Online - July 2011
Gareth Fatchett says IFAs who did not recommend the Arch cru funds will end up footing the bill.
Chris Gilchrist says the FSA and all the other parties involved in the Arch cru debacle were asleep at the wheel.
James Lloyd demystifies some of the confusion around the Dilnot commission proposals.
Chris Horlick says the marginal extra cost of Andrew Dilnot’s proposals must not be allowed to stand in the way of reform.
Steve Brann says the IMA should have focused on the volatility and drawdown of funds in the managed sector.
Steve Tolley reports from Brussels on attempts to give the European markets supervisor power to conduct unannounced on-site inspections.
Julian Chillingworth says equities offer good value and investors taking a long-term view should get rewards.
Paul Avis says the group risk market could benefit in a post-RDR world.
Report from Government-backed Consumer Focus is lacking in any hard evidence to back up its claims.
PFS president Eddie Grant talks to Rachael Adams about the launch of the Tomorrow’s Client conference.
Aifa says individual adviser complaint reporting may carry human rights concerns.
Telegraph says Pwc, E&Y, KPMG and Deloitte face Competition Commission investigation.
A J Bell will launch a new investment Isa and dealing account on its Sippcentre platform on July 11.
Provider says almost 4,000 investors could see their available tax-free cash drop by £75,000 from April, 2012.
Lenders also reduces rates by up to 0.2%.
Lender is offering a limited edition two-year tracker and five-year fixed.
The ABI is to fund a specialist insurance fraud unit of 35 detectives to fight fraud costing industry £2bn a year.
Lender says rate reductions are due to falling cost of funding.
Product tracks base for two years and then fixed for three.
Investigation will focus on Money Advice Service name and claims that advice is independent and unbiased.
Feruza Mettrick used identities of others to obtain mortgages on rented properties.
Research shows intermediaries, on average, conducted 5.4% more B2L business in Q2.
Aegon Asset Management is to rebrand as Kames Capital.
Aegon is looking to sell-off its 190-year-old life insurance arm Guardian, according to reports.
Christophe Ferrand, the chief administration officer of Aegon Asset Management, has died after a fire at his home in Scotland.
Government-backed quango based its attack on IFAs on just 31 transactions over a 10 year period.
Products start from 4.68%.
Treasury select committee chairman Andrew Tyrie has written to FSA chief executive Hector Sants describing the regulator’s rapid dismissal of the committee’s recommendation to delay the RDR “unacceptable”.
TSC chair Andrew Tyrie tells Money Marketing “this will not be the end of the matter”.
Platform adds Sanlam TPP to wrapper offering.
Ashmore Investment Management is understood to be preparing a push into the UK retail market.
BT Investment Management to acquire firm’s core investment management business.
Parntership will give advisers access to “sophisticated” Sipp functionality.
Bradford & Bingley and Northern Rock Asset Management make significant profits in H1.
Ed Balls accuses George Osborne of “breathtaking complacency” over today’s 0.2 per cent growth figures.
Financial Stability Board sends proposals to G20 countries for up to 2.5 per cent higher capital charges.
Lender to reduce its fixed and tracker deals by up to 0.5%.
Trade body says dynamics of the market mean higher limits are not necessary.
British Chamber of Commerce survey shows a third of sole traders see auto-enrolment as a top barrier to expanding.
Ben Pakenham is to leave Henderson Global Investors to join the high yield bond team at Aberdeen Asset Management.
Hargreaves Lansdown says fund manager Mark Lyttleton’s stock selection has deteriorated.
The board of the Schroder UK growth investment trust have scrapped the performance fee following a period of outperformance.
The Bank of England bank rate has been held at 0.5 per cent for the 28th month in a row and has kept quantitative easing at £200bn.
Fund guru says his team underestimated the risks of investing in China, according to reports.
Brooks Macdonald unveils seven-strong fund range.
Danny Alexander says those expecting tax breaks for wealthy are “living in cloud cuckoo land”.
Health Secretary Andrew Lansley criticised the Government’s pension reform proposals in a letter to Treasury chief secretary Danny Alexander.
Liberal Democrat business secretary Vince Cable is to warn that the ring-fencing of banks may not go far enough to prevent a future financial meltdown.
Business secretary Vince Cable has called on the ICB to demonstrate that ring-fencing retail banking activities would be as effective as the full separation of retail and investment divisions.
CFS to be exclusive proviser of products and fund research.
Mike Hughes joins as managing director of mortgages.
Neave previously managing director of CoreLogic Solutions.
Castlestone Investment Management has denied that the FSA investigation into it is connected to criminal offences.
Firm says it “continues to operate as normal”.
Cazenove is planning to close its absolute UK dynamic fund at £225m after re-opening the vehicle in January this year.
Five-year fixed mortgage at a rate of 3.39 per cent.
Bad debt held by Chinese local governments is a much larger problem than previously anticipated, Moody’s Investors Service claims.
CII says one year delay recommended by MPs will undermine the positive momentum behind the RDR.
Offset deals available from 4.49% and a £999 fee.
Results for first half of 2011 show 34 per cent increase.
Platform to provide Global Wealth Services dealing, settlement and sub-custodian services.
Neville Richardson will step down from his roles as Co-operative Financial Services chief executive and group deputy chief executive later this year.
Staff called to Manchester meeting to hear what the future holds for the group’s life and savings business.
Field-based staff have been made redundant while branch-based staff will move to offer Axa products.
Existing management team kept on to lead business.
A High Court judge has frozen over £1m of fees charged to members of pension reciprocation plans administered by Ark Business Consulting and two related entities.
Products start from 2.99%.
Credit Suisse is to cut 2,000 jobs by the end of 2012 in a bid to make cost savings across the business.
Threesixty technical director and co-founder David Ingram is leaving the support services firm.
Former director general says the whole rationale for setting up Aifa was to give a voice to IFAs.
Dilnot wants Government to invest in a major information and advice strategy to help people with long-term care needs.
Policymakers amend definition of basic pay to exclude commission, bonuses and overtime after concerns were raised about the impact on good quality pension provision.
Supreme Court ruling on the definition of a money purchase scheme will force the Government to write new legislation.
Firm appoints former Gartmore duo in plan to build its presence in the asset management sector.
No UK banks among the eight.
Hugo Osmond goes head to head with NBNK and Co-coperative Group.
Eurozone finance ministers may accept Greece should default on some of its bonds.
BSA argues buy-to-let should be excluded from EU mortgage credit directive.
European leaders have agreed a second bail-out for Greece in an attempt to shore up the euro.
The European parliament has refused to back a recommendation to increase the Investor Compensation Scheme’s maximum guaranteed level of compensation to €100,000.
PwC says Solvency II delay until January 1, 2014 is now “almost certain” as the European Parliament backs the Council of the European Union’s proposal for a ’soft landing’ for insurers.
The European Securities and Markets Authority (ESMA) says it could limit the distribution of certain ETFs to retail investors.
James Leonard Finnigan stole from dead, elderly and ill customers.
Experts highlight concerns with 0.2 per cent GDP rise in the Q2, 2011.
F&C’s Julie Dent is to retire from the asset management industry later this year, it has been confirmed.
Fewer than half of funds in the absolute return sector have beaten inflation over the past year.
Fidelity launches an onshore version of the emerging Asia fund in response to increasing adviser demand.
Fidelity is testing demand for an Indian investment trust.
PwC/CBI survey shows hiring expectations at their highest since June 2007.
First State’s Jonathan Asante is lobbying for more freedom when it comes to investing in emerging markets.
Fitch has warned against absolute return funds for less sophisticated investors.
FMG Investments is planning to launch a “Rising 6” fund investing in Africa, Brazil, China, India, the Middle East and North Africa (Mena) and Russia.
FOS puts complaints on Arch cru range on hold pending more details of the FSA’s £54m package.
Robert Jenkins has previously chaired the Investment Management Association.
Insurer says Willets will play a “crucial role” as it looks to build its annuity proposition.
Roco Sepe has been with Friends for 20 years.
Basingstoke office to close with consolidation of Manchester offices by the end of 2012.
FSA bans former Best Advice Financial Planning directors Paul Banfield and Anthony Moss from holding any significant influence functions.
Andrew Porter underinsured clients and retained the surplus, while Alexander Brincat offered free life cover without informing providers.
Regulator delays on cash rebate ban decision.
Investigation to include takeover of US bank Charter One in 2004.
FSA data shows 8% of advisers aged over 55 intend to retire early as a result of the RDR, with 5% to stop advising on retail investments.
Andrew Ruff and Richard Lindley fined for widespread compliance failings.
Regulator confirms platform policy statement delay.
The FSA has executed search warrants on two Castlestone Investment Management premises.
Margaret Cole says the FSA has a close interest in the development of LTC products.
Regulator says platforms need to “carefully consider” contractual obligation to clients who leave their adviser.
FSA chairman Lord Turner says publishing a report on HBOS is in the public interest.
Complaints commissioner says regulator’s notes were “wholly inaccurate” in complaint case where customer lost £20,000.
The FSA is cracking down on VCTs and EIS that are being marketed primarily on the tax incentives offered and not highlighting the risks involved.
Scheme has paid out £1.9m to 39 claimants over defunct IFA network Alpha to Omega and is considering a further 376 claims.
No further levy expected but FSCS says some firms’ share of the £326m interim levy may have to increase.
Firms overcharged as part of the £326m interim levy to cover Keydata claims could receive refunds over the next financial year.
Compensation scheme says it is considering potential adviser liabilities and how to value the CF Arch cru funds.
Five complaints upheld total £160,000, with 30 yet to be resolved.
Deborah Fuhr leaves BlackRock as it hands over research to newly created institute.
The UK economy has grown by 0.2 per cent in the second quarter of 2011.
Billionaire investor George Soros has decided to retire after more than four decades in the hedge fund industry.
Another global recession could occur within three months of a third QE programme in the US if oil prices are not taken into consideration, according to Cazenove’s Robin McDonald.
Health Secretary says Government will give Dilnot a “very positive response” but is unlikely to commit to a specific cost cap.
Treasury confirms it will follow Lord Hutton’s recommendation in an effort to limit taxpayers’ exposure to unfunded public sector pension liabilities.
Trade Unions Congress says Govt must show it is prepared to change course or unions will plan more strikes.
Figures published this week to include net public sector pension deficit figure.
Group of MPs say new regulators must have formal commitment to promoting mutuals and diversity.
Government says questions over details of the £54m compensation package are a matter for the FSA.
The Government says the review is a matter for the FSA.
The Government says responsibility for the sale of 632 branches lies with Lloyds Banking Group and the European Commission.
Public sector pensions account for nearly half of Governmnet liabilities.
Three Govt departments consult on sliding scale of increases which see well paid contributing more.
Leaked figures show increases public sector workers can expect to pay from April, say reports.
Grant Shapps calls for more “straightforward” products to help FTBs get on property ladder.
Gross mortgage lending totalled £12.6bn in June.
Glitch caused a number of “dummy” products to appear on website that were unavailable.
Hedley Mays says budget should increase by a third from current level of £500m to ensure staff quality.
FSA chief executive Hector Sants has responded to Treasury select committee chairman Andrew Tyrie’s letter to assure him the regulator is taking his report seriously.
Henderson says assets set to jump to £74.4bn.
A High Court judgment has ruled against F&C over a legal battle with one of its former fund of hedge fund businesses.
Online system allows intermediaries to follow application through to completion.
HMRC could promise not to prosecute tax fraudsters in exchange for full disclosure, under new proposals.
HMRC plans to cut costs by £1.6bn and staff numbers by 10,000 in the next four years.
The Treasury select committee’s report says the revenue must provide clarity over VAT on advice as soon as possible.
Sipp and Ssas provider says decision will cost each scheme it administers around £25 each.
Prices down 0.4 per cent on a yearly basis.
Prices down 3.5% on a year ago.
Housing equity withdrawal now negative since Q2 2008.
TSC report says “thin” coverage of full separation in ICB interim report gives impression it was not given full consideration.
Firm planning meeting later in summer to assess support.
IFAs warns his peers over offering renewable term policies after a client’s policy was sold and the renewable option withdrawn.
Ignis has appointed AllianceBernstein UK CEO and chairman Claude Chene as head of distribution.
Firm has appointed Vestra Wealth’s Mark Holden.
The IMA is to monitor the holdings of money market funds from January 2012.
The IMF has issued a warning to Japan over its increase in public spending following the March earthquake.
IMF calls for Italy to ensure “decisive implementation” of spending cuts.
Official responses to DWP green paper reveal overwhelming support for a single-tier, flat rate state pension worth £140 a week.
Responses to DWP’s green paper on state pension reform urge policymakers to introduce independent reviews of the state pension age.
Seven of nine MPC members voted to keep base rate at 0.5 per cent.
Isle of Man’s Financial Services Commission says grandfathering would be ’inappropriate’.
Broker offers family offset and rent-to-buy deals.
The JP Morgan multi-asset income fund moves from the specialist to cautious sector.
Lockton Companies International chief executive James replaces Allianz UK general manager Chris Hanks.
20 per cent increase to be introduced in November 2011.
Jupiter has launched a new fund to capitalise on the growing demand for energy in emerging markets.
The £754m Jupiter merlin worldwide portfolio fund has increased its weighting to the UK to adopt a more defensive stance.
Lender also doubles first-time buyer maximum loan size to £500,000.
Lender also merged operations and underwriting departments into one team.
Founder Ford claims emails obtained by FSA are subject to legal professional privilege.
Shadow Treasury chief secretary Angela Eagle says Govt is provoking confrontation with unions.
Openwork, SimplyBiz and Foster Denovo back Treasury select committee’s view that the RDR should be delayed.
Shadow Treasury financial secretary Chris Leslie rejects calls from within Labour to lead the charge for total separation of retail and investment banks.
Lighthouse will provide financial advice to members of the Association of Heads and Deputes for three years.
The FSA should take a step back and remember what it is trying to achieve with the RDR.
Lloyds cites PPI provision for first half loss.
RMBS backed by pool of prime residential mortgages originated by C&G and Lloyds TSB.
Joint venture sees LSL, Connells and existing management all take 33.33% stake.
TMA brand will be retained in deal to acquire £250,000 TMA gross assets.
Decision over the proposal to be made early next month.
LV= Asset Management last week revealed a potential overhaul of its funds, including their share classes and management arrangements.
Man Group is attempting to acquire all the residual exposure to the Lehman estates from GLG managed funds.
Concerns the crisis could reach Italy and Spain while Euro leaders say Greece may be set to default.
WRIC chairman Lord John McFall says pension scheme charges should be capped to prevent auto-enrolment savings being “eroded away”.
House of Lords confirms its half of the committee to scrutinise draft Financial Services Bill.
Labour MP calls on Ed Miliband to “lead the charge” for total separation.
Conservative MEP Syed Kamall says consumers must know how much of their investment goes into the ICS.
Both products are linked to five FTSE100 shares.
Provider urges Treasury to launch £5,000 a year scheme which allows savers to access up to 25 per cent of their pension pot every five years.
Move increases Moneygate’s funds under influence by £1bn.
Moody’s says it may review its AAA rating of the US.
Moody’s Investors Service has downgraded Greece by three notches, warning that the proposed bailout package would constitute a default.
Compensating firm’s customers cost £7.3m, causing levy to increase from £217m to £224.3m.
TSC member and Labour MP Andy Love says publishing would reveal true Govt commitment to mutuals.
The TSC’s RDR report calls on the FSA to find ways for HNW clients to opt out of the RDR after banks call for exemption.
TSC RDR report calls on parliamentary committee scrutinising draft Financial Services Bill to decide on introduction of long-stop for advisers.
Treasury select committee report into RDR says FSA should also provide deadline flexibility for advisers on case by case basis.
Work and pensions committee to cover opt-out rates, provision of advice and Nest’s investment strategy.
Treasury select committee says sustained budget cuts among causes of fall in standards
Five-year fixed rate now available under 5%.
N&P says some products and services could also be withdrawn if members vote against merger.
Rate reductions apply to all two and three-year fixes for new customers.
Residential mortgages reduced by up to 0.46%.
Scheme offer equity loan of 20% to first-time buyers buying new-builds.
Accounts for 2010/11 reveal the Government-backed pension scheme drew down £78.9m in loan funding from the DWP during the year.
Assurant Intermediary managing director Nigel Payne has left the company following a restructure of the business.
John Moore and Bruce Wilson will join board immediately.
Wrap says account eliminates delays in reclaiming tax.
Servicer has appointed Gerry McHugh to oversee the process.
US president Barack Obama has slammed the Republican plan to increase the country’s borrowing limit, claiming the impasse could spark a “deep economic crisis”.
Product allows advisers to access customers’ credit files without client being present.
Mark Duckworth currently commercial development director at Openwork.
FSA approval for acquisition granted on July 5.
Greenstreet to be temporarily replaced by Aegon’s executive chairman of distribution Patrick Gale.
Chancellor George Osborne suggests that Alastair Clarke will not be on the final committee.
Agreement will see Paradigm’s mortgage club members offer Partnership’s new enhanced lifetime mortgage to clients.
Reports suggest the buy-to-let lender is making enquiries into the purchase of the nationalised bank.
Group advanced £95.3m since return to new lending.
Frontier Investment Management funds blended across six asset classes.
Professional body has named its chartered champions as part of efforts to boost awareness of chartered status.
Positive Solutions is cutting almost a fifth of its head office workforce in a bid to reduce costs.
Shaun Kiely defrauded seven investors in deals exceeding £1.3m
House prices will not reach their pre-crisis levels until 2020, according to new research from PricewaterhouseCoopers.
PwC says a retirement age of 70 and a further £20bn austerity package is needed to reduce debt long-term.
Rathbone and Liontrust have both seen their flagship income funds added to the black list of underperformers in Principal Investment Management’s latest income study.
Rathbones Brothers has seen its profits jump 30 per cent for the first six months of 2011.
Rathbones is to launch a higher risk multi-asset fund to be run by David Coombs.
Guidance from FSA, Ministry of Justice, FOS, and FSCS says consumers should not be pressured into passing complaints to claims firms.
New committee scrutinising the draft Financial Services bill calls for evidence on new regulatory architecture.
UKFI says it will wait for more clarity before recommending sale of Govt stakes.
CML says value of remortgage advances up £0.6bn in May.
Parliament confirms six MPs to scrutinise draft Financial Services Bill after bid to keep David Laws out fails.
Standard & Poor’s has downgraded Greece’s debt rating from CCC to CC, a move which places the country just two notches above default.
S&P has downgraded the credit rating for Greece, citing concerns that the country will have to restructure its private sector debts.
Ted Scott says proposals for a voluntary restructuring of Greek debt have been blown out of the water by today’s warning issued by S&P
Mortgage aimed at first-time buyers who have been renting for 12 months or more.
LSL Property Services is set to acquire mortgage club The Mortgage Alliance from Santander, Money Marketing understands.
Bank advanced £9.7bn in first half of 2011, compared to £12.3bn in first half of 2010.
Guy Stephens and Tim Cockerill have both quit the firm to join Rowan Dartington.
Network sees profits jump to £259,000.
The Serious Fraud Office has launched a review into how exchange-traded funds are marketed.
Hudson steps down due to commitments required by RDR.
Accounts show figures rising 1 per cent to £500,308.
Firms sees overall profits soar but distribution profits fall as commissions are cut.
Skandia advocates a ‘sunset clause’ on legacy commission.
Skipton reports pre-tax profit of £6.3m in H1, compared to £21.7m same period last year.
Stephen Snowden has said he will remain cautious on peripheral Europe despite credit spreads being the widest they have been in the UK corporate bond market since 2009.
Provider to cut 39 jobs and create 19 new roles as part of three-year structural reform programme.
Prosecutors on the Dominique Strauss-Kahn case have agreed to free the former IMF head on his own recognizance, according to reports.
Mary-Jane Rathie received gifts for inflating property prices to obtain mortgages for another woman.
Thames River has closed the Dublin-domiciled version of its global boutiques fund because of its small size.
Best Advice advised clients, including an 87-year-old woman, to invest up to 80 per cent of their funds in UCIS.
Threadneedle Investments has appointed Toby Nangle as head of multi-asset.
Threadneedle has appointed a US equities analyst and a fund manager to its team.
New trackers available from base plus 2.49%.
Consulancy says that the regulator’s with-profits consultation overlooks the interests of shareholders and members.
The Treasury will hold two industry workshops in the next two weeks as it looks at the practicalities of linking Isa and pension savings.
The Government has backtracked on proposals to prevent savers using RPI-linked annuities without a floor to meet the £20,000 minimum income requirement.
Treasury select committee chairman Andrew Tyrie calls for “value for money” regulation.
The Treasury select committee’s report into the RDR will be published this Saturday.
Fund managers are concerned the UK could be losing its competitive edge as an international hub for the asset management industry, according to the IMA.
Out of 90 banks stress tested across Europe between 10 and 15 are thought to have failed.
Moody’s says buy-to-let borrowers will be able to cope with base rate increases.
The UK’s annual inflation rate has fallen slightly over the past month to 4.2 per cent.
The UK unemployment rate fell from 7.8% to 7.7% in the three months to May.
TUC says ’scarily big’ figure is meaningless and is being used to shore up failing arguements.
President Obama confirmed yesterday that a bipartisan agreement has been reached that would allow the debt ceiling to be raised.
Reporting requirements will begin in 2014, a year later than first planned.
Capital Economics says downgrade can be avoided if US makes $4trn of spending cuts over 10 years.
Virgin Money is set to cool its interest in the 630 Lloyds Banking Group branches for sale and will instead focus its intention on Northern Rock.
Start-up bank NBNK has also placed a bid for 632 branches Lloyds is being made to sell off.
Ian Vose has taken over the management of the Investec global dynamic fund from Jacob Robbins, according to FE Trustnet.
A vote on the Republican bill to raise the US debt ceiling and prevent a default was delayed on Thursday.
The DWP has published a simplified pensions language guide, building on work carried out by the ABI and Nest.
Fund managers have clashed on the outlook of UK retailers.
A selection of views from across the industry on the trade body’s decision to allow restricted advisers to become members.
Numis Securities has assigned Neil Woodford’s Edinburgh Investment Trust a “sell” rating in its latest update of the sector.
Fellow director Neil Chamberlain says the firm has no plans to replace McGahan, who has left to focus on his family and “clearing his name”.
Two and five-year fixed rates start from 2.59% and 3.49% respectively.
Job cuts form part of an ongoing restructure of Zurich’s general insurance business.
Michael Brennan is retiring from the company and will leave on August 31.