tap into a Tep

    7 Nov 2002

    The misselling of with-profits endowments has again brought the product under the spotlight and resulted in criticism. I believe, however, that the with-profits principle is good and has proven to serve investors well over the years. Traded endowment policies continue to provide investors with the security of capital and good returns of investment, which investors currently seek. The volatility of the stockmarkets, low interest rates and inflation heightens investors' interest in Teps. Over .

  • Teenagers leading push to save more

    7 Nov 2002

    People in their late teens are Britain's top savers, expecting to save an average of £189 a month, according to research by Alliance & Leicester. People in their 20s plan to put away £94 a month and those in their 40s only £87 a month, according to the bank's quarterly wealth tracker index. But the findings show that while saving more, people are planning to invest less. It says consumers expect to invest just 6 per cent of their disposable income over ...

  • The Equitable Life crisis

    7 Nov 2002

    Open letter to Ruth Kelly, Financial Secretary to the Treasury I was concerned to read newspaper reports that the Treasury may not have been co-operating fully with the investigation of the Parliamentary Ombudsman into matters at Equitable Life. The Treasury must be open and honest about its role in the Equitable Life crises.If Treasury ministers were at fault, then they need to come clean for the sake of the hundreds of thousands of Equitable policyholders. We are have ...

  • The with-profits debate

    7 Nov 2002

    FOR DAVID HARE Head of with-profits marketing, Standard Life I was glad to see the words "remains a good option" in the motion because it seems all too easy to forget just what a good choice with-profits has been for many investors. It is over 200 years since with-profits policies were introduced as a way of dealing with uncertain mortality risk costs. Since that point, the concept has developed in various ways, particularly with regard to investment strategy. Thanks ...

  • Through the legal maze

    7 Nov 2002

    We have reached the latter stages in the recommendation and implementation of a share-purchase arrangement within a limited company using a fairly typical example - Owl Sewerage Services Ltd. The final major remaining piece of the jigsaw is to establish and help to implement an appropriate form of legal agreement so that there is a clear and written basis as to what has been agreed between all the parties - and also to maximise tax efficiency. As I mentioned in my previous article, ...

  • Time for FSA to face up to reform

    7 Nov 2002

    I support whole-heartedly calls for an end to the FSA's statutory immunity from prosecution, not least in light of the current debacle over split-capital investment trusts, following hot on the heels of the Equitable Life scandal. All promotional literature on split caps was submitted to and approved by the FSA prior to distribution. So how can the FSA now be claiming that any claims of incompetence or culpability on its part are "unfounded"? And if the warnings circulating ...

  • Top up with a Tep

    7 Nov 2002

    From September 1, the FSA has required life offices to inform policyholders who enquire about surrendering endowment policies that they may be able to obtain a higher price on the secondary market. This will increase the number and variety of Teps available to investors. People are more worried about their future than they have been for a generation. The promises of a good quality of life in retirement are disappearing along with cash in pension pots and confidence in state provision. We ...

  • Trackers can put up to 20% in one stock

    7 Nov 2002

    Tracker funds can invest up to 20 per cent in a single stock with the new FSA rules. Firms will get more freedom in replicating the composition of an index. In certain circumstances, single stock holdings of 35 per cent will be allowed. Firms were unable to hold stocks to reflect the true composition of an index if single holdings exceeded 10 per cent, although in the past, derivatives have been used to duplicate investment profile. The changes come into force this week, more ...

  • UBS goes for US equities

    11 Nov 2002

    UBS GLOBAL ASSET MANAGEMENTUS EQUITY FUNDType: Oeic Aim: Growth by investing in US equities Minimum investment: Lump sum £1,000, monthly £50 Investment split: US large-cap companies 65%, US mid-cap companies 35% Yield: None Isa link: Yes Pep transfers: Yes Charges: Class A shares - initial 4%, annual 1.5%, class B shares - annual 0.9% Commission: Initial up to 3%, renewal up to 0.5% Tel: ...

  • UK/US language barrier problem for homebuyers

    7 Nov 2002

    Specialist overseas lender British Mortgage Abroad says while many UK residents dream of owning a home in Florida, language and culture may be a barrier. An online survey of 250 British people by BMA, part of Abbey National's First National Bank, carried out last month found British understanding of 40 commonly used American words is low. It reveals less than a third of respondents know a courgette is called a zucchini in the US. Only only one in five know a sophomore is a second-year ...

  • Virgin helps 'unloved' NU policyholders

    6 Nov 2002

    Virgin Money is offering a dedicated helpline for Norwich Union stakeholder policyholders who are feeling "unloved" after NU's decision to concentrate on larger, more profitable schemes. Virgin says it loves every one of its customers and says companies like NU could run stakeholder as a closed book and service could suffer. 

  • Widows hails menu choice

    7 Nov 2002

    Scottish Widows has welcomed the FSA's move to ditch the defined payment system in favour of the menu proposal put forward by Aifa. Widows had opposed the DPS and its CP121 response, together with parent Lloyds TSB, was sharply critical. It was one of the product providers which worked on expanding the menu proposal put forward in Aifa's CP121 response. This was done at the request of the FSA, which wanted to see how the menu plan could be expanded across the market. The ...

  • Will Green Paper dig deep enough?

    7 Nov 2002

    Is yet another pension reform going to ail to dig deeply enough to get to the root of the problem? Probably. This is what we hear from senior Government sources which suggest that the Green Paper will not be able to deal with the boundary between state and private provision. The ideal situation is for people to know what they will or will not get from the state, allowing them to decide what additional private provision they need. The principle was recently promoted by the National ...

  • Zurich appoints Unum chairman as chief executive

    7 Nov 2002

    Zurich Financial Services has announced the appointment of Lawrence Churchill as its new UK chief executive, replacing Ray Greenshields who resigned last month.

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