Money Marketing
10 December 2003

  • 'Pensions have inconsistent approach to managing risk'

    11 Dec 2003

    An actuarial analysis has found little correlation between funding levels of company pension schemes and the level of equity investment. Consultancy Watson Wyatt analysed the schemes of companies in the FTSE 350 index and found only a weak correlation between high funding levels and the amount put into riskier investments. Watson Wyatt says it might have been assumed that companies with above-average levels of equity investment would be those with strong funding positions ...

  • £1.4m limit effect to be tested by NAO - Brown

    10 Dec 2003

    The Treasury's claim that the Inland Revenue's controversial £1.4m lifetime limit proposal only affects 5,000 individuals is to be tested by the National Audit Office, and the plan could be dropped altogether Chancellor Gordon Brown has told the House of Commons.In his pre-budget report Brown today said the consultation on the Revenue's proposals had revealed a wide range of views on the numbers effected by the lifetime limit and hinted the proposal could be dropped. ...

  • 38% of IFA firms do not check references

    11 Dec 2003

    Thirty-eight per cent of IFA firms do not check the references of new employees, claims a survey by human resources consultancy Peninsula and financial recruitment agency Portfolio Payroll. Sixty-three per cent say they check references before offering employment and 68 per cent said they have had problems with employees whose references were not checked. Of those employers who do check references, only 20 per cent consider seeking both verbal and written references, ...

  • Abbey fined £2.32m by FSA

    10 Dec 2003

    Abbey National companies have been fined £2.32m by the FSA for serious compliance failings. Abbey National plc was fined £2m for breaches of the FSA's money laundering rules, while Abbey National Asset Managers Limited was fined £320,000 for systems and controls breaches. The FSA says both cases reflect wider control failings including inadequate monitoring of key regulatory risks over a prolonged period of time.

  • Abbey launches tracker loan for life

    10 Dec 2003

    Abbey is to offer a guaranteed deal for the entire life of a mortgage, in return for an upfront fee.In return for a fee of £1,000, customers will pay 0.50 per cent above the Bank of England base rate, which is guaranteed for the life of the mortgage. This gives a current rate of 4.25 per cent compared with Abbey's standard variable rate of 5.75 per cent.Director of Abbey for Intermediaries Ambrose McGinn says: "Finding a way to reward existing customers, while ...

  • ABI asks Goverment to 'keep open mind' on lifetime cap

    10 Dec 2003

    The ABI has urged the government to 'keep an open mind' about the level of the lifetime cap but welcomed the moves to simplify the pensions tax regime from 8 down to 1 contained in the pre-Budget report. ABI director general Mary Francis says: "Simplifying the pensions tax regime is essential to encourage more people to save for retirement. We hope the Government will keep an open mind about the level of the lifetime cap until it has seen the results of the NAO study. But ...

  • Advisers say red tape is a bigger headache than PI

    11 Dec 2003

    IFAs feel swamped by red tape and increasing volumes of paperwork. In a survey carried out for Money Marketing by H2B, red tape emerges as the biggest problem IFAs face from the FSA and Financial Ombudsman Service, cited by 77.8 per cent of 1,002 IFAs questioned. Lack of help over PI insurance, mentioned by 57.3 per cent of IFAs, is the second-biggest complaint over the FSA and FOS. The Fair Deal for IFAs survey was carried out last month to gauge IFAs' views ...

  • Aifa's view

    11 Dec 2003

    2003 was a year of good news and bad news. Good news! The FSA is halving the number of consultation papers it publishes next year. Bad news! The Treasury select committee is holding an enquiry so we will not notice the difference. Good news! IFAs still account for a tiny proportion of complaints, especially complaints about endowments. Bad news! No one wants to focus on that. Good news! There are more PI providers in the market. Bad news! Have we noticed the ...

  • Axa PPP targets self-employed

    11 Dec 2003

    Axa PPP Healthcare has designed a private medical insurance plan for the self-employed.Independent health cover offers the usual range of inpatient day patient and outpatient benefits plus additional benefits that self-employed people may find useful, such as personal business assistance and a legal advice line.The plan has three levels of cover - gold, silver and bronze. The gold policy covers the full cost of impatient, outpatient and daypatient ...

  • Back office to the future

    11 Dec 2003

    2003, despite the brave faces, has been an exceedingly difficult year. At the bottom of the whole problem is the fact that the traditional products supplied by life companies have become commoditised and loved even less than their historic approval factor. Endowment mortgages, one of the staples of the industry, are no longer saleable. With-profits bonds - rest in peace. Unit-linked - well, they went down with the stockmarket. Pensions, well perhaps a few stakeholders ...

  • Bankhall £750k backing to fund CPG RI buys

    11 Dec 2003

    IFA Corporate Planning Group has negotiated a £750,000 loan from Bankhall Investment Associates to fund its expansion plans for 2004. The Fareham-based company says it will use the cash injection to bring in more RIs and to develop the infrastructure of its existing business. It has deals set up to buy four teams of advisers next year. The firm has joined Bankhall to access the loan, which is distributed from an initial £30m tranche that the group has borrowed ...

  • BBB finance director to step down in March

    15 Dec 2003

    Berkeley Berry Birch group finance director Craig Butcher is leaving the national IFA group in March 2004. Butcher has been with the company for three and a half years and says he is leaving to pursue other interests. BBB is currently looking for a replacement.BBB executive chairman Clifford Lockyer says: "Craig has been instrumental in helping to develop Berkeley Berry Birch as a truly national financial services distribution group. We will be sorry to see him leave, however he ...

  • Bedford may be part of fallout as Sesame revamps

    11 Dec 2003

    Sesame is axing two directors and is believed to be losing sales director Andrew Bed-ford in a shake-up of its senior management structure. The reshuffle sees operations director Kevin Budge and chief technology officer Doug Morris leave the meganetwork in a root and branch restructure. Further redundancies and job restructures for less senior staff will be announced in the near future. A new role of director of sales is created for Stephen Young, who previously ...

  • Berkeley Independent Advisers launches online banks purchase service

    15 Dec 2003

    Berkeley Independent Advisers is launching an online services for its IFAs to buys and sell their clients banks, Auction House.

  • Brown 'taking a sledgehammer' to pensions - Friends

    10 Dec 2003

    In response to the pre-Budget report Friends Provident expressed its disappointment at the Government decision not to abolish the lifetime limit and the'punitive tax penalties' imposed if the limit is exceeded. Friends Provident head of pensions marketing Jeremy Ward says: "Lifetime limits, which in reality will affect only the upper end of the market, are just an unnecessary complication, and will be difficult for consumers to both understand and monitor. It really is a ...

  • Brown hits back at Tories plan to reinstate earnings link for pensions

    10 Dec 2003

    Chancellor Gordon Brown has hit back at the Conservative Party's proposal to re-establish the link between increases in state pensions and rises in earnings. In his pre-budget report to the House of Commons Brown said the Tory policy would raise a deficit on public finances of 3 per cent a year and would undermine the UK's fiscal stability. Brown said: "The figure of 5 per cent of GDP for the cost of state pensions means the UK's finances will remain stable going ...

  • Brown to consult on incentive to encourage rental takeup

    10 Dec 2003

    Speaking today at the pre-Budget report, Gordon Brown said that Kate Barker's report has highlighted the weak private rental sector in the UK.He announced that he would be consulting on a new incentive that would encourage the creation in Britain of real estate investment trusts.

  • Call centres are major problem

    11 Dec 2003

    Advisers' biggest complaint is over call centres, with the majority saying they believe this is the major problem they have in dealing with product providers, according to Money Marketing's 1,000 broker survey. Over 80 per cent of the 1,002 advisers surveyed say the time they spend getting through to call centres is the biggest problem they face with product providers. The next biggest concern is delays in processing applications and providing information. This ...

  • Carry back deadline coming up says L&G

    16 Dec 2003

    IFAs are being reminded of the approach of the January 31, 2004 final deadline to carry back a pension contribution into the 2002/2003 tax year.Legal & General says individuals who have not yet completed their self-assessment tax forms can use carry back to, maximise their individual pension contribution for last tax year and directly reduce their tax bill for this tax year. L&G director, pensions marketing Andy Agar says: "People can do this because they are able to deduct ...

  • Cater Allen launches multi currency account

    16 Dec 2003

    Cater Allen is launching a multi currency account for private clients aimed at frequent international travellers. Called the Private Bank Account, it allows funds to be held in Sterling, US dollars, euro, or all three.

  • Chancellor hikes tax relief on VCTs

    10 Dec 2003

    Income tax relief for investment into venture capital trusts is to be raised to 40 per cent under proposals laid out by Chancellor Gordon Brown in his pre-Budget speech. The Chancellor, addressing the House of Commons, said the Government would also raise the VCT annual limit to £200,000.

  • Chancellor's growth forecast too confident, says Insight

    11 Dec 2003

    Chancellor Gordon Brown's forecast that economic growth will be between 3 per cent and 3.5 per cent for both 2004 and 2005 is too confident and could impact the UK borrowing requirement, according to Insight Investment.Insight says economic growth for 2004 is only likely to approach 2 per cent, which means that, if there is a substantial shortfall from the Chancellor's prediction, then taxes will have to be raised or borrowing increased. But although the fund manager believe ...

  • CML dinner is a drum do

    11 Dec 2003

    The Council of Mortgage Lenders certainly knows how to drum up support. The Diary hears that chief executives of all the major UK lenders joined in the latest corporate bonding event with a will at the CML's annual dinner. Chief execs were handed a length of piping and a drumstick and asked to join in what can only be described as a tribal ritual, which concluded with a animalistic grunt from all concerned. The resulting cacophony was shown on BBC2's Newsnight at ...

  • Cofunds claims 54% of supermarkets' Isa sales

    11 Dec 2003

    Cofunds claims it now has over half of the market for Isa sales by fund supermarkets. It says it has a 54 per cent share of Isa business, a big rise from 37 per cent for the second quarter. The firm says its assets have risen by 25 per cent to £1.4bn in the last 12 months. Cofunds also claims a 48 per cent share of Pep transfers due to growing demand for consolidation and increased confidence in investment markets. Marketing director Rick Andrews says: ...

  • Conservative ideas on pensions

    11 Dec 2003

    Whenever a group of pensions people get together these days, the conversation seems to get round to the new Conservative Party pensions policy. It is published in a pamphlet entitled "a fair deal for everyone on pensions" and can be downloaded from their website at www.conservatives.com. The pamphlet is co-authored by David Willetts, MP and Stephen Yeo. David Willets is the Shadow Secretary of State for Work and Pensions and his nickname is "two brains". Stephen Yeo is a Fellow ...

  • Correspondent's week

    11 Dec 2003

    Mondays have got a bad name - mainly because of people like Bob Geldof who go on about how much they hate them. But for me, they are by far my happiest day of the working week. Today, like most other Mondays,I arrive in the office late, drink coffee, check emails and enjoy the peace. The Sunday Telegraph Business & Money offices must boast one of the biggest square foot to employee ratios in London - and on a Monday morning I get it all to myself. Paul Farrow is normally ...

  • Dampier says IFAs slow to respond to downturn

    11 Dec 2003

    Hargreaves Lansdown head of research Mark Dampier has warned that IFAs can take years to react to downturns in fund managers' performance, in response to Fidelity's suggestion that industry commentators are not representative of advisers' views. In a letter to Money Marketing, Dampier says that he has repeatedly seen IFAs take as long as three years to react to performance problems although he concedes that Fidelity is better placed than many to sort out any performance ...

  • DSF products pose problem on menu

    11 Dec 2003

    The FSA believes the main obstacle to the menu payment system could be overcome if direct salesforces stopped selling their own products and sold products from other providers. FSA head of retail projects David Severn says commission equivalence has been a stumbling block to finalising menu details but it would not be a serious impediment if banks and building societies stop manufacturing products and concentrate on distributing them. He says there would then be no reason why ...

  • DWS Investments - DWS Managed Distribution Fund

    10 Dec 2003

    Type: Oeic fund of fundsAim: Growth by investing in DWS equity and bond fundsMinimum investment: Lump sum £1,000, monthly £25Investment split: 50% equity funds, 50% bond fundsIsa link: YesPap transfers: YesCharges: Initial 4.25%, Isa 3.25%, Pep transfers 3%, annual 1.25%Commission: Initial 3%, renewal 0.5%Tel: 0800 917 0005

  • Edinburgh Partners - EP Global Opportunities Trust

    11 Dec 2003

    Type: Investment trustAim: Growth by investing globally in undervalued companiesMinimum investment: Lump sum £1,000Investment split: 100% undervalued companiesCharges: Annual 0.75%Commission: NoneTel: 0131 270 5570

  • Estate trusts aim to boost private rentals

    11 Dec 2003

    Chancellor Gordon Brown believes real estate investment trusts could be the answer to Britain's weak private rental sector. The Barker review into housing supply, published in interim this week, highlights the UK's weak private rented sector and recommends a model based on US real estate investment trusts to encourage investment. Brown says he will consult on a new incentive to encourage the creation of these trusts which the pre-Budget report says would expand ...

  • Fairer rates on stamp duty needed - Savills

    11 Dec 2003

    Savills Private Finance is disappointed that Gordon Brown's pre-budget speech yesterday did not take the opportunity to introduce a fairer stamp duty regime.Savills believed that the current system of banded rates is hindering sales of properties valued at around the banding levels, particularly the £250,000 band at which stamp duty jumps from one per cent to three per cent.Associate director Simon Jones says: "People whose properties are valued ...

  • Fears for FSSC as Jackman quits

    11 Dec 2003

    Chief executive of the Fin-ancial Services Skills Council David Jackman is stepping down after just six months in the role, voicing concerns that it will become a money-making organisation Jackman, described by industry peers as a driving force behind the initiative, denies that his departure will affect the development of the FSSC adviser qualifications programme. His replacement will not be appointed until June 2004 although he is due to leave shortly, which he acknowledges will leave ...

  • Flawed Sandler survey means more research needed as filters falter

    11 Dec 2003

    The FSA is to embark on a second round of research into the Sandler sales process, saying a flawed interview process meant that its initial research has proved inconclusive. The regulator says the research published this week shows that recommendations made by non-FPC advisers to the 502 consumers taking part in the project generally matched those by regulated financial advisers who were forwarded the client details. But it also showed a number of weaknesses on the part ...

  • Friends comes up with with-profits alternative

    15 Dec 2003

    Friends Provident has added a smoothed managed fund with a protection feature to its fund range for the investment portfolio bondThe UK safeguard optimiser fund is a unit-linked fund that is being marketed by Friends Provident as an alternative to with-profits because of the smoothed returns it provides. The protection feature means 80 per cent of the highest unit price is protected if the stockmarket falls.The equity exposure is achieved by investing ...

  • FSA plans more research for filtered questions

    10 Dec 2003

    The FSA's independent research on the selling of the Sandler suite of simplified products shows 80 per cent of consumers got the same or similar advice from sales advisers as they would have received from fully qualified advisers.But the regulator says further research is required before a full assessment of the impact of a filtered questions approach is known.FSA director Michael Folger says: "Today's report demonstrates that 80 per cent of consumers got the same, ...

  • FSA requirements hard for small firms - MCCB

    15 Dec 2003

    The MCCB says that regulation will require firms to submit six monthly reports of around 15 equivalent 'pages' electronically.The MCCB believes this requirement may result in small firms with a lack of resource or internet access being severely over-burdened,with some firms potentially being forced out of the market.MCCB chief executive Luke March says: "Together with the disciplinary sanctions in place, and the time and cost pressures of reporting twice a year, ...

  • Group 300 is back in for Burns Anderson after Tenet bows out

    11 Dec 2003

    Cambridge-based IFA Group 300 is set to renew its bid for network Burns Anderson after Tenet's decision to quit the race. The 564-RI network has been up for sale for more than two years. Negotiations with Tenet began in June to buy the entire ordinary and A ordinary share capital but it is now unable to progress. Tenet group commercial director Peter Lane says the group has pulled out of the deal for internal reasons and was "disappointed at the turn of events". But ...

  • Hargreaves warns that life offices must change or die

    11 Dec 2003

    Life companies face extinction unless they overhaul their business models and become management consultants to IFAs, says Hargreaves Lansdown chief executive Peter Hargreaves. Writing in Money Marketing this week, Hargreaves says life companies should follow the example of IBM, which he says reinvented itself as a management consultancy after losing ground as a PC manufacturer. Although one or two life offices will prosper, he says reinvention is the only way that most ...

  • House prices still increasing but at a slower rate

    11 Dec 2003

    House price rises are continuing to ease, says Halifax's monthly house price index, with a 1 per cent rise in November. This is down from October's increase of 1.4 per cent and November 2002's increase of 1.9 per cent. Halifax says annual house price inflation now stands at 14.1 per cent, down from 16.7 per cent the previous month but still significantly above the long-term average of 8 per cent. The index also reveals that the average homeowner is paying 13.6 ...

  • IFAs put out of the picture

    11 Dec 2003

    For fairly obvious reasons, we recently embarked on a trawl through all our low-cost endowment files to establish on just how many of them the insurance companies have been failing to send us copies of their annual reprojection packages. The results have been alarming, to say the least. The two that really raised our eye-brows, though, were a pair on which one of the lives assured had died two years ago. Amazingly, neither Prudential nor Scottish Life had considered it appropriate ...

  • IMA urges radical reforms to boost long term savings

    10 Dec 2003

    The Investment Management Association is calling for the Chancellor to make radical reforms to restore confidence in long-term savings. IMA chief executive Richard Saunders "We are of course disappointed that the Government is set on abolishing the ISA dividend tax credit, thus removing a central plank of its flagship savings product. We welcome, however, the commitment to continue to examine the taxation of savings."On other aspects of the report, the IMA welcomed the ...

  • Industry hits a bum note

    11 Dec 2003

    The Diary would like to know what has come over the industry lately. Why the sudden obsession with baring flesh? Christmas spirit can go one step too far and the Diary is a little concerned at the bare-faced cheek of Clerical Medical and Bright Grey, whose respective revealing calendars have recently been doing the rounds. Rumour has it that another calendar could be in the offing celebrating the talent of the mortgage industry. All the Diary can say is, keep 'em on boys.

  • Invesco's trust pays off as share price soars

    11 Dec 2003

    Invesco has seen its controversial investment in Millfield Group bring big returns as the Millfield share price has leapt by almost 60 per cent since August. The company's share price reached 84.5p on Tuesday this week, a big rise from 49.5p on August 5, when Invesco manager Neil Woodford sparked controversy by pumping millions of pounds into the loss-making IFA. The investment decision was attacked at the time by London IFA Master Adviser, which said it would no longer ...

  • Investec extends commission offer

    15 Dec 2003

    Investec is continuing to pay 4 per cent upfront commission on its cautious managed fund for another year. The fund has almost tripled its assets under management this year, rising to £125m from £45m in January. Inflows from retail intermediaries accounted for more than 30 per cent of this, prompting Investec to extend the offer.Joint managing director Andy Sowerby says: "This fund is proving itself as the ideal vehicle for investors looking to step back into the market ...

  • Investment analysis

    11 Dec 2003

    Many of the world's major equity markets reached new highs for the year last week before some worse than expected employment numbers took the shine off what was another positive week for stocks. By Friday's close, the FTSE World index was 1.2 per cent higher, up by just over 25 per cent since the start of the year. In the UK, the Bank of England's monetary policy committee voted to keep interest rates on hold following November's quarter-point hike. This came as no ...

  • Investment view

    11 Dec 2003

    Like many others in the financial services industry, my career over the years has encompassed a fair share of mergers and acquisitions involving the firms for which I have worked. However, it appears that the level of activity we can all look forward to will make the past decade or so seem like a period of calm, even boring, stability. That, at least, is the conclusion of a report published last week on the global financial services industry. The extent of the restructuring likely to take ...

  • ISIS welcomes VCT boost from Government

    12 Dec 2003

    ISIS equity partners welcomed the Chancellor's moves to boost VCT investment in his pre-Budget Speech.David Thorp, Investment Manager of the Baronsmead VCTs, said "We welcome the announcements, which are designed to increase the amount of money available for VCTs to invest in UK businesses with high growth potential." Thorp, also Chairman of the VCT External Relations Committee, commented: "The Chancellor has listened to the industry's requests for both simplicity and ...

  • John Joseph on Protection

    11 Dec 2003

    What is our profession all about? I ask that question as, 33 years ago, I started knocking on doors selling dreams - dreams of security in life and dreams of security for one's dependants in the event of one's death. The one thing I did know was that everyone does die and, with only one notable exception, no one comes back. So what is changing? Well, if I told a client that we would guarantee to provide life cover but it would only pay out in the case of an accident, ...

  • Julian Gibbs

    11 Dec 2003

    Scottish Equitable International head of marketing Steven Whalley has launched a marketing initiative for all those companies selling offshore bonds into the UK. With the help of Axa Isle of Man's Christine Hall, Norwich Union International's Amanda Wilson and Scottish Life International's David Gray, a general brochure is being produced which explains the advantages of offshore bonds for UK residents. Other companies involved in this project include Canada Life ...

  • Letwin attacks Brown over savings ratio

    10 Dec 2003

    Shadow chancellor Oliver Letwin has slammed Gordon Brown's pre Budget speech saying Brown has conveniently excluded figures showing the savings ratio has halved and neglected to mention the relationship between this statstic and the rise in means testing for pensioners.

  • Lincoln launches structured product

    10 Dec 2003

    Lincoln Financial Group is launching a new IFA product. The Staged Investment Plan is linked to 11 trusts that are managed by fund managers: Goldman Sachs Asset Management and Delaware International Advisers.

  • Lincoln launches structured product

    10 Dec 2003

    Lincoln Financial Group is launching a new IFA product. The Staged Investment Plan will be linked to 11 trusts managed by fund managers: Goldman Sachs Asset Management and Delaware International Advisers.

  • Lords reject Revenue ruling on non-execs

    11 Dec 2003

    The House of Lords has overturned an Inland Revenue ruling that would have made it impossible for retired directors to take their company pension as long as they remain a non-executive director. The Revenue had tried to recover £230,000 from a non-executive director of a carpentry firm after he resigned his full-time post and took his occupational pension on the basis that he remained an employee. But in the case of Venables •HM Inspector of Taxes, the House ...

  • McCarthy warns unit trust sector against late trading

    11 Dec 2003

    FSA chairman Callum McCarthy held a meeting with 25 chief executives from the largest unit trust managers to remind them of their responsibilities in relation to late trading and market timing. On the back of scandals in the US the regulator has surveyed UK fund managers but dound no signs so far that the 'abuses' are features of the UK market.

  • Meet tuition fees through investment, says Invesco

    16 Dec 2003

    Invesco Perpetual is urging parents to consider stockmarket investment to meet the rise in tuition fees. The call comes after the Government pledged to vote on extra fees early in 2004, which could lead to universities charging up to £3,000 per year.Invesco UK head of distribution Mike Webb says: "Students are leaving university with more debt than ever before and parents hould consider starting to plan for this expense a lot earlier."

  • Miles blames brokers for the loan churnover

    11 Dec 2003

    Professor David Miles has hit out at mortgage brokers, saying they contribute to churning because it is to their advantage to sell shorter-term mortgage products. He also attacked lenders, threatening them with an investigation from the Office of Fair Trading and the FSA over his belief some lenders subsidise cheap rates by keeping borrowers on expensive SVRs. Miles' interim report was published this week on the lack of take-up of long-term fixed-rate mortgages in ...

  • Millfield cuts losses and boosts turnover

    11 Dec 2003

    Millfield Group has reduced its losses and increased turnover by two-thirds while agreeing a £10m investment in its Lifetime wrap venture from Norwich Union. The Aim-listed national IFA cut its losses by 4.5 per cent to £5.6m in the six months to September 2003 from £5.9m for the same period last year and saw turnover for the period increase by 65 per cent to £23.5m from £14.2m. Norwich Union's investment of £10m in Lifetime values ...

  • More than Liv Vic can say

    15 Dec 2003

    LIVERPOOL VICTORIAWITH-PROFITS INCOME BONDType: With-profits bond Aim: Income by investing in equities, corporate bonds and property Minimum investment: Lump sum £10,000 Bonus rate: 4.25% Investment split: 30% equities, 30% corporate bonds, 40% property Allocation rates: £10,000-£49,999 뀬%, £50,000-£99,999 - 125%, £100,000-£500,000 - 100.5% Charges: 0.085% a month management ...

  • Mortgage 2000 selects 1st Software

    16 Dec 2003

    1st Software has been selected as Mortgage 2000's exclusive technology partner for its new adviser network.It will support the network both at head office and individual member firm level and will manage all aspects of m2i's network operation and adviser business.

  • Mortgage edge - Rob Thomas

    11 Dec 2003

    You may have heard in the last few weeks about a proposal to establish a European mortgage funding organisation of the kind found in most developed economies outside Europe. The European Mortgage Finance Agency (Emfa) will fulfil a very specific function. It will be a public/private partnership in which lenders provide the equity capital and the EU provides an umbrella of support to create the confidence amongst debt investors required to provide a stable funding source for mortgages ...

  • Mortgage edge - Stephen Knight

    11 Dec 2003

    You can see why the Chancellor would like everybody to have a US-style penalty-free long-term fixed-rate mortgage. If base rate increases, there is no impact on borrowers. But if base rate is reduced, borrowers could redeem and take advantage of extra spending power. So why aren't these products the norm? The truth is consumers prefer what they have now - a cheaper, wider choice with more flexible options. "Cheaper" is key. Structuring a long-term penalty-free fix ...

  • Most people would pay for medical treatment but underestimate costs

    11 Dec 2003

    The vast majority of people would be prepared to pay for private healthcare rather than wait for treatment. In a survey of 2,000 adults by Standard Life Healthcare, 85 per cent say they would consider paying up to £1,000 for private treatment while 62 per cent would consider paying up to £5,000. But Standard says most people are unaware of the real cost of treatment, with 60 per cent underestimating the cost of heart bypass surgery - around £14,500 - ...

  • Nationwide - 2-Year Fixed Rate

    15 Dec 2003

    Type: Fixed-rate mortgageFixed term: Two yearsFixed rate: Up to 95% of valuation 5.49%, up to 90% of valuation 5.09%, up to 75% of valuation 4.99%Minimum loan: £1Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £700,000, up to 75% ...

  • NDF offers index innovation

    10 Dec 2003

    NDF Administration has brought out a capital-protected bond that can be linked to the Halifax House Price Index, the FTSE 100 index or a combination of both indices for six years.The bond will return all investors' original capital at the end of the term regardless of index performance. Investors will also get 100 per cent of the rise in their chosen index or 100 per cent of the average rise in both indices if they split their capital between the two.There ...

  • Neil Bridge

    11 Dec 2003

    Although he has never worn a wig or wielded a gavel - not to MM's knowledge, at any rate - Schroders sales director Neil Bridge is a master at holding court. Most often seen telling (occasionally clean) jokes and laughing raucously in a bar, Bridge is one of the industry's more colourful and best-known characters. He is also one of the sharpest operators around and was a major factor in Schroders' renaissance after its dip in the late 1990s. "We probably had ...

  • New chief exec Kneeshaw looks to grow ScotLife Intl

    11 Dec 2003

    Royal London subsidiary Scottish Life International has appointed David Kneeshaw as chief executive. The move is part of a change of focus for the group, which is hoping to expand beyond its offshore business into new areas of the UK savings market. Kneeshaw will replace Mike Hicks, who is standing down from the role. Kneeshaw is currently Royal London group business director. He joined the group in July 2002 from Swiss Life, where he worked in a group development role ...

  • New Credit Suisse move to sell PPML

    11 Dec 2003

    Credit Suisse is making a fresh attempt to sell subsidiary Winterthur Life's Sipp administrator PPML. Winterthur put PPML up for sale in May 2001 following a review of its operations but took it off the market two months later, saying none of the offers had made the grade, citing concerns over continued service as the principal stumbling block. At that time, PPML had a price tag of around £50m but its current asking price has not been revealed. Money Marketing ...

  • New intermediary role for Kenmir in reshuffle at FSA

    11 Dec 2003

    David Kenmir is to take on a new role as head of intermediaries in an FSA reshuffle. A document seen by Money Marketing outlining the changes reveals that the reorganisation will see Kenmir move from his position as director for investment firms to sector leader for retail intermediaries. He will also take on responsibility for the FSA Gateway project involving management of the regulator's communication and contact centres. Kenmir has significantly raised his public ...

  • Newcastle launches 3 year mortgage at 3.49 per cent

    12 Dec 2003

    Newcastle Building Society is launching a three year discount mortgage on 15th December. It has a 2.31 per cent discount from SVR, giving a current rate of 3.49 per cent.This product is available until 30 March 2004 for loans of up to £500,000 with a minimum loan of £15,000. There is a completion fee that starts at £345. It has a redemption charge of three per cent of the balance during the three year discount period.

  • Norwich Union fixes income

    16 Dec 2003

    Norwich Union has introduced the fixed income plan 4, a capital-protected bond that gives investors a choice between monthly, annual or rolled-up income over a five-year term.The bond is also available as an Isa or Isa/Pep transfer. It is linked to the FTSE 100 index and pays 5.65 per cent income a year, 0.44 per cent income a month or roll-up income of 31.15 per cent at the end of the term. Investors' original capital is returned in full provided the index ...

  • NU and Canada Life bid to fill BRS annuity gap

    11 Dec 2003

    Norwich Union and Canada Life are planning to plug the gap in the enhanced annuity market left by Britannic Retirement Solutions' closure to new business last month. The move comes as GE Life raises the minimum sum for annuity purchases from £5,000 to £10,000. Canada Life is looking at an enhanced and impaired annuity launch in the second quarter of 2004 while Norwich Union's impaired life annuities could be on the market later next year. BRS's ...

  • NU hikes protection premiums

    10 Dec 2003

    Norwich Union is increasing its premiums on mortgage life insurance with guaranteed critical illness by an average of 8 per cent and on term assurance with guaranteed critical illness by an average of 12 per cent. It says that existing policy holders and pipeline business will not be affected and puts the hike down to recent repricing in the CI market where other providers have moved their rates.

  • NU pledge to probe rate changes over lifetime mortgage

    11 Dec 2003

    Norwich Union has conceded that there could be a problem with its lifetime mortgage and says it will be looking into the issue of rate changes between application and completion. Last week, NU met Mortgage Portfolio Services principal Simon Chalk to discuss issues raised over the product's mark-to-market early redemption penalties and the fact that the rate a consumer applies for could be different to the one they get on completion. Chalk, who last month wrote to the ...

  • OFT ponders parameters in sub-prime probe

    11 Dec 2003

    Sub-prime and non-status lenders are to be investigated by the Office of Fair Trading as it revises its guidelines for the sector. The OFT's annual consultation paper reveals that it is to consult on and revise if necessary its guidance on non-status lending. It says it wants to achieve the greatest benefit for vulnerable consumers and is also planning to conduct a compliance review of its debt collection guidance. The aim of the review is to provide more guidance ...

  • Only a quarter of IFAs concerned over ombudsman's £360 case fee

    11 Dec 2003

    IFAs do not see the cost of the Financial Ombudsman Service's £360 case fee as a significant problem for their businesses, according to the Fair Deal for IFAs survey. The positive reaction may stem from recent indications that the FOS plans to scrap the fee for the first two complaints against an IFA in a year. Only 23.3 per cent of IFAs said the case fee is a big problem while 48.2 per cent said it is not a problem. The FOS's move follows research confirming ...

  • Opra consults on guidance for whistleblowers

    15 Dec 2003

    The Occupational Pensions Regulatory Authority is asking the pensions industry for advice on changes to its reporting procedures. Opra says its main aim is to focus on matters that pose serious risks to members.

  • Out of context

    11 Dec 2003

    •"You know Christmas has arrived in York when there's a queue for the park and ride on Christmas Eve." - Norwich Union marketing director Simon Quick. •"I'm too old to be headbanging." - Aifa director of policy Fay Goddard. •"I have made a career out of being down market." - Industry guru Keith Popplewell spurns a posh restaurant in favour of a humble pub lunch, •"To lose someone from the glamorous world of media relations to the compliance department. ...

  • Pension panacea?

    11 Dec 2003

    There is a growing belief that Britain's pension crisis could be solved in the workplace. If this is true, then it is not only good news for society generally but it also presents a fantastic opportunity for financial advisers. The view is evolving that people could be encouraged to think more about their finances while they are at work, given that they are already used to dealing with pay, income tax and occasionally pensions and other benefits in connection with their jobs. This ...

  • Pension project in limbo as limit goes to audit test

    11 Dec 2003

    The entire pension simplification review has been left in uncertainty after Chancellor Gordon Brown in his pre-Budget report on Wednesday ordered the National Audit Office to review the numbers affected by the £1.4m lifetime limit. Product providers say the Treasury is holding a gun to the head of the industry by threatening to drop the programme if it is proved wrong on the numbers, with no decision until the next Budget. The NAO will determine if the current earnings' ...

  • Pensions set for property freedom

    11 Dec 2003

    Pension schemes could invest directly in residential property under plans in the Inland Revenue's second round of pension simplification consultation. The Revenue is proposing to include residential property in the range of permitted pension investments although a pension benefit in kind would be levied where property is used by a related party. Most experts see the proposal as positive for property prices and pension take-up but industry opinion is divided over whether ...

  • Platinum Capital Management - Platinum Dynasty Fund

    12 Dec 2003

    Type: Hedge fundAim: Growth by investing long and short in large-cap Chinese equities and China-related companiesMinimum investment: $100,000, euros 100,000, $25,000 or euros 25,000 through Platinum wealth management bondInvestment split: 100% large cap Chinese equities and China-related companiesPlace of registration: Isle of ManCharges: Initial 1.5%, performance fee 15%Commission: Subject to negotiationTel: 020 7887 ...

  • Platinum dazzles in China

    12 Dec 2003

    Platinum Capital Management has created a hedge fund that will take a long and short investment approach to Chinese companies and companies based elsewhere that will profit from growth in China.The Platinum dynasty fund has a target return of between 15 per cent and 20 per cent a year. It was introduced because Platinum is keen to offer investors exposure to China but wanted to do so using local knowledge rather than trying to run a portfolio from London. ...

  • PMI gives Revenue proposals cautious welcome

    11 Dec 2003

    The Pensions Management Institute has given a broad welcome to the Inland Revenue's pension simplification proposals but says it is concerned at the decision not to link the lifetime limit and annual allowances to wage but price inflation. PMI external affairs committee Nigel Body says: "The PMI welcomes a number of the proposal released by the Inland Revenue but those affecting high earners are more of a mixed bag. The reduction of the recovery charge ...

  • Product matters

    11 Dec 2003

    DWS's managed distribution fund is another in the longish recent line of distribution funds although this one has a slightly different twist - it is a fettered fund of funds. It will invest in between six and eight DWS funds but, unlike some other distribution funds, this fund is not going to hamstring itself at launch by setting in stone the asset allocation. It will start off with an equity/bond split of 50/50 but will be able to go to 60/40 either way as and when fund manager ...

  • Reprieve for mutuals in FSA orphan U-turn

    11 Dec 2003

    Mutuals have won a reprieve from proposals that could have spelt the end of the sector by preventing them from using orphan assets from with-profits funds to support new business ventures. The FSA's proposals for the fair treatment of with-profits policyholders - published last week in CP207 - allow mutuals to use orphan assets to grow new business. This reverses the policy put forward in DP20 last spring. Mutuals had complained that the proposals in DP20 ...

  • Rock says Emfa too political

    11 Dec 2003

    Northern Rock is trying to distance itself from the European Mortgage Finance Agency project, saying the issue has become politicised. The bank was named as a supporter of Emfa when the initiative was launched last month along with Credit Agricole, BBVA, Irish Life & Permanent and Banco Comercial Portugues. But Emfa general manager Rob Thomas says Rock has not been happy since the issue of long-term fixed rates became politicised and is keen to distance itself from ...

  • Rowan branches out

    11 Dec 2003

    Rowan & Co believes it fits the mould of the ideal IFA envisaged by Ron Sandler, combining an IFA with an investment business. The business has five offices in Bath, Taunton, Bournemouth, Torquay and London serving the mass affluent rather than the super-rich. It has around 8,000 clients with an average age of 63. The firm is a wholly-owned subsidiary of accountants Seymour Pearce since 2000. It has 60 staff with 18 advisers and five investment managers and has £400m ...

  • Rushing to get on the platform?

    11 Dec 2003

    Standard Life's fund platform has generated a huge amount of interest from the industry, not least because it is being launched by one of the UK's biggest life companies. But it has come under particular scrutiny from many fund companies who fear that it could have a big impact on the industry and some of the players on the platform. The principal reason for their concern is the terms at which the 11 fund companies are believed to have agreed to provide access to ...

  • Selestia entering SSAS field in link with retirement specialist

    11 Dec 2003

    Selestia is entering the SSAS market through a tie-up with bespoke retirement advice specialist and pensioneer trustee Pensions Associates. The deal will enable IFAs receiving advice from PA to access Selestia's online investment and admin tools in addition to its reregistration service and P-Scan instrument, which helps portfolio monitoring. PA says the move will allow IFAs to spend more time with clients and experience a continuity of service unavailable with other ...

  • Skandia weaves fund basket

    11 Dec 2003

    SKANDIAPROTECTED PORTFOLIO INVESTMENTType: Capital-protected bondAim: Growth linked to the performance of Norwich Property Trust, Fidelity special situations, Invesco Perpetual corporate bond fund, Schroder Mid 250 fund and Merrill Lynch International Investment Fund UKMinimum-maximum investment: £5,000-no maximum, £3,000-£7,000 IsaTerm: Five yearsGuarantee: Maximum protection option - Original capital returned ...

  • Smaller companies are switching over to GPPs

    11 Dec 2003

    Group personal pensions are now the preferred type for firms employing up to 250 people, according to the latest Association of Consulting Actuaries survey. The survey looked at pension trends in firms employing 250 people or less and found that 90 per cent of these firms will have reviewed their pension scheme arrangements over the last two years. The GPP is now the most popular type of arrangement, with 44 per cent of firms offering it in addition to alternative pension ...

  • Sofa to seek new MD as Lawless moves on

    11 Dec 2003

    Sofa managing director Brian Lawless is leaving at the end of February after nearly two years in the role. He is moving to Exeter and felt he would be unable to continue with his present level of commitment to Sofa. He will be taking up a part-time appointment with Jelf IFM Financial Planning in Bristol. Chartered Insurance Institute director general Sandy Scott says the search is on for a successor who has the necessary gravitas and experience to take the professional ...

  • Spread the spirit of Christmas

    11 Dec 2003

    Let me refresh your memory, dear reader, on one of the greatest works of literature. No, not the Sandler review but that spectral tale of selfishness, miserliness and redemption, A Christmas Carol, written by Charles Dickens in 1843. The stingy - or, more generously perhaps, prudent - Ebenezer Scrooge is first visited by the ghost of his long-dead business partner, Jacob Marley. Transparent and menacing, Marley beckons in the prospect of spectral visits from his fellow ...

  • Standard Life Investments - Property Income Trust

    15 Dec 2003

    Type: Closed-ended investment companyAim: Income and growth by investing in UK commercial propertyMinimum investment: Lump sum £5,000Investment split: Standard offices 37.5%, retail warehouses 25.5%, leisure 16%, office parks 10.7%, standard industrials 8%, industrial parks 2.3%Place of registration: GuernseyCharges: Initial 2.5%, annual 0.85%Commission: Initial 2%Tel: 0131 225 2345

  • Standard optimistic despite plunge in business

    11 Dec 2003

    Standard Life says it is optimistic abut the prospects for 2004 despite seeing new UK business fall by 24 per cent to £1.08bn in APE in the year to November 2003 from £1.43bn the previous year. Europe's biggest mutual life company says the previous year's figures were swollen by inflows of funds from Equitable Life, accentuating a drop in business caused by a more selective approach to annuity and protection business and overall low consumer confidence in financial ...

  • Stavis takes over Fidelity income plus fund from McCarron

    11 Dec 2003

    Fidelity is handing the management of its income plus fund to John Stavis following current manager Tim McCarron's decision to concentrate on his European mandates. Stavis, who is manager of the growth & income fund, will take the reins of the income plus fund on January 1, having spent the last few weeks working closely with McCarron, attending company meetings and sharing market intelligence. Stavis is a similar manager to McCarron and will focus on attractively priced, ...

  • Summer start for depolarisation after menu delay

    11 Dec 2003

    Firms should be able to operate under the final depolarisation rules by summer 2004, six months later than originally planned, the FSA has revealed. A consultation paper on the menu payment system is now due by early February and FSA head of retail projects David Severn says he believes the earliest the industry will be permitted to start depolarised business models will be July or August next year. Original predictions had been for the end of 2003 but there have been ...

  • Surprise finding as advisers back services from networks

    11 Dec 2003

    Problems with product providers and the regulator place a much greater burden on IFA businesses than problems with networks. The results of Money Marketing's 1,000 broker survey in conjunction with H2B shows the biggest issue for network members is cost, with 33 per cent of 394 members saying it is a big problem, 32 per cent a medium problem and 35 per sent saying it is not an issue. They are fairly satisfied with commission services, research on products and marketing ...

  • Talkback

    11 Dec 2003

    "Yes. The form of regulation we have in general is ridiculous and if it is the same for mortgages it will be a nightmare." Alan Tonks,Alan Tonks & Associates "Yes. The man who said it, Skipton Building Society chief executive John Goodfellow, should know what he is talking about and I respect his opinion. We are over-regulating." Alan Shepherd, Shepherd Financial Services "No. I do not think that more regulation is a bad thing and I do not think that we will notice ...

  • Tenet pulls out of Burns-Anderson takeover talks

    10 Dec 2003

    Tenet has pulled out of negotiations for the take-over of IFA network Burns-Anderson. In an announcement to the stockmarket Burns-Anderson said negotiations had progressed significantly but Tenet had said it was unable to confirm when a formal offer could be made for internal reasons.

  • That's my boy

    11 Dec 2003

    Every mother chronicles the milestones in her child's career with a heart swelled to bursting with maternal pride. But it seems that some mothers go to greater extremes than others to commemorate the moment when the apple of their eye reaches the pinnacle of their profession. Some might even go so far as to video each billboard from Coventry to London which bore the image of her darling boy. Well, such is the case with the mum of Isis head of fund of funds Richard Philbin. Mrs ...

  • The 12 months of e-commerce

    11 Dec 2003

    The end of the year is the traditional time to review what has happened in the past 12 months and look forward to what might come in the next. All too often, as far as IFA technology is concerned, it has been a case of looking back on a year when things were not achieved and forward to another year which will probably not deliver what it should. However, I am pleased to say that 2003 has been a year of achievement in many areas of technology and 2004 has all the signs of a year ...

  • This is why the public is cynical about the industry

    11 Dec 2003

    Why are the public so cynical about our industry? These examples illustrate the point. I was recently approached by a 60-year-old single man who lives in rented accommodation. He has been unemployed since being made redundant four years ago. He wanted to take a loan from his pension as he is in dire financial straits. He cannot do this from an s32 policy and so wanted to transfer internally to a personal pension to proceed. Clerical Medical is charging an MVA of £4,000 even ...

  • Ties… … or chains?

    11 Dec 2003

    A clearer picture is starting to emerge of the distribution plans that product providers have for the depolarised world. Zurich and Axa are both known to see multi-tie distribution as the way when the new regime finally comes into place, with Zurich looking at a hands-on approach while Axa is looking at a flexible approach tailored to an IFA's circumstances. However, both Axa and Zurich are denying that Money Marketing's disclosures represent their full plans. Zurich ...

  • Treasury delays stakeholder cap decision

    11 Dec 2003

    The Treasury has delayed its decision on the proposed price cap for stakeholder products after FSA research has revealed that more work was needed on proposals for a simplified sales regime. The Government says it will not make a decision on the cap until next year to ensure that the sales regime and product design can be taken forward at the same time. When an announcement is made, the Government will publish B&W Deloitte research investigating the effects on the ...

  • Value-added tactics

    11 Dec 2003

    What do buyers value? If time and effort is going into building the value of the business, it is essential to understand what the buyer will value. Here are some of what I consider to be the key contributors to value. As touched on earlier, having an enduring management team - apart from the possibly departing owner(s) - will certainly contribute to value. It is essential that the business seems to have a life of its own independent of the owner(s). Predictable revenues, ...

  • VCT tax relief doubled to 40% for two years

    11 Dec 2003

    Income tax relief for investment in venture capital trusts is to be temporarily doubled under proposals laid out by Chancellor Gordon Brown this week. The Treasury is raising relief from 20 per cent to 40 per cent for two years in a bid to encourage investment into the struggling VCT market, which has slumped from £250m to £50m in just three years. But investors will not benefit directly as the additional 20 per cent will be paid not to them but to the VCTs, ...

  • Verity's view

    11 Dec 2003

    The Financial Services Authority's chief executive John Tiner is by no means used to having an easy ride before the Treasury select committee of MPs. Last week, there was another awkward moment. The persistent Jim Cousins, MP, asked Mr Tiner whether he knew how many mortgage endowment policies had been reviewed to check for potential misselling. There was a long pause, followed by an acknowledgement that he did not know. Cousins asked if this wasn't a crucial piece ...

  • Vital role is seen for electronic valuation service

    11 Dec 2003

    Some of the biggest life and pension product providers could lose out on a significant slice of IFA distribution next year if they fail to introduce an electronic valuation service, according to the latest Adviser Forum research. Adviser Forum is a business development group of IFAs and providers which represent a total of around 21,000 registered individuals. It questioned its advisers to gauge which product providers they thought would be integral to making electronic valuations ...

  • Widows adding eight fund links in triple deal

    11 Dec 2003

    Scottish Widows has bolstered its life and pension range with fund links from New Star, Jupiter and Schroders. Eight funds will be added to Widows' life and pension range, including Schroders popular UK alpha plus fund run by Richard Buxton. The funds will be available across most of Widows' life and pension products. Fund companies which already feature on Widows' panel include Artemis, Fidelity, Invesco Perpetual, Merrill Lynch, Newton and Threadneedle. Jupit

  • Wilful deprivation

    11 Dec 2003

    Both my parents are in long-term care. Most of their assets are owned by my father so only he has to contribute to the cost of his care. While my mother is by no means fit and healthy, she could nonetheless live for many more years. My father, however, is in very poor health and suffers from Alzheimer's disease. Under his will, all his assets will pass to my mother on his death, which will result in them being means-tested by the local authority and used to pay for my mother's care ...

  • Win a dream trip Down Under

    11 Dec 2003

    To celebrate the World Cup success of England's rugby heroes, Aegon UK and Money Marketing have teamed up to offer IFAs the chance to win two return flights to Sydney the scene of England's triumph, with flexibility to stop over for up to four weeks. To enter, all you need to do is answer the following question: In which country will England defend their title in 2007? Answers should be sent either by email to kbrown@aegon.co.uk or by post to Kevin Brown, ...

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