Money Marketing
11 December 2002

  • 'Abbey Life escaped with £1m fine'

    12 Dec 2002

    Abbey Life got off lightly with a record £1m fine for endowment misselling, says the FSA. It says the size of the fine reflects the serious nature of Abbey Life's failings but would have been much higher if the company had not taken proactive action and senior management had not accepted responsibility. The FSA says that around 46,000 Abbey Life mortgage endowment policyholders and up to 4,000 other customers may be due compensation which could add up to to a total of ...

  • 'Benchmark set for future acquisitions'

    12 Dec 2002

    The cut-price deal that Insight Investment has struck for Rothschild Asset Management is likely to set the benchmark for future acquisitions. Insight paid only £61m for RAM, which includes £11bn of retail and institutional funds under management and £20m of net cash, valuing the company at just 0.55 per cent of its assets. The deal is in stark contrast to the £1.9bn Prudential paid for M&G in 1999 - more than 10 per cent of its assets under management. Despite ...

  • 'Depolarisation is set to take us back to the 80s'

    12 Dec 2002

    The Consumers' Association and Liberal Democrat trade and industry spokesman Vincent Cable are warning that the end of polarisation risks repeating the conditions that lead to widespread endowment misselling of the 1980s. The comments follow the record £1m fine slapped on Lloyds TSB for endowment misselling by Abbey Life between 1995 and 1999, which has led the CA to question whether the regulator should not also be looking into misselling from before that date. Cable ...

  • 'IFAs liberated'

    17 Dec 2002

    The Green Paper's simplification of the pensions regime will liberate IFAs to return to being pensions salesmen, according to Standard Life.The time frame for selling a pension will be reduced from 7 to 8 hours to 3 to 4 hours which will allow IFAs to advise people with monthly contributions as low as £75 per month, says Standard Life senior technical manager John Lawson. While Norwich Union welcomes the Green Paper's promise to consult on the 1 per cent price ...

  • 'Newshound' is bitten by the top dog

    12 Dec 2002

    One popular definition of what constitutes a news story is the unusual man bites dog in contrast to the more pedestrian dog bites man. The latter is not a story - some financial prs take note. But what happens say when the dog in question bites two journalists with an alleged 30 years experience between them on the collective backside with a huge story. The dog then jumps up, taps them on the shoulder and, defying all the laws of nature, begins to speak, telling them the story ...

  • 'Regulation could finish small firms'

    12 Dec 2002

    The Council of Mortgage Lenders says FSA mortgage regulation could drive out smaller intermediaries and lenders as bigger players club together to cope with higher compliance costs. At the CML annual conference in London last week, senior policy adviser Kate Main said she fears CP146 proposals mean smaller firms will be unable to compete and consumer choice would suffer. Main said: "We would not want to see the tail wag the dog with the structure of regulation dictating the structure ...

  • 16 million face pension poverty

    12 Dec 2002

    The proportion of British workers facing a difficult retirement is rising, with the over 60 age group facing the biggest slide into pensioner poverty, says JP Morgan Fleming. According to JP Morgan Fleming's pension map of Britain report, a staggering 16 million workers representing 54 per cent of the UK workforce will retire on incomes of less than 40 per cent of their final salary and are likely to turn to state benefits for survival. The report says this represents a surge ...

  • A slice off the top

    12 Dec 2002

    My last article concerned the tricky topic of the valuation for tax purposes of a single premium bond on the owner's death. Continuing with the bond theme, I now look at another area which can sometimes cause uncertainty when advising clients - the situation where a client has gains under a UK bond which are subject to the "top-slicing" regime and also gains which are liable to capital gains tax. All advisers should be familiar with the fundamentals of top-slicing relief, where ...

  • Abbey National provides minimum growth

    12 Dec 2002

    Abbey National has introduced safety plus growth 10, a guaranteed equity bond that provides minimum growth of 17.5 per cent and maximum growth of 45.1 per cent.

  • ABI urges fundamental pension reform

    16 Dec 2002

    The ABI has urged the government to make lasting changes to the pensions landscape in the green paper, due to be unveiled tomorrow.

  • Adair Turner to lead independent commission on compulsion

    17 Dec 2002

    The Government is establishing an independent pensions commission to look at issues surrounding compulsion chaired by former CBI director general Adair Turner. The move has been attacked by opposition MPs and IFAs who claim it is trying to bury the issue. The extent of the commission's remit will be to make recommendations to ministers although they will not be obliged to act upon them. The Conservatives say while they do not support compulsion, but if the ...

  • All eight pensions regimes to be simplified into one

    17 Dec 2002

    IFAs have been stunned by the radical overhaull of the pensions regime proposed in the Government's Green Paper which will see the eight existing tax rules replaced by a single regime. From 2004 current annual contribution limits will be replaced by a single indexed linked individual lifetime limit of £1.4m on an individual's pension fund at retirement. Individuals will also be limited to a maximum annual contribution of £200,000. Both basic and higher ...

  • AMP wants buyer for its 50% Virgin Money stake

    12 Dec 2002

    AMP is looking for a buyer for its 50 per cent stake in Virgin Money and admits that Towry Law is worth £40m less than it thought as the fallout from the review of its beleaguered UK business continues. New group chief executive Andrew Mohl, who ordered the review of its UK operations, says he accepts that, with hindsight, the UK purchases by the Australian company could have been chosen better. Overall, it anticipates a £303m writedown of the UK business, including £219m ...

  • B&CE adopts Aqera pension prediction software system

    16 Dec 2002

    Union stakeholder provider B&CE is adopting software house Aquera's iPensions system to power its annual pension statements.

  • Badly drawn ploy strikes bad note

    12 Dec 2002

    IFAs are often told by product providers about great potential markets but find that the reality is very different. One area that is likely to be attractive to providers and IFAs is clients in or near retirement. Demographics coupled with greater pension awareness and funding from the late 1980s onward will ensure an enduring market. Clients will increasingly need advisers to help them determine the best options from phased retirement, income drawdown, the proliferation of new annuity ...

  • Bates calls on investors and IFAs to ignore risk ratings

    12 Dec 2002

    Bates Investment Services is urging investors and IFAs to eschew the risk ratings that investment houses attach to funds as it says they fail to provide an accurate assessment of likely volatility. Bates says investors and advisers have for too long bought and recommended funds according to fund manager risk measurements which are often based solely on relative benchmark targets and the number of stocks held within a portfolio. To illustrate how this type of risk calculation can ...

  • Big rise in firms shutting FS schemes

    12 Dec 2002

    The number of companies cutting costs by closing final-salary schemes to new members nearly doubled in the last year, according to the National Association of Pension Funds' annual report. This year, out of the 970 firms surveyed, 84 companies closed their final-salary schemes compared with only 46 companies in 2001. The survey identifies that such a move makes an average 6 per cent saving as the average contribution by private sector employers into money-purchase schemes is ...

  • Bond aid

    12 Dec 2002

    The Diary is impressed with Prudential's unashamed carrot and stick approach to with-profits - the carrot for the new customers and the stick for the old. Just days after whacking maturing with-profits policyholders with a swingeing 7 per cent cut, the Pru is offering a 2 per cent enhancement on all Prudence bond purchases. Apparently the move is designed "to reinforce our continuing commitment to the with-profits market".

  • Bristol & West unveils new combined product

    16 Dec 2002

    Bristol & West has introduced another tranche of the global income and growth bond which combines a guaranteed equity bond with a high-interest account during a seven-year period.

  • Britannia Building Society fills up the welcome box

    12 Dec 2002

    Britannia Building Society is launching a scheme providing mortgage customers with a welcome box of essential items when they move into their new home. All new borrowers will be sent one of the boxes worth £80 and containing long-life light bulbs, toilet rolls, tea and coffee as well as a range of snack foods within two weeks of completion to help them settle in. Welcome boxes have been sent to all new and existing customers moving into a new home since November 18. They ...

  • Britannia International - 5 Year Guaranteed Capital Equity Bond (Issue 12)

    16 Dec 2002

    Monday, 16 December 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum investment: Lump sum £1,000Place of registration: Isle of ManInvestment split: 100% linked to the performance of the FTSE 100 indexGuarantee: Capital returned in full regardless of the performance of the indexYield: Up to 38.25% gross after five yearsCharges: ImplicitCommission: NoneContact: ...

  • Britannic picks chief operating officer

    11 Dec 2002

    Britannic Asset Management has appointed Gavin Stewart as chief operating officer. He will take up the role in January and will be responsible for finance, legal, IT, corporate development, investment trusts and product development. Stewart was formerly group development director at Aegon and marketing director at Scottish Amicable. 

  • BSA eagerly awaits Davies' successor

    13 Dec 2002

    On the early departure of Howard Davies next September from his role as chairman of the FSA, Building Societies Association director general Adrian Coles says:"Davies did a very good job in bringing together nine regulators. The identity of his successor will be a crucial factor in the development of financial services in the next five years."

  • CA, Help the Aged and TUC in joint call for pensions solutions

    16 Dec 2002

    The Consumers' Association, Help the Aged and the TUC have all urged the Government to meet the pensions challenge with radical reforms and take pensions out of the political arena.

  • Can we bear another grizzly year of bruin ruin?

    12 Dec 2002

    With the bear market now almost three years old, fund managers are struggling to persuade investors to pull their money from under the mattress and plough back into equities. Not only must they overcome investors' attitude of once bitten, twice shy, they also need a positive story to tell. But such stories are very thin on the ground at the moment. A herd mentality has therefore developed, one which will see dozens of fund managers focus their Isa ad campaigns on fixed-interest ...

  • Cazenove Investment Fund Management - Global Opportunities Fund

    16 Dec 2002

    Monday, 16 December 2002Type: OeicAim: Growth by investing in companies globally except the UKMinimum investment: Lump sum £1,000Isa Link: YesPep transfers: NoCharges: Initial 3.5%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0800 0159592

  • Cazenove merges three funds to create global fund

    17 Dec 2002

    Cazenove Investment Managementt has merged its Japanese, North American and Pacific funds to create the global opportunities fund.

  • Christmas will be paid from savings not credit

    17 Dec 2002

    More parents will use their savings than credit to pay for Christmas, according to a survey by Leeds & Holbeck Building Society. And a third of parents will shell out more than £200 on their children, with parents in Scotland the most generous in the country. A third of the sample over the age of 55 said they had invested money as a gift for their children and grandchildren. However, overall, only 17 per cent had opened a savings account for their offspring.

  • CML launches guide to equity release

    11 Dec 2002

    The Council of Mortgage Lenders has launched a guide to equity release.The guide, which has been awarded a Plain English crystal mark, aims to help older home-owners understand how they can unlock the value of their property.Equity release currently accounts for about £1bn of outstanding mortgage lending, but some estimates value the potential market at as much as £100bn.

  • CML sad to see Davies go

    13 Dec 2002

  • Concurrency to go

    17 Dec 2002

    The Government is to scrap stakeholder concurrency rules as part of its pensions Green Paper.

  • Confusion over retrospective rules

    12 Dec 2002

    The article, Pledge to end retrospective rules regime, seems to be diametrically opposed to the news that Mr Davies is extending the "statute of limitation" rules for endowment complainants. Perhaps he does not understand what retrospective rules regime actually means. Perhaps he is trying to appease Ms McKechnie at the Consumers' Association - plenty of hits but not enough complaints. It is a tough life when you are trying to justify your existence. Terence O'Halloran O'

  • Coogan claims he was right to call for rate rise

    12 Dec 2002

    CML director general Michael Coogan has defended his unprecedented call in June for the Bank of England to hike interest rates despite opposition from the biggest lenders. Speaking at last week's CML annual dinner, Coogan admitted he "risked making himself the most unpopular person in the industry" in the summer when he declared that an increase from 4 per cent would make the housing market more sustainable. Lenders such as the Halifax said they did not back the call. At the ...

  • Correspondent's week

    12 Dec 2002

    I drift into consciousness to the strains of Bridge Over Troubled Waters. It is still dark so it must be a weekday - it is, it is Monday. Within minutes, I am rehearsing my speech for the Women's IFA Group Award dinner. I say speech but the four other finalists and I have been asked to speak for only three minutes, hardly an endurance test. I stumble on the second sentence so give up the idea for the time being and concentrate instead on Sarah Kennedy's blonde jokes. The ...

  • Criminal sanctions on packs are axed

    12 Dec 2002

    Criminal sanctions have been dropped from the Government's proposals for seller's packs in favour of a civil regime. The move by the Office of the Deputy Prime Minister is in response to heavy industry lobbying. It has been welcomed by companies such Charcol, Legal & General and lobbying group Seller's Pack Law Is Not The Answer, which says it is too Draconian for someone to get a criminal record for trying to sell their home. The planned criminal sanctions for ...

  • Critical crunch as NU raises CI premiums by 40%

    12 Dec 2002

    IFAs are predicting that Norwich Union's decision to raise the cost of guaranteed critical-illness premiums dramatically by 40 per cent will lead to the market withering. Guaranteed policies account for virtually all of the market and other providers are widely predicted to follow NU's move, leading to a big downturn in cover. NU says the premium rises are necessary because of advances in medical science and the increased cost of reinsurance and capital. It follows the decisions ...

  • CSFB says ratings agencies too soft on L&G, Pru and Aviva

    11 Dec 2002

  • Dark Brown cloud on the horizon

    12 Dec 2002

    What is in store for the financial services industry after Iron Chancellor Gordon Brown threw prudence to the wind? Interest rates look set to rise in the wake of Brown's £20bn borrowing boost. Mortgage advisers believe the housing market is about to slow down. Mortgage Express spokeswoman Jane Barnes says: "We have said all along that the housing market was going to stabilise in 2003 and this is a far healthier situation, particularly for first-time buyers." MarketPlace ...

  • Davies to quit

    13 Dec 2002

    FSA chairman and chief executive Howard Davies is to quit after five years in the duo role.

  • DBS run-off deal excludes retired members

    12 Dec 2002

    DBS is reinstating run-off cover but only for current members, leaving retired members vulnerable to claims. Run-off cover was withdrawn four months ago when the network renewed its PI policy through Misys' regular broker Windsor, rather than the established DBS broker PYV. The rejig was put down to aligning the five Misys networks ahead of the merger which, as announced last week, will take place in the New Year. Although the five networks now all use the same broker, only ...

  • Demand and Design are the key areas

    12 Dec 2002

    Stakeholder pension, IPA, Isa and Cat standard. Which is the odd one out? The answer, of course, is the Isa. Why? Because it has been a huge success while the other three have failed - failed to reach their target market and failed as a commercially viable proposition for product providers. The reason for this lies in the other key difference that sets the three laggards apart from the Isa. The stakeholder, the IPA and the Cat are all products or specifications designed in Whitehall. ...

  • Euro rule gets my vote over the FSA

    12 Dec 2002

    So, execution-only sales could disappear and Hargreaves Lansdown is spitting its dummy out in righteous indignation (Money Marketing, November 21). The FSA says it will argue against this as "it does not take home market models into account". The pre-CP121 polarised UK market was initially attacked by the FSA on the basis that it was different from other EU markets. It did not take the EU long to clarify that a defined-payment system could be fees or commission. I agree with the ...

  • Forward thinking

    12 Dec 2002

    Two things always remind me that it is Christmas soon - the Sofa conference and the realisation that I have to write the Christmas cards as they start to arrive from elsewhere. Luckily I decided to stop sending cards to my clients last year and donated the cost to charity. This year, I will do the same. The Sofa conference is an excellent networking affair and this year the two key topics over coffee seemed to centre on PI and the soon to be published, and much awaited, consultation ...

  • Friends adds two SRI funds to bond

    12 Dec 2002

    Friends Provident is adding two socially responsible funds, the Ecotec and Stewardship international funds, to its lump-sum Investment Portfolio bond. The Ecotec fund is managed by Mark Thompson and Robert Pemberton at Friends' investment arm Isis Asset Management. It invests in smaller companies in the global environmental technology sector, which offer long-term growth potential. Holdings in the fund include renewable energy, water management, fuel cells and recycling. The ...

  • FSA boss' resignation a shame says Consumers' Association

    13 Dec 2002

    FSA chairman Howard Davies' resignation comes at a difficult time for the regulator according to the Consumers' Association.

  • FSA looks to cut back own pension benefits

    11 Dec 2002

    The FSA has outlined its approach to the regulation of general insurance which will become its responsibility in October 2004. The FSA says the new regime will require firms to recommend products adequate to customers' needs, clear product disclosure, fair claims handling procedures, a training and competence regime for sales staff and clear complaints procedures.

  • FSA must deal with regulatory inconsistencies

    12 Dec 2002

    I am surprised that financial journalists have generally not: •given more coverage to the professional indemnity window slamming in IFAs faces •reported IFAs' compelling argument that the FSA is using its statutory powers arbitrarily in attributing negligence to agents instead of manufacturers •made the connection between this and the flawed reliance of the regulations since 1988 on sales and advice process instead of the design and description of products. Viewed ...

  • Gartmore creates equity and bond recipe

    12 Dec 2002

    Gartmore is making the cautious managed fund the focal point of its foray into this year's Isa season.This fund is an Oeic that invests a maximum of 60 per cent in UK equities, with the remainder going into investment-grade corporate bonds. It will initially have 60 equity and 25 bond holdings and aims to provide income of between 4.5 per cent and 5 per cent a year, with the prospect of capital growth.Chris Burvill, former Head of UK Equity Income at Investec, will manage ...

  • Gartmore Investment Management - Cautious Managed Fund

    11 Dec 2002

    Wednesday, 11 December 2002Type: OeicAim: Income and growth by investing in UK equities and investment-grade bondsMinimum investment: Lump sum £1,000, monthly £50Investment split: UK equities 60%, investment-grade bonds 40%Yield: 4.5% gross a yearIsa link: YesPep transfers: YesCharges: Initial 3.5%, annual 1.25%Commission: Initial 3%, renewal 0.5%Tel: 0800 212433

  • Gay couples will get equal pension rights

    12 Dec 2002

    The Government is to introduce a civil partnership registration scheme that recognises gay relationships for the first time, leaving the financial services industry to ponder what impact it will have. The proposals, which the Government will consult on next summer, have cross-party political support. The move would permit gay couples to benefit from the same pension, inheritance and property rights as married couples. It is believed that the proposed civil partnerships would be ...

  • Giving not taking tax advantages

    12 Dec 2002

    Charities are missing out on £372m in potential donations this year because the public is not aware of tax-efficient ways of giving, says IFA Promotion. A total of £7.5bn of charitable donations were made last year but only £2bn were made through the tax-efficient covenant, payroll giving and gift aid schemes, according to the latest figures from IFAP's Wasted Tax campaign. Covenants to charities must be made for four years but can be for any amount while one-off ...

  • Global gains

    12 Dec 2002

    UBS Asset Management's US equity fund aims for capital growth by investing in between 80 and 90 UK stocks. Around 65 per cent of the portfolio goes into US large caps and 35 per cent is invested in US mid caps. Looking at the fund's market suitability, Moseley says: "It is a widely invested US fund suitable for balanced investors as part of a global portfolio." Buswell says: "This is simply one of many trying to attract investors back into the market." Lewis thinks now could ...

  • Good time for Davies to go say the Lib Dems

    13 Dec 2002

    The announcement of FSA chairman Howard Davies' early departure from the regulator is good news for him personally, and good news for the regulator according to the Liberal Democrats.

  • Government consulting on equity release reversion plans says Green Paper

    17 Dec 2002

    Pensioners will be allowed to pass the value of their annuity to dependents upon death until age 75 according to proposals outlined in the Government's Pensions Green Paper. But before any money is passed on it will be hit by a 35 per cent tax, a level set far too high according to IFAs, who say the figure is arbitrary and will penalise pensioners unfairly. Other measures include pushing forward with limited period annuities and extending phased retirement rights to ...

  • Half of advisers think buy-to-let saturated in South-east

    11 Dec 2002

    Specialist lender Future Mortgages' quarterly survey of 500 intermediaries reveals 51 per cent of respondents believe the buy-to-let market in London and the south east is precarious, 33 per cent think it is stable and 17 per cent say they are unsure about its future. And of those who took part in the survey 54 per cent are concerned some lenders and brokers are recommending self-cert mortgages in inappropriate situations to increase income multiples. 

  • Halifax urging savers to use tax allowances

    16 Dec 2002

    Halifax is urging savers to avoid the taxman this Christmas by using up their various allowances.

  • Hathaway Investment Management - MFM Hathaway

    11 Dec 2002

    Wednesday, 11 December 2002Type: Unit trustAim: Income or growth by investing in UK equities, government bonds and investment-grade bondsMinimum investment: Lump sum £1,000Investment split: UK equities 72.5%, government bonds and investment-grade bonds 27.5%Yield: 4.5% grossIsa link: YesPep transfers: YesCharges: Initial subject to negotiation, annual 1%Commission: Initial subject to negotiationTel: 0121 ...

  • Henderson offers free Isa transfers to tech fund

    12 Dec 2002

    Henderson Global Investors is seeking to administer the final blow to moribund technology funds by offering investors free Isa transfers into its global technology fund until January 31. In a move designed to help establish the fund as the biggest in its sector, Henderson is waiving charges to investors moving Isas through Cofunds and Skandia and offering discounts to those switching through Funds-Network. It is also allowing direct transfers at a discounted charge of 1 per cent. Henderson ...

  • Hollands resigns from Bestinvest

    12 Dec 2002

    Jason Hollands, deputy managing director of Best-invest and one of the highest-profile investment commentators in the UK, has resigned from the IFA to pursue other interests. He had been with the company for more than nine years, helping build its profile and elevating it to among the best-known IFAs in the market. One of Hollands' more enduring achievements at Bestinvest was to introduce its half-yearly spot the dog competition, which names and shames the worst-performing funds. He ...

  • Housing Corp says market is dysfunctional

    12 Dec 2002

    The housing market is "dysfunctional" with a shortage of properties in the South and abandoned houses in the North, says the Housing Corporation. Chief executive Norman Perry, speaking at the conference on the problem of building affordable housing, called on lenders to consider a range of investment opportunities in housing associations. The Chartered Institute of Housing said lenders have a role to play in shaping housing policies. Director of policy John Perry said there ...

  • I'm dreaming of a Green Christmas

    12 Dec 2002

    As the final proposals on the future of pensions slowly emerge, you would be forgiven for feeling like a child waiting to open your Christmas presents. You can tell from Chancellor Gordon Brown's pre-Budget report - just as you might from the size and shape of a parcel put under the tree - roughly what you are going to get. You also know that Christmas will come early. The publication date for the Pension Green Paper has been officially set for December 17. The long-awaited ...

  • IFA sets out guide to family trusts

    12 Dec 2002

    IFA The David Aaron Partnership is publishing a guide to family trusts. On one side of the Aaron trust card is an easy to understand decision tree guiding the user through a number of stages to help choose the right trust. On the reverse, are concise descriptions of the different types of trust avail- able, including absolute, interest in possession, discretionary, accumulation and maintenance as well as details about chargeable transfers, holdover relief and potentially exempt ...

  • IMA warns the FSA to hedge on retail fund offerings

    12 Dec 2002

    The Investment Manage-ment Association is warning the FSA not to allow a wide range of hedge funds to be authorised for sale to retail investors. In its response to the regulator's discussion paper Hedge Funds and the FSA, the IMA says the balance of view among fund managers is that it would be premature for a host of hedge funds to be made readily available to retail investors. It says there is unlikely to be enough demand to justify a wholesale liberalisation of the regime ...

  • IMF says maintain private pensions system

    11 Dec 2002

    The International Monetary Fund says limiting future public spending obligations by maintaining a large privately funded pensions system is the most important factor for ensuring the strength of the UK economy. An IMF statement this week said UK pensions should be simplified to increase take-up amongst low to middle income earners and life insurance products should be standardised in accordance with Sandler's recommendations.

  • Income Reform Group backs Tory annuity Bill

    11 Dec 2002

    The Retirement Income Reform Group has strongly endorsed Conservative MP Edward Garnier's Private Member's Bill aimed at reforming the current annuity regime.

  • Independent view

    12 Dec 2002

    Here we are just weeks away from the end of 2002 so I am reflecting on what business has been like and where we are going to next year. It has been a difficult time for the industry following last year's market and September 11, and ongoing concerns that a war is looming. I have talked to fellow IFAs over the course of the year and many are finding it hard to see any light at the end of the tunnel. We have seen one problem after another. The worst market ever, the collapse of ...

  • Inside edge

    12 Dec 2002

    Will the menu system for remuneration work and is remaining independent preferable to being multi-tied? It was very interesting to see that Sir Howard Davies chose the occasion of the Aifa annual dinner to announce the broad outline of the FSA's decisions on CP121. There will be a consultation paper in January 2003 so, while we cannot yet dot all the i's and cross all the t's, we do now have the broad outline of future policy. Margaret Thatcher famously uttered the phrase: ...

  • Invesco takes over as IFAs' top fund choice

    12 Dec 2002

    Invesco Perpetual has knocked Fidelity off the top spot as the firm mentioned most frequently by IFAs when making mainstream fund recommendations, according to Keydata. A survey of 500 IFAs found that Fidelity, which lacks a popular fund in the equity income sector, is second, with Credit Suisse third, Artemis fourth and Jupiter fifth. Equity income remains the most recommended sector, with corporate bonds second, property third, UK growth fourth and funds of funds fifth. Credit ...

  • Investment analysis

    12 Dec 2002

    Hopes of the world equity market rally continuing in December were dashed, when renewed concerns about corporate profits prompted investors to bank profits last week. The FTSE world index fell by 2.7 per cent. In the US, an eight-week winning streak came to an end after profit warnings from Hewlett Packard, AOL Time Warner and Walt Disney hit sentiment and sent stocks lower. Although Packard and Disney both fell sharply it was UAL, the parent company of United Airlines, which caused ...

  • Investment view

    12 Dec 2002

    Last week was bliss. Dedicated to Christmas shopping, not a trading screen was in view for all five days. The degree of detachment this delivered should, I felt, have allowed me to have determined just what markets were likely to deliver as we embark upon a new year and, hopefully, a new market phase. Sadly it was not to be. I ended the week more confused than when I started. Plenty was happening as I trawled around the shops. House price rises were moderating, according to the monthly ...

  • Julian Gibbs

    12 Dec 2002

    Christow's, one of the leading UK stockbrokers, has launched an innovative low-cost multi-manager portfolio service for IFA clients. It has already attracted a lot of money from some leading investment IFAs because of its excellent past investment record and partly because it uses exchange traded funds, which cut dealing costs enormously by avoiding stamp duty and the majority of other dealing charges. Christow's makes money for investors by selecting the right investment markets ...

  • Keydata goes for extra income

    11 Dec 2002

    Keydata Investment Services has established a second issue of the extra income plan, a guaranteed equity bond linked to the Dow Jones Eurostoxx 50 index during a five-year term.

  • Leeds & Holbeck launches new discounted mortgages

    17 Dec 2002

  • Leeson made redundant at ScotEq

    11 Dec 2002

    Scottish Equitable has made its head of international sales Richard Leeson redundant as part of a merger of its on and offshore sales teams. The news comes despite a 32 per cent increase in offshore sales for the first six months of the year. 

  • Manor Park - Guaranteed UK Capital Growth Fund - January 2003 Series

    17 Dec 2002

    Tuesday, 17 December 2002Type: Guaranteed growth bondAim: Growth linked to the FTSE 100 indexMinimum investment: Lump sum £5,000Place of registration: GuernseyInvestment split: 100% linked to the FTSE 100Guarantee: Clients choice of between 85 - 110% of capital returned in full at end of five-year term regardless of movement of the FTSE 100 indexIsa link: NoCharges: ImplicitCommission: Initial 3%Tel: ...

  • Martin Currie - Martin Currie China Hedge Fund

    13 Dec 2002

    Friday, 13 December 2002 Type: Hedge fundAim: Growth by investing in long and short Chinese equitiesMinimum investment: Lump sum $100,000Place of registration: DublinInvestment split: 100% in long and short Chinese equitiesCharges: Annual 1.5%Commission: Subject to negotiationTel: 0131 4794615

  • MCCB says 80 per cent of mortgage advisers are qualified

    11 Dec 2002

    Latest figures from the Mortgage Code Compliance Board reveal 44,535 advisers have passed their professional exams, in advance of the December 31 qualification deadline.The voluntary regulator says this means around 80 per cent of the estimated population of mortgage advisers are now professionally qualified.The MCCB's team will begin monitoring firms' compliance under the new requirements from January.

  • Medical disclosure curbed in BMA-ABI agreement

    12 Dec 2002

    The British Medical Association has agreed new guidance with the ABI limiting the amount of sensitive information that doctors can disclose to insurers on subjects such as sexual health. Doctors will no longer be required to provide details of all aspects of their patients' sexual history as this could be an obstacle for people considering HIV testing. Sexually transmitted diseases, even if multiple episodes, would not have to be disclosed unless there are long-term implications. For ...

  • Mellon - Global Emerging Markets Fund

    17 Dec 2002

    Tuesday, 17 December 2002Type: OeicAim: Growth by investing in global emerging marketsMinimum investment: Lump sum, $5,000, euros 5,000Investment split: 100% in global emerging marketsPlace of registration: DublinIsa link: NoCharges: Initial up to 5%, annual 2%Commission: Initial up to 4%, renewal 0.25%Tel: 0500 660000

  • Minimum retirement age to go up to 55 from 50

    17 Dec 2002

    Workers in the UK will not be able to retire and take their pension until they are 55 years old, up from the current lower limit of 50, from 2010.This is one of the changes in the Green Paper 'Simplicity, Security and Choice: Working and saving for retirement' published by the Government today.

  • Misrepresentation of agent status

    12 Dec 2002

    My biggest concern about depolarisation, and the one about which nobody seems to be talking, is that of misrepresentation of status. I still do not understand the basis on which the FSA can argue that blurring the line of demarcation between tied agents and IFAs will be beneficial for consumers. It seems blatantly obvious that multi-tied agents will try to present themselves as having at their disposal a range of products as broad as any consumer is likely to need and that, as ...

  • Misys support service aims to help mid-size firms grow

    12 Dec 2002

    Misys IFA Services is introducing a new service to help medium-sized firms become bigger regional IFA businesses. The "hub proposition" aims to provide the support that firms with 10-20 RIs need to come together to build a single bigger business. Support on offer will primarily be financial and marketing although more detailed plans are to be announced in the New Year. Mifas chief executive Patrick Gale says: "The objective is to recognise that we have a number of medium-sized ...

  • Moore's code

    12 Dec 2002

    If MPs started suggesting that competitors should bail out a struggling company, they would be laughed out of Westminster. If the Government started taking the suggestion seriously, it would find itself on the receiving end of a torrent of criticism and threats of court action from the companies that were being asked to cough up. Ministers might also have to face up to the consequences of those companies evacuating their capital from the UK, potentially putting millions of jobs ...

  • Mortgage advisers will have to pick one role

    12 Dec 2002

    Mortgage advisers will be forced to choose between being an appointed representative of one firm selling its panel of products or be fully independent and directly authorised by the FSA from 2004, according to new proposals from the regulator. The FSA consultation paper, published this week, says ARs can only have one principal company for ordinary mortgages although those also advising on equity release can tie to a separate firm for this part of their business. An AR giving investment ...

  • New £1.4m lifetime tax threshold for all pensions

    17 Dec 2002

    The Government is to impose a lifetime limit of £1.4m on pensions savings. According to proposals in today's pensions Green Paper, there will also be an annual savings limit of £200,000.

  • New private medical insurance consultation

    16 Dec 2002

    The General Insurance Standards Council has launched a consultation on practice requirement for private medical insurance. The proposals, welcomed by the ABI, will see consumers provided will minimum levels of information in a format that will allow comparisons between providers and products.The consultation closes on February 12 2003, and the requirements will come into force next June.

  • Northern Venture Managers - Northern 3 VCT

    12 Dec 2002

    Thursday, 12 December 2002Aim: Income by investing in smaller UK companiesMinimum investment: Lump sum £3,000Opening-closing date: January 23, 2003-April 5, 2003 for 2002/2003 tax year, April 21, 2003 for 2003/2004 tax yearCharges: Initial 5%, annual 1.5 % in year one, 2% in year two, 2.5% thereafterCommission: Initial 3%Tel: 0800 0852601

  • NU probe shows retired people see new lease of working life as IFAs

    12 Dec 2002

    One in five retired people are returning to work, including retraining as IFAs, according to research commissioned by Norwich Union. Its survey of 777 people over the age of 50 in October found that two-thirds were opposed to a compulsory retirement age and more than half had no problems in finding work. Bernard Tutte retired five years ago at the age of 54 after 30 years working for Sun Life. He says he became bored and did not want to spend his retirement pottering around ...

  • Options on endowments

    12 Dec 2002

    It would appear that mortgage endowment policyholders have several options open to them to address any projected potential shortfall in their plan's targeted maturity value: •Increase their endowment's premium. •Convert all or part of their loan to a capital and interest basis. •Make separate alternative provision for any anticipated shortfall. •Do nothing. •Complain, alleging that they were missold the endowment (even when they know very ...

  • Out of context

    12 Dec 2002

    •"Those big balls hurt my fingers." - IFA Promotion marketing manager Karen Barrett. •"I am orgasmic with anticipation at how I am going to spend my £35." - DBS member looks forward to his Misys Christmas bonus. •"I thought we could all start with a chorus of Always Look on the Bright Side of Life." - Aifa director general Paul Smee, following a gloomy picture of European mortgage regulation by CML senior policy adviser Kate Main. •"I vote Conservative ...

  • Outside edge

    12 Dec 2002

    The frost glistens, the Earth is hushed and the Magi turn to the East toward the bright light on top of Canary Wharf for any sign of the birth of a new system of financial distribution. David Severn, the John the Baptist of Polarisation, smiles benignly and predicts at a rethought second coming for CP121 around Christmas while the IFA archangel Paul Smee swaps literary jokes with the IFAs' potential King Herod Sir Howard Davies while handing him a menu. The menu concerned is ...

  • Patrick Gale

    12 Dec 2002

    Leading a quarter of Britain's IFA population to flotation within 18 months under the newly merged Misys network is surely a task that few would relish, yet Misys IFA chief executive Patrick Gale is convinced he has the answers. Unsurprisingly, for a man with a software background, Gale believes the future of the industry lies in technology. He aims to have 75 per cent of members using the Misys technology by the end of 2003, reaching 100 per cent by 2004. "I am passionate about ...

  • Pensions admin company MNPA appoints new board members

    17 Dec 2002

  • Pink Home Loans appoints new head of operations

    16 Dec 2002

    Mortgage distribution and packaging company Pink Home Loans, a subsidiary of Skipton Building Society, has appointed Dev Malle, 34, as its new head of operations.Malle joins from UCB Homeloans and prior to that he had held various management positions with its parent company Nationwide Building Society. Malle is aiming to improve service levels to ensure Pink will be in a strong position next year.

  • Plus adds up the sums

    12 Dec 2002

    Few companies have as consistent a record when it comes to delivering e-commerce services for IFAs as Scottish Life. Over the last few months, the company has made some significant enhancements to its IF@plus. Over the past couple of years, there have been two key drives in industry e-commerce, the first based on new business and the second on delivering valuation information on existing contracts to advisers electronically. At the same time, it always seems to me that there is ...

  • Poor's to probe endowment misselling

    11 Dec 2002

    Ratings agency Standard & Poors is to conduct its own investigation of endowment misselling claiming it could significantly impact on life office solvency. It says the recent regulatory and political mood has changed and further action could put pressure on life companies's ratings. 

  • Premier Asset Management - Premier Extra Income Plan

    12 Dec 2002

    Thursday, 12 December 2002Type: Capital protected bondAim: Income or growth linked to the performance of the Dow Jones Eurostoxx indexMinimum-maximum investment: £7,000-£1mTerm: Five yearsGuarantee: Original capital returned in full provided the index does not fall by more than 30% Return: 6.25% income a year, 0.5% income a month or 34% growth at end of termClosing date: January 31, 2003Commission: Initial 3%Tel: ...

  • Premier plan offers 6.5% annual income

    12 Dec 2002

    Premier Fund Managers is offering a structured product featuring an annual income of 6.25 per cent a year or 0.5 per cent a month over five years. The Premier extra income plan also offers a growth option of 34 per cent over the five-year term, with 100 per cent of the original capital returned if the final value of the Dow Jones Eurostoxx 50 index is as high or higher than its start value. The original investment is also returned if the Eurostoxx 50 never falls below 70 per cent of ...

  • Product matters

    12 Dec 2002

    Gartmore's cautious managed fund is a good example of the type of fund that I expect to be widely used next year. The appetite for cautious funds is huge and there is a growing recognition among IFAs that ach-ieving a balance bet-ween equities and bonds is a significant part of giving best advice. Gartmore is making the fund its main marketing and sales focus for the Isa season. Recent years have seen many groups place their main focus on funds which would sell well but which ...

  • Public sector pension age may be raised to 65, says green paper

    17 Dec 2002

    Future public service staff, including civil servants, teachers and NHS staff may need to work until 65 rather than 60 to get their full pension, under proposed reforms in the Green Paper published today.

  • RAM deal puts Insight among big fund firms

    12 Dec 2002

    Insight Investment has bought Rothschild Asset Management for £61m in a deal which the HBOS subsidiary says elevates it into the upper tier of UK fund management groups. The deal, which prices the business at just 0.55 per cent of its assets under management, includes RAM's multi-manager operation as well as its range of retail and institutional funds, which total £1.4bn and £9.6bn respectively. The deal also includes more than £20m of net cash but not ...

  • Resurgent Aberdeen still divides analysts and IFAs

    12 Dec 2002

    Despite a strong revival from Aberdeen Asset Management, analysts and IFAs are at odds over the future of the group. The group share price has rallied a startling 63 per cent to 71p at the time of going to press from the October low of 26.5p on the back of rumours that it is on the verge of selling its property arm. But some IFAs, including Bates Investment Services, still doubt that Aberdeen can recover from the split-cap crisis. Bates issued advice to sell to clients in October ...

  • Roving Fidelity fund in bid to be a world beater

    12 Dec 2002

    Fidelity is bolstering its fund range for the Isa season with a high-risk, global equity fund with a "go anywhere" mandate looking at global sector and stock-specific factors. The global focus fund will seek high returns from investing in stocks in any region or country according to the best ideas of manager Brenda Reed, who will select around 100 stocks to beat the fund's loose benchmark - the MSCI World index. The fund, which launches in January, is a sub-fund of Fidelity's ...

  • Royal Bank of Scotland fined £750,000 for anti-money laundering failures

    17 Dec 2002

    The Royal Bank of Scotland has been fined £750,000 for failings in its money laundering controls in the first FSA penalty levied since it acquired powers over money laundering in December 2001.

  • Royal Bank of Scotland offering mortgages on-line

    17 Dec 2002

    Royal Bank of Scotland has launched online mortgages by providing an agreement in principle service on its website at www.rbs.co.uk.It says this allows customers to go house hunting with the confidence of knowing how much the bank is willing to lend them and people wishing to switch from other lenders can use the service.The site also includes a mortgage product finder, calculator and house clinic with tips on moving house.

  • Royal London jobs go in multi-tied switch

    12 Dec 2002

    Royal London Group is to cut 690 jobs, including 200 at its Scottish Life subsidiary, following a fundamental review of its business, which will see its direct salesforce culled to make way for a second-tier multi-tied force. Removing duplication in areas such as IT, human resources and admin will see Scottish Life lose almost one-fifth of it workforce. Royal says the review was prompted by its purchase of Scottish Life last year and United Assurance in 2000. But it says the jobs ...

  • Sandler-style pensions to increase pension provision among low and middle earners

    17 Dec 2002

    The Government is pinning its hopes on Sandler-style pensions distributed through high-street banks and State-sponsored telephone and internet advice services to increase pension provision among low and middle earners. But IFAs and providers have slammed the proposals saying pensions will not be sold as long as there is a rigid commission cap on Sandler's suite of products, which are likely to subsume stakeholder pensions.The Government hopes people will be more likely ...

  • Scottish Equitable has rating lowered

    17 Dec 2002

    Aegon and its Scottish Equitable subsidiary have had their ratings trimmed from by two notches by ratings agency Moody's. It says it has reduced the financial strength rating for ScotEq from Aa2 to A1 because of the prolonged depression in the UK stockmarket and problems at its parent group, which has seen its senior debt rating reduced from Aa3 to A2.

  • Shell out $1,000 at Tiffany's

    12 Dec 2002

    To mark the culmination of Scottish Equitable's group pension drive, highlighted in its latest egg-themed advertising campaign, Money Marketing has teamed up with Scottish Equitable to offer readers the chance to win a trip to New York with $1,000 to spend at Tiffany's. The image of the boiling egg illustrates the campaign message, Making group pensions simpler, and the competition develops the egg theme further with questions and a prize based on the 1961 classic ...

  • Shell shock

    12 Dec 2002

    Schroders director Robin Stoakley received a shock at work last week when his wife rang to say that he couldn't come home because an unexploded World War Two bomb had been found in the garden. Workmen discovered the 60-year-old German bomb while laying a new drive at Stoakley Towers. Neighbours had to evacuate a 100m exclusion zone, surviving on tea, biscuits and a singsong at the village hall, while the army UXB brigade defused the Luftwaffe explosive.

  • Singapore firm set for UK retail fund market

    12 Dec 2002

    Singapore-based fund manager APS Asset Management is entering into the UK retail market in the first quarter of next year with the launch of an Asian equities growth fund. The APS growth fund, which is currently domiciled in Dublin with two sub-funds, the Far East growth fund and the Japan growth fund, will be rolled out to the general UK retail market as soon as the firm gets approval from the FSA. At present, the fund has only institutions and high-net-worth individuals as investors, ...

  • Sofa director Butler in call for merger with IFP

    12 Dec 2002

    Newly elected Sofa director Jason Butler is calling for Sofa and the Institute of Financial Planning to merge after less than two weeks in the job. Butler, voted on to the Sofa board at the end of November, is also editor of the IFP's journal and director of London IFA Bloomsbury Financial Planning, where IFP president Campbell Edgar is a fellow director and technical manager Robert Lockie also sits on the IFP board. Butler says each body has its own strengths, with Sofa seen ...

  • Stable manners

    12 Dec 2002

    I have just been made redundant. I understand that there may well be a stockmarket upturn but I need to maintain the capital value of my money. Bond investments seem appropriate for my needs. Which bonds should I consider and why? There are many types of bond available, including UK Government securities, gilts, other government bonds and corporate bonds. As you are looking for stability of capital, it is important that the right bonds are selected for you. A range of collective ...

  • Standard Life property fund opens door on offices

    13 Dec 2002

    Standard Life Investments has created the UK property income fund, an offshore Oeic that invests in UK commercial property.

  • Substance of the argument

    12 Dec 2002

    This week, I will conclude my examination of the Dextra case on employee benefit trusts. You will recall that the contributions that were the subject matter of the case were made by six group companies to an EBT. Within the trust, specific funds were allocated to six sub-trusts - one for each of three director shareholders and the wives and the mother of two of the directors ("the six'). All these were potential beneficiaries under the trust. The Revenue's contention was ...

  • Success stories

    12 Dec 2002

    Aviva group chief executive Richard Harvey is speaking at the next Institute of Financial Services prestige lecture in London. This ongoing series of lectures being held around the country has included a wide range of business leaders and top sportspeople. The lectures aim to be career-enhancing and motivational, drawing on the speakers' own success. The lectures are open to both members and non-members and qualify for CPD points for those members registered with the institute's ...

  • Talkback

    12 Dec 2002

    "Yes. It should reap economies of scale and it means we will all be singing from the same hymn sheet." John Fleming, J Derry Fleming Insurance Consultants "It was as inevitable as night following day. There are economies of scale but the members are the last people to benefit." Harris Frazer, Assured Benefits Consultants "My main concern is the way costs have gone up. I would be in favour of it if it helps costs come down but it is difficult to say." Doug Parker, Doug ...

  • Tenet scheme offers fees payback of up to 80%

    12 Dec 2002

    IFA group Tenet is setting up a reward programme offering its members the chance of getting up to 80 per cent of their fees back within three years. The scheme will allocate shares to its network and subsidiary members ahead of its planned sale or flotation within the next two to three years. Around 10 per cent of issued shares will be divided among members of M&E, Interdependence, IMA and IFA Professional. Shares will be allocated according to the fees paid to the group ahead ...

  • The change will do kids good

    12 Dec 2002

    Alliance & Leicester has raised over £1m for the National Society for the Prevention of Cruelty to Children in its Change for Kids appeal. The appeal called for people to donate leftover European currency which became worthless after the introduction of the euro. Seventy million tonnes of coins and notes were collected, weighing the equivalent of eight double-decker buses. The money raised will pay for the running of the NSPCC's 24-hour child protection helpline ...

  • Time to split top jobs at the FSA say Tories

    13 Dec 2002

    The announcement of FSA chairman Howard Davies' resignation is an ideal time for a full-scale review of the regulator according to Conservative shadow chief secretary to the Treasury Howard Flight.

  • Timing of Davies' departure a pity says Aifa

    13 Dec 2002

    The timing of FSA chairman Howard Davies' resignation is a pity as recent actions have demonstrated he has begun to listen to IFAs according to Aifa.

  • Tories and trade union fight cap

    12 Dec 2002

    The Government is coming under attack from left and right on the 1 per cent charging cap, with financial services trade union Amicus claiming the cap is leading to job losses and the Conservatives saying it is increasing the pressure on a beleaguered industry. The union met the all-party financial services group last week to lobby MPs on the issue. Amicus estimates that over 8,000 jobs have been lost in the life sector over the year - 2,600 last week alone - and fears that more jobs ...

  • Tory MP to lodge annuity bill

    11 Dec 2002

    Conservative MP Edward Garnier will next week lodge in Parliament a private member's bill to remove the compulsion to purchase an annuity at age 75. Garnier hope his Retirement Income Reform Bill will build on cross-party support received by previous annuity bills brought by Tories John Butterfill and David Curry. Garnier is consulting on whether or not the bill will contain an obligation to buy an annuity to cover state benefit entitlement.

  • UK strongest growth in 2003 says Invesco Perpetual

    17 Dec 2002

    The best investment performance in 2003 will come from the UK, with returns of 7 to 10 per cent expected over the next 12 months according to Invesco Perpetual chief investment officer Bob Yerbury.

  • When will Green shoots appear?

    12 Dec 2002

    Those who want to make a difference to pension policy should seize this moment. The predicted failure of next week's Green Paper is your chance to make sure that meaningful change comes about by the time of the next Green Paper in, say, 2006. If the consensus of opinion is to be believed, next week's document will be hamstrung by inter-departmental rows and an inability to accept any responsibility for the decimation of employer-backed pensions and the failed stakeholder ...

  • Whitechurch deal to train Pearl salesforce as IFAs

    12 Dec 2002

    Whitechurch Network is offering members of the Pearl direct salesforce facing redundancy a new package to attract them to the network. In response to the news of Pearl's plans to axe its direct salesforce of 1,000, the Bristol network is setting up a special unit headed by managing director Ian McIver to train direct salespeople to become IFAs. The network is also offering a monthly membership charge of £375 plus VAT for the first three months, rising to £460 plus ...

  • Year of the cut

    12 Dec 2002

    Cuts have been a theme bedevilling the industry this year, with life company salesforces and with-profits bonuses both falling under the scythe. Last week saw 1,900 job losses at Pearl, to add to 1,500 announced in June across the UK businesses of beleaguered Australian company AMP. Around 670 jobs will be lost across the Royal London group. The Royal London direct salesforce is being reduced from 350 to 150, with the more cuts coming in the support function of Royal London and ...

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