Online - October 2011
Rob Reid says communication with clients will become a major barrier to profitability in a post-RDR world.
Sean Oldfield calls for a national debate on the problems facing the housing market.
With the deadline for the MM awards approaching, Loco Communications offers tips for advisers thinking of entering.
Does a new American website re-draw the boundaries for financial advisers.
Critical illness sales have been in decline since 2002. What can be done to help grow the market?
Axa Wealth’s Shaun Sandiford says advisers with a range of charging structures can drive transparency, fairness and profit.
Unlike Steve Hilton, Steve Tolley fails to hunt down Andrew Tyrie but catches up with TSC members and Andrew Dilnot.
Is consumer concern over whole of life policies a symptom of a wider problem?
Philippa Gee says multi-managers have had their day.
Could Government plans for employer tribunal fees work in financial services?
Baring Asset Management has appointed Michael Simpson as head of Latin American equities.
Unemployment hits 2.57 million.
Aidan Upton joins from Architas.
Insurance industry trade body will split into two divisions as it prepares for the new ’twin peaks’ regulatory regime in 2013.
Calls to prevent newly listed firms joining the FTSE 100 until after a three-month cooling-off period.
Iain Black left Aegon at the end of September as chairman of distribution Patrick Gale takes over his duties.
Provider says The Pensions Regulator’s tough stance on active member discounts risks damaging the private sector and could lead to members receiving less money at retirement.
Aegon UK group marketing director Paul McMahon joins the 7IM board as a replacement for Iain Black.
Director general Stephen Gay argues basing fees on income rather than headcount will punish profitable businesses.
Rosengren founded Falcon Group in 1983.
Allfunds Bank has appointed Laurie Jaques as head of sales development UK & Ireland.
AMI is asking brokers to send it fictitious PPI claims they receive from claims firms so it can give them to the FOS.
The Sipp and Ssas provider trade body has elected Barnett Waddingham partner Andrew Roberts as its new chairman.
Argonaut Capital Partners has continued its hiring programme with the appointment of Greg Bennett to the investment team.
The Advertising Standards Authority has banned another advertisement from the SpicerHaart Group, trading as Darlows.
Axa is to waive the platform charge for those who invest in Architas funds through its Elevate platform before the end of 2011.
Axa Wealth says the partnership will allow advisers to access increased Sipp expertise while remaining close to the provider’s platform.
The workplace pension provider for the construction industry plans to launch a low-cost scheme which will be available to employees in all sectors.
The CML says amendments being added to the European Commission’s mortgage directive would exempt buy-to-let.
The banks’ gross mortgage lending totalled £8.4bn in September 2011, up 7% on September 2010.
Bank says it has reduced exposure to troubled eurozone nations by 31%.
Burns replaces the retiring John Misselbrook
BlackRock head of sterling portfolios for fundamental fixed income Paul Shuttleworth has quit the firm after 11 years.
iShares owner has called for regulatory action on ETFs to make the sector more transparent.
BlackRock confirms UK best ideas launch.
Meryn King says this may be the worst financial crisis “ever” and also hints that inflation could hit 5% next month.
QE increased by £75bn to £275bn.
MPC’s Martin Weale says British economy may already be contracting.
Seven men face a total of 40 years imprisonment after £8m bio-diesel investment fraud.
Bees and Honey to launch by the middle of next year.
Brian Gallagher, the manager of the UBS UK equity income fund has left the group to pursue other opportunities.
The BoE needs to launch further quantitative easing as well use “radical methods” to bolster growth, says BCC.
Business Secretary said he could not promise the UK would not enter a double-dip recession.
Sharon Bowles has called for advisers to provide first-time buyers with an obligatory brochure as part of the European mortgage directive.
Prime Minister David Cameron has said that UK interests must be protected if eurozone countries begin to seek closer integration on the back of the European debt crisis.
Cameron has slammed European Union regulators after claiming that the City of London is “under constant attack” from Brussels directives.
David Cameron has warned European leaders that they have only a matter of weeks to avert an economic disaster.
Investors have until December 2012 to accept the offer with payment made within six weeks of receipt by CFM.
Cardy is gauging opinion on whether advisers would support a trade body solely focused on IFAs.
Carmignac Gestion has hired Matthew Wright as head of country for the UK, ahead of the opening of its London office next month.
Launch date set for December 1, subject to FSA authorisation.
29-year-old former assistant whip replaces Justine Greening.
A CIO group called 300 Club has been set up to push for action on the fundamentals of the investment industry and investing.
Pool of loans made up of Clydesdale Bank buy-to-let mortgages.
Cofunds has appointed Jim Clay as business development manager.
Financial Services Consumer Panel says there should be legislation requiring firms to put customer interests first.
Five-year fix available at 4.49% up to 85% LTV.
Chapman to take up newly created role of head of field operations within surveying division.
Court finds in favour of Paragon for calling in loans before three months’ arrears outstanding.
Building society issues €650m covered bond.
New range includes fixed, tracker and capped products.
Job cuts are on top of the 2,000 made in July.
Credit Suisse internal report said management failed to use own internal evidencing tool in 44 per cent of cases.
Former Labour Chancellor Alistair Darling has warned the Government that delaying automatic enrolment would be a “big mistake”.
Former Labour Chancellor Alistair Darling says George Osborne will be forced to increase estimates of Government borrowing in his autumn statement.
France, Belgium and Luxemburg have agreed a deal to split and shore up beleaguered bank Dexia with £77bn in state guarantees.
Total dividends paid from VCTs during first six months this year are up on the first six months of last year, according to an AIC survey.
EU says banks may have broken antitrust rules.
The Equitable Members Action Group says Treasury cited data protection issues.
Intermediaries account for 88% of all equity release sales.
EU ministers are considering a number of bank aid plans amid growing concerns.
European Union leaders have set a two-week deadline to agree how to resolve the eurozone debt crisis.
The crisis in the eurozone is likely to restrain mortgage lending for the next year, according to Capital Economics.
ICI Global will represent global investment funds and their managers.
Richard Pursglove has joined Goldman Sachs Asset Management to head up its UK third party distribution business.
Grisay to step down from the board and as group CEO in May 2012.
F&C’s head of UK equities Peter Lees has referred to the latest round of quantitative easing as a “short-term fix”.
Difficult market conditions continue to plague asset managers.
During the past ten years, more than 150 funds have hiked their annual management fees, according to the latest research by fund data provider Lipper.
Mark Till joins the firm from Standard Life direct.
Former Fidelity chief joins the firm as the first non-exec director
Fitch Ratings has downgraded Lloyds Banking Group and Royal Bank of Scotland to “A”.
Mr Justice Burnett has ruled that legally privileged emails used in the FSA’s investigation into Keydata cannot be used.
Proportion of PPI complaints upheld by the FOS has gone from 55 per cent to 92 per cent over the last quarter.
Four people have been charged with conspiracy to cheat the revenue after being summonsed to appear at Birmingham Magistrates Court today.
Friends Life Protect+ brings together the individual protection businesses of Friends Provident, Axa and Bupa.
Ex-Bank of England director Andrew Bailey says it is not the regulator’s job to manage firms’ risks.
Credit Suisse UK failed to properly assess clients’ attitudes to risk and the suitability of Scarp sales.
Regulator is examining the quality of investment advice involving portfolio advice services.
Programme will be akin to the regulator’s TCF initiative and will focus on issues such as systems and controls and RDR-readiness.
Head of investment intermediaries Linda Woodall responds to IFA concerns that they will have to advise on Ucis to remain independent.
The regulator has written to IFA firms to determine the quality of advice being provided following the abolition of compulsory annuitisation in April.
Regulator to publish information on risks of lease option products.
Regulator plans to change the fee tariff for IFAs from being based on number of approved persons to a firm’s income.
KPMG Luxemburg has called a vote on whether it should accept the loan facility brokered by Stewart Ford or put Lifemark into liquidation.
Law firm Herbert Smith has written to IFAs who sold Keydata products to begin recovering compensation paid to investors.
Markets continue to jump on eurozone deal.
European markets fall sharply as Greek concerns remain rife.
FTSE falls after early gains.
FTSE up 0.5 per cent.
The FTSE 100 has rallied alongside other European markets.
The FTSE continues to make up losses made earlier this week.
The FTSE 100 is up almost 2 per cent at close as markets continue to rally.
The FTSE 100 has fallen almost 3 per cent at close to stand at 5,544.22
Markets rise on eurozone hopes.
FTSE passes 5,500 on eurozone hope.
The FTSE 100 has retreated, dropping nearly 100 points, as some commentators blame profit-taking for the drop off in the blue chip index.
Fidelity FundsNetwork has launched a third party discretionary management service for advisers in partnership with Vestra Wealth.
Policymakers are understood to be concerned about the impact of auto-enrolment reforms on small businesses.
Government hints it could legislate to exempt scheme pension from defined-benefit funding rules.
The DWP has extended its power to cap pension charges to include deferred scheme members as pensions minister Steve Webb tackles active member discounts.
Reports suggest the Government will delay plans to increase the state pension age to 66 by six months due to concerns the original proposals would unfairly impact on women.
The Greek government has thrown eurozone leaders’ plans to resolve its overwhelming public debt into disarray.
AMI predicting gross lending of between £130bn and £135bn.
HL sees assets on its Vantage platform fall 9 per cent due to market volatility.
Henderson Global Investors has recruited José Mourinho, Real Madrid football club manager, to be the face of its new advertising campaign.
Henderson Global Investors is to soft close its two UK absolute return funds from at the end of next month.
High yield allocation cut in Henderson strategic bond and Henderson preference and bond funds.
Neil Wilkinson has joined Royal London Asset Management as manager of its £552.3m Royal London European growth fund.
HMRC identified 1,200 people using stamp duty avoidance schemes costing Exchequer £35m a year.
HM Revenue & Customs has clarified its position on commission rebates into ISAs in its latest update.
Advice process will be VAT exempt if client agrees to take out an investment product following adviser recommendations.
Fines are up 56 per cent in the past five years.
Average price now £218,650.
Prices fall 0.3% between August and September.
Average price now 0.8% higher than a year ago at £165,650.
Bank says Paul Stanley left this month for personal reasons.
HSBC Global Asset Management has launched a renminbi fixed income fund.
HSBC Global Asset Management is launching three low-cost passive funds.
Former Labour minister Lord John Hutton admits the party “ducked” the issue of public sector pensions reform during its time in office.
Baker leaves role as sales director after four months.
Henderson to step down from day-to-day fund management from January 2012.
At least half a firm’s advisers must be qualified as a certified financial planner, or as a professional or chartered financial planner.
Nick Cann says small to medium sized firms have been quicker to adapt to regulatory changes.
Chief executive Richard Saunders says move would increase accountability.
Fund sales in the third quarter were the lowest since 2008, according to IMA stats.
The International Monetary Fund lends its support to the Federal Reserve’s Operation Twist, but cautions that US fiscal policy needs to be “carefully calibrated”.
The International Monetary Fund (IMF) has cut its growth forecast for Asia amid concerns over the health of the eurozone and the US.
Isa limit set for £600 boost on the back of inflation figures.
J O Hambro Capital Management has launched the Asia ex Japan and Asia small and mid cap fund with an overweight to China.
James Hay and Seven Investment Management have joined forces to offer discretionary fund management on the provider’s iSipp product.
JO Hambro Capital Management launches two Asia funds.
Jupiter Fund Management has seen its assets under management shrink by £2.8 billion in the three months to September 30.
The provider’s pre-tax profits fell 47.9 per cent from £71.2m last year to £37.1m this year as the firm was forced to offload Irish and European bonds.
Just Retirement’s sales of annuity policies rose by 53 per cent in the first quarter from £175.7m last year to £268.3m in the three months to September 30, 2011.
Wright will develop the company’s business strategy and oversee the delivery of its business investment programme portfolio.
Kames Capital appoints property trio from ING REIM UK.
Proportion of lenders’ loans more than 90 days in arrears now 31%.
Bank of England governor says latest round of QE will not guarantee a boost in bank lending.
King said having low interest rates and QE would only “delay and exacerbate the final reckoning for the West”.
Pension provider agrees to buyout the liabilities of the T&N Retirement Benefits Scheme (1989).
MP for Cumbernauld, Kilsyth and Kirkintilloch East replaces Rachel Reeves in Shadow pensions role.
A committee scrutinising the European Commission’s mortgage credit directive has proposed an exemption for mortgages over €2m.
The FSA is seeking to force financial services firms to provide 100 per cent redress to customers who have suffered losses.
Product available to 75% LTV and there is a £1,999 fee.
Scottish Widows could be forced to pay redress to around 10,000 customers after its bespoke lifestyling system failed to rebalance members’ pension investments.
Liontrust has paid less for emerging markets specialist Occam due to a fall in AUM.
Lloyds Banking Group is considering flotation after failing to attracts a strong enough price for branch portfolio.
Fitch assigns AAA rating to transaction.
Money Marketing understands concerns about investments Hornbuckle has been linked to halted the takeover deal.
MAM Funds is to launch an open-ended version of its diverse income trust for managing director Gervais Williams at the end of the week.
Treasury financial secretary says he is yet to be persuaded that an inquiry is needed.
Markets have tumbled after reports emerged that tomorrow’s critical meeting of finance ministers has been cancelled ahead of the eurozone summit.
FTSE 100 falls below 5,400 in early trades.
Gregg McClymont has warned the Government plans to accelerate the rise in the state pension age will undermine public confidence in saving policy.
Labour MP says proposals for economic plan B must be fully costed to be taken seriously.
Latest Mifid II draft says commission will be banned for independent advisers but does not mention other types of advice.
Labour pensions spokeswoman Reeves replaces Angela Eagle as Shadow Treasury chief secretary following a reshuffle by Ed Miliband.
The Labour leader says changes to tax system will boost banking and promote short-termism.
RDR invitational events are free for intermediaries and will feature advice from leading industry experts.
Group reported £1.3m pre-tax loss in 2010.
Moody’s downgrades senior debt and deposit ratings of 12 UK banks and building societies.
Moody’s has cut Italy’s credit rating by three notches.
Rating agency Moody’s has warned that France may be the next nation at risk of losing its Aaa debt rating.
LSL Property Services says inflation could rise to 6% if BoE introduces more QE.
There were 2,796 complaints to the FOS in Q3, 2011.
PSigma income fund manager Bill Mott says that QE “could cause serious inflationary problems for the UK in the future”.
The minutes from October’s MPC meeting show all members voted for an additional £75bn of quantitative easing.
Monetary Policy Committee member Martin Weale believes there is “quite a lot of scope for more quantitative easing”.
TSC chair Andrew Tyrie calls on Bank of England to reconsider his request.
A number of MPs want to create a committee to increase pressure on Government.
MPs will quiz the FSA next month over the fact investors will be left having to claim against their IFA.
Investec’s contrarian investor Alastair Mundy says that he is staying away from UK banks as there is a risk they will “go bust”.
A study by NAPF says 32 per cent of people are unlikely to stay in workplace pensions.
National Association of Pension Funds chairman Lindsay Tomlinson urges The Pensions Regulator to take action.
Lender will now include new-build premium in valuations.
Lender also making a number of reductions to 85% LTV range.
New banking venture gets green light to bid for the state-owned bank.
Neptune is to launch a global long/short fund.
Neptune has unveiled the details for its global long/short fund.
Nest Corporation will offer the Nest pension scheme to its staff, with Aviva providing a top-up GPP for people who reach the £4,200 contribution limit.
Baroness Drake tells Work and Pension select committee that transfer ban can ’only benefit industry’.
Sridhar Chandrasekharan has been named as chief executive of HSBC Global Asset Management after incumbent John Flint was appointed to a new role within the banking group.
Labour MP Jack Dromey has been appointed shadow housing minister to replace Alison Seabeck.
Threadneedle has announced that no fund managers will be joining from LV=Asset Management following its outsourcing deal.
FSA has not ruled on whether Capita should be held legally responsible for Arch cru investor losses.
The ATP-backed multi-employer pension scheme will charge members £1.50 per month plus a 0.3 per cent annual management charge.
OFT concerned market is “highly concentrated” and substantial barriers to entry.
OMAM UK has appointed Julian Ide as chief executive officer and head of global distribution.
The ONS has cut its forecast for UK economic growth from 0.2% to 0.1% for the second quarter of 2011.
Simon Clifford takes over as chief financial officer.
Openwork announces second platform and teams with Veracity for legacy business analysis deal.
Brokers are up in arms after having their trail commission slashed from 27% to 5% by Paymentshield.
NAPF chief executive Joanne Segars has written to The Pensions Regulator to discuss implications of quantitative easing for pension schemes.
TPR says the scheme trustee attempted to take “excessive investment risk” to secure members’ retirement benefits after the sponsoring employer went into administration.
TPR tells schemes that offering AMDs is not fair.
TPR has issued a warning to trustees about the risk of governance failings in ’hybrid’ pension schemes.
The Tories, Labour and LibDems see big savings in reforming higher-rate pension tax relief.
Positive Solutions has launched its Positive Practices network model and aims to recruit up to 100 new firms.
Firm reveals a 22 per cent cut in numbers as advisers move to become directly authorised.
The Post Office has guaranteed to beat all business renewal quotes for independent financial advisers offices.
Lender previously lent up to 80% LTV.
Premier Asset Management has appointed Jacob Robbins as lead manager of the Premier global alpha growth fund.
Owner occupier sector to fall from 70% to 60% by 2020.
Former Gartmore star manager Guillaume Rambourg is poised to launch his own hedge fund venture in Paris.
Royal Bank of Scotland may cut another 5,000 jobs as part of a major restructure of its global investment banking division.
Whitehall is nervous that the government may have to inject further capital into the Royal Bank of Scotland.
Royal Bank of Scotland is to launch a £3.5bn RMBS.
Royal London is launching an online, client-facing financial planning tool called MoneyVista.
Russell McBurnie is replaced by new chief financial officer Adrian Garner.
RSM Tenon Financial Services has changed its name to Lemontree Wealth
Standard & Poor’s has affirmed the UK’s top credit rating but warned that the government’s recovery plan is “optimistic”.
Standard and Poor’s cites weak growth and high private-sector debt for Spain’s drop to AA-.
Andy Golding leaving on December 31.
Johan van der Merwe was previously Sanlam Investment Management chief executive.
Acquisition will allow firm to extend its reach into the UK stockbroking market.
Santander Asset Management UK appointed Azim Meghji as head of credit.
But gross lending year-on-year down 13%.
Scottish Life has begun to repay policyholders after admitting it has underpaid them between January 2010 and March 2011.
Ashby, Kim and Timberlake will not be joining Threadneedle, Money Marketing understands.
Housing minister Grant Shapps is expected to urge lenders to offer 30-year fixed rate mortgages in his speech at the BSA conference today.
Shapps asked if Govt has plans to reform “slab” structure of stamp duty.
The FTSE has dropped below 5,400.
Emma Hollingworth to become account director within corporate division.
HMRC says a further 1.2m are set to receive a bill for £600.
Offshore bond on platform is closed to new business but Royal Skandia offshore bond remains open.
Skandia UK marketing director Nick Dixon says advisers will be able to manage and advise on pensions via platforms.
The country is the last to vote on the bailout fund plans which have to be agreed by all eurozone member states.
Lacklustre economic growth in the UK will hit employment prospects in the financial services sector, according to Ernst & Young’s ITEM Club.
French bank Societe Generale did not tell its shareholders that it fell victim to a further £127m fraud.
Hedge fund billionaire George Soros has lost his case to have a criminal conviction for insider dealing quashed.
Moody’s downgrades Spanish bonds while S&P cuts credit rating of 24 Italian banks and financial institutions.
Standard & Poor’s and Fitch have downgraded a raft of Spanish banks, citing a deteriorating outlook for the Spanish economy.
Standard Life says policymakers should consider automatically increasing employee pension contributions each time they get a pay rise.
The provider is suing 11 insurers for failing to cover a £100m cash injection into the Standard Life Pension Sterling Fund during the credit crunch.
Pensions minister Steve Webb has warned the Government will legislate against ETVs and pension increase exchange exercises unless industry standards improve.
Stockbroker MF Global UK is the first company to enter a special administration regime.
Panel will offer products from 5 providers.
Mortgage and insurance network Stonebridge Group has partnered with Moneygate to grow its wealth management arm.
A strong and stable euro “is as likely as deep-fried ice-cream”, says Gisela Stuart, a veteran ex-member of the Foreign Affairs Committee.
Scottish Widows Investment Partnership has appointed James Carver to the role of investment director for absolute return bond funds.
F&C director of global strategy says help is needed for smaller and medium-sized companies.
Tenet group operations director Mike McGaughrin has left the firm as part of a restructure.
Tesco has confirmed that its launch into the mortgage market has been delayed until early 2012.
Thames River has announced it is to close its Irish-domiciled absolute return fund, after it failed to attract new inflows over the past three years.
Two thinktanks say Junior Isas will only benefit wealthy investors ahead of their launch tomorrow.
Robson joins from Martin Currie Investment Management.
Threadneedle executive chairman Simon Davies is to retire in June next year.
Proc fees for Northern Rock and Halifax mortgage products increase by 0.1%.
App developed for Android and Blackberry smart phones.
Chief executive Brian Brodie and chief commercial and finance officer Neil Warman leave.
Towry head of risk and compliance Nick Anderson has resigned from the firm.
MP Mark Hoban says a ban on commission for independent advisers could distort the advice market.
Andrew Tyrie has written to the BoE and the FSA to raise concerns about the negative impact the squeeze on banks’ liquidity is having on their ability to lend.
Steering group will be led by former FSA director and Lloyds chief risk officer Carol Sergeant.
Chancellor says the proposal, which would involve the Government buying corporate bonds from companies, could help prevent another credit crunch.
Review will make recommendations on issues including employee retention and remuneration, risk management, and contingency planning.
Committee says Robert Jenkins has competence, commitment and independence for the role.
Jesse Norman has raised concerns that the retail distribution review will lead to reduced diversity in financial services.
FCA will need “powers and teeth” to protect consumers and investors, according to FSA chairman.
FSA chairman warns low returns make consumers vulnerable to the promise of complex structured products.
TSC chair Andrew Tyrie wants to see firms regulatory costs to compare them against FSA expectations.
TSC chair Andrew Tyrie has written to committee scrutinising regulatory changes to co-ordinate efforts.
The UK economy grew by 0.5% in the three months to the end of September.
The UK consumer prices index has risen to 5.2 per cent in September on the back of hikes in energy prices.
90+ arrears rate up slightly to 1.9% from 1.8%.
The UK Structured Products Association has elected Lloyds Banking Group head of distribution Jamie Smith as chairman.
Unbiased says the deal will secure more representative sources of funding.
Six public sector unions have begun a High Court challenge of the Government’s decision to link pension payments to CPI.
Vanguard Asset Management is to market two SRI funds in the UK after launching sterling share classes.
Veracity Asset Transformation Service has partnered with SEI to provide strategic portfolios to advisers.
Cable fined £500 for failing to pay up to £25,000.
Former Gartmore global head of distribution Phil Wagstaff has joined Skandia Investment Group as chief executive.
Pensions minister Steve Webb says Beecroft report recommendations will not change auto-enrolment.
Revisions to the growth of the UK economy make it more likely the Bank of England will launch a new round of quantitative easing.
Lender previously lent to 85% LTV.
Zurich says it will declare in its terms of business it will not contact adviser’s clients directly.