Money Marketing
12 December 2001

  • 'Cat could become hallmark'

    13 Dec 2001

    The Treasury's preference for passive over actively managed funds is one of the driving forces behind Catmarked Isas, says FSA conduct of business standards department manager Brenda Gibson. Speaking at the Sofa conference in Birmingham last week, Gibson said: "The Treasury is a fan of passive, not active, fund management. Cat standards throw down the gauntlet on charges. They are a bit New Labourish, representing the savings for all point the Treasury is trying to get across." Gibson

  • 'Fund supermarts will buckle under strain of growth'

    13 Dec 2001

    The UK retail investment ind-ustry will not be able to sustain the rising number of fund supermarkets in the long term, according to a report by Datamonitor. The market analyst says the number of fund supermarkets will increase to 20 from 16 by the end of the year as companies including Legal & General, Norwich Union and JP Morgan Fleming enter the fray. But it claims the market could buckle under the strain as it is unlikely that demand will grow fast enough. Datamonitor ...

  • 'Savings gap will rise by £5bn as firms turn to DC'

    13 Dec 2001

    The current £27bn UK savings gap will jump by £5bn a year as more employers shift from defined-benefit to defined-contribution pension schemes, claims the ABI. Speaking at last week's Sofa conference, ABI head of pensions Joanne Segers warned that based on data from the NAPF's latest annual survey, 13 companies switched from final-salary/DB schemes to money-purchase/DC schemes over the past year compared with only six switching in 2000. Forty-six companies ...

  • 'Tis the Isa season to be jolly?

    13 Dec 2001

    While the Isa season has by no means started in terms of sales or even advertising, the fund management community has spent the last few weeks talking of nothing else. In case you missed it, the story so far goes something like this: M&G has declared that the season will not start until March. Jupiter's Andrew Watkins says it might not start at all. Aberdeen is not sure but has slashed its marketing budget by 80 per cent and Threadneedle says that it does not believe ...

  • Abbey delighted with Treasury decision

    18 Dec 2001

    Abbey National says it is delighted that the Treasury has listened to feedback from lenders as well as consumer bodies in deciding to extend regulation to mortgage advice. Managing director (retail banking) Andrew Pople says the move means lenders will not be put in the "uncomfortable position" of being responsible for the guidance provided by mortgage brokers. He says the Treasury's decision is in the best interests of both consumers and the industry. 

  • Aberdeen buys Old Mutual International

    12 Dec 2001

    Aberdeen Asset Management is to buy Isle of Man based life insurance firm Old Mutual International for £36.5m.OMI was incporporated into the Isle of Man in 1985, but has been closed to new business since 1998.Aberdeen is also set to raise £100m through an offering of convertible bonds.

  • Aberforth Partners - Aberforth Geared Capital And Income Trust

    17 Dec 2001

    Monday, December 17, 2001. Type: Split-capital investment trust. Aim: Growth and income by investing in 60-100 UK smaller companies. Minimum investment: £1,000. Maximum investment: None Investment split: 100 per cent in 60-100 UK smaller companies. Types of share: Income, capital. Isa link: Yes. Pep transfers: Yes. Redemption date: December 31, 2011. Charges: Implicit. Commission: None. Tel: ...

  • Absolutely lower risk

    13 Dec 2001

    Absolute Fund Management has designed the absolute fund, a fund of hedge funds aiming for growth while trying to preserve capital. AFM is a new company founded by Charles Hovenden and Christopher Aldous. Hovenden is a former associate director of Rothschild Asset Management and has been involved in hedge funds since 1993. Aldous was a managing director of US investment bank Robertson Stephens and has worked as an executive director of UBS. The fund will deliver returns ...

  • Anne McMeehan

    13 Dec 2001

    Lives: Kensington,West London and Southampton Born: April 25, 1954 Age: 47 Education and qualifications: Portsmouth High School, Degree in Economics Politics French and German from Loughborough University of Technology Career to date: Hambro Life, Arbuthnot Latham, Framlington 1985-1996 managing director of Unit Trusts, 1995-6 Deputy Chairman of Autif then communications director 1997 to present. Career ambition:"To have it said of me that I was effective and made ...

  • Autif/FMA merger is set for February

    13 Dec 2001

    The merger between Autif and the Fund Managers' Association is set to go ahead on February 1, with the new body to be called the Investment Management Association. Autif director general Rich-ard Saunders will head the IMA as chief executive. Current Autif chairman, Standard Life Investment's head of mutual funds Alan Burton, will chair the trade body, with FMA chairman and Barclays Global Investors chief executive Lindsay Tomlinson taking the post of deputy chairman. The ...

  • Axa UK appoints new marketing chief

    18 Dec 2001

    Axa UK is appointing former Royal & Sun Alliance head of cashplans John Bines to the newly created position of group marketing and services director.Bines will co-ordinate the marketing strategies of Axa Sun Life, Axa Insurance, PPP Healthcare and Axa Ireland. An Axa spokesman says: "He will co-ordinate the marketing strategies in the context of Axa's stated aim of adopting a single brand worldwide."

  • Bankhall building up strength

    13 Dec 2001

    Bankhall has made six senior appointments to reinforce "its long-term commitment and support to the IFA sector". The move has fuelled speculation that the support firm wants to stay independent and could be preparing an management buyout. Parent Lynx said it was in talks with a potential buyer recently. The Bankhall board has around a 20 per cent stake in Lynx, valued at £178m. Its £63.2m turnover is 28 per cent of Lynx's £224.2m turnover. New head ...

  • Big insurers just cannot figure it out

    13 Dec 2001

    Recently, we were arranging a compulsory purchase annuity for someone who had suffered serious cancer of the bladder and bowel. The big insurance company in the ceding scheme first attempted to apply an £8,000 market value adjuster which I told them I would not accept and a main board director rescinded this within two days despite having been initially advised of my client's serious medical condition. I was able to improve the figures greatly through an impaired ...

  • Bristol & West - Guaranteed Equity Bond Isa

    12 Dec 2001

    Wednesday, December 12, 2001. Type: Guaranteed equity bond Isa. Aim: Growth by tracking the FTSE 100, Eurostoxx 50 and Nikkei 225 indices. Minimum-maximum investment: £500-£1m. Investment choice: 100 per cent tracking FTSE 100, Eurostoxx 50 and Nikkei 225 indices. Term: Five or six years. Guarantee: Capital returned in full at end of term regardless of movement in indices. Return: Capital returned in full ...

  • Britannia launches new bond in 2002

    12 Dec 2001

    Britannia Building Society is launching a one-year variable rate bond to existing members from January 2, 2002.

  • Brokers welcome regulation decision

    18 Dec 2001

    National mortgage brokers have given an overwhelming welcome to the decision to regulate mortgage advice.

  • Brokers welcome regulation decision

    18 Dec 2001

    National mortgage brokers have given an overwhelming welcome to the decision to regulate mortgage advice.

  • Brown calls Davies to account

    14 Dec 2001

    Chancellor Gordon Brown has written to Howard Davies demanding he inform the Treasury of any serious problems that arise which may lead to statutory inquiries.

  • Bupa - Health Additions

    13 Dec 2001

    Thursday, December 13, 2001. Type: Healthcare cash plan. Minimum premium: £10 a month. Minimum maximum ages: 16-no maximum. Maximum benefits: Chiropody £90, dental £90, optical £90, hearing care £90, GP costs £50, prescription costs £20. Deferred period: Three months. Commission: Initial 20 per cent until June 30, 2002, thereafter 10 per cent. Tel: 0500 000125.

  • Canadian firm eyes UK market with legal fund offer

    13 Dec 2001

    Canadian investment house Alpha Toronto is moving into the UK IFA market with an innovative new legal fund investing in "no win no fee" litigation. The fund offers a yield of up to 11.25 per cent a year over three years or 10.75 per cent a year over 18 months. Quarterly and monthly inc-ome options are available at a slightly lower annual rate. The product offers funding, typically around £1,500, for solicitors in "no win no fee" legal cases. The solicitor ...

  • Challenger International - Challenger Open Annuity

    18 Dec 2001

    Tuesday, December 18, 2001. Type: Investment-linked annuity. Minimum investment: £250,000. Minimum age: 50. Income frequency: Monthly, quarterly, half-yearly, annually. Charges: Initial 2.25 per cent, annual 1.5 per cent. Options: None. Commission: Initial 1 per cent, renewal 0.5 per cent. Tel: 01243 520020.

  • Chelsea Building Society - Chelsea Guaranteed Bond (3rd Issue)

    17 Dec 2001

    Monday, December 17, 2001. Type: High interest account. Minimum-maximum investment: £2,500-£500,000. Interest rates: 4.25 per cent gross a year, 4.17 per cent gross a month. Term: Until July 1, 2003. Offer period: Until further notice. Withdrawal penalties: 60 days' notice for penalty free withdrawals until July 1, 2003. Tel: 01242 283593.

  • CII names new HR boss

    17 Dec 2001

    The CII has announced the appointment of Mike Orton as its new human resources director, having been promoted from HR manager.Orton's new role will focus on aligning the Institute's HR policies with its business strategies so it can retain and attract the best people to help it reach its objectives.He will be replaced as HR manager by Tali Shlomo.

  • CIS opens external pension fund links

    13 Dec 2001

    CIS is to offer external fund management links on its pension contracts for the first time. It has chosen Schroders to provide the links which will be available on its recently launched corporate defined-contribution pension service. The move follows CIS' launch into the IFA market in September after more than 70 years of direct selling. It now offers its corporate pension range aimed at employee benefits consultants. Schroders is the first external fund manager ...

  • CML surprised by Government decision

    18 Dec 2001

    The CML says it was surprised by the announcement made by Treasury economic secretary Ruth Kelly that she intends to include advice in the regulation of mortgages. A spokesman says as late as last week FSA managing director John Tiner gave no indication of the change in policy when he spoke to the CML's annual conference.The trade body welcomes the decision, saying it has long fought for advice to be included.

  • Co-operative society

    13 Dec 2001

    Christmas is the traditional time to put aside differences and offer goodwill to all men. It is also a time for looking forward, so I want to look at how we could change our industry to make it a better place for providers, advisers and consumers. It never ceases to amaze me how little advisers or providers really understand about the job that each other does. This industry works around life offices which are primarily focused on new business and IFAs who generally believe providing ...

  • Coventry goes flexible on buy to let

    12 Dec 2001

    Coventry Building Society is introducing a new flexible mortgage to its buy to let range.

  • DBS blames N2 as it ups member charges

    13 Dec 2001

    DBS has increased members' charges, blaming the increased cost of regulation post-N2. Under the new pricing structure, members with turn-overs below £80,000 a year will see DBS's commission share rise from 12.5 per cent to 15 per cent and they will pay a new "investment adviser" fee of £100 a month per RI. DBS says the wholesale price restructuring has been precipitated by the increased cost of compliance caused by N2. In streamlining its pricing ...

  • Decision saves Government embarassment says Boulger

    18 Dec 2001

    The Government’s decision to regulate general insurance neatly solves the embarrassment over General Insurance Standards Council, says mortgage expert Ray Boulger.

  • Discount broking thrown into doubt over EU ruling

    13 Dec 2001

    The future of discount broking could be in doubt if new European Union regulations get the go-ahead. Under the EU proposals, all intermediaries will be required to carry out a full fact-find for all investment transactions. These requirements are contained in the committee of European securities reg-ulators' proposal for the harmonisation of business rules. Trade bodies Apcims and Autif are strongly resisting the proposals, which have also been greeted with ...

  • Equitable chief executive faces MPs

    18 Dec 2001

    Equitable Life chief executive Charles Thomson appeared before an all-party Parliamentary group last week to give details about the compromise scheme members are voting on.

  • Fidelity warning IFAs to ignore Isas at their peril

    13 Dec 2001

    Fidelity is urging IFAs not to write off the coming Isa season, warning that they could be in danger of losing market share to the banks and tied salesforces. Contrary to the current wave of pessimism in the fund management industry, which has seen several groups slash ad budgets to as little as 20 per cent of last year, Fidelity is confident that there will be an Isa season this tax year. Using historic Isa and Pep sales data, Fidelity predicts that at the very worst, ...

  • Flight urges FSA to push troubled life offices into mergers

    13 Dec 2001

    The FSA should urge troubled life offices to seek buyers and consider mergers to avoid a future Equitable Life-type debacle, says Conservative frontbencher Howard Flight. As the FSA moves towards redefining its role as the insurance regulator, Flight, the Shadow Paymaster General, says it should push life offices which have unreasonably high debt to asset ratios and may be in danger of becoming insolvent towards finding a buyer. He says the FSA should act as the Bank of England ...

  • Friends Ivory & Sime - ISIS Technology VCT

    12 Dec 2001

    Wednesday, December 12, 2001. Aim: Growth by investing in undervalued UK technology companies. Minimum investment: £3,000. Opening-closing date: October 10, 2001-April 2, 2002 for 2001/2002 tax year, May 31, 2002 for 2002/2003 tax year. Charges: Implicit. Commission: Initial 3 per cent. Tel: 08457 992299.

  • Frost gets top role at Artemis

    13 Dec 2001

    Star income manager Adrian Frost is joining Artemis to take over its underperforming UK income fund. Frost arrives from Deutsche Asset Management, where he was head of UK equities until April, when he took a six-month sabbatical. He then quit the firm in October. Artemis' income fund is currently managed by Derek Stuart but is lagging in the third quartile for the past year. Stuart will now concentrate on managing the special situations fund. Frost will be ...

  • FSA resurrects resilience test as equities steady

    13 Dec 2001

    The FSA is reinstating one of the resilience tests for life offices that it suspended in the wake of September 11 after deciding that the pressure for unnecessary selling of equities has abated. The regulator withdrew the tests just weeks after the terrorist attacks as it feared that attempts by life offices to meet statutory reserve requirements could trigger unnecessary equity sales and drive the stockmarket downwards. But now the FSA has written to life office chief ...

  • FSA wants public understanding

    13 Dec 2001

    In light of recent speculation in Money Marketing and elsewhere, I would like to make it clear that the FSA has no plans to extend its role to offer investment advice to the public. Nor have we ever said we wanted to. We are, however, serious about promoting public understanding. We are exploring how tools offering generic information on financial matters - decision trees, for example - can help consumers begin to understand and articulate their own financial needs. Sensible ...

  • FSA warns of overstretching in buy-to-let market

    13 Dec 2001

    The FSA has issued a caution about buy to let as part of a series of product warnings. Managing director John Tiner says lenders must manage their exposure carefully and borrowers should be wary of over-reaching themselves. He warns that lenders must take account of potential affordability problems of borrowers looking to fund their investment. This is especially the case in London and the South-east where house prices are highest relative to income. Tiner suggests ...

  • FSA warns that KFD is not enough as it gets tough on endowment complaints

    13 Dec 2001

    The FSA is to crack down on the way firms deal with mortgage endowment complaints, saying it is "disturbed" by the way complaints are being handled. A key features document risk warning will no longer be enough on its own to justify rejecting a complaint. Speaking at an Infoline conference on the regulation of after sales processes in London this week, FSA director (consumer division) Christine Farnish said the industry had for too long got away with leaving critical ...

  • GAM grows a long Eastern hedge

    13 Dec 2001

    Global Asset Management is heading East with its Asian hedge fund. Based in Hong Kong and domiciled in the British Virgin Islands, this is an offshore hedge fund aimed at the sophisticated investor looking for some exposure to the Asian market. It will aim to outperform the MSCI all countries Asia Pacific excluding Japan fund. The fund managers will choose a spread of companies over a wide geographical area, including India, Singapore, Indonesia, China, Australia and ...

  • Genesis - 5.49 Per Cent Fixed Then Discount

    12 Dec 2001

    Wednesday, December 12, 2001. Type: Fixed then discounted rate mortgage. Fixed term: Two years. Fixed rate: 5.49 per cent. Discounted term: One year. Discount: 1 per cent. Minimum loan: £25,001. Maximum loan: Loans of up to 75 per cent of valuation subject to a maximum of £1m, 76-90 per cent subject to a maximum of £250,000, 91-95 per cent subject to a maximum of £200,000. Income multiples: ...

  • Genesis - Planet & Moons Earth Fixed 70 Per Cent

    13 Dec 2001

    Thursday, December 13, 2001. Fixed term: Until January 1, 2003. Fixed rate: 6.25 per cent. Minimum loan: £35,000. Maximum loan: Up to 70 per cent of valuation subject to a maximum of £200,000. Income multiples: 3.5 times principal income plus second or three times joint. Arrangement fee: £395. Redemption fee: 6 per cent of amount repaid in years one and two, 5 per cent in year three, thereafter 1 per ...

  • Genesis - Planet & Moons Earth Fixed 80 Per Cent

    13 Dec 2001

    Thursday, December 13, 2001. Fixed term: Until January 1, 2003. Fixed rate: 6.74 per cent. Minimum loan: £35,000. Maximum loan: Up to 80 per cent of valuation subject to a maximum of £200,000. Income multiples: 3.5 times principal income plus second or three times joint. Arrangement fee: £395. Redemption fee: 6 per cent of amount repaid in years one and two, 5 per cent in year three, thereafter 1 per ...

  • Genesis - Planet & Moons Earth Fixed 85 Per Cent

    17 Dec 2001

    Monday, December 17, 2001. Fixed term: Until January 1, 2003. Fixed rate: 6.99 per cent. Minimum loan: £35,000. Maximum loan: Up to 85 per cent of valuation subject to a maximum of £200,000. Income multiples: 3.5 times principal income plus second or three times joint. Arrangement fee: £395. Redemption fee: 6 per cent of amount repaid in years one and two, 5 per cent in year three, thereafter 1 per ...

  • Genesis' common approach works for IFAs

    18 Dec 2001

    Genesis Home Loans says its recently launched common application form has been well received by intermediaries.

  • GISC will assist in transition

    18 Dec 2001

    In its response to the Treasury's statement regarding the future of insurance regulation, GISC says it will continue in its current role until the FSA takes over.

  • Give credit where it's due

    13 Dec 2001

    Here's a quick question for you. Who was quoted in the financial press last week as saying: "The research findings show that the impact of stakeholder has been felt far wider than the actual product."? If you guessed it was a Government minister, you would be wrong. These words were spoken by Andy Milburn, corporate promotions leader for Royal & Sun Alliance, which has just conducted a life and pension survey. The survey makes interesting reading. Apparently, 80 ...

  • Grassroots revolt at DBS fee hike

    13 Dec 2001

    DBS is facing a grassroots rebellion after it announced plans to increase its fees dramatically. The move has led to members writing to the network's board and one area representative predicting an exodus of up to 10 per cent of members. IFAs claim the hike effectively amounts to a pay cut for 2002 and are accusing DBS of concealing general price rises behind the additional compliance costs of N2. Others have claimed the price rises are an attempt to impose ...

  • House prices continue to shrug off downturn Frost gets top role at Artemis

    13 Dec 2001

    Fears of a housing market slowdown have eased after Nationwide Building Society reported a further rise in prices last month. Nationwide's house price index shows that prices rose by 0.7 per cent in November following a 0.5 per cent drop in October. The increase means the average house price is now up to £92,262 from £91,653. But the annual rate of house price inflation fell slig-htly to 12.8 per cent from 13.1 per cent in October due to a rise in prices ...

  • HSBC anger at watchdog ruling over rates switch

    13 Dec 2001

    HSBC Bank is accusing the Financial Ombudsman Service of overlooking fairness and consumer interest after it lost a ruling about its two-tier mortgage rate strategy offering lower rates to new borrowers. The ombudsman found one of the bank's existing discountrate clients had been discriminated against as they were prevented from switching to a new lower rate offered to new borrowers. HSBC says it will comply with the ruling concerning this client but says it does not ...

  • IF - a loan application oddity

    13 Dec 2001

    Bungle Busters is brought to you this week courtesy of Intelligent Finance - making a welcome return after first appearing in May - as a result of computer system problems. IFA CDG Financial Services director Chris Green says IF has had to repro-cess his self-employed cli-ent's remortgage application four times because the internet and phone bank's IT system could not read the information on his client's income. Green says this is due to a lack of flexibility in how IF's ...

  • IFAP publishes investment guide for low return world

    14 Dec 2001

    IFAP is publishing a guide to surviving on savings when rates are low, aiming to help investors sift through the hundreds of products available.

  • IFAs call on Equitable clients to accept deal

    13 Dec 2001

    Many IFAs are telling their Equitable Life policyholders to back the final compromise deal which will prevent the insurer from edging closer to insolvency. IFAs say the deal represents the best option for most but not all policyholders and will help to keep the company stable. They predict an exodus of policyholders from the company if the deal is agreed. Under the scheme, guaranteed annuity rate policyholders will give up their guarantees in exchange for a 17.5 per cent ...

  • IFAs getting human rights for first time, says ProAct

    13 Dec 2001

    IFAs are to have human rights for the first time as disciplinary procedures pass from the PIA to the financial services tribunal after N2, claims law firm ProAct Legal. It says the Lord Chancellor's Department, which adm-inisters courts and tribunals, has directed that the tribunal must comply with the European Convention on Human Rights, giving IFAs all the safeguards that citizens have bef-ore other courts. ProAct says IFAs will have the right to a fair hearing, ...

  • IFAs support training

    13 Dec 2001

    Over 90 per cent of IFAs support the idea of compulsory training in areas such as post-retirement planning, according to Winterthur Life research. Winterthur says the findings of the survey, conducted in October among 214 IFAs, are set to fuel the debate on the level of training that IFAs should undertake. According to Winterthur, the survey also found that pension minister Ian McCartney is out of sync with IFAs. When asked whether they agree with McCartney's ...

  • Independent view

    13 Dec 2001

    While clearing out some old papers, a colleague came across one of our old newsletters from September 1985. It was called the Unit Investor then, and it gave a market commentary and inv-estment review. What interested me as I took a trip down memory lane was how things have changed (or have they?) over the last 16 years. In those days, you could recommend a unit trust based on your view of world stockmarkets and your assessment of the individual fund managers. It was, ...

  • Industry sits uncomfortably on ABI's benchmark

    13 Dec 2001

    The ABI looks as if it is trying to steal Ron Sandler's thunder by working on proposals for a new disclosure regime based on benchmarked commission. A working party is being set up amid suggestions that commission offered by various providers on the same product could be disclosed, perhaps alongside an industry average or benchmark. In effect, this benchmark could be viewed as a recommended price for commission and has been met with mixed reactions by the industry. ...

  • Inora Life brings in with-profits alternative

    13 Dec 2001

    Inora Life, the Dublin-based offshoot of Societe Generale, has designed a capital protected offshore bond as an alternative to with-profits bonds.

  • Inside edge

    13 Dec 2001

    This pension credit business has been bothering me. When I read the details of the proposals in the pre-Budget report, I was disappointed to see no account had been taken of the concerns many people in the industry have over the distribution of pensions to groups of employees. The State Pension Credit Bill was published on November 29 and that means the state pension credit will almost certainly be introduced in 2003. Some of us have been going on about the problems this ...

  • Investment analysis

    13 Dec 2001

    A quicker end to the war in Afghanistan than most had dared hope gave global markets fresh impetus to continue the post-September rally. Despite further global economic woes, all the major markets finished the week higher with the FTSE World Index ending up by 1.8 per cent. In the US, equity markets broke through psychological important milestones midweek as the Dow Jones Industrial average topped 10,000 for the first time since early September and the Nasdaq Composite went above ...

  • Investment view

    13 Dec 2001

    Last week contained as rich and varied a diet for we City types as any recently. The Unilever Merrill Lynch Investment Management court case was settled without the need of Mr Justice Colman having to draft a judgement on a battle that, in the end, looked as if it contributed few favours to either side. Stockmarkets on both sides of the Atlantic resumed their rally, with some quite positive reports coming out regarding certain sectors of the market, most notably by Morgan Stanley ...

  • Islamic firm sets up Muslim-focused supermart

    13 Dec 2001

    Islamic financial services group iHilal is set to launch one of the world's first Muslim-focused fund supermarkets into the UK next month. iHilal will operate principally as a b2b platform for IFAs with Muslim clients although it says it also hopes to appeal to advisers with ethical investors. The platform will only carry funds which are compliant with Islamic law, Shari'ah, which does not permit interest-based or speculative investing and prohibits investment in ...

  • Julian Gibbs

    13 Dec 2001

    I have always been an admirer of Henderson's fixed-interest team. Its preference & bond fund is the only fund in its sector rated AAA by Standard & Poor's. It is run by Ian Dickson, who is celebrating 20 successful years managing the fund. Henderson's other fixed-interest funds are also excellent and it has just recruited Patrick Harrington to manage its UK equity Income fund. He spent 10 years managing M&G's Charifund, which is second in its sector over ...

  • Julius and EU responsible for decision says FSA

    18 Dec 2001

    The FSA says the decision to regulate mortgage advice is a result of a recommendation from Bank of England economist DeAnne Julius.

  • Julius statement in full

    18 Dec 2001

    DeAnne Julius, the Bank of England economist and head of the Treasury review into Banking, has welcomed the Government decision to adopt her recommendation to regulate mortgage advice.

  • L&G offers second round of protection

    14 Dec 2001

    Legal & General is building on the theme of capital protection with the introduction of the second tranche of its protected portfolio.Protected portfolio II has a five and a half year term, which is six months longer than the previous edition. It is linked to a portfolio of 30 stocks that are taken from the largest companies in the UK. These include companies like GlaxoSmithKline, Next, Dixons, Reuters and Vodafone.Unlike the previous tranche, there is no place for British ...

  • Lamensdorf reshuffles board ahead of flotation

    13 Dec 2001

    IFA group Lamensdorf is restructuring its board ahead of its proposed flotation and further acquisitions. The move will see group chairman Ken Newell take the reins as chief executive while existing managing director Howard Williams moves across to become business development director. Will-iams, who also becomes dep-uty chairman, built up Lamensdorf with his wife and fellow board director Lorraine Williams. Newell joined Lamensdorf a year ago with the aim of pushing ...

  • Light touch enough for protection says Swiss Life

    18 Dec 2001

    Full regulation is not needed for protection advice says Swiss Life technical manager Bob Cheesewright.

  • London & Colonial opens up

    13 Dec 2001

    London & Colonial has introduced open annuity, which allows annuitants to pass on their pension pot to their heirs when they die. Conventional annuities pool the resources of annuitants and use the funds of those who die early to subsidise those who live longer than expected, but open annuity does not operate this mortality cross-subsidy. Instead, it separates annuitants' pension pots, allowing their relatives to benefit rather than the insurance company and other annuitants. Con

  • Mandrake goes with Synaptic

    13 Dec 2001

    National IFA Mandrake Associates has signed up with Synaptic Systems for the provision of its Product Research Professional software and its comparative quotation system.

  • MCCB ready to work with FSA

    18 Dec 2001

    The MCCB says it welcome's the Treasury's decision that the FSA will regulate mortgage advice from 2004.

  • Merril Lynch HSBC offers self-selection

    17 Dec 2001

    Merrill Lynch HSBC, the online partnership between Merrill Lynch and HSBC, has designed a self-select stocks and shares Isa that allows investors to choose an unlimited number of individual stocks.

  • Merrill court case may spark flood of claims

    13 Dec 2001

    Merrill Lynch faces the threat of further legal action this week following its decision to settle the Unilever case, with IFAs concerned that the case has damaged the reputation of all fund managers among retail investors. The news comes as the Consumers' Association warns fund managers that they must not neglect retail investors now that institutional investors have become more aggressive. Senior policy adviser Mick McAteer says: "Our concern is what will happen now. ...

  • Misys announces cost of DBS integration

    17 Dec 2001

    The cost of integrating m-link and AssureWeb pushed the losses on Misys's portals to £5m for the six months ending November 30.In a trading statement Misys said its financial services division had performed "well", and said the cost of assimilation of DBS was £2m. Offloading Screentrade, Misys's business-to-consumer arm, cost £3m.

  • Misys strengthens loan service

    13 Dec 2001

    Misys is bolstering its support for IFA members doing mortgage business by providing more mortgage and compliance services and creating the new position of lending services manager. It is also naming internet and telephone bank Intelligent Finance, which offers a range of flexible mortgages, as a "categoryA" provider to help develop and deliver mortgage training to network members. Andy Young is joining Misys in January as lending services manager from Zurich IFA, where ...

  • Mortgage and Protection advice to be regulated

    18 Dec 2001

    The Government has bowed to industry pressure and handed the FSA responsibility for the regulation of mortgage advice and general insurance broking.

  • Mortgage Brain appoints two business development managers

    18 Dec 2001

    Mortgage Brain is strengthening its business development team in a bid to keep the company at the forefront of developments in the mortgage industry.

  • Mortgage decision creates level playing field says Halifax

    18 Dec 2001

    Halifax has welcomed the announcement that mortgage advice is to be regulated by the FSA, saying it will create a level playing field for consumers and the industry. Halifax says it has long taken the view that mortgage firms should be regulated by a single body and says it is pleased that all intermediaries will be directly authorised by the FSA.

  • Multi-manager giant Russell links up with Widows in retail deal

    13 Dec 2001

    Institutional multi-manager giant Frank Russell took its first major step into the UK retail market this week as it entered into an alliance with Scottish Widows. The deal will see Widows roll out a new range of multi-manager funds at the end of next month, each investing in a combination of Russell's manager of manager portfolios. Each of Russell's 15 portfolios are managed by a combination of top fund managers to specific institutional-style mandates. The Russell ...

  • N3 will never happen says FSA

    18 Dec 2001

    N3, the date set for August 2001 when the FSA was due to regulate mortgage lending and administration, will no longer happen according to the FSA.

  • Network offers advisers non-regulated term deal

    13 Dec 2001

    DBS is setting up a non-regulated network service so intermediaries can sell term insurance products without incurring additional compliance costs. DBS is hoping to start the service early next year, when members will be able to transact businesses in non-regulated products thr-ough a simplified sales pro-cess with a slimmer fact-find. The move is seen as an attempt to head off competition from other non-regulated networks touting for business from DBS members, even though ...

  • New lease of life

    13 Dec 2001

    We want to expand our business interests and are looking to purchase another set of offices. Can we use the pension scheme in the same way as we have previously? We previously used your small self-administered pension scheme to purchase an office which has been leased back to one of your companies. As you are aware, this is a very tax-efficient arrangement and technically there is no reason why more than one property cannot be held within the pension scheme. As these ...

  • NU calls for scale of fees as it warns against axing commission

    13 Dec 2001

    Norwich Union expects commission to stay after the Sandler review but under a regime of greater disclosure, where the commission is expressed and paid as a fee. The company says it is encouraged by Sandler's understanding of the importance of commission and says abolishing it would be a "nail in the coffin" of financial services. Under the NU proposal, submitted in its response to Sandler's review proposals, IFAs would draw up a fee scale and offer clients the option ...

  • Optima Fund Management - The Lee Munder Growth Fund

    17 Dec 2001

    Monday, December 17, 2001. Type: Oeic. Aim: Growth by investing in US small and medium cap stocks. Minimum investment: $250,000. Place of registration: Bermuda. Investment split: 100 per cent in US small and medium cap stocks. Isa link: No. Charges: Implicit. Commission: None. Tel: 00441 295 8658.

  • Optima hedges bets on US

    18 Dec 2001

    Optima Fund Management has introduced the Lee Munder growth fund, which is a hedge fund that invests in small and medium companies in the US.

  • Out of tune

    13 Dec 2001

    I am stunned at the revelation of Ron Sandler's view that IFA clients are only satisfied because they think that advice is free when it is really an opaque loan paid for through commission. This is, however, not entirely unfamiliar territory, given that the Treasury and the regulator quite frequently sing from an entirely different hymn sheet. The classic example of recent times, of course, is the PIA's insistence that waiver of premium had to be a mandatory recommendation ...

  • Outside edge

    13 Dec 2001

    Perhaps it's just the time of year Or then again it's too much beer But a piece for Money Marketing is due I can't face it - what to do. All this talk of regulation When it's time for celebration Sandler, Myners and all the rest Are going to put us to the test. But for now let us reflect On how our public will detect How the super self-regulator Will make their savings even greater. The FSA will be an adviser And ...

  • Pharmaceutical giant to follow Unilever to Merrill Lynch

    18 Dec 2001

    Pharmaceutical giant AstraZeneca is set to be the next company to demand compensation from Merrill Lynch Investment Managers, for the poor performance of its pension fund in the 1990s.The news follows the recent eight week court battle by multi-national conglomerate Unilever against MLIM, which eventually saw the two settle out of court for a reputed £70m.Supermarket giant Sainsbury’s is another firm which has said it is considering suing MLIM.

  • Picturing 2001

    13 Dec 2001

    The new year started with the industry still reeling from the closure of Equitable Life to new business. In January, the FSA came under pressure to explain why it granted Equitable Life approval for stakeholder pensions just a month before it closed to new business. The news cast a new shadow over confidence in the FSA to meet its key regulatory remit of protecting consumers. In February. Paula Diggle, who won friends among readers when she called upon IFAs to offer free ...

  • Pink Home Loans - Exclusive 2 Year Fixed Rate Self Cert

    17 Dec 2001

    Monday, December 17, 2001. Type: Fixed rate self-certification mortgage. Fixed term: Until January 31, 2004. Fixed rate: 6.49 per cent. Minimum loan: £25,001. Maximum loan: Loans of up to 75 per cent of valuation subject to a maximum of £500,000, 76-85 per cent subject to a maximum of £400,000. First-time buyers up to 85 per cent of valuation subject to a maximum of £150,000. Income multiples: 3.5 times ...

  • Portman calender sets the scene for £20,000 fund-raising drive

    13 Dec 2001

    Portman Building Society is aiming to raise over £20,000 for charity by asking customers to make donations in return for a copy of its 2001 calendar. The calendar, which is available from each of Portman's 113 branches, features pictures of 12 landmarks associated with the society's client catchment area and a traditional recipe for each month. Portman has used its calendar as a fund-raising tool each year since 1997 and around £100,000 has been passed ...

  • Product matters

    13 Dec 2001

    Venture capital trusts were the flavour of the month exactly 1 year ago - products were literally flying off the shelves. The story today is markedly different. There are 12 VCTs open and the majority have raised minimal amounts. Only the quality names have so far raised anything resembling serious amounts of money. The latest name to enter the fray is Baronsmead 4. David Thorp, joint MD of the newly named Isis Capital, is lead manager of the fund and is ably backed by ...

  • Providers' cash backs BBN's Berkeley buy

    13 Dec 2001

    National IFA Berry Birch & Noble has raised £12.5m from five product providers to help fund the acquisition of Berkeley Independent network for £47.7m. Clerical Medical, Friends Provident, Norwich Union, Scottish Widows and Skandia have each invested £2.5m in the firm, giving each provider a 4.6 per cent share in Berkeley Berry Birch, the new financial services group being formed from the reverse takeover. Subject to shareholders' approval at ...

  • Royal & SunAlliance International Financial Services - Mainstay $ Fund

    12 Dec 2001

    Wednesday, December 12, 2001. Type: Fund of hedge funds. Aim: Growth by investing in hedge funds. Minimum investment: Subject to negotiation. Place of registration: Isle of Man. Investment split: 100 per cent in hedge funds. Isa link: No. Charges: Implicit. Commission: Subject to negotiation. Tel: 01624 821212.

  • Royal & SunAlliance offers variety for trustees

    18 Dec 2001

    Looking at the product literature Perdisatt calls it: "Rather dull, does not particularly grab your attention. It is, however, fairly easy to understand." Parrott says it is simple to understand and gives sufficient detail. Stevens says: "Very straightforward. The risk thermometer in the product guide is useful." Cave says it is nothing special. Summing up Stevens says: "The first page of the key features is very negative and ...

  • Royal & SunAlliance offers variety for trustees

    18 Dec 2001

    Moving on to the disadvantages of the plan Stevens says: "The with-profits fund appears to be of the traditional sort where the profits may partially depend on gains or losses from other business written by Royal & SunAlliance. General insurance is a risky business, especially in these troubled times. It is also very competitive and margins are thin."

  • Royal & SunAlliance offers variety for trustees

    18 Dec 2001

    Royal & Sun Alliance

  • Ruth Kelly statement in full

    18 Dec 2001

    Economic secretary Ruth Kelly has set out the reasons for statutory regulation of mortgage and general insurance intermediaries and advice.

  • Scarborough Building Society - One Year Fixed Rate Bond

    13 Dec 2001

    Thursday, December 13, 2001. Type: High interest account. Minimum-maximum investment: £1,000-£250,000. Interest rates: 4 per cent gross a year, 3.75 per cent gross a month. Term: 12 months. Offer period: Until further notice. Withdrawal penalties: No withdrawals permitted during term. Tel: 0845 4584458.

  • Schroder introduces investment trust income Isa

    14 Dec 2001

    Schroders has brought in the income Isa, an individual savings account that invests in a recently introduced Schroder investment trust.

  • Schroders - Schroder UK Select Isa

    17 Dec 2001

    Monday, December 17, 2001. Type: Unit trust maxi Isa. Aim: Growth by investing in Schroder UK equity fund, Schroder UK mid 250 fund and Schroder UK smaller companies fund. Minimum investment: Lump sum £1,000, monthly £250. Maximum investment: £7,000. Catmarked: No. Investment choice: Schroder UK equity fund 50 per cent, Schroder UK mid 250 fund 30 per cent, Schroder UK smaller companies fund 20 per cent. Charges: ...

  • Schroders takes triple approach to Isa

    12 Dec 2001

    Schroders is giving investors access to three UK funds within its Schroder UK select Isa.

  • Scot Mut launches family trust to tackle inheritance tax

    17 Dec 2001

    Scottish Mutual is launching a family trust that allows personal pension holders to cut their inheritance tax bills. The Spousal By-pass trust allows death penalties payable from personal pensions policies to be held for the benefit of the family member, whilst reducing the charges to inheritance tax.

  • Seasoned advice is needed amid the Isa anxiety

    13 Dec 2001

    To believe some commentators, the only way that IFAs can stop clients going to the banks and building societies this Isa season, is to chain themselves to the door of their local branch. IFAs are not renowned for taking to the streets, so perhaps more creative solutions should be found. The first step might be to not write things off completely. Providers' budgets constructed on boomtime assumptions may be stretched but IFAs would be justified in feeling undermined if all were ...

  • SEI rethinks Dublin arm as bond is put on hold

    13 Dec 2001

    Scottish Equitable Intern-ational is considering its options for its Dublin-based offshoot after having to put its with-profits bond on ice. SEI opened offices in Dub-lin with the intention of offering the with-profits bond. But following the events of September 11, the launch was delayed, with the company claiming that the climate was now too unfavourable, leaving the new arm with an extensive infrastructure in place and no product to sell. SEI, whose main base ...

  • Skandia refreshes approach

    13 Dec 2001

    Skandia Life is to roll out a new advertising campaign in the first quarter of next year following requests from IFAs. Based on the theme of Fresh Thinking, the campaign is being created by Skandia's newly appointed ad agency, The Marketing Store Worldwide. It will initially appear as inserts and supplements in the personal finance trade press. Skandia says it is launching the campaign after a six-month absence from advertising as part of its support for IFAs, who ...

  • Standard & Poor's Micropal Top 10s

    13 Dec 2001

    Korean funds are all the rage, topping the unit trust, insurance fund and investment trust tables for the past year. JPMF Korea leads the way in unit trusts, returning 40.28 per cent for the past 12 months, more than 10 per cent than its nearest rival. Baring Korea Trust and Schroder Seoul both feature among the top 10. Schroders' Korea-Europe fund tops the investment trust tables, with a return of 49.37 per cent for the past year while Skandia/Baring Korea tops the insurance fund ...

  • Strike while the IHT iron is hot

    13 Dec 2001

    You will all be aware that the Inland Revenue is looking rather closely at inheritance tax planning schemes. It has lost at least one case heard by the Special Commissioners and accepted wisdom - accepted, that is, by all except the Revenue itself - suggests that it could experience similar disappointments in the not-too-distant future. So, what is likely to happen next? The Revenue may try to encourage ministers to consider changing the law on inheritance tax. This would be to ...

  • T&G makes VCT debut

    12 Dec 2001

    TEATHER & GREENWOODAIM VCTAim: Growth by investing in companies quoted on Aim, unquoted companies, cash and fixed interest securities.Minimum investment: £3,000.Opening-closing date: November 19, 2001-April 4, 2002 for 2001/2002 tax year, May 31, 2002 for 2002/2003 tax year.Charges: Initial 5 per cent, annual up to 1.75 per cent.Commission: Initial 2.5 per cent, renewal 0.25 per cent.Tel: 020 7426 3204.Investment ...

  • Talkback

    13 Dec 2001

    Should the FSA scrap designatory letters? "I am not sure they should be scrapped but they should be reformed in some way. Some people have too many letters after their name and it gets very confusing." Lyn Navin, Chamberlyns "No, It gives extra credibility and the impression of being a professional and educated." Charanjit Chama, Middlesex Financial Services "No, The consumer is led to believe we are more professional. Every other industry is allowed ...

  • Th Daley update

    13 Dec 2001

    Credit Suisse Asset Management, ABN Amro and SG Asset Management are teaming up for a series of Isa season roadshows in January and February. The three groups will visit 16 venues around the country, starting in Nottingham on January 22 and ending in Tunbridge Wells on February 28. Speakers will include CSAM star income manager Bill Mott, ABN Amro star UK growth manager Nigel Thomas and SGAM joint chief executive officer Nicola Horlick. New Star Asset Management is aiming to raise ...

  • The state of things

    13 Dec 2001

    Estate planning is an obvious area of financial planning where solutions rather than mere products are needed. Consequently, it seems obvious that estate planning is and will continue to be an advised as opposed to a disintermediated activity. It is also an area of business that lends itself to collaboration between an individual's professional advisers, that is, IFA, accountant and solicitor, so that the most "joined-up" and comprehensive solution is delivered. Estate ...

  • Tilney opens Monaco office

    12 Dec 2001

    Private client investment managers Tilney Investment Management is opening a Monaco office, focusing on high net worth clients.

  • Towry Law chief Black quits in AMP shake-up

    13 Dec 2001

    Towry Law chief executive Douglas Black, who incurred the wrath of his fellow IFAs by suggesting Towry's deal with the ICS saved the industry £20m, is leaving the firm. He will be replaced by AMP's John Simmonds who is credited with striking the deal between AMP and the IFA. Simmonds becomes managing director. AMP says Black, 44, decided to give up the position that he has held since 1997 by mutual agreement. Simmonds, 44, joined the Towry management team ...

  • Trends in terror

    13 Dec 2001

    The international security outlook since September 11 and its effect on the airline and marine sectors is the subject of a talk at the Insurance Institute of London later this month. The lecture will consider the long-term terrorist trends that can be expected, the likelihood that the US-led campaign in Afghanistan will destroy al-Qaeda, the threat of other terrorist groups adopting similar tactics and where the threat to marine and aviation targets is most likely to come from. ...

  • TrustNet aids IFAs with pension data service

    13 Dec 2001

    Fund information provider TrustNet is offering a price and performance service covering over 2,500 UK pension funds, allowing IFAs to view pension fund data from a single online platform. Users of the free service, available at TrustNet.com, can sort and rank pension funds by one-, threeor five-year performance, view fund performance data and charts for periods from three months to five years and access comparative performance tables. Fund factsheets will also be available ...

  • Verity's view

    13 Dec 2001

    Poor Merrill Lynch. Only very rarely does one feel sorry for a giant US investment bank. But looking at the public statements of this king of global finance after settling Unilever's action for negligence, anyone who lacked sympathy would have to have a heart of ice. The brief joint statement that accompanied the $100m settlement insisted in clipped legal language that both sides were "pleased" with the settlement. Strange then, that no one from Merrill Lynch, with ...

  • Wanless thing to worry about

    13 Dec 2001

    Whoever drafted Gordon Brown's pre-Budget speech decided to present us with a new political mantra - Wanless. In fact, to much Tory mirth, the Chancellor repeated the word Wanless so often in the section of his speech on future NHS funding that it took on its own chant-like effect. Maybe that was Brown's int-ention. Repeat the words often enough and everyone will believe them - that there is no alternative to funding the NHS by any other means than general taxation. This ...

  • Why no amount of marketing can replace advice

    13 Dec 2001

    I read with a heavy heart Money Marketing's articles on the speech given by Mr Sandler and once again I find myself moved to put pen to paper. Of all that was said by Mr Sandler, I would agree with one point - greater prominence is to be given to measures aimed at stim-ulating the level of savings in this country. What a wonderful phrase.It is perhaps fitting then that most of the mass market Mr Sandler describes would require advice to understand that wonderful phrase. I ...

  • With-profits must change to survive

    13 Dec 2001

    Malcolm Lindley's letter (Money Marketing, December 6) neatly demonstrates all that is bad about with-profits at the current time and why radical change is so vital if the concept is to survive. The letter documents the process for getting an increased payout on a with-profits policy - hope for a coincidence (in this case, getting a letter at the same time from another life office using discretion to determine terminal bonuses in a different way) and then complain. This ...

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