Money Marketing
9 May 2001

  • 'Back polarisation or major firms will dominate market'

    10 May 2001

    The investment industry must back the current polarisation regime or risk the market becoming dominated by the biggest providers with the biggest marketing budgets, Investec has warned. Speaking at last week's Sway Senate Programme conference in Madrid, Investec managing director Jamie MacLeod said the fund management industry must support IFAs. MacLeod said the investment market is becoming increasingly reliant on the IFA sector which has a 60 per cent share of the ...

  • 'Fund supermarkets set to save IFAs 20%'

    10 May 2001

    IFAs using fund supermarkets could cut their costs by up to 20 per cent, according to a report from Cerulli Associates. It predicts IFAs are set to account for more than a tenth of all assets in continental European fund management by 2005 as the power of the banks is eroded. The report, which will be published later this month, says fund supermarkets have the power to help IFAs with increasing pressures on their margins. By taking care of time-consuming and sometimes ...

  • 'National IFAs first to multi-tie'

    10 May 2001

    National IFAs will be first to become multi-tied if the proposed changes to polarisation are implemented, according to Misys IFA Services managing director Patrick Gale. Speaking at the annual conference of Misys network Countrywide last week, Gale predicted that national IFAs will be first to set up multitie salesforces because they are likely to be acquired by life offices. Gale says: "IFAs will remain the dominant distribution channel and the independent sector will ...

  • A Consumer's View

    10 May 2001

    The one good point about the ABI's Raising Standards campaign is that it does not have to rig its questionnaire to achieve a low baseline from which any improvement will be greeted with flag waving and claims that customers are getting a much better deal. The initial findings are totally damning and speak for themselves. Nearly half the consumers questioned were not at all confident about buying products from the life industry. One in three was sceptical or lacking trust in ...

  • A transformation as the market widens

    10 May 2001

    Stakeholder pensions represent one of the most significant new tax-planning opportunities for a generation. Okay, so perhaps I exaggerate a little - but not too much. It is easy to think of stakeholder only in the context of simpler products and lower margins. Stakeholder undoubtedly opens up opportunities both for financial advisers and providers to develop high-volume, low-margin business. But the new tax regime covering stakeholder, personal pensions and occupational ...

  • A transformation as the market widens

    11 May 2001

    Stakeholder pensions represent one of the most significant new tax-planning opportunities for a generation. Okay, so perhaps I exaggerate a little - but not too much.It is easy to think of stakeholder only in the context of simpler products and lower margins. Stakeholder undoubtedly opens up opportunities both for financial advisers and providers to develop high-volume, low-margin business.But the new tax regime covering stakeholder, personal pensions and occupational schemes ...

  • Abbey buys Fleming Premier Banking

    14 May 2001

    Abbey National's banking subsidiary Cater Allen has bought Fleming Premier Banking from J P Morgan Chase & Co in a £106m deal.

  • ABI in talks to stop big medical report fee rises

    10 May 2001

    The ABI is battling with the British Medical Association to stop an increase in medical report fees which could see the price of life insurance and critical-illness cover premiums rocket. The ABI is meeting this week with the BMA, which is planning to more than double the fee for a gen-eral practitioner's report from £30.10 to £66 and more than triple the medical examination report fee from £42.80 to £132. The BMA says the newly designed standardised ...

  • Apcims calling for retirement Isa and annuity reforms

    11 May 2001

    The next Government should introduce a specific "retirement Isa" and reform annuities, says the Association of Private Client Investment Managers and Stockbrokers.Apcims' pre-election briefing suggests a simplification of the Isa rules. It also wants the annual Isa limit to be raised to £10,000 and an additional Isa which would have an investment limit of £30,000 geared to generate retirement income.On annuities, Apcims recommends removing or inc-reasing ...

  • Apcims calling for retirement Isa and annuity reforms

    10 May 2001

    The next Government should introduce a specific "retirement Isa" and reform annuities, says the Association of Private Client Investment Managers and Stockbrokers. Apcims' pre-election briefing suggests a simplification of the Isa rules. It also wants the annual Isa limit to be raised to £10,000 and an additional Isa which would have an investment limit of £30,000 geared to generate retirement income. On annuities, Apcims recommends removing or inc-reasing ...

  • Axa's world of opportunities

    11 May 2001

    Daly says: "I do feel that this product will attract a niche market. It will suit clients and advisers who have an income strategy in mind. It does not detract from Axa's multi manager concept, which offers a multi manager portfolio management service outside of Axa's own funds. This makes good use of Axa/Sun Life's past investment success story."  

  • Axa's world of opportunities

    11 May 2001

    Phillips says: "Fine as far as managed funds go. I do wonder whether the expertise can be as focused in a fund with so many options, as it is in a more specific fund."

  • Axa's world of opportunities

    11 May 2001

    AXA

  • Bank of England cuts mortgage rate

    10 May 2001

    The Bank of England monetary policy committee has cut interest rates by 0.25 per cent to 5.25 per cent, their lowest level for over 30 years.The cut was widely expected as inflation has remained below the Government's 2.5 per cent target and fears of a downturn in the economy persist.

  • Big six signing up with single-password portal

    10 May 2001

    Six of the UK's biggest financial players are to offer customers centralised access to their online services using one password and one platform in a deal with US specialist Yodlee. The six are thought to include Fidelity's FundsNetwork, Egg, HSBC, Virginmoney and Barclays. The service, known as aggregation, will allow users to access everything from fund supermarket and bank statements to store loyalty accounts in one place. The Yodlee service will allow ...

  • Blurring the line between network and salesforce advisers

    10 May 2001

    The Woolwich's announcement last week on expanding its IFA operation to almost 500 advisers has created one of the biggest independent salesforces in the UK. Networks aside, it is estimated that the bank's salesforce now weighs in as one of the five biggest in the UK with 480 advisers, only lagging behind heavy-hitters such as Bradford & Bingley, which has 600. Woolwich's move makes it a major player in the IFA market but only if networks are excluded from any comparative ...

  • Bond ambition

    10 May 2001

    The Lincoln corporate bond trust is a unit trust that invests mainly in investment-grade bonds. It is designed to produce an income yield of 6.77 per cent and is managed by Goldman Sachs Asset Management. Assessing how the fund fits into the market, Webster-Smith says: "With recent volatility in the stockmarkets, the Lincoln corporate bond fund provides a low-risk investment with secure income. There is also a minimal capital gains tax risk with this type of bond fund." Milton ...

  • Bulteel is bidding to build business at CSC

    10 May 2001

    Former Gerrard portfolio manager David Bulteel has been appointed to spearhead expansion plans of private client investment manager Carr Sheppards Crosthwaite. Bulteel resigned from Gerrard, with three members of the international portfolio management team, in February. John Barkhan, Nik Kidd and Philip Osborn will all join CSC to build the international division. The four will join CSC this month and are to be joined by three managers, all on gardening leave from Gerrard. CSC ...

  • CIS offers with-profits with cover waiver

    15 May 2001

    Co-operative Insurance Society says its stakeholder pension offering will be one of the few products to offer a with-profits fund option with the facility to waiver premium and life cover.

  • C-lect Isa enters the Premier league

    15 May 2001

    Premier Portfolio Managers has designed the c-lect Isa, an individual savings account that gives investors the choice of investing in between one and five funds.

  • Clerical recruits to keep pace with business boom

    10 May 2001

    Clerical Medical's UK new business figures for the first quarter of this year are up by 63 per cent to £109.9m from £67.4m in annual equivalent premiums. Worldwide new business was up by 62 per cent on the same period last year to £136.7m from £84.3m. The rise in business covers all markets across life and investment, individual and group pensions and offshore products sold in the UK. Sales of group pensions were up by 117 per cent. Clerical ...

  • Clients opting for freedom of Isa instead of pension

    10 May 2001

    I recently visited a client who wanted advice on where to redirect the AVCs he had, until recently, been paying to his employer's scheme with Equitable Life. As it happened, he earns less than £30,000 a year so we were able to explore options for a personal pension. But when it came to decision time, he backed out as he was not prepared to put money into something with such a poor and restrictive range of options open to him at retirement. In short, he wanted ...

  • Conservatives pledge tax cuts and annuity reform

    11 May 2001

    The Conservative Party manifesto is pledging the abolition of compulsory annuities at the age of 75, as well as tax cuts valued at £8bn.

  • Consumer groups call for free advice

    10 May 2001

    Tony Blair has confirmed the next general election will be held on June 7. Parliament will be dissolved on Monday Both main parties put increasing emphasis on public/private solutions for financial services. The Conservatives are giving long-term care a high profile following announce-ments last week and a plan to abolish tax on savings for low and moderate earners. The Tories are also promising reform of compulsory annuity purchase at 75. Labour will focus on the future needs ...

  • Countrywide rebrands with Misys linked logo

    10 May 2001

    A new corporate logo for part of Misys IFA Services network Countrywide Independent Advisers was unveiled at its annual conference in Birmingham last week. Countrywide managing director Tony Wood presented the new logo to over 500 network members. The old black and red logo is being replaced with a single colour blue logo with an M lifted from Misys's logo alongside the Countrywide name. The new look is to emphasise Countrywide's relationship with Misys ...

  • Cracking the safe

    10 May 2001

    My wife and I have been retired for five years. We have modest pensions and additional income comes from the amount of money I have on deposit. Recently, I have seen the income generated reduce significantly as interest rates fall. I understand that I need to accept a degree of risk to generate a higher income. We have used both our Isa allowances for the year in corporate bonds. I am prepared to move £50,000 out of the money I have on deposit but would like our capital ...

  • DBS buy set to make Bankhall the biggest IFA

    10 May 2001

    Bankhall parent company Lynx is in advanced talks to buy DBS Financial Management along with its Assureweb online portal in a bid to grow its IFA operations. The acquisition by software and computer services firm Lynx would make Bankhall Investment Services the biggest player in the IFA services market, increasing its total of registered individuals from 4,000 to around 6,900. This would put it ahead of Misys IFA services, which has nearly 4,500 RIs, representing almost ...

  • DBS shares soar on takeover talks

    10 May 2001

    Shares in DBS management soared 31.5 per cent after it made a statement about talks which could led to an offer being made for the company. The announcement followed exclusive revelations in Money Marketing yesterday that DBS is in talks with Bankhall parent Lynx to acquire the IFA network.

  • Deloitte & Touche recruits four from PricewaterhouseCoopers

    14 May 2001

    Deloitte & Touche is recruiting four PricewaterhouseCoopers partners specialising in corporate recovery to its financial advisory services unit. Aidan Birkett, Gerry Loftus, Stephen Knight and Andrew Grimstone all join the firm.

  • Discount me in

    10 May 2001

    Once again, we have seen a varied range of views on the funding and contents of various Isa guides which were produced last season. I feel strongly that the arena of discounters and other mass-distribution IFAs, represent one of the few success stories in an industry sector often beleaguered by the press and market activity. Furthermore, they should be recognised both for the enormous contribution they have made to the effective distribution of investment products and, ...

  • ECB cuts Euroland rate

    10 May 2001

    The European Central Bank Governing Council surprised the markets by cutting rates by 0.25 per cent to 4.5 per cent. The announcement came hours after the Bank of England cut its rate by 0.25 per cent to 5.25 per cent. The cut follows a series of poor economic results from Germany.

  • Eiris expects stakeholder surge as it sets out ethical options in guide

    10 May 2001

    The Ethical Investment Research Service is publishing an IFA guide to help advisers provide information on ethical investing for individual investors. Eiris is expecting an upsurge of enquiries from the public as stakeholder begins to make its mark on the retail pension sector. With its latest newsletter, Eiris is sending out a new guide to IFAs who offer advice on ethical investment, including a list of its services to investors. Services can include portfolio ...

  • Election date confirmed

    10 May 2001

    Tony Blair has confirmed the next general election will be held on June 7. Parliament will be dissolved on Monday Both main parties put increasing emphasis on public/private solutions for financial services. The Conservatives are giving long-term care a high profile following announce-ments last week and a plan to abolish tax on savings for low and moderate earners. The Tories are also promising reform of compulsory annuity purchase at 75. Labour will focus on the future needs ...

  • Essex dealing room opened by Sucden

    14 May 2001

    Commodity and financial broker Sucden (UK) is opening a professional dealing room in Brentwood, Essex for expert or professional traders.

  • Ferrans gets Halifax asset management post

    9 May 2001

    Britannic Asset Management managing director Douglas Ferrans has been appointed as chief executive of the newly combined Halifax, Clerical Medical and Equitable Life asset management operations.

  • FI&S seeks special share

    10 May 2001

    With £35.2bn under management, Friends Ivory & Sime is no baby in the world of asset management. Nevertheless, with the bulk of its assets lying in the institutional arena, its retail brand is still far from being a household name. Since its creation in 1998 - after Friends Provident acquired Ivory & Sime and merged it with its investment subsidiary FP Asset Manage-ment - FI&S has grown to become the sixth-biggest investment trust provider. Having built a solid ...

  • Five year fixed Next in buy-to-let queue

    11 May 2001

    Mortgage Next has joined forces with Mortgage Express to offer a buy to let five-year fixed rate mortgage.

  • Fix is good for Mortgage Next

    9 May 2001

    Mortgage Next is targeting first time homebuyers and people looking to remortgage their homes with the two-year fixed rate mortgage.

  • Flexible principles from Principality

    14 May 2001

    Principality has introduced a flexible mortgage that is a discounted rate base rate tracker mortgage with flexible features.

  • Friends' policy is not acceptable

    10 May 2001

    Open letter to Mr D Newbigging, OBE, chairman, Friends Provident As an IFA and Friends Provident policyholder, I am writing to express my disappointment at the way the demutualisation of the company is being used to hide a change in the membership rules which is extending the membership substantially and cannot be in the interests of members. I am referring to the changes in the rules to extend membership to people who have bought secondhand endowment policies and those whose ...

  • FSA launches consumer education campaign

    14 May 2001

    The FSA is launching a campaign aimed at educating consumers about money, with the distribution of 200,000 copies of a booklet called "You and your money".

  • FSA sets up online progress returns facility

    9 May 2001

    The FSA is giving around 1,500 IFA firms, with less than 50 cases in their FSAVC review populations, the option to submit their ongoing progress returns online, via a password-protected database.

  • Grand float for Friends aims to bring in £1.4bn

    10 May 2001

    Friends Provident is planning a £4.2bn flotation on the stockmarket in July, giving qualifying members share windfalls potentially worth £1,000. The float is expected to raise around £1.4bn of capital, giving the life office a market value of £3.7bn to £4.2bn. All 1.7 million members will qualify for a single fixed allocation of 200 shares irrespective of how many policies they hold. More than a million members who hold with-profits policies ...

  • Hargreaves Lansdown offers online share dealing

    14 May 2001

    Hargreaves Lansdown is launching an online trading platform which allows private investors to trade stocks in real time. Investors can place orders at any time, with orders placed outside market hours executed when the stockmarket next opens.

  • igroup accepted as member of MCCB

    9 May 2001

    Sub-prime lender igroup has this week been accepted as a full member of the Mortgage Code Compliance Board. igroup, which previously dealt with unregistered brokers, says it is delighted with the move and sees it as a positive development for both the company and customers. But the MCCB says it is disappointed that Penrith Building Society has decided not to re-register with the mortgage code.  

  • Independent view

    10 May 2001

    As a completely independent broker, I am supposed to be totally against proposals that small brokerages could be multi-tied and describe themselves as quasi-independent. I do not know the exact structure and obviously how far these proposals will all go but let us take the ultimate step. A small firm of practitioners (for instance, two partners and four staff) could be tied to two different companies for their pension requirements. Company A could for personal pensions ...

  • Inside EDGE JIM GASKIN

    10 May 2001

    There has been much debate about the economics of selling pensions and stakeholder has had an impact across the product range. An area that I think is of equal, if not greater, importance to IFAs is the ongoing advice needed after the initial purchase of a pension policy by their clients - the emphasis being on advising rather than selling. With the introduction of lower-margin products and multi-ties, there is no doubt that IFAs are going to have to think long and hard about ...

  • Inter-Alliance buys the Pru's salesforce

    10 May 2001

    National IFA Inter-Alliance has bought Prudential's direct salesforce and part of its customer base comprising 70,000 clients. The move by Inter-Alliance to offer new roles to Pru consultants and managers foll-ows weeks of discussions after the decision to axe the salesforce of 1,400 on February 13. Inter-Alliance estimates about 1,000 of the staff will accept the offer to join. The IFA says the cost of the deal with integration and training costs will be around £5m ...

  • Investment View

    10 May 2001

    So, here we are in May, the month for cutting and running if you are a stockmarket investor. Of course, there is little evidence to suggest that there is any real reason to consider this a prudent course of action in contrast to the situation in December and January, when it is usually sensible to be fully invested. Then you have fund managers window dressing and fund flow into US pension schemes to contend with. But I imagine that more than a few investors will be wondering whether, this ...

  • Ipswich Building Society - Base Rate Tracker

    11 May 2001

    Friday, 11 May 2001.

  • It could be a long wait for markets to make recovery

    10 May 2001

    Analysts are keen to project positive future expectations for the main market indices. However, there is one important and serious reason why the main indices could tread water for a long time. It may be a long wait for the FTSE 100 to regain its high point of 6,930 on December 30, 1999. Anyone investing in index trackers or managed funds which closet track, in that they have similar exposures to the main stocks, are unlikely to do well as a result. Conversely, truly ...

  • Julian Gibbs

    10 May 2001

    I have not recommended investing in the Japanese stockmarket, except for some specialist smaller companies funds, for over 15 years. However, now I believe there are some good opportunities. This is because half the companies in the Topix index are trading at below book value and there are around 100 companies in Japan trading on market capitalisations lower than the net cash on their balance sheets. On the other hand, there are still some companies which are very much ...

  • L&G hopes supermart will be top dog for IFAs

    10 May 2001

    Legal & General's proposed launch of a fund supermarket in September should perhaps come as no surprise. As one of the UK's biggest financial services organisations, it was surely only a matter of time before it announced plans for a new e-business or at least a strategic alliance with another major player. Yet news that its platform is to rival the likes of Fidelity and Cofunds with a direct and IFA offering appears to have come as a shock to several players in ...

  • L&G waives fee on flexi self-cert mortgage

    14 May 2001

    Legal & General's mortgage club is offering a flexible self-certification tracker mortgage which waives the usual £325 application fee until June 30.

  • L&G's Mortgage Club goes for self cert flexi tracker

    10 May 2001

    Legal & General’s mortgage club has introduced the self-cert flexible tracker mortgage.

  • Lamfalussy Report welcomed by ABI and Autif

    15 May 2001

    Last week's Stockholm Summit of EU leaders resulted in further steps towards the creation of a single European financial services market.

  • Legal & General - Flexible Reserve 75 Per Cent

    15 May 2001

    Tuesday, 15 May 2001.

  • Lenders move to pass on rates

    11 May 2001

    The major high street lenders moved quickly to announce a cut in rates following the Bank of England Monetary Policy Committee's rate cut.Abbey National has reduced its standard variable rate by 0.25 per cent to 7 per cent. Nationwide has also passed on the full 0.25 per cent cut to its base mortgage rate, now 6.49 per cent.

  • Lighthouse shining

    10 May 2001

    Lighthouse IFA is adding advice on corporate strategy to its financial planning service as part of a new package for companies involved in raising capital. It is moving to Throgmorton Street in the City of London to be closer to key clients and client introducers, including fund managers and media companies. The new corporate package is aimed at companies planning management buyouts and private equity offerings by co-ordinating service providers, including public relations ...

  • Low income households buying homes

    9 May 2001

    Research by the Council of Mortgage Lenders has shown rocketing numbers of low-earners buying their homes with mortgages. Almost 30 per cent of people with the lowest incomes in the UK now own property paid for by a mortgage, compared with just 10 per cent 20 years ago. The figures show that a third of all children living under the poverty line reside in property bought with a home loan. 

  • Man trades off security and risk

    14 May 2001

    Man Investment Products has introduced an offshore bond with a capital guarantee.

  • Manor Park bets on three year FTSE fund

    10 May 2001

    Manor Park has introduced the three-year guaranteed UK selected growth fund.

  • Manor Park gets cautious with guaranteed returns

    9 May 2001

    Guernsey-based investment specialist Manor Park has introduced the guaranteed UK capital growth fund.

  • Merrill Lynch focuses on elite 30

    9 May 2001

    London-based Merrill Lynch Investment Managers’ Merrill Lynch defined returns fund is a split capital investment trust that is aimed at cautious investors. It is designed for those who want to invest in the stockmarket but who want a degree of protection from any sharp falls in the stockmarkets.

  • Michael Both

    10 May 2001

    Stakeholder is almost a kitemarked product which is so simple and straightforward that it sells itself, aided by easy-to-use decision trees which answer almost all the questions any eligible investor might dream up. Dream on, more like. Because stakeholder does not replace an older product, the complexity facing potential purchasers has increased. Not only must they come to grips with stakeholder but also the alternatives that are available, such as Isas, venture capital trusts, ...

  • MPs attack Edinburgh as merger HQ

    10 May 2001

    MP for Halifax Alice Mahon has tabled an early day motion signed by 88 MPs over the £28bn merger of Halifax and Bank of Scotland, questioning the decision to site its headquarters in Edinburgh. Mahon gathered support last week after discovering that the headquarters of the merged company, HBoS, will be at BoS' base in Edinburgh instead of the current HQ in Halifax. The motion states: "This house believes that the Halifax, Yorkshire's biggest financial company, ...

  • National Counties Building Society - Fleximortgage

    11 May 2001

    Friday, 11 May 2001.

  • New Star appoints legal director

    15 May 2001

    New Star Asset Management is appointing Simon Burgess as legal director.Burgess joins New Star from Clifford Chance where he was senior corporate and mergers and acquisitions partner. Burgess joined Clifford Chance in 1970 and became a partner in 1976.New Star chairman John Duffield says: "Simon's appointment is excellent for New Star. He is bringing a wealth of corporate experience to the company and will be a tremendous asset to us."

  • New Star Wars

    10 May 2001

    Do you believe the spat between Jupiter and John Duffield's New Star will damage either of the two firms' reputations? Adam: The fallout with Jupiter and New Star, I believe, is having a different effect on both firms. It is making clients question Jupiter and the stability of the investment team but for New Star it highlights them as an alternative and gives greater credibility (ie, son of Jupiter) than any other "new" fund management group could get. Both: It ...

  • Norwich & Peterborough - Quantum Account

    9 May 2001

    Wednesday, 9 May 2001.

  • Norwich Union - Business Benefits @ Norwich Union

    15 May 2001

    Tuesday, 15 May 2001. Type: Cafeteria-style group protection product including group income protection, group life cover, group private medical insurance and accident, sickness and unemployment protection for customers with Norwich Union pensions. GROUP INCOME PROTECTION Minimum benefit/premium: 30 per cent of salary/£500 a year. Minimum-maximum ages: 16-64. Minimum group size: Three. Deferred periods: Choice of 13, 26, 52 or 104 weeks. Charges

  • NPI back on course with IFAs

    15 May 2001

    After a year long campaign, NPI claims it has won it's way back onto the "vast majority" of leading IFA panels across the full range of its product offerings. The life office says much of this success can be attributed to boosted financial strength following the takeover by Australian insurer, AMP in January last year.  

  • NU finds key to stake ads

    10 May 2001

    Norwich Union is launching a £7m TV, poster and press advertising campaign to promote its range of stakeholder pensions. It is one of a handful of players advertising stakeholder and says the campaign shows its commitment to become a market leader. Press ads, focusing on the need for employers to set up schemes before the government deadline of October 8 will run alongside the TV campaign. Director of brand and communications Sally Shire says: "The characters ...

  • Online trees offer corporate audits

    10 May 2001

    Scottish Life is launching an online stakeholder decision tree designed to generate an audit trail automatically for advice given to corporate clients. It says the complicated nature of paper-based trees and the regulatory issues surrounding the use of decision trees have created serious problems for IFAs trying to advise clients within a 1 per cent charging cap. The online tree produces a printed or electronic copy for the client, showing the path taken and the date ...

  • Opra update trustees guide

    14 May 2001

    Opra is publishing an updated version of its guide for pension scheme trustees. The new version is now available on its website. Opra will send printed copies to the trustees of every live occupational pension scheme in the UK. The updated guide explains the principles of occupational scheme trusteeship and incorporates suggestions from the first edition. It has also published Opra Note 9 which explains how to apply for MFR extensions. 

  • Outside Edge: Robert Reid

    10 May 2001

    Those avid readers of Money Mail may have noticed this week's main article which focused on the Financial Planning Certificate and the problems of competency involving some 1,000 advisers from a direct salesforce. When they first approached me for my views on FPC, I tried to explain the rationale behind the level at which the tests were set. Unfortunately, it is impossible to justify a level which is less than most of the public would quite rightly expect of a professional ...

  • PC plods set to join the flying squad

    10 May 2001

    Early last year, the situation could not have looked much rosier for technology investors. Global economic conditions were perfect. Optimism abounded and prices continued to soar. By the end of February 2000, the 25 best performers in the Nasdaq were trading at price-to-earnings multiples of more than 100 times anticipated earnings. In such a momentumdriven market, normal valuation methods appeared outmoded. Investors would seek out "concepts" and "visions" rather than products. Fund ...

  • Pension sharing without divorce

    10 May 2001

    While the plain vanilla stakeholder pension plan is poised to help society cope better with pension provision, can it provide effective tax-planning solutions as well? Long before the Green Paper which launched the stakeholder consultation process, it was clear that here was a pension scheme that would cause a sea-change in attitudes to pensions. By creating a low-cost, simple and accessible pension, millions of people who currently can look forward to nothing in retirement but ...

  • Pension sharing without divorce

    11 May 2001

    While the plain vanilla stakeholder pension plan is poised to help society cope better with pension provision, can it provide effective tax-planning solutions as well?Long before the Green Paper which launched the stakeholder consultation process, it was clear that here was a pension scheme that would cause a sea-change in attitudes to pensions. By creating a low-cost, simple and accessible pension, millions of people who currently can look forward to nothing in retirement but ...

  • Pensions Ombudsman launches information site

    15 May 2001

    The Office of the Pensions Ombudsman is launching a website to provide information to members of the public and the pensions industry with details of the Ombudsman’s powers, procedures and publications. The site includes a facility which allows users to search for and download past decisions of potential relevance to their own or their client’s circumstances. 

  • Pressure mounts on Friends over windfall strategy

    10 May 2001

    Friends Provident is under pressure to amend its windfall payout strategy for some rebate-only pension policyholders following confirmation from the Inland Revenue that contributions cannot be brought forward arbitrarily. The news follows campaigning by Aon McMillen Consulting senior consultant Richard Oates. The life office is also under fire from some IFAs over the conduct of the conversion vote. Peter Rutherford & Co Financial Planning Services technical manager Mike ...

  • Prime time for Royal & Sun Alliance

    10 May 2001

    Royal & Sun Alliance has put the focus on individual stock selection with the introduction of the UK prime fund. This Oeic aims to deliver capital growth by investing in a portfolio of around 30 stocks. Investors who want to draw income from the fund can make cash withdrawals under a facility called selector which is available if at least £2,500 is invested. Some UK growth funds aim to dilute investment risk through a portfolio of around 100 stocks. The UK prime ...

  • Private Label allows online applications

    10 May 2001

    Private Label is setting up an interactive website which allows intermediaries to complete mortgage applications online. A mortgage search facility on the site can produce illustrations compliant with the Consumer Credit Act, which can be printed and given to clients. It offers key features documents, reasons why letters and decisions in principle. IFAs can also access product guides, application forms and sales aids which are available for downloading and printing. Development

  • Pru bid for American General off

    11 May 2001

    Prudential's attempt to take over American General has failed after its £14bn bid was beaten by American International Group, the world's largest insurance company.

  • Prudential's flexible annuity

    15 May 2001

    Quinton adds: "The complexity of the product can be expected with the added flexibility and transparency the product brings. Ultimately, this makes the cost of sales for the IFA higher, while at the same time making it more imperative for retirees to get good independent financial advice."

  • Prudential's flexible annuity

    15 May 2001

    Wilkins says: "Reasonably limited, although the investment strategies give a broad brush approach to risk attitude. Up to six investment portfolio changes each year would be more than enough for even the most discerning of clients." Jarman says there is a reasonable cross section, but that it lacks scope outside UK denominated funds unless the client uses self management. He also says that Prudential's with-profits is a strong market leader. Harford is more enthusiastic, ...

  • Prudential's flexible annuity

    15 May 2001

    Tuesday, 15 May 2001. Prudential Annuities - Flexible Lifetime Annuity Type: With-profits and unit-linked annuity. Minimum investment: £100,000. Minimum age: 50. Income frequency: Monthly, quarterly, half yearly or annually. Payable in advance or in arrears. Charges: Initial 3 per cent, annual 0.8-1.225 per cent. Options: None. Commission: Initial 2 per cent, renewal 0.25 per cent. Tel: 0845 6060630. Broker ...

  • Putnam Investments - Putnam Global Value Equity Fund

    11 May 2001

    Friday, 11 May 2001. Type: Ucits. Aim: Growth by investing in large-cap stocks paying high dividends globally. Minimum investment: $2,500. Place of registration: Dublin. Investment split: 100 per cent in large-cap stocks paying high dividends globally. Isa link: No. Charges: A shares initial up to 6.25 per cent, annual 2 per cent, B shares annual 2.5 per cent, A1 shares initial up to 5 per cent, annual 1.6 per cent. Commission: ...

  • Putnam Investments - Putnam Research - US Core Equity - Fund

    15 May 2001

    Tuesday, 15 May 2001.

  • Putnam Investments - Putnam US Small Cap Value Equity Fund

    14 May 2001

    Monday, 14 May 2001.

  • R&SA in internet admin for IFAs

    10 May 2001

    Royal & Sun Alliance is launching a series of initiatives designed to guide IFAs through stakeholder pensions, including education packs and an online administration tool. The company says the packs are designed to tell IFAs everything they need to know about the new pensions. The pack contains a series of A3 flyers including sales aids and information sheets for IFAs to use for research before meeting employers considering setting up stakeholder schemes for their staff. Includ

  • Roll back regulation

    10 May 2001

    The financial services industry is now over-regulated. A Conservative Government will review both the Financial Services and Markets Act and the operation of the FSA. We must remember there has been very little misselling through IFAs - it was almost all through tied agents. For too long, the Govern-ment has allowed the misselling scandal to lead to a situation where costs imposed by the regulator are too high. It will be difficult to retreat from that situation now but it is ...

  • Rooker bid to simplify contractingout rules

    10 May 2001

    The Government has set out proposals aimed at simplifying the occupational and personal pensions contracting-out legislation in response to industry demands. The DSS has drafted a package of regulations and a consultation paper to tackle some of the key criticism of the legislation. It says the pension industry has campaigned for change because it feels the legislation is over-prescriptive and does not offer schemes enough flexibility. The DSS says it specifically ...

  • Savills shuts down mortgage website

    9 May 2001

    Savills Private Finance is shutting down its business-to-consumer website netmortgage.co.uk less than a year after it was launched. The IFA says the fully-transactional website was unlikely to break-even for at least two years following disappointing sales which failed to meet initial estimates. Savills believes the failure of the website demonstrates that borrowers are not yet prepared to buy mortgages online without advice. 

  • ScotEq newsletter covers benefit market

    10 May 2001

    Scottish Equitable is launching a regular newsletter to help IFAs stay informed about changes in the exp-anding employee benefits market. The Employee Benefits Matters publication is aimed at keeping IFAs up to date with industry developments that may have an impact on their corporate clients as well as looking at technical points affecting group risk contracts. The first edition has an update on the regulations governing part-time workers and the requirements of employers ...

  • Set out the goal to put vision into clear focus

    10 May 2001

    Traditionally, the industry has been able to relax during election campaigns as politicians scrap for votes. Financial services rarely features in party political broadcasts. It is not a vote winner or a vote loser. With the civil service in purdah, nothing else will be Catmarked for a while. Nothing will be disclosed that is not already being disclosed and no more accusations will be levelled at commissionhungry IFAs, for a few weeks at least. Yet financial ...

  • Simon Ewan

    10 May 2001

    As the man charged with the task of putting SEI Investments on the UK intermediary map, Simon Ewan could be forgiven for being a little apprehensive. With more than 150 retail investment houses and over 2,000 retail funds in the UK today, IFAs are not only spoilt for choice but are also quickly becoming sceptical of all things new. Yet, with no ambitions to take on companies such as Fidelity or Jupiter in the mass-market stakes and a formula for success which has been tried and ...

  • Singer longer max

    10 May 2001

    Over the last few weeks, I have been looking at the way that the results of court cases have been having a huge impact on various aspects of pension planning. I would like to continue the theme by considering one particular case which I believe is certain to bring about the removal of the age 75 restriction on purchasing an annuity. Cherie Booth, QC, wife of the Prime Minister, is representing a pension scheme member - Joe Singer - in a fight which has now been taken all the way ...

  • Skandia - Mulitpension Executive Pension

    10 May 2001

    Thursday, 10 May 2001. Type: Executive pension plan Minimum premium: Monthly £100, single £5,000. Minimum-maximum ages: 18-74. Fund links: 222 funds from Aberdeen Asset Management, ABN AMRO, Alliance Capital Management, Baring Asset Management, Baring, Houston & Saunders, BlackRock International, Credit Suisse Asset Management, Deutsche Asset Management, Dresdner RCM, Fidelity Investments, Foreign & Colonial, Framlington, Gartmore, Henderson ...

  • Skandia - Multipension Executive Pension

    11 May 2001

    Friday, 11 May 2001. Type: Executive pension plan. Minimum premium: Average monthly £100, single £5,000. Minimum group size: 10. Minimum-maximum ages: 18-74. Fund links: 222 funds from Aberdeen Asset Management, ABN AMRO, Alliance Capital Management, Baring Asset Management, Baring Houston & Saunders, BlackRock International, Credit Suisse Asset Management, Deutsche Asset Management, Dresdner RCM, Fidelity Investments, Foreign & ...

  • Skandia - Multipension Personal Pension

    10 May 2001

    Thursday, 10 May 2001. Type: Group personal pension. Minimum premium: Average monthly £100, single £2,500. Minimum group size: 10. Minimum-maximum ages: From birth -74. Fund links: 222 funds from Aberdeen Asset Management, ABN AMRO, Alliance Capital Management, Baring Asset Management, Baring, Houston & Saunders, BlackRock International, Credit Suisse Asset Management, Deutsche Asset Management, Dresdner RCM, Fidelity Investments, ...

  • Skandia - Multipension Personal Pension Income Plan

    15 May 2001

    Tuesday, 15 May 2001. Type: Income drawdown plan. Minimum investment: £100,000. Investment choice: 222 funds from Aberdeen Asset Management, ABN AMRO, Alliance Capital Management, Baring Asset Management, Baring Houston & Saunders, BlackRock International, Credit Suisse Asset Management, Deutsche Asset Management, Dresdner RCM, Fidelity Investments, Foreign & Colonial, Framlington, Gartmore, Henderson Global Investors, ING Investment Management, INVESCO Perpetual, ...

  • Skandia - Pension Trustee Bond

    15 May 2001

    Tuesday, 15 May 2001. Type: Unit linked bond. Aim: Growth by investing in unit trusts, Oeics and investment trusts. Minimum investment: £3,000. Fund links: 222 funds from Aberdeen Asset Management, ABN Amro, Alliance Capital Management, Baring Asset Management, Baring, Houston & Saunders, BlackRock International, Credit Suisse Asset Management, Deutsche Asset Management, Dresdner RCM, Fidelity Investments, Foreign & Colonial, Framlington, Gartmore, ...

  • Skandia looks for stakeholder alternative

    14 May 2001

    Skandia has designed a group personal pension (GPP) as a competitor to stakeholder schemes.

  • Small firms make it big

    10 May 2001

    Press and commentators love to speculate about which small fund group is set to become the next leviathan. Headlines such as Who'll become the next Jupiter/Perpetual/Fidelity/Schroders? have been commonplace in the trade newspapers and weekend financial press. If we are to believe these art-icles, the aim of all small fund management groups is to grow as fast as possible, expanding their range of products, funds and services. Once a dominant position in the unit trust ...

  • SocGen joins the bond band

    10 May 2001

    SocGen Asset Management has entered the corporate bond fund market for the first time with a sterling corporate bond unit trust. The fund will invest in a portfolio of 40 to 50 corporate bonds issued by UK companies. At least 80 per cent of the fund will be invested in corporate bonds with a rating of BBB and above. The remaining 20 per cent will be invested at the discretion of the fund managers. The fund will not invest in junk bonds. Based in London, the trust will ...

  • Split decision on Catmarked advice

    10 May 2001

    The financial services industry is divided on the Treasury's suggestion to create an "innovative" Catmarked healthcheck for financial advice. The proposal, contained in the Treasury's consultation paper, Standards for Retail Financial Products, is seen by some industry experts as a radical and worrying progression from Cat-marking of products but the Consumers' Association not only supports the idea but also goes so far as to sug- gest how a free or low-cost advice service ...

  • Stand behind the pension promise

    10 May 2001

    When Gordon Brown announced the abolition of the minimum funding requirement in the Budget, a collective sigh of relief went up from those involved with defined benefit pension schemes. However, that same afternoon, the Government published a short consultation paper putting forward its proposals for replacing MFR. The political need for putting something in place of MFR is clear. Whatever may be said against MFR - and there is a lot that can - it does provide some lower limit ...

  • Standard Life asking for retrospective ID checks

    10 May 2001

    Standard Life is asking IFAs to identify term insurance clients going back to 1994 because it did not realise it was included in recently adopted FSA moneylaundering rules. New powers adopted by the FSA from previous regulators means an identification certificate is required for all term cases written from April 1994. Standard is mailing IFAs with a list of customers going back to 1994, asking them to certify clients. Only those paying more than £48 a month need ...

  • Supermart move by Charles Schwab

    10 May 2001

    Charles Schwab finally took its first steps into the UK fund supermarket arena this week, extending its broking services to include unit trusts and Oeics. The move comes as Misys says it is signing up with fund supermarkets Skandia and Cofunds, giving its members free access to the platforms through M-link from the end of June. Schwab also confirmed it will look to offer advice in the future but has not decided whether it will register as an IFA or enter into a strategic ...

  • Swayed by the winds of change

    10 May 2001

    The IFA investment industry gathered in an unusually gloomy Madrid last week for the second annual Sway investment conference. Over 100 of the UK's leading investment advisers arrived on Wednesday afternoon in what is billed as Europe's sunniest capital only to be disappointed to find it had been sunnier at home. Not that the weather mattered, as there was no be time for sunbathing or sightseeing with a packed schedule of speeches and networking. The Sway ...

  • Test series

    10 May 2001

    As I began to explain last week, the new Enterprise Management Incentives scheme is designed to be a flexible share option scheme with few administrative requirements. Unlike with other share option schemes, the Inland Revenue does not intend to publish any model scheme rules. The original limit on the number of employees participating in an EMI was abolished in the Finance Bill 2001. It also proposed that the maximum limit on the total value of shares under the scheme ...

  • The Daley Update

    10 May 2001

    Sterling has added eight fund links to its Isa, bringing the total number of funds available to 64 from 17 invest ment houses. The new funds are Artemis's UK growth, income and UK smaller companies funds, Fidelity's managed international, special situations and Wealthbuilder funds, Framlington's health fund and Henderson's independent growth portfolio. International Asset Management is to make a public offer of up to $100m (£69m) of shares in its alternative ...

  • The Mortgage Operation offers insurance online

    15 May 2001

    Broker network The Mortgage Operation is offering intermediaries online access to a range of insurance products. Intermediaries can quote building & contents and sickness and unemployment insurance directly through TMO's online system at the same time as providing a mortgage quote. In return they will receive the equal of 25 per cent of the monthly premium and advice will be indemnified by the policy insurer. 

  • Thesis enters arena with multi-manager service

    10 May 2001

    Thesis Asset Management is targeting IFAs for the first time with the launch of a new portfolio management service. The Cathedral service offers a multi-manager approach where portfolios can be invested in a range of unit trusts, investment trusts, Oeics and offshore funds from a number of fund managers. It also offers self-invested personal pensions, trusts, Peps, Isas and offshore insurance bonds. Investors can choose between five portfolios within three bands of risk, ...

  • Tories' granny bonds aim to protect assets

    10 May 2001

    The Conservatives have unveiled proposals which will allow long-term care insurance policyholders to ring-fence their assets if the costs of care exceed their level of protection. People would be encouraged to take out LTC insurance to meet expected costs of care, estimated at £25,000-30,000. If the fund turned out to be insufficient to meet the costs, the state would be responsible for further costs without eroding the policyholder's remaining assets. The proposals ...

  • Tunbridge Wells aims to teach schools a lesson

    10 May 2001

    Tunbridge Wells Equitable Friendly Society is offering IFAs a schools pack to help explain to schools and parents the issues surrounding savings for children. Twefs says the recent Government plans for the child trust fund will not help those parents who currently have a child at school. It believes these parents may have to foot the whole bill if their child goes to university. The pack is designed to help IFAs explain to parents the need to plan ahead for their child's ...

  • Virgin targets IFAs with mortgage comparison tools

    10 May 2001

    Virgin One is introducing an online mortgage service as part of its drive into the intermediary market. From this week, IFAs logging on to virginone.com will be able to compare clients' existing mortgage with the Virgin One flexible current account loan. Virgin says it is hoping to enable IFAs to give clients a straightforward and practical demonstration of the mechanics and suitability of its mortgage. The website features sales tools, including a savings ...

  • Watchdog prepares for surge in complaints

    10 May 2001

    Steve Petrie is a consultant with John Joseph Financial The Financial Ombudsman Service is setting up three sections dedicated to complaints against IFAs. The three IFA-specific divisions will cover complaints relating to mortgage endowments, occupational pension products and all other types of complaints. The move follows a massive increase in its workload due to complaints relating to poorly performing mortgage endowment policies. The FOS is in discussions with ...

  • West Bromwich Building Society - Three Year Fixed Rate Bond

    14 May 2001

    Monday, 14 May 2001.Type: High interest account.Minimum-maximum investment: £1,000-£1m.Interest rates: 5 per cent gross a year until July 31, 2002, 5.5 per cent until July 31, 2003, 6 per cent until July 31, 2004.Term: Three years.Offer period: Until further notice.Withdrawal penalties: No withdrawals permitted during term.Tel: 0800 1695128.  

  • Whistle while you work

    10 May 2001

    The ability for staff to blow the whistle is always a very contentious issue. The Public Disclosure Act 1998 has been in force for two years and a number of employment tribunal cases are now starting to filter through. The main provisions of the act protect individuals who disclose information about certain kinds of wrongdoing against dismissal or detriment at the hands of their employers. For an employee to receive protection, the following three questions must be answered positively:

  • Whose life policy is it, anyway?

    10 May 2001

    The news that online travel company Expedia has moved into profit a year ahead of schedule and that e-bookers is reporting smaller than expected losses suggests not all areas of the online community are suffering as much as others. It is particularly significant for the personal finance industry that travel is one of the markets where it might be a little early to write off the dotcom opportunity. Both markets offer products which rely heavily on trust and where it is often too ...

  • Woolwich admin under strain as applications flood in for Open Plan

    10 May 2001

    The Woolwich's mortgage administration department is understood to be close to collapse after being flooded with applications for its Open Plan product range. Industry sources claim the UK's fourth-biggest lender is buckling under the strain of coping with rocketing applications from IFAs since the bank revamped its flexible mortgage range in January. IFAs claim that the borrower applications they have forwarded to the bank are up to two weeks behind the normal ...

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