Money Marketing
9 July 2003

  • 'Back me or I complain to FSA' - Standard bagger's threat to IFAs

    10 Jul 2003

    Would-be Standard Life carpetbagger David Stonebanks is threatening to report IFAs to the FSA if they do not advise their clients to back his campaign for demutualisation of the company. Stonebanks claims that IFAs have a duty of care to advise their clients to back demutualisation of Standard as he believes it is in their best interests to receive a windfall of up to 20 per cent of their policy's value. Stonebanks, 63, claims he has collected 1,830 demutualisation request forms, ...

  • 'Get back to the old basics of investing'

    10 Jul 2003

    Investors should get back to basics and only invest in things they can eat, drink, wear, smoke or drive, says M&G. At the Senate Programme in Monte Carlo, M&G global basics fund manager Graham French told delegates that investors should shun stocks such as TMT and invest in old stocks, such as transport, oil and gas and mining. French said that during the technology boom investors had overlooked many great companies with good business models as they sought to chase big ...

  • 'Government will have to pay on pension losses'

    10 Jul 2003

    The Government will be forced to compensate workers who have lost out on their pensions after it knew occupational schemes were unsafe, claims influential analyst Dr Ros Altmann. It could also face litigation over changing pension rules to favour people in retirement ahead of non-retired scheme members as part of its pension priority rules, introduced in 1997. Altmann says steelworkers at ASW will succeed if they sue the Government because it created the legal framework that left ...

  • 1,300 candidates booked in to take CII's savings and investments exam

    10 Jul 2003

    The Chartered Insurance Institute says its savings and investments exam is proving a success, with more than 1,300 candidates already entered for exams in July and October. The CII says the level of interest has exceeded expectations and it has already surpassed its goal of having 1,000 financial advisers sit the exam in the first year. Its London revision course for the July exam is fully booked. It says the exam, launched in April, is aimed at bridging the gap in investment knowledge ...

  • A victory for common sense

    10 Jul 2003

    The Budget seems a long time ago and it is hard to remember the worries that existed in the run-up to Budget day concerning the abolition of the qualifying life insurance policy regime and the ending of the 5 per cent tax-deferred withdrawal regime for new policies. As we now know, these fears proved to be unfounded and it has been decided that these issues need to be considered in the wider context of other tax factors affecting the market for life insurance and pooled products such ...

  • Abbey cuts mortgage rate

    15 Jul 2003

    Abbey National has announced that it is cutting its standard variable rate by 25 basis points to 5.54 per cent. This follows the Bank of England's interest rate reduction to 3.50 per cent from 3.75 per cent. The change is effective for new borrowers from July 16th and for existing borrowers from August 1st. Abbey says that its variable tracker rate mortgages have also followed the movement in base rate by 0.25 per cent, with its 2 year variable rate tracker previously at 3.39 per ...

  • ABI fears child trust fund may repeat stakeholder mistakes

    10 Jul 2003

    The ABI fears providers may shun the Government's child trust fund as its research shows it could take at least five years to become profitable. Echoing concerns of the stakeholder debacle, with firms claiming it would take more than 10 years to become profitable, the confidential ABI briefing seen by Money Marketing shows the trade body is worried that providers offering the product may have to wait five years before breaking even. The ABI predicts that funds with no regular ...

  • ABI not taking a neutral stance on gender

    10 Jul 2003

    I can reassure Cicero Consul-ting (headlined, Sex and the annuity, Money Marketing, July 3) and MM readers that the UK industry, through the ABI, is extremely active in Brussels (including all the relevant parts of the Commission) and elsewhere explaining our views on the draft EU directive on gender neutrality. I was surprised to discover that Cicero Consulting were unaware of this. Many of Iain Anderson's policy points and arguments are familiar and, I am afraid, wrong. It ...

  • An age-old issue

    10 Jul 2003

    There is nothing new about the pension crisis, as Pinsents legal expert Robin Ellison notes in a foreward to a specially reprinted edition of Pensions for Boys, the genuine 1936 classic in the Just William series by Richmal Crompton. Ellison reminds us how the story reflects a number of issues which remain current today, including flexible retirement. Why, asks William, should old people get a pension just because they are old? Ellison also points out that the tale's grizzled ...

  • Another country

    10 Jul 2003

    I am contemplating becoming a non-resident for tax purposes and wanted some clarification about the tax issues and how to establish offshore structures to minimise the impact of taxes. In particular, I am keen to understand the issue of domicile and the use of offshore companies and trusts in developing an estate plan. Can you advise me? If you intend to move abroad permanently, you need to establish an estate plan based on your residency and domicile. It is important to remember ...

  • Another rise in Pru life and CI premiums

    10 Jul 2003

    Prudential is again increasing premiums on some life and critical-illness products following its controversial retrospective rate rise in April. The company says the latest increase is not across the board and will be calculated on an individual basis but the move has been seen as a sign the Pru is struggling to compete with more established players in the protection market. The changes will take effect from July 1. However, some experts say it is an astute move by Pru. They ...

  • Bio Convertors - Bio Convertors

    9 Jul 2003

    Wednesday, 9 July 2003 Aim: Growth by investing in a company that specialises in the treatment and recycling of organic wasteMinimum investment: Lump sum £1,050Opening/closing date: March 14, 2003/July 16, 2003 Charges: ImplicitCommission: Initial 3%Tel: 01249 714487

  • Boles a maiden over

    10 Jul 2003

    An associate of The Diary recently admitted to have gone speed-dating - the last resort of the desperate although, in fairness, The Diary understands the event was in aid of charity, in this case, the Zimbabwe Rural Schools Development programme. The Diary is sure that young people in the Zimbabwe countryside are eternally grateful that their education is funded by metropolitan folk trying to get off with one another within three minutes. Our speed-dater assures The Diary that he was ...

  • Britannia Building Society - 3 in 1 Guaranteed Capital Bond - Issue 1

    15 Jul 2003

    Type: Capital protected bond Aim: Growth linked to the performance of the FTSE 100, Halifax House Price and London Gold Market Fixing Limited indices Minimum-maximum investment: £500-£500,000 Term: Five years Guarantee: Original capital returned in full regardless of performance in indices Return: Up to 75 per cent growth at end of term Closing date: August 22, 2003 Commission: None Contact: www.britannia.co.uk

  • Britannic Money set for major shake-up

    10 Jul 2003

    Britannic Money is facing a massive shake-up after its acquisition by the Paragon Group, with its flagship product, the current account mortgage, under review and chief executive Tony Ward quitting earlier this week. Following its acquisition last week, Britannic Money has also been hit by the announcement that finance director Paul Rogers will be leaving later this year. The future of the current account mortgage is in doubt, with Paragon director of mortgages John Heron, who ...

  • Carby blames over-reaction for plunge

    10 Jul 2003

    Inter-Alliance has blamed an over-sensitive market and another IFA's results for its share crash last week. In an internal memo, seen by Money Marketing, issued on July 1, chairman and chief executive Keith Carby claimed part of the reason for its dramatic fall was the £39m loss at rival Berkeley Berry Birch. Carby conceded that the low share price could have implications for the group as a whole, leaving it wide open to a hostile takeover bid. He said: "The quite ...

  • Compensation scheme is landed with Temple bill

    10 Jul 2003

    The Financial Services Compensation Scheme will be left to pick up the tab for any potential RJ Temple misselling claims following its purchase by the Lighthouse Group. Under the £1m deal, Lighthouse acquired RJT's assets plus 163 of its 167 RIs operating as Temple Financial Planning but left the rump of the former IFA, including all its liabilities, to be wound up and liquidated by KPMG. IFAs were outraged two years ago in 2001 when a deal between AMP, Towry Law and the ...

  • Complaints to watchdog rise by 44%

    10 Jul 2003

    Consumers' dissatisfaction with financial firms has risen to record levels, with 62,000 new complaints made to the Financial Ombudsman Service in the last year. Its annual review shows that complaints rose by 44 per cent in 2002/03 from 43,330 the previous year. The FOS also received 460,000 enquiries. Disputes involving investments rose by 32 per cent to 38,234 from 28,810. Insurance complaints were up by 40 per cent to 8,866 from 6,403 and banking-related disputes rose by ...

  • Consumers 'baffled by pensions'

    15 Jul 2003

    Consumers are baffled by pensions with half the working population having little or no idea of how pensions work, where the money is invested or how much it needs to save to achieve a comfortable retirement, according to new research.

  • Correspondent's week

    10 Jul 2003

    Monday Meet fellow director Jeremy del Strother to run through the weekend's press coverage. Plenty of positive coverage of our calls for warning signs on convenience ATMs that charge for withdrawals. Also, plaudits for cutting our overdraft rates to a market-leading 6.75 per cent. Next, my weekly meeting with the other three executive directors and chief executive Philip Williamson, which includes an update on our e-commerce activity. Having just begun an online advertising ...

  • Doing the right thing on Ecotec

    10 Jul 2003

    Our decision to close the Ecotec fund was one that was not taken lightly and we totally understand the disappointment of the small number of investors and advisers who have supported the fund. At this time, a number of fund management companies are consolidating their product ranges so fund mergers and closures look set to be part of the industry landscape for the foreseeable future. Despite the considerable costs that Isis incurred in launching the Ecotec fund, it is a simple ...

  • Donor kebab

    10 Jul 2003

    Two recent court decisions have involved the combined issues of spouses and trusts. The first and most well known in the financial services industry is undoubtedly that of CIR • Eversden. By the time you read this, you will have been made well aware of the decision and its consequences, so apologies if this is going over familiar ground. In this case, the Court of Appeal held (and I am grateful to my business partner, John Woolley, for this summary) that where a settlor ...

  • Duncan set to go as Skandia axes 100

    10 Jul 2003

    Skandia head of investment sales Angus Duncan is understood to be among more than 100 staff being made redundant over the next few weeks as the company cuts costs. Duncan, who has been with the group for around eight years, is reckoned to be among 30 staff who are leaving before the end of the month after accepting voluntary redundancy. A further 50 are expected to depart voluntarily by the end of August, with another 30 redundancies scheduled for the same time. Skandia is in a ...

  • Express to back IFAP

    10 Jul 2003

    Bradford & Bingley's specialist lending arm Mortgage Express is to become IFA Promotion's first mortgage lender sponsor. It joins 28 investment, life and pension companies which have already signed up to sponsor IFAP. IFAP marketing director Karen Barrett says: "We are delighted to welcome Mortgage Express as our first-ever mortgage lender sponsor. This reflects the regulatory convergence of mortgage and general financial advice and the growing importance to mortgage ...

  • Financial Ltd pledges three-year buyout

    10 Jul 2003

    IFAs are being offered a guaranteed buyout deal for their businesses if they join fee-based network Financial Ltd for a minimum of three years. The network launched in June and has 25 firms and 30 RIs. Members will be able to sell their business to the firm after three years at a guaranteed offer price of 1.5 times turnover based on the average in the three years prior to sale. It is offering the deal to any firm that joins but says members will be free to sell their client lists on ...

  • FPI waives fee on offshore life plans

    9 Jul 2003

    Friends Provident International is waiving the initial fees on its offshore life assurance products for three month in celebration of the insurers 25th anniversary.

  • Franklin appointed MD of Britannia

    9 Jul 2003

    Tim Franklin has been appointed managing director of Britannia Building Society’s core business. He has been acting MD for the last three months and was previously head of direct channels. He has also been part of Britannia’s corporate strategy planning process. As managing director he will have sales, service, marketing and product development staff reporting directly to him. 

  • Glasgow Isa rounds up investment trusts

    9 Jul 2003

    Glasgow Investment Managers has introduced an Isa wrapper around its investment trust range.The Glasgow Isa allows investors to choose one or a combination of all three investment trusts. Shires income aims to provide income and capital growth from a portfolio of UK equities. It is overweight in financials, utilities and cyclical services compared with the FTSE All Shares, its benchmark index. It is underweight in other sectors such as resources and non-cyclical consumer goods ...

  • Goldfish swims with Direct Life for internet insurance

    10 Jul 2003

    Financial services firm Goldfish is joining forces with Direct Life & Pensions Services to add internet and telephone life insurance broking to its range of products. The addition of the service which features nine insurers, including Friends Provident, Legal & General, Norwich Union, Scottish Equitable, Scottish Provident, Scottish Widows, Standard Life and Swiss Life, means Goldfish customers will be able to apply for life cover with a click of the mouse or one phone call. Its ...

  • Guide aims to help IFAs interpret FSA rulebook

    10 Jul 2003

    Aifa is endorsing a guide which aims to help IFAs decipher the new FSA rulebook. It has edited and contributed to the contents of the guide, which is being published by City & Financial. It is aimed particularly at smaller firms which do not have dedicated full-time compliance staff. Aifa says the guide has been produced following enquiries from an increasing number of its members who are having difficulties in locating and interpreting the rules and guidance buried in the ...

  • HBOS stays in loan lead as Standard leaps up league

    10 Jul 2003

    HBOS has topped the charts as the UK's biggest mortgage lender again with an estimated 26 per cent market share and £56.8bn of gross mortgage lending last year. The Council of Mortgage Lenders' figures for 2002 show that HBOS increased its market share from 24.8 per cent in 2001, with gross mortgage lending up from £40bn. Abbey National is in second place with 10.4 per cent of the market and £22.8 bn in gross mortgage lending. This represents a slight fall ...

  • Independent view

    10 Jul 2003

    The Labour Government, in the guise of the FSA and its predecessor the PIA, has created a compensation culture in the UK which is highly damaging to the financial services industry and ultimately the consumer. In 1997, Labour MP Patricia Hewitt launched an astonishing attack on the industry in the form of the pension review and the name and shame campaign. As a result of this campaign and subsequent reviews of endowments, split-capital investment trusts and precipice bonds, etc, ...

  • Inside edge

    10 Jul 2003

    With the Government firmly ruling out compulsion and steadfastly ignoring the disincentive effects of state provision, any initiative to incentivise employers to set up and maintain pension schemes must be looked at seriously. For some time, the Government has been looking at 401(k) plans. In its Green Paper, the Government welcomed views on the potential application of the 401(k) app-roach to private pension provision in the UK as such schemes "have been successful in raising pension ...

  • Insurance award for L&G

    14 Jul 2003

    Legal & General has been awarded the Life Insurer of the Year award for the fourth time running at the British Insurance Awards at the Royal Albert Hall last week.It is the fifth time the insurer has won the award in six years. Legal & General says the award endorses its strategy of working with multiple distribution channels to offer products at affordable prices, using new technology to change the way it does business.

  • Investment analysis

    10 Jul 2003

    It was a mixed week for the leading world indices. The one big exception was Japan's Nikkei 225, which increased by almost 5 per cent to reach a nine-month high. US markets edged lower at the start of the week as investors banked profits and reacted negatively to key economic data. Investors were also concerned by latest unemployment numbers, which showed the rate at a nine-year high. However, strength in the semi-conductor and chip equipment stocks from midweek, with Intel leading ...

  • Investment view

    10 Jul 2003

    Has the time arrived to switch from bonds into equities? This is, of course, the asset rebalancing decision that will make or break careers. Anyone prescient enough to have made the switch the other way, even as much as a decade or more ago, would be looking clever. To have done it at the end of 1999 would have appeared pure genius. There is luck involved in making this call but it does no harm to examine the background carefully. Reflecting on what has happened in the bond market ...

  • Jobs cull in financial services accelerates

    9 Jul 2003

    Life insurers, fund managers and banks are among those financial services companies cutting jobs at the fastest rate, according to the latest quarterly sector survey by the CBI and PricewaterhouseCoopers. Building societies and finance houses including credit and hire purchase firms were the only sectors to gain staff as the effect of job cutting continued over the last three months, which was slightly less severe than in the first quarter. At the same time confidence and business ...

  • JP Morgan guide aims to ease pension fears

    10 Jul 2003

    JP Morgan Fleming is offering a guide to pensions which it says provides straightforward answers to everyday questions. The guide, called, Honest Answers to Your Biggest Pension Worries, is intended to provide answers to the public's 30 most common worries about pensions. It explains the benefits of regular saving over lump-sum investments, showing how a person investing £24,000 at £100 a month for 20 years would get a final value of £59,918 compared with £44,623 ...

  • JPMorgan Fleming flows with earnings momentum

    10 Jul 2003

    JPMorgan Fleming has added the JPMFIF global recovery fund to its Luxemburg-based Sicav range. Despite its name, JPMorgan Fleming has not introduced this fund because it thinks a stockmarket recovery is around the corner. The fund name refers to companies with valuations that do not accurately reflect the potential for their earnings to recover. According to JPMorgan Fleming, the share prices of companies with positive earnings momentum tend to outperform their peers. The ...

  • Julian Gibbs

    10 Jul 2003

    Sarasin, one of Europe's premier private banks, established in Switzerland in 1841, with assets under management of £21bn, specialises in managing balanced investment portfolios. It has now produced a second tranche of a much more flexible 100 per cent capital-secure plan than previously available from other providers, called the GlobalSar Principal Guaranteed Note. The first tranche took in £24m, a very large amount in today's stockmarket conditions. The plan ...

  • Julian Stevens

    10 Jul 2003

    His name appears regularly in the pages of Money Marketing but he is not the head of a dominant product provider, a renowned industry commentator, nor a public policymaker. Julian Stevens runs a small IFA firm in the suburbs of Bristol. He is one of many small IFAs battling their way through the current mess of regulation, PI and stagnant investment markets and he has slowly become one of the key voices for this silent majority. For the past few years, he has made a regular appearance ...

  • Keydata constructs dual option bond

    14 Jul 2003

    Keydata Investments has unveiled the FTSE growthbuilder plan, a guaranteed equity bond that is linked to the FTSE 100 index for six years.The bond has two options - maximum growth and cautious growth. To calculate the returns, the closing level of the FTSE 100 is taken on August 29, 2003 then compared with the closing level on August 28, 2009.Maximum growth provides 20 per cent growth for every 20 per cent increase in the index up to a maximum of 100 per cent. Investors ...

  • LIA aids members with new services

    10 Jul 2003

    The LIA has set up a range of discounts, special offers and additional services for members. The new service will be called LIA Plus and will provide members with discounts on mobile phone tariffs, hotel and conference bookings, promotional gifts, home contents and travel insurance, office stationery and software packages. Members will also be able to save money on subscriptions to industry publications, IT support services, staff recruitment costs and advertising in Yellow Pages. The ...

  • Loan regulation will not force out intermediaries

    10 Jul 2003

    Regulation will not force intermediaries to leave the mortgage industry, says a report from sub-prime lender Preferred Mortgages. The report shows that 84 per cent of mortgage intermediaries are not planning to leave the industry when regulation starts in October 2004. Despite fears that the cost of regulation would force smaller firms into networks or underground, 59 per cent of mortgage intermediaries said they were looking for direct FSA authorisation. Twenty-one per cent ...

  • Maguire steps down as chief

    10 Jul 2003

    Sway chief executive Jon Maguire is stepping down to pursue other business interests. Maguire launched Sway in 1999. It consists of three divisions of events, marketing and consulting. The firm will be split, with the marketing and consulting divisions going with Maguire, leaving the core of the firm to concentrate on events such as the annual Senate Programme. Maguire told delegates at this year's conference in Monte Carlo that he could no longer run and develop three businesses ...

  • Mellon Global Investments - Mellon High Yield Bond Portfolio ($)

    14 Jul 2003

    Type: Ucits Aim: Growth by investing in high yield bonds Minimum investment: Lump sum $5,000 Place of registration: Dublin Investment split: 100% in high yield bonds Charges: Initial up to 5%, annual 1.25% Commission: Subject to negotiation Tel: 0500 660000

  • Mellon Global Investments - Mellon High Yield Bond Portfolio ($)

    14 Jul 2003

    Type: Ucits Aim: Growth by investing in high yield bonds Minimum investment: Lump sum $5,000 Place of registration: Dublin Investment split: 100% in high yield bonds Charges: Initial up to 5%, annual 1.25% Commission: Subject to negotiation Tel: 0500 660000

  • Mellon Global Investments - Mellon High Yield Bond Portfolio (Euros)

    14 Jul 2003

    Type: UcitsAim: Growth by investing in high yield bondsMinimum investment: Lump sum Euros 5,000Place of registration: DublinInvestment split: 100% in high yield bondsCharges: Initial up to 5%, annual 1.25%Commission: Subject to negotiationTel: 0500 660000

  • Mellon Global Investments - Mellon High Yield Bond Portfolio (Euros)

    14 Jul 2003

    Type: UcitsAim: Growth by investing in high yield bondsMinimum investment: Lump sum Euros 5,000Place of registration: DublinInvestment split: 100% in high yield bondsCharges: Initial up to 5%, annual 1.25%Commission: Subject to negotiationTel: 0500 660000

  • Millfield slams Paymaster over year's wait for CETV

    10 Jul 2003

    IFA Millfield has hit out at pensions administrator Paymaster for failing to provide a client's cash-equivalent transfer value on a final-salary scheme for nearly a year because of poor admin. Millfield is still waiting for a CETV even though it was initially requested in August 2002. It says the problem has been compounded by the fact that Opra has relaxed its rules forcing trustees to provide such information. Millfield says that by the time Paymaster got through its admin ...

  • National news lottery for readers

    10 Jul 2003

    The silly season has started in earnest. This week, we learn from the front page of The Express that insurers are planning a postcode lottery for annuitants. There is substance to the story, in that Norwich Union is considering postcode annuities at some stage. The first national newspaper to report this news was the Sunday Telegraph money section last weekend. NU says that it may make the change in three to five years time - a move which was reported in Money Marketing at least twice ...

  • New network bids to aid IFAs with switch to fees

    10 Jul 2003

    True Financial Planning, a new fee-only-based network, is targeting IFAs wanting to make the switch from commission to fees. Leeds IFA Baxter Fensham directors John Baxter and Giles Pidcock, who are behind the venture, say they have developed a business model to convert commission-based IFA practices over to fee-based financial planning. The partnership want to expand their initiative across the UK to create a chain of True Financial Planning franchises. Four firms with a total ...

  • Newcastle & HSBC compete in Toisa market

    15 Jul 2003

    HSBC Bank and Newcastle Building Society have both introduced capital-protected products for investors with maturing Tessas.Newcastle Building Society's guaranteed FTSE bond is available as a bond and cash Isa as well as a Tessa-only Isa (Toisa). It is linked to the FTSE 100 index for five years and provides the return of the original capital regardless of the index performance. Investors also receive 100 per cent of the growth in the index and this is not subject to a cap. ...

  • Norwich Union - Prosper (Growth) Bond - issue 8

    15 Jul 2003

    Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £3,500-no maximum Term: Five years Guarantee: Original capital returned in full regardless of performance in index Return: Up to 50% growth at end of term Closing date: August 22, 2003 Commission: Initial 3.5% Tel: 0845 944 4800

  • nvesta - Accelerator Growth Plan

    10 Jul 2003

    Thursday, 10 July 2003 Type: Capital protected bondAim: Growth linked to the performance of FTSE 100 indexMinimum-maximum investment: £3,000-£2mTerm: Six yearsGuarantee: Original capital returned in full providing index does not fall by more than 40% and returns to at least its starting levelReturn: 12% at the end of year one if the index is 6% or more above its initial level, 24% at the end of year two if the index is 12% or ...

  • nvesta accelerates growth

    11 Jul 2003

    nvesta has designed the accelerator growth plan, a FTSE 100-linked capital-protected bond that could mature earlier than its six-year term. The bond provides growth of 12 per cent after one year if the index rises by at least 6 per cent otherwise the term will roll over to the second year. It will mature at this point, producing 24 per cent growth, if the index grows by 12 per cent. The bond could continue until year three when an index rise of at least 18 per cent will ...

  • Online property portfolio managment tool launched

    9 Jul 2003

    A new service for landlords has been launched that enables them to monitor their property portfolio on daily basis. PropertyControl.co.uk allows landlords to calculate returns from a portfolio’s assets and highlight any realisable equity and capital gains. The service’s Mortgage Monitor feature is also available to compare existing mortgage arrangements and highlight savings that can be made. Landlords can also store property details on the site and generate documentation ...

  • Out of context

    10 Jul 2003

    •"If you were a member of the Society of Financial Advisers and a Bachelor of Education, you'd be a Sofabed." -Scottish Widows IFA sales training manager Arthur Lloyd. •"I'm stuck in Derby but apart from that I'm OK." - Clerical Medical pensions strategy mangager Nigel Stammers at the mercy of the rail network. •"It reminded me of a size 10 paintbrush." - Torquil Clark managing director Don Clark on a photo of the MM editor. •"It's just vibrating ...

  • Outside edge

    10 Jul 2003

    If, a few years ago, New Labour had popped across the pond to look at 401(k), it would have made a number of important discoveries. It would have found that these schemes had very low penetration among small employers, appeared to work best when employees and employers were matching each other's contributions and ran on charges rather higher than 1 per cent of fund a year. New Labour might also have cottoned on to the fact that employers could pay contributions in company stock. ...

  • Positive and ScotProv in mortgage club deal

    10 Jul 2003

    National IFA Positive Solutions is teaming up with Scotish Provident Mortgage Alliance to offer its RIs access to a mortgage club. ScotProv's Mortgage Alliance mortgage club will be white-labelled as Positive Solutions' Mortgage Club, offering its 650 advisers access to a panel of lenders, including Abbey National, Alliance & Leicester, Nationwide and the Halifax. Users will have free access to a customised version of the Trigold sourcing system along with exclusive products. This ...

  • Postcode annuities not imminent - NU

    9 Jul 2003

    Norwich Union has moved to quash media reports that it is set to offer postcode annuities. The provider says it is looking at underwriting annuities on the basis of location but any product will not be launched for at least three years. Norwich Union will be offering enhanced life annuities from early in 2004.  

  • Product matters

    10 Jul 2003

    I have not been keen on so-called lifestyle products. In reality, they have only been available within pensions and the idea of automatically taking down the asset allocation to a fixed point in bonds in the future seems to me potentially dangerous. However, Fidelity has changed my mind with its new WealthBuilder Target Funds. It has three on offer with dates to 2010, 2015 and 2020. The idea of the funds is simple. As they get near their final date, they will reduce risk by gradually ...

  • Pru rejects principal status

    10 Jul 2003

    Prudential's national mortgage club will not take principal status under mortgage regulation next year despite industry claims that this could lose it significant amounts of business. National mortgage club manager John Malone says Pru has taken the decision because it did not want to be held responsible for transactions it has no control over. He says he believes there are sufficient numbers of advisers who will take the direct authorisation route for the club to continue in its ...

  • R&SA financial strength downgraded

    9 Jul 2003

    Royal & Sun Alliance and its subsidiaries have had their financial strength and subordinated debt ratings downgraded to Ba2 from Ba1 by ratings agency Moody's. It's outlook for its UK-based companies is described as stable. Also Swiss Life is to hold on to it’s A- Standard & Poors financial strength rating. At the same time all its ratings were removed from CreditWatch, where they were put on March 6, this year, with the outlook negative.  

  • Retirement ages to rise, says pension review chief

    10 Jul 2003

    Retirement ages will have to rise because the amount that people can be forced to save is limited, says head of the Government's long-term review of pensions Adair Turner. In an exclusive inter-view with Money Marketing, Pensions Commission head Turner says working longer is inevitable because the alternative solutions to the pension crisis - poverty in retirement and increased contributions - are less politically appealing. Turner has thrown his support behind the Government's ...

  • Salesforces strike up the bond

    10 Jul 2003

    A host of investment experts have been warning against corporate bond funds for many months now. Surprisingly, the latest is James Foster, Isis Asset Management's head of credit, who manages around £31bn in fixed interest. Foster, who is one of the most outspoken fund managers in the industry, told delegates at the recent Senate Programme conference in Monte Carlo that now is the time to move out of investment-grade bonds and into equities. He argued that many companies ...

  • Sarasin Investment Management - Sarasin Income Portfolio Fund

    11 Jul 2003

    Friday, 11 July 2003 Type: OeicAim: Income by investing in bonds, equities and fixed interest securitiesMinimum investment: Lump sum £1,000Investment split: Bonds 73%, equities 22%, cash 5%Yield: 4% gross a yearIsa link: YesPep transfers: YesCharges: Initial 4%, annual 1.25%Commission: Initial 3%, renewal subject to negotiationTel: 020 7246 0430

  • Scottish HNW Specialist IFA Abercrombie in tied deal with Zurich

    10 Jul 2003

    Leading Scottish IFA Abercrombie Financial Consultancy has signed a deal with Zurich Advice Network which will see it tie part of its business. The deal falls under Zurich's joint independent and tied proposition which was launched in November 2002 but has had a fairly slow start. Firms are required to sell the life office's products in return for compliance, administration and back-office services. Abercrombie specialises in servicing high-net-worth clients referred ...

  • Sense and sensibility of stockpicking art

    10 Jul 2003

    Stockpicking is as much an art as a science, relying as much on common sense as it does on number-crunching, according to SVM Asset Management. Speaking at the Senate Programme, SVM assistant director David Stevenson told delegates he wanted to debunk the myth that stockpicking was some sort of dark science. He said the main ingredients for good stockpicking relied as much on common sense, cynicism, discipline, patience, a trainspotter's eye and courage of conviction as on number-crunching.

  • Sofa goes on the road

    10 Jul 2003

    Sofa is starting its summer series of regional roadshows, with the first conference being held in London this month. Fourteen roadshows are being held as part of the series, which kicks off in London on July 14. Another conference will also be held in London on August 14. Available only to Sofa members, the free roadshows being described as a comprehensive day of high-level technical training. They cover topics such as pensions, investments, tax, business planning and/or industry ...

  • Standards are flying high

    10 Jul 2003

    The Raising Standards quality mark scheme focuses on brands meeting standards in clarity, quality and service that address the key concerns of consumers when buying pension, protection and investment products. As the independent accreditation organisation for the scheme, we have witnessed brands deliver on their commitment to tackle these concerns by refocusing on their customers and providing clearer information and higher levels of customer service. For many brands, the transformation ...

  • Stochastic exchange

    10 Jul 2003

    Life offices frequently create some very useful online services for IFAs via their extranets. All too often, however, these can only be used in connection with the providers' own contracts. When a life office creates an innovative and valuable service that can be used with all an adviser's clients regardless of who their investment is with, I think it is really good news. This week, I have pleasure in writing about such a service from Standard Life. With investment markets ...

  • Swearing on the bible

    10 Jul 2003

    PRs at agency Luther Pendragon are denying using their plastic to spend like saints and sinners, The Diary hears. After having his credit card cloned in a Soho bar, Luther's Andrew Sharkey received a call from his bank to ask if he had recently had any "professional services" in Paris. Sharkey's response was that he hadn't used any solicitors or accountants anywhere, let alone in France. Many would think this sounds like a tall story but The Diary would never distrust ...

  • Swip swap could see fund firm rebranded

    10 Jul 2003

    Scottish Widows Investment Partnership is known to be considering a rebrand in a bid to distance itself from its life office parent. Senior figures in the group are known to support such a move to emulate the perceived success of Friends Ivory & Sime rebranding as Isis in 2001 and the merger of Clerical Medical Investment Management and HBOS asset management's arm under the Insight banner in May 2002. Senior industry sources say the fund firm has been discussing a name change ...

  • Talkback

    10 Jul 2003

    "Yes. Given the poor admin capabilities of most of the companies these days, they would need more time to deal with complaints." Alan Lakey, Highclere Financial Services "Yes. In light of the number of complaints they have had, it seems reasonable." Richard Hamilton, Richard Hamilton Associates "No. They should employ more people." John Handscomb, Handsure (Commercial, Life & Pensions) Insurance Services "Yes. Clearly, there is a lot of information to deal with ...

  • The FSA is staying in training

    10 Jul 2003

    Mark Twain once observed that "a lie can travel halfway around the world while the truth is putting on its shoes". Certainly the notion that the FSA has given up on training and competence and that industry training will no longer exist has become well travelled very quickly. The truth is far less dramatic. Industry training has played an important role in the development of the FSA's regulatory framework and, in terms of applying our regulatory "tools" - the T&C sourcebook ...

  • Third loss for Govt on Tory's annuity reform

    10 Jul 2003

    The Government suffered a third defeat on Conservative MP Edward Garnier's annuity reform bill after Labour backbenchers backed it through its committee stage last week. Garnier's Retirement Income Reform Bill, which calls for the removal of the requirement to buy an annuity on retirement, will go through its report stage on Friday, where the Government is expected to kill it off. The bill would require retiring individuals to buy an annuity that would keep them off state ...

  • Tilney Investment Management - Tilney UK Equity Fund

    15 Jul 2003

    Friday, 31 August 2001.

  • Tiner to replace Davies as FSA chief executive

    14 Jul 2003

    John Tiner has been appointed FSA chief executive, taking over the post from Howard Davies on September 22.

  • Treasury unveils Sandler suite plans

    15 Jul 2003

    The Sandler suite will consist of three products which will bear the stakeholder name, the Treasury has announced today.The suite will comprise a short-term investment product, a medium term investment product and a long-term investment product.Existing stakeholder plans will be brought into the suite of products that will be sold under a lighter-touch sales process.The products will all be sold within a price cap the level of which will be determined in the autumn.

  • US giant AIG in talks to buy First Advice

    10 Jul 2003

    US insurance giant the American International Group is believed to be in talks to buy Manchester-based financial adviser and mortgage broker First Advice following the collapse of its parent group Amulet, which also owned the Accident Group. First Advice, which employed 100 staff at four advice shops, had plans to open hundreds of high-street outlets across the country but was forced into administration last month after its parent's collapse. Any buyer of the firm could inherit ...

  • Warning of consumer confusion over exam

    10 Jul 2003

    The FSA's plans to introduce exams for lifetime mortgages but not home-reversion schemes have come under fire from the industry which claims the move will lead to consumer confusion and potential misselling. Industry experts say the decision will exacerbate the split between lifetime mortgages, which will be regulated from October 2004, and homereversion schemes, which are under consultation over regulation. They say the move will lead to consumer bias towards lifetime mortgages ...

  • Watchdog defaults 139 firms and pays out £194m in compensation

    10 Jul 2003

    The Financial Services Compensation Scheme declared 139 firms in default in 2002/03 and paid out £194.4m in compensation, a massive jump from £40.9m for 2001/02. The FSCS annual report shows the bulk of the compensation of £131.1m was paid to cover insurance failures, including 25 general insurers and one small life insurance firm, Oak Life, which failed previously. The main payments were on claims from the failures of Independent (£78.8m), Drake (£25.8m) ...

  • Win a VIP day at golf's Open Championship

    10 Jul 2003

    With many investment markets mirroring a bad day on the golf course - plenty of time spent in the rough - Prudential, both a past and current master of solid investment performance, has teamed up with Money Marketing to offer readers a chance to attend this year's Open Championship at Royal St George's in Sandwich, Kent. When Ernie Els sets out to defend his Open Championship title, he will face 14 former Open champions and 48 of the top 50 players in the official world rankings. ...

  • Wizard wheezes should make FSA report a bestseller

    10 Jul 2003

    For those of you who rushed out to buy Harry Potter and the Order of the Phoenix, can I recommend that you add the FSA annual report to your must-read list. Seeing the section dealing with the regulator's final-salary scheme, I was drawn to the fact that it chose to separate the deficit from the underperformance of the scheme's investments. It also seeks to explain just how FRS17 fails to recognise the way the regulator operates its scheme. Given this approach to its own ...

  • Yorkshire set to enter Islamic market

    10 Jul 2003

    Yorkshire Building Society is the latest lender planning to enter the Islamic mortgage market, hot on the heels of HSBC. The society is one of a growing number of lenders which have expressed an interest in the market since Chancellor Gordon Brown scrapped dual stamp duty in the last Budget. Under Islamic or Sharia'a law, muslims are forbidden to pay or receive interest, meaning that a conventional loan is not viable. Mortgage Express says it is looking at developing a product ...

  • ZAN to pay commission on DSF rebroked term

    10 Jul 2003

    Zurich Advice Network is relenting on its 10-year policy of not paying commission to its salesforce if they rebroke its own term insurance plans, giving them the same terms as IFAs. The move, which Zurich admits is a defensive measure to protect its term business from being poached, will see its sales staff get initial commission on its adaptable term plan, lifestyle, mortgage and family protector plans which are rebroked before the end of the year. Zurich says in a protection ...

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