Online - July 2010
Dev Malle has called for advisers to become more proactive in preparing for the final paper in the mortgage market review in September.
US Memory Champion David Thomas offers tips to advisers studying for their RDR exams.
Lazard Asset Management managing director and head of third party distribution Charles Wilson is leaving the firm to join Investec, Money Marketing can reveal.
FSA chairman Lord Turner calls for macro-prudential tools to limit credit supply when everyone is “enjoying the party”.
Research shows investors want more transparent charging that will help them shop around for advice.
Mark Harris says the mortgage market has made great strides in the past 12 months but says people should not be looking for a seven-star holiday in Dubai just yet.
Former Platform head of sales Jeremy Duncombe takes up new role.
Maggie Craig takes over as acting director general.
Omo transfers using the Options system remained 11 calender days in Q1 2010, although pension to pension transfer times dropped to 10 days.
Only IMA sector where no funds have met its consistency criteria over three years.
Eight years imprisonment for accountant who manipulated his clients’ and his own tax returns.
Adviser Alliance is donating money to support the judicial review of the FSCS’s £80m interim levy.
Russell replaces Erik van Houwelingen, who is leaving to pursue other career opportunities.
New option guarantees income of 5 per cent of the original investment over 20 years.
Firm signs deal with GBST, which supplies platform technology to Novia and Macquarie in the UK.
New proposals to improve flexibility and reduce compliance costs.
Trade body warns of additional costs associated with judicial review proceedings, even if it is successful.
Lender also increases maximum loan size to £500,000.
Seven regional Euro banks failed banking supervisor’s tests.
Allianz Global Investors plans to launch a long/short UK equity fund for Jeremy Thomas.
The eurozone crisis has led to a surge of flows into American bonds, according to a report by the Council on Foreign Relations.
US economic growth falls to 2.4 per cent in the second quarter of 2010.
New chair of Treasury select committee cautions against policy made “on the hoof”.
Treasury select committee chair says Budd’s departure emphasises the importance of getting the structure of the watchdog right.
US/UK securities and investment banking firm Incapital acquires Blue Sky’s book of business, client base and IP.
Ex-Edward Jones clients launch a petition claiming the firm is failing to treat its customers fairly.
Tool shows how portfolio is affected by platform charges.
The plug-in can be added to advisers’ websites to allow customers to generate their own quotes online.
Average investment trust total expense ratios have risen from 1.56 per cent in October 2008 to 1.83 per cent after performance fees, according to the AIC.
Aviva Investors will combine assets with its European and Asia Pacific real estate funds.
William Calvert, the head of emerging markets at Axa Framlington, is joining Polar Capital.
Axa is piloting its new Secure Advantage range with specialist IFAs.
The firm will start testing the third-way product with a select group of IFAs within the next six weeks.
Bank offers residential, buy-to-let and commercial mortgages.
Lenders fear tightening of wholesale market, according to BofE survey.
US investment firm targets HSBC, Barclays, RBS and others over “misselling” of mortgage securities.
ECB was keen to wean banks off the support package.
Barclays to compensate all complainants within three weeks.
Ernst & Young: Fiscal tightening measures proposed by the Government will not choke off recovery.
Bestinvest has appointed Donald Reid as chief operating officer.
Quantitative easing programme kept at £200bn.
Fidelity fund guru says the strong run for Chinese exports is coming to an end.
Sales in Texas, Canada and Egypt are made to tackle oil spill costs.
Hayward will step down on October 1 and will be replaced by Robert Dudley.
Bradford & Bingley says its pre-tax profits were £896m in the first half of 2010.
Williams has stepped down as CEO with immediate effect with Charlie Eppinger assuming the role until a permanent replacement is found.
Scott Merrell was convicted of six offences in June 2008.
Outgoing chairman Sir Alan Budd says forecasting alone is not attractive.
Sir Alan Budd says he didn’t mean to mislead anyone about how long he would stay as OBR chairman.
Hospitals working with Bupa International can assess their medical facilities and clinical quality according to international standards.
Business Secretary to set out new measures to boost lending to small businesses.
Prime Minister David Cameron turned down the offer to attend due to impending birth of his child.
William Calvert, the head of emerging markets at Axa Framlington and manager of the £240m emerging markets unit trust, has resigned.
Dan Crook will transfer back to group insurance from Canada Life Wealth Management as part of the restructure.
Capita has decided against adding to the £30m provision for potential losses arising from the Arch cru debacle.
Former Lehman Brothers mortgage administrator to rebrand and offer its services to other companies in the sector.
The manager of the £858.4m Cazenove European fund has pumped up his top large-cap holdings and cut back on financials in the wake of the eurozone crisis.
John Warren joins as a fund manager in the UK equity team.
Henry Chan, the head of Asia Pacific investment at Baring Asset Management, has left the group.
Building society has been working with Gloucestershire First to provide support for those affected.
Standard Life Investments has agreed a deal with Chuo Mitsui Asset Trust and Banking that will see the Japanese group take over management of SLI’s £476m Japanese assets.
Hanks is general manager of Allianz UK and takes over presidency from Barry Smith.
Year long pilot to be rolled out in up to 100 of the charity’s 394 bureaux.
Ron Pritchard and Mike Robinson lend firm £588,000 to help it meet its regulatory capital requirements.
Clarkson Hill has had its shares suspended on AIM after failing to publish its annual accounts by July 1, 2010.
Clarkson Hill was subject to a regulatory review of its systems and controls last year and incurred exceptional costs totalling £465,107.
Four appointments have been made to Cofunds senior sales team.
Paper aims to give clearer information to customers on the cost of retail PPI cover and their rights.
David Trenner says under the Government’s new proposals, if the lump sum is not needed it should not be taken.
FSCP chairman Adam Philips calls for the Consumer Financial Education Body to create a savings campaign.
Borrowers are now able to fix and track different amounts of their home loan with no additional restrictions.
Borrowers allowed unlimited over payments with no early repayment charges.
The Government is set to index private sector pension increases to CPI in a move consumer groups claim is a “stealth cut” on pensions.
David Jane, the head of UK equities at M&G, has left the group with immediate effect.
Weale replaces Kate Barker as an external member of the MPC.
The European Commission will announce proposals on Monday to boost consumer confidence in financial services.
National Institute of Economic and Social Research says growth will reach 2.2% by 2012.
Peter Le Beau says Ireland has an excellent policy on protection.
Emag says Sir John Chadwick’s calculations are “utterly risible”.
Equitable Life hires BlackRock to provide investment and risk management services for its policyholders.
The European Parliament has approved strict new rules on bankers’ bonuses.
The Commission proposes to hike the bank deposit limit and investor compensation limit in a bid to protect consumers.
New Star whistleblower will get his tribunal hearing.
AIA chief Mark Wilson ousted after opposing takeover by Pru.
Firm also pledges to double its investment in technology.
Advisers will have the option of paying an annual £45 fee for clients with over £50,000 on FundsNetwork in order to buy and switch without incurring initial or switching charges.
Clients remortgaged their homes to buy geared TEPs but were not warned of the risk to their properties.
A number of the insurer’s international ratings are lowered.
Fortis Life UK has appointed Mark Anders as head of sales.
Ombudsman hires NHS director Simon Rouse.
Linda Woodall has replaced Lesley Titcomb as the acting director of the small firms and contact division.
Mark Norris quits the FSA, Titcomb takes over as acting chief operating officer.
Sign up now to sit the new RDR-compliant R0 exams
FSA issues £130,000 fine and bans six brokers for mortgage fraud.
FSA bans Timothy Higgins, Clifford Felstead and Ralph Brunswick.
Directors escaped fines of £17,000 each due to financial hardship.
FSA considered axing the RDR in March but worried about “losing face”.
FSA waives fine as firm is in liquidation and money will be used to meet customer claims.
Jeffery and Jeremy Burley used inside information about oil and gas exploration company Tower Resources.
Former CEO of energy company Sibir, Henry Cameron, is fined for market abuse.
The FSA has fined a Gateshead-based IFA firm for failings relating to pension switching advice.
FSA fines FT Compliance Services director David Head for failing to properly supervise staff.
Ex-Norther Rock finance director David Jones has been fined £320,000 and banned from performing regulated activities.
FSA fines Pace Financial Management partners for failings that led to financial crime.
The FSA is implementing its powers to suspend or restrict authorised and approved persons.
UK levy payers look likely to have to pay the FSCS’s management expenses when it acts of behalf of other compensation schemes.
Trade bodies warn of unintended consequences of regulatory proposals.
Lenders face costs of up to £20m a year under new lending rules, while costs to the FSA are around £250,000.
FSA proposals could see the FSCS impose an exit levy on firms that leave a particular deposit class.
New proposals will see affordability tests for all mortgages and lenders ultimately responsible for whether borrowers can afford a mortgage or not.
11 firms facing restrictions after FSA research into UCIS.
Aifa: Cross subsidisation of providers gives a “safety net for consumers.”
The collapse of Keydata has seen claims falling on the investment intermediary sector skyrocket.
Around 23,000 Keydata clients will find out if they are liable for compensation for Lifemark investments in September.
Securities and Exchange Commission says fine is the biggest for a bank in its history.
Employers may no longer be able to force people to retire at 65.
Economist and broadcaster Andrew Dilnot to review funding options for the Government.
Treasury proposes separate compensation schemes which would mean the end of the current cross-subsidy system.
New report says public sector pensions are twice as valuable as previously thought and radical reform is needed.
Review into funding of palliative care will be chaired by Marie Curie Cancer Care chief executive Tom Hughes-Hallett.
The Government has proposed an annual allowance for pension contributions of £40,000 and suggested it could be indexed.
Treasury confirms plans to disband FSA and create new regulatory regime.
New body will look to attract foreign investment through a streamlined tax system.
Financial Secretary to the Treasury Mark Hoban says simple products will be developed with consumer groups and the industry.
Is Barclays learning from its mistakes?
Rambourg resigns from the asset management house to focus on FSA investigation.
Exit package to top £11m.
Job Curtis and Ben Lofthouse have replaced Nick Sheridan on the global dividend income fund, according to reports.
Hexam Capital Partners is to take a 65 per cent stake in its joint venture with Ignis Asset Management
Income taken after a switch to another provider will not be hit with an unauthorised payment charge.
Government tells bankers to show restraint ahead of next round of bonuses.
June fall follows drop of 0.5 per cent in May.
0.1% rise in prices between May and June.
The Will Writing Company says IFAs must be careful which estate planning firms they work with.
Fidelity multi-manager income fund portfolio manager Eugene Philalithis on how to avoid a dud choice.
HSBC has agreed to buy Royal Bank of Scotland’s retail and commercial banking businesses in India.
Money Marketing Academy Training Provider
IFA Promotion says half its funding now comes from IFAs, rather than product providers.
Ignis Asset Management has confirmed it is looking at launching a UK enhanced income fund.
Net retail fund sales for May have dipped below £1bn for the first time since November 2008.
The Investment Management Association is recombining the UK equity income sector.
Incapital Europe launches second product following recent purchase of Blue Sky.
Intellego (Academy members area) download
Investec is considering the sale of Rensburg Fund Management after receiving a number of enquiries about the firm.
High Court rules investors in unauthorised Upton & Co collective scheme to get pay-outs.
AToM sales and marketing director Dale Jannels argues there’s still a place for packaging in today’s market.
Is Pimco managing director Bill Gross’s pessimistic outlook for the developed world correct?
Former FSA chairman Sir Callum McCarthy is to chair a new organisation to emerge out of a £50m investment in Kent Reliance by private equity firm JC Flowers.
JM Finn & Co has launched an Oeic sub-fund focusing on smaller companies listed on the London Stock Exchange.
Cap aims to protect borrowers with large mortgages.
Ex-Treasury select committee chairman and former EU internal markets commissioner tipped for new launch.
Jupiter fund of investment trusts and monthly income manager Laurie Petar has passed away after a long battle with cancer.
Colin Croft has been promoted to co-manager on the Jupiter emerging European opportunities fund.
Paul Brenchley joins KPMG as a director in its insurance risk team.
Borrowers receive £1,000 on completion, there is no higher lender charge and the mortgage is fully portable.
Money released in five stages and up to 75% LTV for each stage.
Trade union appoints LighthouseTemple to supply financial advice on an exclusive basis.
Lighthouse Group has appointed Roger Sanders as managing director of the firm’s employee benefits division.
Six out of the 13 MPs that will form the new Treasury select committee are Conservative MPs.
Liontrust Asset Management has closed its global equity team just months after its final member joined from GAM.
Borrowers gain access to better rates by backing up with family members’ savings.
Lloyds stopped selling PPI across all brands last Friday.
Premier Asset Management says it is considering a UK long/short launch for Simon King.
A senior manager with a personal investment and pensions company has pleaded guilty to defrauding Friends Provident out of £2m, a court has heard.
Former Intelligent Finance director of sales joins as national sales director.
Witan Investment trust has appointed Marathon Asset Management to run a pan-European portfolio.
Proportion of mortgage deals tied to other products doubles since January, according to Which? research.
Firm plans to streamline UK range as part of a strategic review.
He will be tasked with expanding strategic partnerships.
Medicals Direct Group has acquired outsourced insurance services firm for an undisclosed sum.
Firm criticises proposals for not exempting early retirement and redundancy and says marginal rate relief should be retained.
“The debate is about the appropriate degree of stimulus, not about applying the brakes” says governor.
Bank offers mortgages up to 80 per cent LTV, but not through brokers.
Ex-Insight manager Alex Illingworth to join firm.
Ratings agency says FSA plans could reduce house prices and lending volumes in the short term.
Ignis chief economist Stuart Thomson says UK and US must inject more money into economies to avoid another recession.
CML says house purchases up in May.
Gross lending also up 7% on June last year.
Manager of the PSigma Income fund says stock is tempting but risk is too high.
MPC member Andrew Sentance voted againl for interest rates to rise.
Figure is 34 per cent higher than the average of £1.34bn recorded over the previous five months.
AGM sees members lash out over director remuneration.
Which? warns Nationwide over decision to hike mortgage rates for residential customers who let out their properties.
Mark Bullard has spent six years in intermediary sales with the RBS Group.
Neptune has launched a UK alpha fund for analyst Nicola Muirhead.
Falcon Group managing director Stephen Gazard calls for a united front rather than advisers taking pot shots at other business models.
Government to widen disclosure of tax avoidance regime to include inheritance tax by requiring providers to disclose “new and innovative” schemes.
The independent valuer for the Bradford & Bingley compensation scheme has ruled that B&B shares had no value before the bank was nationalised.
Govt-backed savings scheme says it has to limit sales volumes.
OECD labels Budget “essential starting point”.
Ann Abraham says basis for proposals is “unsafe and unsound”.
The Government has launched a website for people to post their ideas on tackling the deficit.
Chancellor George Osborne is looking at dropping the pre-Budget report from the coalition Government’s roster of economic events.
Chancellor offers Treasury select committee power to veto appointments to the Office for Budget Responsibility.
Chancellor George Osborne told the Treasury select committee that taper relief has been abused in the past.
Pada acting chair Jeannie Drake will no longer take up her role of deputy chair of the Nest Corporation.
The pair has been included on a list of civil servants and senior quango staff earning more than £150,000.
Parliamentary protest from aggrieved clients comes in the same week as BBC probe.
Partnership has launched a new lending product in a bid to help people pay for care without having to sell their home.
Perspective Financial Group has appointed Andrew Aldridge as marketing manager.
The Chartered Insurance Institute disciplinary committee has fined Peter Sprung an undisclosed sum.
Axa Elevate’s Shaun Sandiford says IFAs are now rightly demanding more from their platform.
The Financial Ombudsman Service reveals it received 13,520 new PPI complaints in Q1.
Fees cut from 3 per cent to 1.5 per cent and range also include flat fee products.
Experts predict the end of monetary loosening after estimates of +1.1% growth in Q2.
Forum is to draft a good practice statement on business retention by September.
Westfield Health moves into consumer market with online alternative to cash plans and PMI.
Schroder Income and Jupiter Income funds added to Principal’s grey list.
Prudential warns new tax regime will hit basic rate tax payers; welcomes abolition on ASPs.
Policy offers guaranteed acceptance and fixed cover and premiums for life.
Hawkish MPC member says now is the time to up rates from all-time lows of 0.5%.
Total funds under management were £13.29bn at June 30, up 1.5 per cent.
Stephen Hester says “safer” banks will come at a cost.
FSA says many arrears charges were unfair or excessive.
45 roles in Derry at risk of redundancy and 35 across HML’s Padiham, Glasgow and Skipton sites.
70 per cent of ARLA member offices say there are more tenants than available properties.
Industry figures launch Sagis, a “network of seasoned industry experts who have ‘been there, done that and got the t-shirt’”.
Net inflows of £1.2bn.
Firm shuts website and temporarily closes advice arm to new business after the regulator suggests a review of systems and controls.
Half year sales fall 21 per cent and 17 per cent for Bright Grey and Scottish Provident respecitively but Royal London insists it is committed to protection.
Bank could list in UK as soon as autumn.
Lender says it has a 19 per cent share of the mortgage market.
Threadneedle has appointed L&G Investment Management head of UK equities Mark Burgess to replace current CIO Sarah Arkle.
Reports that several banks have failed the test to see if they could handle worsening economic conditions.
India’s booming economy could offer opportunities for businesses and investors
MM editor responds to concerns about the number of anonymous comments.
Sifa warns that contributions to RL may be “money down the drain”.
Sifa says it will not apply for accreditation to award statements of professional standing to advisers.
Moneyextra.com sold for an initial £1, but the full price is expected to be £8m after earn-outs.
Departure leaves OBR with no chairman ahead of this autumn’s comprehensive spending review.
The interim chairman of the Office for Budget Responsibility will give evidence to MPs in an attempt to calm fears about the new body’s independence.
Skandia is to axe its critical illness and multi-bond products.
FSSC appoints Sarah Thwaites as director of products and services and Dean Cassar as director of client services and engagement.
Half-year pre-tax profits £21.7m, up 48 per cent on last year’s figures.
The Forum of Private Business says the plans will prove “highly damaging” to small firms and open the door to costly employment tribunals.
The FSA plans to extend the scope of its pay rules to include advisers that handle client money.
SJP sees 60 per cent jump in group operating profits in the first six months of 2010.
Mike O’Brien has been appointed to lead TenetConnect and TenetSelect.
Canada Life’s Paul Avis argues that group schemes are better than individual protection.
Policy Exchange also warns voluntary LTC premium would need to be much higher than anticipated at £40,000.
Threadneedle has poached a managing director at Goldman Sachs Asset Management to run its fixed income team.
Simon Chamberlain’s latest venture has signed up 30 member firms since launching a year ago.
Information Commissioner’s Office says delays are one of the main sources of complaints.
Four deals are in the pipeline for Towergate as the firm continues on its acquisition trail.
David Norgrove has warned against “box-ticking” in a crackdown on transfer incentives for occupational pension schemes.
Treasury financial secretary Mark Hoban announces ASP will be scrapped.
FSA chairman Adair Turner calls for debate about the balance between regulation, consumer responsibility, consumer capability and the state.
The FSA chairman has questioned if the CPMA should take on competition issues as part of its remit.
Two men carried out a hard-sell, illegal operation from call centres in Spain.
Treasury select committee chair announces investigation into banking sector competition.
Bank of England chief economist Spencer Dale warns of triple threat to UK economy.
The UK economy grew by 0.3 per cent in the first quarter of 2010, according to figures from the Office for National Statistics.
The creation of the master trust means employers offering their employees group life cover through Unum can pay claims tax-free.
Former CEO Susan Ring will stay at the provider in an advisory capacity until February 2011.
News follows reports that CarVal has pulled out of loan deal.
Survey shows fund managers cutting weightings to the US in favour of cash.
Business Secretary attacks banks’ overdraft charges and “unacceptable” bonus culture.
Chief executive Robert Sharpe earns £660,000 in pay and bonuses.
Lord Turner says the FSA will investigate incentives leading to poor consumer outcomes, but will tough words result in tough actions?
The FSCS has declared the stockbroker in default, adding that it can now start considering complaints against the firm.
Hybrid product allows individuals to top up their group scheme cover.
Wolters Kluwer Financial Services has launched Compliance Passport which helps firms comply with jurisdiction-specific regulation.
Drop lock facility available to new tracker and offset borrowers with Barclays.
Xafinity has bought PwC’s UK trustee pension scheme actuary, trustee investment consulting and scheme administration client business.
Banks write to 18,000 of their customers apologising for a mortgage payment calculation error.
The product is a two-year fixed-rate mortgage with a rate of 5.99 per cent.
Lender also offers a ten-year fixed-rate deal at 4.99 per cent for those with a 75 per cent deposit.