Online - June 2010
Govt should extend freeze on lifetime allowance for five years beyond 2016 or reduce it, says Skandia.
Lloyds TSB Development Capital and Vertex has funded 1st-The Exchange’s acquisition of N4 Solutions
ABI chairman Archie Kane calls for “consistent and committed” policies to increase savings.
Lender also announces reduction to mortgage range.
Towry is taking over three months to transfer Edward Jones clients to external platforms.
Insurer says it considered full disposal as it cuts back UK business to focus on at retirement and workplace savings.
AES registers branches in Italy and Germany.
Aifa questions whether the FSA’s proposed limit is achievable.
Aifa says corporation tax cuts will provide a timely boost for IFA firms.
American consumer spending rose 0.2 per cent in May according to the Bureau of Economic Analysis.
Jon Pain has decided to leave early next year following the recent regulatory restructure announcement.
Aviva UK’s chief executive wants industry consensus on re-registration before 2012
Aviva is set to target Prudential’s UK arm if the insurer breaks itself up by demerging or selling its British, Asian and US businesses.
Matthews: “This is the first step in this new wave of consolidation.”
Axa outlines the strategy for its new Axa Wealth business.
Bank’s new powers likely to include loan-to-value caps.
Bank for Internation Settlements says risk can spiral and equities can be over-valued in a low-rate world.
Which? banking commission calls for enforcement action against senior management found to put frontline staff under excessive sales pressure.
Basel committee now believes capital proposals should be reviewed.
Founder John Spiers slams L&G for introducing a new pricing structure he says will add more than 5 per cent to some fund costs.
Bluefin appoints Paul Andrews to its corporate consultancy team.
Bluefin appoints two new client directors.
The board of the F&C balanced alpha fund of hedge funds has delisted it from the Irish Stock Exchange.
BoE deputy Charles Bean says inflation could fall this year.
Bank of England also agreed to maintain the size of the asset purchase programme at £200bn.
Ray Boulger says the impact will be minimal and amateur landlords can mitigate the tax increase.
CEO Tony Hayward reassures shareholders in spite of the ongoing US leak.
Oil giant cancels dividend after agreeing £13.5bn payout.
Aberdeen’s Aidan Kearney says the BP crisis has exposed the failings of many index tracker options.
Bank advisers will also be caught by the regime.
Wealth management firm Brooks Macdonald acquires property specialist for a cash offer of £4m.
Buckles buys IFA firm HME, which lost a landmark case in the Court of Appeal over “unfair” FOS case fees.
Spending cuts announced in the emergency Budget could lead to up to 1.3m job losses in the UK.
The age 75 rule has been pushed back to age 77 as an interim measure while permanent rules are consulted on.
The Government is pushing it up to age 77 from today as an interim measure pending a consultation on the details of the plan.
CGT annual allowance of £10,100 remains unchanged this year.
Osborne says he will work with the industry to find an alternative to the reduction of pension tax relief for high earners as long as the £3.5bn of revenue is still achieved.
Current rate of corporation tax will fall on an annual basis over the next four years.
Chancellor George Osborne has announced that CPI inflation is expected to hit 2.7 per cent by the end of the year.
Labour says the Budget will stifle growth, making it harder to cut the deficit.
Income tax allowance will increase to £7,475 next April.
The standard rate of insurance premium tax is to go from 5 per cent to 6 per cent.
Multi-manager funds and investment trusts look set to reap new benefits from the budget, according to industry specialists.
The Government has also revealed that it will begin phasing out the default retirement age from April next year.
The rate of VAT is to hiked from 17.5 to 20 per cent from Janaury 4, 2011.
Billionaire investor Warren Buffett says greed overtook reason to cause sub-prime crash.
Cameron says he does not want to “punish” savers.
PM David Cameron says the UK is expected to pay £70bn worth of interest on its national debt in five years.
Service will launch with 16 fund supermarkets and wrap platforms.
Director general to step down early next year.
Budget move provides financial planning opportunity for advisers.
Defaqto says the coalition’s planned CGT hike is likely to spark a resurgence in the popularity of insurance bonds.
The Chinese renminbi has appreciated more against the dollar in a single day since the government suspended its gradual exchange rate appreciation policy in 2008.
Aifa director general Chris Cummings quits to head up new financial services body, TheCityUK.
New intermediary business development manager hired focusing on Manchester, Leeds and Sheffield.
Director general Michael Coogan: “more needs to be done to ensure the long term contribution of a thriving mutual sector”.
Trade body says borrowers will suffer through drop in mortgage interest help.
Commercial director says he is leaving to pursue other business interests.
Competent Adviser download
Former Moody’s employees reveal a culture at the firm which created an inability to say no.
Consumer groups hit out at the Government for failing to include a consumer voice in its expert auto-enrolment review team.
Consumer Protection and Markets Authority will regulate conduct of every authorised financial firm providing services to consumers.
Cru founder Jon Maguire is returning to the investment market with a new asset-backed offering through IFAs.
The international debt markets have now cut off most Spanish companies and institutions, senior officials confirmed yesterday.
Fissures are widening in the eurozone despite the announcement of a £643 billion stabilisation package only a few weeks ago.
Deutsche Bank and Winton Capital Management are launching a Ucits III version of a key Winton hedge fund.
Distinction Asset Management has revealed further launch possibilities and plans for an initial public offering after setting up in partnership with Armstrong Investment Managers.
European equity dividend yields have climbed above bond yields again for just the third time in 30 years, potentially signaling another market inflection point.
The Equitable Members Action Group fears the Treasury may cut compensation to just £1bn.
Four emerging market and 18 sterling based currency ETCs will launch in coming weeks.
EU internal markets commissioner Michel Barnier says he will not force bank bailouts.
European banks to pay back ECB’s £356bn support package.
Horsfield, a qualified solicitor, spent 15 years at Derby Building Society.
Paul Ilott, the former head of communications for multi-manager at Fidelity International, has launched a multi-manager research house.
Former AKO Capital trader admits to conspiracy to commit insider dealing.
F&C has been served notice from the board of the F&C commercial property trust ahead of a proposed merger with Ignis Investment’s UK commercial property trust.
Hicks will become product director for UK equities from August.
New services offers elderly people advice about their financial concerns.
Ratings agency says coalition must align austerity plans with those of eurozone nations.
Moneyfacts.co.uk says rates have fallen as lenders want to tempt borrowers off SVRs.
Government could easily step in to prevent consumer detriment caused by restriction on income.
Cicero Consulting’s Iain Anderson says Budget statement is the culmination of years of lobbying.
Fortis Life UK products are now available to over 24,000 IFAs.
Linda Costelloe Baker replaces Michael Barnes at the FOS.
Keydata’s administration was the product of “deliberate and calculated” actions of the FSA says its founder.
The FSA is now taking 19.5 weeks on average to authorise firms, compared to 11.4 weeks last year.
Select Mortgage Services sole trader Joseph Masi has been banned after breaching a settlement agreement with the FSA and providing misleading information.
Two separate firms found guilty of using client money to fund expenses.
Total number of mortgage brokers banned by FSA rises to 91.
The FSA has charged former stockbroker David Mason with five offences.
Sants warns that the shake-up of financial regulation must not undermine the UK’s tougher approach on insider dealing and mistreating of customers.
Commission on all new GPPs will be banned from 2013 and consultancy charging will go ahead, the FSA’s final rules on corporate pensions reveal.
The FSA has set out new rules to protect borrowers in arrears and customers of sale and rentback firms.
FSA says arrears cases also fell in last quarter.
Close Investments fined for failing to protect and segregate client money.
Futures artificially increased coffee prices.
The FSA today fined Photo-Me International £500,000.
Rowan Dartington & Co is fined £511,000 for failing to segregate client money.
The FSA has fined Vantage Capital Markets for allowing Daniel Hassell to perform a significant influence function without FSA approval.
Boardman joins the regulator as life insurance senior advisor.
Regulator to launch an investigation into the conduct of Guillaume Rambourg, the suspended manager of the Gartmore European Absolute Return fund.
Chesham to offer no new mortgages following Skipton merger, changes apply to existing customers.
Sants gives his £108K bonus to charity as FSA staff bonuses increase by 11.6 per cent.
Two with-profits providers have been referred to the FSA’s enforcement division after the FSA found they were failing to protect policyholders’ interests.
FSA chairman Adair Turner says staff at the new prudential authority will not receive the BoE pension scheme.
New prudential authority will be part of the Bank of England with Sants to become deputy Governor.
Chancellor George Osborne set to announce creation of Consumer Protection Agency to regulate IFAs.
FSA to introduce a 30-month deadline for qualifications, plus plans to increase ethical standards.
The FSA warns firms they must comply with financial promotion rules when using new media.
Report by the FSA and Financial Reporting Council says lenders’ forbearance strategies are potentially obscuring credit risk on mortgage books.
FSA’s Lesley Titcomb says tied bank advisers will not be exempt from the new approved persons regime set to be introduced across the mortgage market.
Fidelity and Artemis fund managers agree that more money needs to be printed to avoid deflation.
Gartmore has appointed Charlotte Gibson as head of marketing.
Editor’s view: Standard Life’s calculations on the true cost of higher-rate pension tax relief changes should push Govt to rethink plans.
First Complete chief executive Gerry O’Brien has left the firm with immediate effect.
GLG head of UK equities John White has dismissed fears of a double-dip recession.
Research from Google shows many IFAs are lacking a strong internet presence despite a rise in online enquiries.
PM David Cameron supports moves to give Brussels more control over Eurozone economies.
Work and Pensions Secretary Iain Duncan Smith says Government does not want to hit savers.
The FSA may go in the Treasury’s shakeup of City regulation.
Adrian Boulding involved in three month review which will examine whether any changes should be made to the scheme.
Judge rules grounds raise arguable points on whether Keydata levy “erred in law or was otherwise flawed on public grounds”.
John Anderson, Kenneth Peacock and Kautilya Nandan Pruthi must repay deposits they took from UK consumers without FSA authorisation.
Entire fund will not be hit with 55 per cent charge but income through new drawdown provider will.
Hodge Lifetime is reducing new equity release lending to focus on growing its presence in the annuity market.
First time since March 2009 that annual figure not increased on month before, says Land Registry.
Prices up 0.5 per cent month-on-month in May.
Prices creep up by 0.2 per cent from March to April.
Prices up 0.1 per cent between May and June.
Hutton says public sector cannot remain immune from demographic change.
International Financial Data Services has purchased global life and pensions outsourcing provider Percana Group.
The IMA has appointed a new chairman of its sectors committee as its major fund sector review continues.
Douglas Ferrans says OFT probe will complement existing IIC inquiry into fees paid on rights issues.
Imla also urges Chancellor to consider the impact of CGT changes on the private rented sector.
The FSA says it will continue to review the need for professional requirements for those selling pure protection.
FSA chairman Adair Turner says the Treasury is likely to levy the financial industry for the Consumer Protection and Markets Authority.
Intrinsic will pilot their wrap this year with plans for a full rollout at the start of 2011.
Equity income investors will lose £5.4 billion from BP suspending its dividend payments this year, according to estimates from Capita Registrars.
Will austerity measures push the UK back into a recession?
Cofunds chief exec Brett Williams says the rebate ban would have unintended consequences and undermine RDR objectives.
Osborne says Hutton will bring a “cross-party perspective” to a “national problem”.
JPMorgan Asset Management is planning to launch UK’s first global emerging market income trust, with an initial 4 per cent target yield.
New Euro Stoxx 50 plan to address clients’ FTSE-centric portfolios.
Jupiter Asset Management has announced that shares in its London listing have been set at 165p.
Lifemark paid offshore firm LAS Global Limited £38m and Keydata over £40m in commission and fees.
Investments in policies could become worthless if policies lapse before restructuring plan is finalised.
’Back to basics’ approach needed to allow self-employed and complex borrowers to access lending.
Labour MP for Aberdeen South Anne Begg takes over as chair from Terry Rooney.
PM David Cameron appoints Field to investigate poverty in Britain.
Penton joins Lansons as a director of its regulatory consulting practice.
Leeds Building Society has launched a new shared ownership product aimed at helping first-time buyers onto the housing ladder.
Legal & General download
CML director general Michael Coogan: “In financial regulation, as in football, whether we like it or not the referee’s decision is final.”
Fidelity’s Ed Dymott is unconvinced that unbundling will improve transparancy and remove conflicts.
Life assurance protection gap has risen for the first time since 2004
Keydata founder Stewart Ford’s family trust set up offshore firm which received £38m in fees from Lifemark.
Liontrust has appointed former Artemis director Nick Wells as a consultant for business development.
Liontrust Asset Management has cut dividend payments for the year ending March 2010 to 2.5p a share.
Treasury and Lloyds directors given 90 days to respond before the group starts legal action.
Bank will also close its Halifax agencies.
St Trinity Asset Management created following acquisition of Halifax Estate Agents Corporate Services.
Rob Reid and Roderic Rennison hope their RDR matirx will help advisers meet the challenges of the RDR.
The firm says early access “leakage” undermines efforts to encourage people to save for retirement.
Germany and France are calling for the rapid introduction of an EU-wide ban on the short selling of some shares and government debt.
New bank promises to ’make banking fun for everyone’.
Panellists at our recent wrap and platform round table discuss the regulation of the sector.
Centaur Media aquires specialist financial publication firm for £1.9m.
Moneygate adds £90m to FUM with acquisition of Beacon Asset Management.
Freedom of information act finds 215 staff earning six-figure sums.
The number of house purchase approvals by high street banks rose in May to the highest level seen this year, figures from the British Bankers’ Association reveal.
FSA may require updates for non-RDR qualifications covering mortgage advice, equity release, long -term care insurance and pension transfers.
New lending up but remortgages fall according to the Bank of England.
But number of products on the market has broken the 3,000 barrier for the first time since July 2009.
Adam Posen says UK is poised between recovery and recession.
Andrew Sentance voted to increase interest rates by 0.25 per cent at this month’s MPC meeting.
Tyrie wins MP vote for Treasury Committee chair against Michael Fallon.
Fallon or Tyrie favourites to chair the TSC.
Reports suggest NAB may sell Clydesdale and Yorkshire banks.
Specialist lending arm The Mortgage Works also launches broker-exclusive prime range.
Rate reduced by up to 0.29 per cent.
Restructure of NIS part of the 600 job losses announced last month.
Robin Geffen says M&G chief exec McLintock should be given the top job.
CPMA will regulate conduct of all firms, including those prudentially regulated by the PRA.
National Housing Federation says cuts would damage recovery.
Cuts are being made in preparation for a return to the private sector.
The building society has increased its loan to value to 85 per cent and cut its five year fixed rate mortgage to 5.89 per cent.
Advisers using True Potential will have access to investment commission from Novia
Tool allows advisers to benchmark the rate of return on a client’s total portfolio or on individual wrappers.
Nucleus has broken into profitability within three and a half years of the platform’s launch.
Octopus Investments launches European absolute return fund, managed by Thierry Serero.
Alex Odd, manager of the M&G income fund, will additionally become lead manager of the £500m M&G dividend fund from July 1.
Net costs of public sector pensions to double to £9.4bn in 5 years, Towers Watson says focus should be on £26bn of new pension promises.
Changes in the cash Isa market will see maximum transfer times cut from 23 to 15 days.
Old Mutual Asset Managers has made its head of UK retail sales Mark Allpress redundant following a reorganisation, Money Marketing understands.
Openwork advisers do not pay an administration fee when switching loans with its partners.
AWD’s Martyn Laverick says the Government should consider offering 100 per cent pension tax relief for lower earners.
Other Qualifications are available download
IFA consolidator Perspective Financial Group has confirmed the acquisition of Wingham Wyatt.
Phoenix Group is set to list on the London Stock Exchange.
Pimco has poached two deep value managers from Franklin Templeton and has made them managers of two new equity funds.
Sifa says advisers can help lawyers move away from transactional relationships.
Macquarie says advisers need 36 months to transition to a fee-based model.
Range also includes two, four and ten-year fixed-rates as well as a two-year tracker.
Cofunds CEO says banning rebates is like “using a sledgehammer to crack a nut”.
Mortgage broker firm run by ex-St James’s Place partner Peter Carron put into administration.
Steady rise in the number of tip offs received by the Solicitors Regulation Authority.
AIG says the company will not reconsider terms of £24.5bn acquisition making a deal extremely unlikely.
Tidjane Thiam will come under pressure at today’s AGM, despite a positive trading update.
Pru fails to negotiate lower price after shareholder opposition.
Prudential is to hire two non-executive directors to strengthen the board following the collapse of the AIA bid.
Chief executive Tidjane Thiam and chairman Harvey McGrath say sorry to shareholders over the AIA deal collapse.
PruProtect has launched two new health insurance products.
Net borrowing in Britain’s public sector has fallen £7.4 billion over the past 12 months, according to figures released today by the Office for National Statistics.
High court showdown would shine light on FSCS funding flaws- but first the money must be raised.
BoE governor Mervyn King says monetary policy will come before fiscal retrenchment.
MPC member Andrew Sentance stands by his call to raise rates to 0.75%.
RBS to write to affected customers to see if there are objections to switching banks.
Advisers are facing costs of £225m by the end of 2012, plus additional expense for the FSA’s new statements of professional standing.
The regulator is keen to build a “profile” of individual advisers, including transactional activity.
Membership of professional bodies will not be mandatory for IFAs.
Aifa says the FSA has reduced its estimate of investment advisers from 85,000 to 48,000.
Advisers on the path to higher qualifications can now check if their qualification has been approved.
Moody’s says global banking reforms should lead to stronger balance sheets despite lower profits.
Resolution and Axa hope sale will be agreed by middle of next week.
Axa’s wealth management arm, including Architas and the Elevate wrap, are not part of the deal.
Friends Provident to rebrand as Friends Life.
Schroders head of equities Richard Buxton urges IFAs to calm BP investors.
Royal London Asset Management has become the first UK fund management group to launch a property authorised investment fund.
Royal Liver and Royal London have signed non-binding heads of terms which bring the firms closer to a merger deal.
RSM Tenon has acquired Vantis Financial Management as part of £7m deal for its advisory arms.
RWC Partners is launching a long/short equity Europe absolute alpha fund to complement its US absolute alpha product.
John Bennett joins RWC as sales director after 15 years at JP Morgan Asset Management.
Spanish bank tends only bid for 300-strong branch network.
The FSA chief says the current framework fails to sufficiently obligate firms to consider the impact of their actions on the wider community.
FSA chief executive Hector Sants says the regulator will not be deflected from the RDR.
Nick Kirrage and Kevin Murphy increase BP exposure to 3.5 per cent within Schroder income fund.
Schroders has acquired 49 per cent of the share capital of RWC Partners.
Provider paid out 97 per cent of life cover claims last year.
Deutsche Bank allegedly investigated over suspect trades, according to report.
CarVal understood to have advanced £3.5m to Lifemark to preserve the value of life settlement policies.
SimplyBiz has appointed Matt Timmins and Neil Stevens as joint managing directors.
The commission will produce a final report in September 2011.
Robin Barrow to head up Skandia’s central team of business consultants for IFAs.
Skandia to launch 20 single manager funds under the Signature banner.
Hornbuckle Mitchell technical manager Mark Scott warns scheme members may face unwelcome restrictions and tax charges.
Spain warned the European Central Bank against derailing its financial system.
Global chief executive Alex Wyneandts to address future of the UK arm at a conference for investors and analysts tomorrow morning.
Current managing director of distribution Paul Mathews will head up the newly created take to market division.
Steve Bee says he has waited a very long time to hear a Government minister say they must make sure it pays to save.
SVM Asset Management is rebranding its UK 100 select fund as UK growth.
Big pension vehicles not trackers boost equity participation and help economy more in the longer-term.
Here are initial extracts from three of the bulletins Techlink published last week.
Evan Owen says society is in dire need of regulatory balance.
Threadneedle absolute return fund managers Peter Allwright and Stuart Frost are quitting the firm to join RWC Partners.
Threadneedle today launched a long-only Ucits III fund that invests across a range of commodities.
Tax and trust consultant Brian Lawless to co-present IFA seminars on Budget implications.
Alistair Reid will head up the re-reg programme with immediate effect.
Ex-Aberdeen head of multi-manager Robert Dawkins to join Towry.
The Treasury has underestimated the cost of implementing the new restrictions to tax relief for higher earners by seven times.
Results can be emailed to the broker to show clients.
Applications include real time client valuations and secure online data access.
Independent body Office of Budget Responsibility says GDP increases lower than March Budget forecast.
UK inflation has fallen to 3.4 per cent in May, down from the 17 month-high of 3.7 per cent in April.
The parent company of IFA firm Vantis Financial Management suspends share trading due to a lack of funds.
Ross Ciesla joins as senior private client director from Newton.
Will the former Chancellor be remembered as a success or a failure?
In partnership with the Chartered Insurance Institute and with the generous support of our Founder Patrons: HSBC Global Asset Management, Legal & General, threesixty and Zurich, plus a host of financial services training experts, we are delighted to welcome you to the brand new Money Marketing Academy website.
Technical Connection director John Woolley says the Budget could have been far worse for advisers and their clients.
Who has the character and attributes needed to replace Cummings as Aifa director general?
Sarah Green has worked for Barclays’ mortgage propositions team for three years.
All fixed rate mortgages revert to a lifetime tracker rate at base plus 2.49 per cent after the fixed rate period.
The lender says the deal is aimed at home-movers with limited equity and first-time buyers.
Product for borrowers with a 25 per cent deposit.