Online - May 2011
Mike Fenwick argues that IFAs can help provide an alternative to the current compensation set-up.
Julie Minett of the Money Marketing Academy shares some tips on selling yourself to your clients.
IMA chief executive Richard Saunders explains how the new proposed sector names were created and how they can help advisers and consumers.
The speed with which the new drawdown rules have been implemented has placed an unnecessary strain on resources.
BIBA’s 7000 signature petition is to be presented to the House of Commons tonight.
A 10,000 signature strong petition to be delivered to Downing Street.
Miguel Sard replaces Alan Matthewson.
LTV increased from 60% to 70% and lender has launched range of new products.
The two-year fixed rate is available to key accounts at 3.19%.
Claimants will have to complete a declaration agreeing to pay back any money they are not entitled to.
Two-year fixed rates start from 4.09%.
Ewing joins from Lloyds Banking Group where he was Solvency II director.
Origen and Positive Solutions recorded a £2m combined loss, as UK earnings fall 60 per cent.
Aifa says partnership means new events and a new way of communicating with members.
Maximum for 75% deals previously £600,000.
Britain’s largest investment trust has won a vote which tried to force it to control its share price discount on an automatic basis.
All firms will have ’baseline supervision’ so regulators see problems coming.
Artemis Investment Management has hired Mark Page and Laurent Millet from LV=.
Avelo is considering redundancies following the merger and rebrand of 1st Exchange, N4 and Screen Business.
Interim results reveal nearly two-thirds of new individual pensions sales were written on a fee basis in the first quarter.
Aviva Investors intends to launch fund later this year, subject to regulatory approval.
Strauss will take up new role with Lloyds Banking Group.
EU banks with insurance arms may avoid the 10 per cent cap on insurance capital under Basel III.
Rate rise was thought to be unlikely given recent GDP figures.
Lending to SMEs falls £2.2bn short of the £19bn quarterly target.
Bank has set aside £1bn to cover PPI redress and admin costs.
EU internal market commissioner Michel Barnier has rejected reports Basel III will be watered down for banks which have insurance arms.
Trade body says decision not to appeal will provide certainty for bank customers.
Banks have questioned the way the trade body handled the judicial review.
The British Chambers of Commerce has lowered its forecast for economic growth in the UK in 2011 and 2012.
Bestinvest is launching a new wrap platform powered by SEI.
Isas recorded their best sales in nine years over the run-up to the end of the financial year.
Former Bank of England MPC member David Blanchflower said the return of the powers to the BoE is because the Government wants a “toothless watchdog”.
Principality Building Society chief exec Peter Griffiths replaces David Webster as BSA chairman.
Business Secretary Vince Cable says he is concerned over the ’piecemeal’ international approach to bank regulation.
Labour wrong to focus on short-term issues like levels of quarterly growth, according to the Business Secretary.
The Centre for Policy Studies says giving shares to taxpayers and recouping a portion of future sales could save £750m.
Parliamentary motion to stop UK involvement in future EU bailouts has been defeated.
Left-leaning thinktank calls for the FSA to cap mortgages at 90 per cent of the property’s value and three and a half times household income.
CBI director-general John Cridland says Nest’s annual charges will need to be lowered “to justify its existence”.
Total cost of deal depends on revenue targets being hit over two years.
35 affected candidates should have their results by the end of the week.
The Chartered Insurance Institute has lost 35 advisers’ exam papers and told those affected they will have to resit their exams.
Firm increased assets under management 33.5 per cent to £30.3bn.
Mike Preston will lead team which helps IFAs adopt the platform.
Lenders also reduced rates on number of three and five-year fixed rates.
70 mortgage consultants on new build sites to offer advice to customers buying new builds.
Nationwide rules itself out of running for state-backed bank.
Deal goes through despite “inherent uncertainty” of Montpelier’s Sipp investments.
Cyrun Finance is now likely to have taken “effective control” after the trust announced Cyrun had bought another large stake this morning.
Black is co-chairing the independent review into the UK’s sickness absence system.
Aifa attacks FSA’s proposals on data collection.
Service will be available to Nucleus IFAs first.
Investors in Panthera ROSIIP scheme face 50 per cent charge, but firm says it will appeal.
Former fiscal watchdog member questions whether Government is on track to meet growth and deficit reduction targets.
Fund house says the new labels are more complex than the existing ones.
Two-thirds think they will never own a home despite 77% saying they still aspire to homeownership.http://cms.moneymarketing.co.uk/cms/commentEdit.aspx?label=comment&id=42347&KeepThis=true&modal=true&TB_iframe=true&width=650&height=500#
CAM has linked up with FNZ to power its new direct to consumer and retail platforms.
The FOS says financial services firms are fighting complaints more aggressively despite there being clear evidence of misselling.
FSA also confirms new complaint handling rules.
Four, from Yorkshire, given suspended sentences and community orders.
Lord Stoneham used parliamentary privilege to discuss details of Goodwin’s super injunction.
Reports suggest private equity firm Fiordland has expressed an interest in buying the company.
Total sales increase from £178m to £270m as group corporate pension new business rises 71 per cent.
FSCP says regulation should stop reckless lending but not stop people from borrowing.
ActivTrades’ former compliance officer banned and fined £3,000 after firm was fined £85,000 for breaching client money rules.
BDO failed to liaise with the UK Listing Authority over a proposed merger.
Providers are kept waiting as FSA digests consultation responses.
No FSA executives or directors have been made redundant on grounds of capability or conduct since July 2007.
Regulator says decision will protect GPP members against “poor” opt-out advice ahead of automatic enrolment reforms.
Bank to pay up to £17m in compensation for mishandling of investment complaints.
The regulator has also fined Samuel Kahn £1m.
FSA says way funds advertised could be misleading to investors.
Advice failings centre on a risk profiling tool used by the bank which classified these clients as having a cautious approach to risk.
Regulator writes to Keydata distributors as part of supervisory investigation.
FSA published first decision notices for enforcement that have been refered to Tribunal.
Retail investment advisers will have to detail their adviser charging model as part of their regulatory return.
The FSA is preparing to increase the capital adequacy requirement for Sipp providers in a bid to protect investors as the products become more popular in the mass market.
FSA says Munir Mughal, trading as Mortgage Bureau (UK) Hayes, is unauthorised.
Ben Broadbent given go-ahead for MPC role and Donald Kohn gets the nod for FPC.
Internal investigation finds employee was not involved in key decision making.
Search engine moves into advice space in the US with dedicated website allowing investors to compare financial offers from a range of providers.
Treasury tables proposals to scrap tax relief on pensions mis-selling compensation in Finance Bill 2012.
Impact assessment reveals £51bn switch from private pensions to state pensions.
Shadow Chancellor Ed Balls says Govt should heed advice to slow austerity drive if growth does not improve.
Treasury financial secretary Mark Hoban said Govt aims to apply moratorium to FSA but regulator will have last word on applying it.
The terms of Greece’s bailout package are under review after it was determined that the current repayment conditions are unrealistic.
Gross lending down to £9.8bn from £11.4bn in March.
Galleon Group founder Raj Rajaratnam found guilty of all 14 charges.
Peter Hargreaves worth over £1bn and ranked 65th in this year’s list.
Firm teams up with Partnership on simplified, online underwriting service.
Firm says turnover for combined business will rise to over £7m.
The Henderson Eurotrust has geared up its portfolio and bought and sold a number of stocks over the three months to the end of April.
New service offers PPI redress advice or total management of complaint handling.
Job cuts come as part of cost cutting measures, which will see closure of Padiham office.
Treasury financial secretary Mark Hoban rejects call from FSA chairman Lord Turner to reverse mutual liberalisation.
Average price now stands at £160,395, says Halifax.
But prices fall 1.2% on an annual basis.
Prices fell by 1.3% on annual basis.
HSBC profits drop to £3bn for Q1 as bank announces £269m provision for PPI redress.
Bank not looking to make cuts to its UK operations.
TSC member Andrea Leadom says ICB’s interim proposal of ringfencing retail and investment banking seems doomed to fail.
IFAs accounted for just 1.5 per cent of all FOS complaints in 2010/11 with a large number of claims relating to one business.
Aifa director general Stephen Gay says trade body has substantial funding gap if it wants to influence at domestic and European level.
IMA plans to rename the Active, Balanced and Cautious Managed sectors Managed A, B and C and create a new Managed D peer group for the least risky managed funds.
Dominique Strauss-Kahn is unlikely to be able to claim diplomatic immunity.
Brics countries express concern at statements saying role should stay in European hands.
Intermediaries also account for 60% of remortgage loans and 53% of home mover loans.
Manager of the Ardevora UK Equity Income fund has no holdings in British banks, is avoiding BP, BT and Vodafone and describes the retail sector as “toxic”.
JOHCM has confirmed it will launch a new global emerging markets Opportunities fund for James Syme and Paul Wimborne in June.
JO Hambro Capital Managment has decided to introduce a 0.5% charge for new investments from existing investors in its JOHCM UK equity income fund.
Garland follows former Ignis head of marketing Rob Page to join ex-Liontrust managers Jeremy Lang and William Pattisson.
Jon Garland, the head of discretionary sales at Ignis, is to leave the group to “pursue his career elsewhere”.
Jonathan Armitage is stepping down as the head of American large cap equities at Schroders to move to Australia.
Report says move to adviser charging could lead to firms encouraging more sales to avoid VAT.
Provider is launching a fixed-term annuity product that will allow investors to switch to an enhanced annuity if they become ill during the term of the contract.
Rates start from 5.79%.
BoE governor Mervyn King says squeeze on household incomes could hit recovery as Bank downgrades growth forecast for 2011.
Shadow pensions minister Ravel Reeves has challenged Lib Dem leader Clegg to show new “muscular approach” to coalition.
Shadow Business Secretary John Denham says coalition policy is reducing its influence on shape of economy.
Perrin was formerly a director at Savills Private Finance.
He is a chartered accountant with 25 years experience in financial services.
Administrator given another six months to resolve Lifemark liquidity issues.
Lloyds’ withdrawal from BBA judicial review follows £3.2bn provision for PPI redress.
Lloyds Banking Group have posted a £3.4bn loss after putting aside £3.2bn to cover PPI misselling claims.
79% think lenders were irresponsible before crisis.
IFA Thomson Shepherd changes name to Carbon Financial Partners following management buyout.
F&C Thames River has unveiled plans to merge two UK equity funds into larger products.
Ex-Bluefin man has co-founded Cube Financial Planning.
MPC member Paul Fisher says putting base rate up would be “wrong” at present moment.
Money Marketing won personal finance trade title of the year at last night’s Headlinemoney awards with MM journalists scooping another three awards.
Review triggered by concerns UK Government is less likely to bail-out troubled lenders in future.
Japan’s Aa2 local and foreign currency bond ratings have been placed on review for a possible downgrade by Moody’s Investors Service.
Firm says advisers can move seamlessly from tolerance questionnaire to asset allocation model.
Rates start from 4.3%.
Bank of England chief economist warns of economic dangers of letting inflation persist.
Six members voted to keep base rate at 0.5%, while three voted for increase.
Review must judge whether report is a fair and balanced summary of RBS and FSA failings.
MPs have backed a Parliamentary committee’s call for Lib Dem David Laws to be suspended for 7 days over expenses.
Government needs formal benchmark instead of defining affordability on the basis of public perception, says Govt spending watchdog.
MPs reject bill which would have limited regulatory fee increases to the rate of CPI inflation.
Building society pulled out of sector in June 2009.
Pensions lobbying organisation says regulatory responsibility for GPPs and stakeholder pensions should shift from the FSA to the Pensions Regulator.
Report says scheme did not offer value for money.
Lender says 23% of new borrowers were first-time buyers in past year.
Three-year low fee products and no fee further advance products exempt from reductions.
The new Schroder opus commodity investment trust is to keep the discount at which its shares trade close to zero as controversy continues over how trusts should control their discounts.
Lender has also cut a number of buy-to-let products.
New tracker allows customers to switch to fix without early repayment charges.
Five year savings certificates will pay RPI plus 0.5 per cent.
Breslin previously worked as Standard Life communications consultant.
1,100 advisers now using the Nucleus platform.
The OFT says concerns are enough to bring in Competition Commission.
Defaqto survey says over half of those who changed cite quality of service as main reason.
Lender reports £39.5m pre-tax profit in first half of 2011, compared to £29.3m same time last year.
A Parliamentary standards report says Laws was guilty of ’series of serious beaches over a considerable time’.
Sarah Jezard will take up head of marketing role.
Paul Myners joins Cevian Capital as a partner and chairman of its UK operations.
Pica says reform could be in place within the year.
Ideas Lab director Roderic Rennison says regulator needs to force issue of when advice is VAT-able with HMRC.
Regulator has told advisers it is concerned over the risk management practices of firms who transition too quickly towards RDR.
Consultancy predicts a new generation of wraps focused on cost rather than service.
Lifeboat fund confirms details of new levy calculation, which will come into force from 2012/13.
The banks involved in the mis-selling of payment protection insurance could face as much as £10bn in claims.
Launch date to be announced next week.
Lender launches with three short-term products.
PRS links with Moneyfacts.co.uk to launch online annuity product comparison tool.
Shaun Kiely auctioned unprofitable shops as viable business opportunities.
Britain’s biggest property managers are brainstorming the possibility of converting their existing portfolios into property authorised investment funds.
Surveyors expect house prices to increase over next three months.
Friends Life says allowing non-monetary assets to be transferred into a Sipp could help “ignite” long-term savings.
The Pru’s external annuity sales fell 42 per cent in Q1 after Zurich ditched agreement in favour of Legal & General.
Insurer’s group new business profits have climbed, but UK new business has fallen slightly.
Total bank provisions for PPI now total £5.3bn.
Pre-tax loss for RBS widens to £116m in Q1 of 2011.
The Pensions Regulator has concerns over private equity investors who force firms into administration to shed pension liabilities, the FT reports.
CML says it is linked to expectations of rise in interest rates.
Repossessions increase from 7,900 to 9,100 between Q4 2010 and Q1 2011.
The eurozone must restructure its banks before dealing with its financially struggling countries, as the banks hold much of the countries’ debts, the head of BlackRock has said.
Sir Richard Lambert has decided not to take up his post on the BoE’s Financial Policy Committee.
FSA expected to approve the deal, with assets and liabilities due to be transferred on July 1.
Parent company conducts strategic review following managing director and head of operations’ resignation.
Macquarie’s John Porteous joins to develop the firm’s platform proposition.
The BlackRock Japan value fund was the only Japanese equity fund to be downgraded by Standard and Poor’s in May, following their latest Japanese sector review.
Ratings agency predicts almost a third of buy-to-let homes could be in negative equity by end of 2012.
Deal is largest publicly placed RMBS issue in UK since 2007.
Leading regulatory figures fear the UK will lose autonomy to Europe and may end up becoming more of a local police force.
PRA chief executive designate says new regulator must win support.
Jones tasked with developing its global investment operating platform.
Schroders has announced pre-tax profits of £103.8m in the first quarter of 2011.
Former MPC member has warned that if inflation does not come down in the way the BoE suggests it could impact on its credibility with the UK public.
Ex-banker expected to be announced as arbiter in stand off over FSA’s RBS report.
Ellis replaces Alastair Findlay, who is stepping down from the board after five years.
Products available direct-only through society’s telephone service.
Rates start from base rate plus 2.74%.
Standard Life Investments has confirmed it is launching a new version of its hugely popular Global Absolute Return Strategies fund which will invest in the global bond markets.
Divito replaces Steven Sands who takes up business development director role.
Provider says decision will result in a net role reduction of 36.
Pensions minister says ’superficially attractive’ deals could leave people out of pocket.
Keydata founder granted a judicial review at London’s High Court over the way the FSA investigated Keydata.
Admin Re takes on £1.6bn of assets under the deal.
Building society says it is using intermediaries to grow its customer base.
Brattesani to pursue interests outside financial services.
Head of pan-European equities and manager of the group’s UK absolute target fund will leave in July.
Short-term lender now solely focused on professional bridging loans.
The US Treasury sold off part of its stake in American International Group yesterday as it attempts to return the insurer to independence and reclaim the 2008 bailout money.
Government has invited applications for a permanent chair and tax director to lead the Office of Tax Simplification.
Labour MP Chuka Umunna wants HMRC to release information on tax settlement which ’saved bank’ £10.8m.
Umunna will focus on deregulation and better regulation and matters around small businesses and access to finance.
The Office for National Statistics has made no revision to its estimate of the UK’s GDP growth in the first quarter of the year,
CII says the financial services sector must “embrace reforms” as the UK tackles a £9trn savings gap.
Inflation up from 4 per cent in March.
US unemployment rate increased last month even though there was a rise in the number of people finding work, new government figures show.
Richard Branson’s Virgin Money is set to bid for around 600 of Lloyds bank branches.
TSC announce Sir David Walker and Bill Knight will review RBS report delayed over legal wrangling.
Loss is improvement on £18.5m pre-tax loss the year before.
Alliance Trust, the UK’s largest investment trust, should cut the discount at which its shares trade in the stockmarket, the head of one of its biggest rivals has said.
Rate cut from 4.99% to 3.79%.
Customers can switch from tracker to fixed rate without penalty.
YBS chief exec Iain Cornish calls for state-backed bank to be remutualised.