Money Marketing
19 November 2003

  • 'Exodus of IFAs from big to small networks'

    20 Nov 2003

    Network members are leaving bigger networks in droves to take up membership of smaller networks which they say are providing higher levels of compliance and service, claims Whitechurch Network chief executive Kean Seager. The comment comes after claims by Sesame that members have left its network because they have not met Sesame's high standards. Sesame has seen a fall of 1,000 RIs over the last 18 months and its commercial director Martin Davis recently claimed advisers that ...

  • 'FSA must be bolder on public education'

    20 Nov 2003

    The FSA's approach to financial capability has been given a lukewarm welcome both by consumer bodies and industry associations, with calls for bolder action. Last week, the FSA unveiled its national strategy for increasing the financial capability of consumers, with financial education, information provision and generic advice forming the basis of the strategy. But the Consumers' Association warns that with consumer confidence at an all-time low, relying solely ...

  • £24bn moved out out of WP bonds in last five years

    20 Nov 2003

    Up to £24bn-worth of with-profits bonds have been cashed in early or transferred over the last five years, according to research by Prudential. It reveals that since 1998, 1.5 million with-profits bonds valued at £24bn have been cashed in or transferred, with another 718,000 with-profits bond investors considering transferring out or cashing up. Pru says most of those who have got out of their current with-profits bond or are considering it are in closed or ...

  • 1% cap will force 100,000 financial services jobs abroad by 2010

    20 Nov 2003

    A 1 per cent world will send 100,000 financial services jobs offshore by 2010, warns financial services consultancy Troika. It believes improvements in service quality and a drive to cut costs will be the main factors in UK financial services increasingly pushing financial jobs overseas. Troika managing director Andrew Stewart says firms will need to ringfence existing businesses and create new business models, with greater efficiency likely to include outsourcing and ...

  • 55% of loan brokers go for direct authorisation

    20 Nov 2003

    More than half of mortgage brokers plan to become directly authorised and expect support from lenders and insurers when the sector is regulated from October 2004, according to research from two lenders. A survey by The Mortgage Business shows that 55 per cent of brokers plan to become directly authorised while 45 per cent aim to become appointed representatives. Of those brokers intending to become authorised, 60 per cent expect to operate a whole-of-market panel of lenders, ...

  • 750 advisers pass the CII's new savings and investment exam

    20 Nov 2003

    Over 750 advisers have passed the CII's second sitting of its new training module which focuses specifically on savings and investments. This brings the total number of advisers that have passed the exam to 1,447, with 759 passing this time around and 688 successful candidates at the initial sitting of the exam in April. The CII launched the module in response to comments in the Sandler review that IFAs lack sufficient investment knowledge and says it has been encouraged ...

  • A consumer's view

    20 Nov 2003

    The call from the Consumers' Association for a national network of state-funded independent advisers will not work for obvious reasons. The CA correctly points out that the FSA's initiative on financial education will take at least a decade to have any discernible effect. But then it comes up with the suggestion that "as an immediate solution, consumers need access to affordable, unbiased advice to deal with the three big financial crises facing consumers - record levels ...

  • Advice fears at Treasury bid to urge parents to put child cash in equities

    20 Nov 2003

    Treasury officials have told MPs that the child trust fund is a good opportunity to explain the virtues of investing in equities. A sub-committee of the Treasury select committee questioned Treasury official about the plans last week. The MPs says parents should not be investing money without proper advice. The sub-committee says the proposals include plans to advise families to put their money in equities rather than cash accounts but there are no plans for ...

  • Aegon chief to replace Woolnough at Omam

    20 Nov 2003

    Old Mutual Asset Managers is replacing M&G-bound star manager Richard Woolnough with Aegon's Stephen Snowden in a move that IFAs believe will avert outflows from Omam's flagship corporate bond fund. Snowden, manager of Aegon's extra income fund, ranked third out of 66 funds in its sector over three years, will join Omam in the New Year when Woolnough leaves to run M&G's £1.4bn corporate bond fund. Snowden will report to head of fixed interest ...

  • All you need is glove

    20 Nov 2003

    An MM reporter was slightly bemused to find herself in receipt of a pair of rubber gloves which arrived in the post last week. After at first fearing that someone considered her hygiene standards were not up to scratch and was offering a gentle hint, she discovered the gloves were part of the Pru's Get Your Hands On Our With-Profits CD-Rom campaign. The reporter is still somewhat confused, having thought that rubber gloves were for keeping your hands off things you ...

  • Are the networks' days numbered?

    20 Nov 2003

    The value of networks has been called into question by the FSA as it examines their worth in a series of phone interviews with IFA network members. The regulator says the aim of the interviews is to provide it with a better understanding of the workings of networks but some industry sources believe the FSA may think that networks are past their sell-by date. The project is being run by Sarah Hunt, research and analysis head of the FSA's investment firms division. She ...

  • Are unrated bonds due for a renaissance?

    20 Nov 2003

    Few asset classes have escaped the attention of fund managers over the past few years as much as unrated bonds. Shunned by many for being under-researched, the bonds have nonetheless begun to creep into the portfolios of some major investment houses. The bonds are only unrated because the issuing companies prefer them to be that way. This could be due to cost - ratings do not come cheap - or fear about the rating they are likely to receive. If a company suspects it will get a ...

  • Arete launches structured products website

    25 Nov 2003

    Arete Consultancy is launching a structured retail products website to help IFAs access the most up to date information on new, maturing and closing products.

  • Axa creates new multi-manager investment role

    20 Nov 2003

    Axa Investment Managers has appointed Robert Wilson in the newly created role of director of retail investments for its multi-manager operation. He will be responsible for all aspects of its port-folio management and will also co-manage two new select sub-funds alongside chief investment officer Philippe Le Barrois D'Orgeval. Having joined Axa IM in 1999 as investment sales director, Wilson has more than 15 years experience in the fund management industry working first ...

  • Axa is set to quit pre-funded LTC

    20 Nov 2003

    Long-term care heavyweight Axa's Lifetime Care is pulling out of the pre-funded market at the end of the year, blaming falling demand and consumers placing a higher priority on other products such as pensions. The firm is to shift its focus to the growing immediate needs market. The move affects all pre-funded Lifetime Care plans, including single and regular-premium policies and the asset protection bond. Quotes for new pre-funded business will not be available after December ...

  • BBNEB launches specialist group risk team

    24 Nov 2003

    Berry Birch & Noble Employee Benefits a BBB subsidiary is launching a specialist group risk team to provide advisers with group medical insurance, group income protection and group life policies.

  • Biggest survey will focus on IFA concerns

    20 Nov 2003

    Money Marketing is starting the biggest-ever survey into what IFAs want from networks, product providers and the regulator in our fight for a fair deal for IFAs. Support for the campaign has been widespread among the IFA community, with advisers from big and small companies writing in to share their grievances with the levels of service they get from the FSA and suppliers. Product providers such as Scottish Equitable and Clerical Medical and FSA director of investment ...

  • Blair and Brown impasse over £1.4m lifetime limit

    20 Nov 2003

    The pension industry fears the prolonged dispute between 10 Downing Street and the Treasury over the £1.4m lifetime limit could delay pension simplification. Reports at the weekend said the Chancellor was determined to resist pressure to raise the limit but the Prime Minister privately told companies at this week's CBI conference that no final decision has been made. The £1.4m limit has been the most fiercely disputed element of the Inland Revenue's ...

  • Brokers' fears realised as NU raises release rate

    20 Nov 2003

    Norwich Union could face compensation calls after raising the rates on its equity-release mortgage, with some borrowers having to pay 0.2 per cent over the rate they were originally quoted. Brokers have been warning for some time that consumers taking out the NU product could end up having to pay a higher interest rate when the advance is released than the rate they applied for. NU has defended itself on this point, saying it is more likely that rates would go down than ...

  • BSA chief attacks watchdog on use of shortfall cash

    20 Nov 2003

    Building Societies Association chairman John Goodfellow has hit out at the way the payment of endowment misselling claims is being handled by the Financial Ombudsman Service. Payouts are handed over to the claimant, who has no obligation to use the money to help make up the shortfall on their policy. But Goodfellow believes it is ridiculous to pay compensation to correct a problem and not ensure the money is being used to correct the problem, as lenders would easily be ...

  • Building society lending triples over past year

    21 Nov 2003

    Building society gross advances have increased to £5.2bn in October up from £3.1bn a year ago. Approvals are up to £5.1bn up from £4bn a year ago.BSA director-general Adrian Coles says: "Building society net advances tripled in the year to October 2003, starkly re emphasising the attractions of building society mortgage products in a strong housing market, and an active remortgage market. Societies' market share has grown strongly this year."

  • Bupa pulls out of immediate needs long term care

    25 Nov 2003

    Bupa has announced it is withdrawing from the immediate needs long term care market, but is to continue offering pre-funded plans. The decision, effective as of December 1, follows a strategic review of Bupa Health Assurance, the group's long term care insurance business. It plans to "strengthen its focus" on the group risk and individual financial protection markets in the areas it already has a strong presence.Bupa's UK managing director of sales and distribution Steve ...

  • Cazalet hits out at 'crazy' spending by life firms

    20 Nov 2003

    Insurance analyst Ned Cazalet has labelled the insurance industry's business model as "crazy", saying the industry is woefully inefficient and operationally dysfunctional. In his annual review of the UK life sector, Cazalet says the sector's overall spending on admin and acquisitions was a staggering £12bn in 2002. Of this, he says £7bn was spent on acquiring new business, including commission, equating to £330 per UK household. At the same time, ...

  • Chelsea Building Society launches new 30-day notice account

    19 Nov 2003

    Chelsea Building Society is launching a new branch-based savings account called Guarantee 30 offering a variable interest rate of 4.00% or a monthly interest rate option of 3.93% and a guarantee that the interest rate will be at least equal to the Bank of England Base Rate until 5th July 2005.Minimum investment and interest earning balance for this account is £1,000 with a maximum of £500,000.Penalty free withdrawals are subject to 30 days notice up to July ...

  • Clerical comparison for pension transfers

    20 Nov 2003

    Clerical Medical is offering a pensions transfer tool which it says makes it easier for IFAs to transact business. Its pension comparison tool allows IFAs to estimate the likely future growth of a client's existing pension fund against any proposed alternative, taking into account ongoing charges and switch charges. It assumes the annual rate of future growth for each asset class within the fund, the actual asset allocation of the existing fund and the new fund. The ...

  • Clerical set to offer PI to IFAs early next year

    20 Nov 2003

    Clerical Medical is planning to offer professional indemnity insurance to IFAs early next year. The move, which is subject to FSA approval, has been welcomed by advisers across the board. Clerical head of public relations Gordon McAra is reluctant to give details until the offering has been finetuned and given the go-ahead by the FSA. Clerical is hoping to have the product ready by early 2004 as part of its move to offer more business services and support to ...

  • Clients choose self-pay level with Private Health

    20 Nov 2003

    The Private Health Partnership is introducing its own co-funded style private medical insurance product. The HealthSaver product is aimed at the 45-79-year-old market. Clients joining the scheme decide how much they want to self-pay towards their medical costs and their money is invested in a Skipton Building Society savings account. Once the self-pay level is reached, the medical insurance then covers the rest of the costs. Clients can choose how much they put into the ...

  • Coalition creates guide to plot professional pathway

    20 Nov 2003

    A coalition of industry organisations is releasing a career and skills guide for financial services in a bid to provide a set career path for the industry and to attract high-quality professionals. Headed by the CII and the Financial Services Skills Council, the Pathways to Professionalism will be released on December 4 with the ultimate goal of achieving chartered status for the industry and delivering a clear definition of the career structure in financial services. Simply ...

  • Code comfort

    20 Nov 2003

    This article focuses on selfcertification mortgages following the recent BBC Money Programme. Nobody who knows the homeloan business would suggest that the Mortgage Code Compliance Board ignores the activities of noncompliant firms. Anybody who ever laboured under that misapprehension can probably be numbered among the 1,000-plus firms which we have either de-registered or seen leave the industry after failing to meet our required standards of consumer protection. But ...

  • Collegiate's role

    20 Nov 2003

    In reference to Keith Lewis's letter, I would just like to correct the misunderstanding that Collegiate and Magian are "basically the same firm". This is simply not the case. Neither Collegiate Insurance Brokers nor Collegiate Management Services are connected with Magian in any way, save that CIB acts as an independent PI broker accessing Magian on behalf of our IFA clients while CMS provides claims handling services to a number of PI insurers including Magian Underwriting. I ...

  • Come gain or shine

    20 Nov 2003

    Compare this with the situation of an unmarried couple who, with two properties, may each elect that one of the properties should be their principal private residence. In many separations and divorces, it is not unusual for one of the spouses to leave the matrimonial home even though they retain an interest in it. This position could continue for many years and during those years there may be a possibility of reconciliation. The 36-month end-of-ownership provision may help if, ...

  • Correspondent's week

    20 Nov 2003

    Monday finds me flying up the M3 from the New Forest. Hubby had to leave early for Heathrow so I am left in charge of transporting the family unit back to London. For anyone else this would not be a problem but I am terrified of driving. In fact, every bad thing they say about women drivers is true of me. Fortunately, I am driving a Jeep Cherokee, the car equivalent of a doubledecker bus so other road users tend to think twice before overtaking me on the inside or other such anti-social ...

  • Cousins in misselling warning on CTF distribution

    20 Nov 2003

    The Government could risk allegations of misselling over the distribution of child trust funds, according to Labour MP Jim Cousins. Treasury select committee member Cousins grilled Treasury and Inland Revenue officials at an inquiry into CTFs, asking whether they had fully considered the implications of a misselling scandal over the distribution of the funds. Revenue business director (pensions and savings schemes) Caroline Rookes admitted that funds would be distributed ...

  • Critical Changes

    20 Nov 2003

    IFAs are calling for critical-illness insurance providers to reveal their second-generation product plans but reinsurers are warning that there will be no rush to be first on the market. Swiss Re technical manager Ron Wheatcroft describes future changes to the market as likely to be implemented in a "softly, softly" way. He says: "As with any good product, the proper groundwork, in terms of consumer and IFA research, needs to be put in. For the new generation of critical-illness ...

  • CSAM further boosts UK fund management team

    21 Nov 2003

    Credit Suisse Asset Management has appointed Errol Francis to its UK equity fund management team. Francis will work across retail and institutional funds with Leigh Harrison on the retail funds and Phil True on the institutional UK equity portfolios.He has over 17 years of investment experience and joins from Baring Asset Management where he spent 15 years.CSAM managing director Ian Chimes says: "Following the record inflows into the Credit Suisse UK equity funds, we ...

  • Cultural changes needed for wraps

    20 Nov 2003

    Origo's Paul Pettitt is right. Wraps will not work while providers refuse to collaborate (Money Marketing, November 6). Pettitt accurately identifies the problem as the traditional possessive attitude to information and the negative impact this could have on the much needed wave of service sector automation which is on the horizon. As Mr Pettitt suggests, the technology (image capture, document management and electronic transaction processing) already exists to create electronic ...

  • Deeds of variation

    20 Nov 2003

    With the advent of autumn,the tax adviser's thoughts turn towards what might be contained within the Chancellor of the Exchequer's pre-Budget statement which is due at around the end of November and, ultimately, the possible contents of the Budget itself in the spring. No matter what is contained in any possible new legislation, one of the bedrocks of any financial planning exercise for clients will be to ensure that an appropriately written will is in place. However, ...

  • Destini buys two more IFA firms

    19 Nov 2003

    IFA consolidator Destini has made two more purchases buying former Sesame IFA Applewood Associates and Bervale Mead. The IFAs have six RI s between them and a combined turnover of £1.9m. Both acquisitions were made through a combination of cash and shares. Destini chairman and chief executive Barry Parsons says the 11 acquisitions made in the last 12 months boost the group's total number of RI s to 134 from from 51 and a combined turnover of £15m.

  • Digest

    20 Nov 2003

    After the Diary's recent sensational revelations about the Steve Bee cafe, we can now reveal, courtesy of an anonymous photo donor, that yet another leading industry outfit seems to have a catering sideline. Any further culinary pictures would be most welcome.

  • Dirty deed wins vote for McFall

    20 Nov 2003

    Lifelong Co-operative Party member John McFall revealed how easy it is to get your constituency's vote at the BSA's annual lunch last week if you are only willing to get your hands dirty. Labour MP McFall was laid into by a constituent who blamed him for the failure of his washing machine - bought at his local Co-op. The challenge - "You'll only get my vote if you sort out my washing machine" - was manfully taken up by McFall, who got it fixed and got the vote. Yet ...

  • Drama out of a crisis

    20 Nov 2003

    Thanks to Insight Investments for the miserable news that the British public would prefer its children to be taught financial management than drama or art. It goes without saying that kids need to know about overdrafts and student loans, the Diary would agree, but 0 out of 10 for lack of insight to the fund firm for the way it chose to highlight from a survey how the public would like to see drama and art removed from the national curriculum and replaced by money management and ...

  • Dunbar Bank - Zurich Guaranteed Capital Account Issue 5

    21 Nov 2003

    Type: Capital protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £2,500-£250,000Term: Five years and six monthsGuarantee: Original capital returned in full regardless of performance in the indexReturn: Up to 100% growth at end of the term or 30% growth at end of three years if index grows by 30% or more by the third anniversaryClosing date: December 15, 2003Commission: ...

  • Euro banks back long-term fixed loans

    19 Nov 2003

    Leading European banks are calling for the establishment of a secondary European mortgage market modelled on the US model, Fannie Mae, that would allow the introduction of long term fixed rate mortgages without redemption penalties. Banks from across Europe, including Northern Rock and Irish Life & Permanent, are supporting the creation of the European Mortgage Finance Agency which would be sponsored by the European Union but with risk capital provided by the private sector.

  • Exeter offers menu to share the medical costs

    20 Nov 2003

    Exeter Friendly Society is offering a PMI product aimed at spreading the cost of treatment between client and insurer to reduce premiums. The Shared Care product is menu-based, with clients able to select between three different benefit packages, ranging from core coverage of in-patient and day patient treatment to out-patient services, transport, private ambulance and physiotherapy. The minimum co-payment is 25 per cent but the client can pay 50 per cent. In the case ...

  • Ex-Standard salesman pulls out of tribunal

    20 Nov 2003

    Standard Life has avoided a dispute with a former salesman after he withdrew allegations against the company days before an employment tribunal hearing was set to take place. Last week, reports surfaced that Alan Bate, who was a financial adviser until March this year, was taking Standard Life to an employment tribunal in a constructive dismissal case, claiming compensation and set down to be heard this week. It was reported in national newspapers last week that Bate ...

  • Fashion victims

    20 Nov 2003

    A certain madness grips some people during times of great change. Some argue for a vision of the future so forcibly that others simply follow, repeating the vision over and over until it is accepted wisdom. At the time of polarisatIon it was like that, back in the late 1980s. The banks would begin to dominate, life companies would have multi-channel distribution by owning direct salesforces, linking to building societies and banks and buying up estate agency chains. The poor old ...

  • First State extracts strong opinion

    24 Nov 2003

    FIRST STATE INVESTMENTSFIRST STATE GLOBAL RESOURCES FUND Type: Oeic Aim: Growth by investing globally in natural resources companies Minimum investment: Lump sum £1,000, monthly £50 Investment split: 100 per cent in natural resources companies Isa link: Yes Pep transfers: Yes Charges: Initial 4%, annual 1.5% Commission: Initial up to 4%, renewal 0.5% Tel: 0800 917 1717The First State global ...

  • FMG sees sun rise on emerging three

    24 Nov 2003

    FMG Fund Managers is taking advantage of the revival in the Far East and emerging markets by introducing the FMG rising3 fund.This multi-manger hedge fund focuses on three countries - China, Russia and India - with a different fund manager responsible for each region. However, the managers will all short-sell overvalued equities and buy under-valued equities.Yury Lopatinsky, who also runs FMG's Russian federation first mercantile fund, will ...

  • Framlington appoints ex-Insight sales chief

    20 Nov 2003

    Framlington has appointed Robert Bailey as UK sales director following his departure from Insight Investments, where he held the same position. Bailey has spent more than 10 years working in the UK fund management industry. He worked at First State Investments as investment sales manager and Dresdner RCM Global Investors as business development manager. Framlington sales and marketing director Nick Hodgson says: "We have an exceptional and motivated sales team ...

  • Friends confirms closure of direct sales operation

    21 Nov 2003

    Friends Provident has confirmed it is closing its direct sales operation following a review of its distribution strategy. Friends says about 500 staff will be affected, including the sales force, of whom 150 may become self-employed appointed reps. The move means Friends will focus on distributing its products through IFAs, the enlarged AP channel and strategic partners.Friends estimates the closure will save it £18m annually from 2004 onwards.

  • FSA investigates material role

    20 Nov 2003

    The FSA has launched a probe into the extent to which IFAs trust providers' marketing material in the wake of the split-capital investment trust and structured product scandals. It has sent out questionnaires and is conducting phone interviews to find out how much faith IFAs place in providers' literature at a time when the industry is under fire for underplaying potential risks. It says, in strict regulatory terms, that the buck always stops with advisers but it ...

  • FSA protection fears on rogue trading directive

    20 Nov 2003

    The FSA fears that a Euro-pean directive aimed at tackling rogue trading is too ambitious and could erode consumer protection in the financial services market rather than augment it. The Unfair Commercial Practices Directive sets down a maximum level of regulatory protection, aimed at preventing rogue trading in all commercial practices. According to the FSA's submission on the directive, it believes that it is likely to create "regulatory blight", with negative impacts for ...

  • Heath Lambert cuts debt with shake-up

    20 Nov 2003

    Heath Lambert Group is restructuring to cut debt accumulated since the merger between Heath Group and Lambert Fenchurch in 1999 but has pledged that the changes will not affect its UK IFA business. At the time of the merger, the company's debt was estimated at £252m. It is securing new investment through a refinancing deal, just three months after takeover negotiations with insurance broker Marsh & McLennan broke down. Further details of the refinancing deal ...

  • HL sets out its 150 top funds

    20 Nov 2003

    Hargreaves Lansdown believes only 8 per cent of onshore funds are worthwhile for long-term investment and has compiled a list for direct investors looking to pick their own funds. The Wealth list has condensed the investment universe of 1,800 funds to just 150 in a bid to help investors sift through poorly performing portfolios which it believes add little value on a long-term basis. The biggest winner is Invesco Perpetual, with 10 funds on the list, followed by Jupiter ...

  • Holloway revamps golden oldie

    25 Nov 2003

    Holloway Friendly Society has introduced the new classic plan, a revamped version of its classic income protection plan.Holloway Friendly Society hopes the plan will help IFAs write new income protection business and make income protection more accessible to people who may be put off by the costs of policies which have higher rates for smokers, women and some occupations.The new classic plan provides cover of up to 60 per cent of earnings subject to a maximum ...

  • Hollyman aims for the stars with dynamic UK mid-cap fund

    20 Nov 2003

    Global Asset Management has established the GAM star UK dynamic fund for new investment director Ross Hollyman. Hollyman joined GAM in August. He spent 12 years at JP Morgan Fleming, where he had been a fund manager since 1997. The GAM Star UK dynamic fund is a Dublin-based Ucits containing between 50 and 100 stocks that represent Hollyman's best ideas. The stocks are selected on a bottom-up basis according to three factors - positive momentum where earnings' forecasts ...

  • House prices up by 0.4 per cent in November - Hometrack

    21 Nov 2003

    Hometrack's November survey of the housing market shows a 0.4 per cent increase in house prices which it says confirms the continuing healthy state of the market.The average house cost £146,500 up from £145,900 last month. Highest house price rises occurred in Cumbria (1.5 per cent), north London ( 1.1 per cent), Hereford and Worcester (0.9 per cent), and mid Wales (0.9 per cent). While no county experiences price falls, the Isle of Wight and Wiltshire both reported ...

  • Howard promises 'lighter touch' regulation

    19 Nov 2003

    Speaking at the CBI conference leader of the opposition Michael Howard pledged to cut regulation for small businesses. He promised the smaller the business 'the lighter the touch' if elected. Howard said: "We will never regulate by law if a voluntary approach is possible. Quite the opposite. We want the total regulatory burden imposed by each government department to fall year by year."

  • HSBC Asset Management - HSBC Ladder Plan

    25 Nov 2003

    Type: Capital-protected bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: Lump sum £3,000-no maximum, Isa £7,000Term: Five years Guarantee: Original capital returned ...

  • Ian Muirhead: VAT sinking feeling

    20 Nov 2003

    In the seventh article in the series on making professional connections, Ian Muirhead, of Solicitors for Independent Financial Advice, explains the FSA, Law Society and VAT rules affecting professional firms which refer or introduce financial services work to IFAs. The Financial Services and Markets Act 2000 perpetuates the distinction created by the Financial Services Act 1986 between the two alternative types of relationship which might exist between solicitors and IFAs or other ...

  • IFA quits Magian after being told not to expand

    20 Nov 2003

    Professional indemnity insurer Magian Mutual has been accused by an IFA of dictating the terms of how firms can run their businesses. Newport-based IFA Heron House Financial Management has left Magian after being told it could not take on a third RI because the provider did not want to see the IFA's turnover increase, or its risk increased. HHFM director Saran Allot-Davey says that in January she planned to take on a third adviser after doing full due diligence but ...

  • Independent view

    20 Nov 2003

    I have little doubt that the historic cottage industry of IFAs will have to change in order to survive. For too long we have enjoyed being in charge of our own businesses and we must look for new opportunities, either by grouping with other IFAs or by joining forces with bigger firms. The sum of the whole should be greater than the parts, as the phrase goes. There should always be a place for the quality niche firms but far fewer in number than ever before. Margins, sharing of ...

  • Inside edge

    20 Nov 2003

    Money Marketing recently reported that the FSA is questioning IFAs on the role of networks, so it is very timely to remind people of the important role of networks in supporting advisers. As each month passes, further regulatory change emerges on the horizon. Keeping up with developments seems to be a full-time job in itself, which, of course, it is for a team of people within Sesame, who keep members abreast of changes taking place and provide guidance on adapting their businesses. A ...

  • Investment brief

    20 Nov 2003

    Most of the world's equity markets paused for breath last week and although the latest economic data was generally positive, a distinct shortage of news on the corporate front resulted in many investors staying on the sidelines. By the end of the week, the FTSE World index had risen by 0.3 per cent, taking its gain since the start of the year to 23 per cent. In the US, stocks ended lower in spite of data showing an improvement in consumer confidence and a bigger than expected ...

  • Investment view

    20 Nov 2003

    This week I will be addressing private investors at the last of the 2003 Association of Investment Trust Companies roadshows. My aim will be to give those sufficiently interested to find their way to Southampton Football Club some guidance as to what might happen to world markets. If previous experience is anything to go by, the level of understanding of those who attend will vary greatly. This is, perhaps, something about which we should be concerned. Unless you work within the ...

  • Isis in outsource deal with JP Morgan

    19 Nov 2003

    Isis Asset Management has reached an agreement to outsource several operational functions to JPMorgan Fleming. Isis says the deal will provide it with a scaleable platform able to support its growth objectives to become a top five player in the UK by 2007. It also says the platform, chosen after discussions with a number of candidates, will provide a "first-class" admin service for clients.

  • JLT concerned over increased minimum fund levels for annuities

    25 Nov 2003

    Legal & General has raised the minimum fund value for annuity purchase to £5,000 from £1,000 in a move that leaves Standard Life the only provider accepting applications on the open market for values below £5,000 with a minimum of £2,000.Jardine Lloyd Thompson says 6 per cent of the annuities it placed last year were below or around £2,000 and is concerned members of self-administered money purchase schemes with low fund values may find their tax-free ...

  • John Goodfellow

    20 Nov 2003

    Skipton Building Society chief executive and Building Societies Association chairman John Goodfellow says he has never applied for a job. "My career path has been the opposite of what is now the norm. I walked into a job centre when I left school and ended up as a cashier on a youth training scheme at the Burnley Building Society. I have only had two jobs in my life. Pretty boring, really." It sounds as if his career just fell into his lap. Twenty-one years at the Burnley ...

  • Julian Gibbs

    20 Nov 2003

    I believe that most with-profits bond investors should now cash in their bonds, even if the MVR penalties are substantial, unless within the next two years they can take advantage of guarantees of the full return of their capital plus accrued bonuses. With equity markets likely to recover over the next year or two, it is only sensible to invest in funds which have large proportions of their assets invested in equities and also in commercial property, where the yields are high ...

  • King warning for consumers to think about debt

    20 Nov 2003

    Bank of England governor Mervyn King has warned that some heavily indebted households will be badly affected by changes in economic circumstances or interest rates. Speaking at a press conference last week, King said that neither consumer spending nor the housing market has slowed as much as the monetary policy committee expected and he warned consumers to think carefully about the amount of debt they can afford. He said there are signs that the labour market is starting ...

  • L&G speeds up Olta processing

    20 Nov 2003

    Legal & General's online term assurance has been added to Adviser Office 2, 1st Software's back-office system which will let users place clients on risk within minutes. The move means IFAs can speed up processing of cases because client information can be held on 1st Software and be automatically pre-populated into L&G's application. It opens L&G up to the 10,000 users from 1,050 IFA firms that have access to the 1st Software system. Seventy per cent ...

  • Laughing matter

    20 Nov 2003

    I laughed aloud at the letter in MM from Graeme Riddoch of Clerical Medical. He says Clerical is "fully committed to the IFA market". This amused me because for the first time in six years, a Clerical rep came to see us this morning. After five minutes, he announced that our 30-RI firm was "too small for Clerical Medical to deal with". "Why on earth come out to see us, then?" I asked. "Oh, we like to tell you in person," his assistant replied. Is that what they mean by ...

  • Liverpool Victoria keeps with-profits on the map

    19 Nov 2003

    Liverpool Victoria has introduced a with-profits income bond to complement its existing with-profits growth bond.The with-profits income bond aims to produce a high level of income by investing in an underlying portfolio made up of 40 per cent property and 30 per cent each into high-yielding equities and corporate bonds. Liverpool Victoria is pitching it at people in or approaching retirement and those who need money to support their children's education.An ...

  • Loan networks want 11,000 AR members

    20 Nov 2003

    The number of appointed representatives required by mortgage networks who have declared they will take principal status under statutory regulation is already more than double the number of intermediaries in the marketplace, according to analysis carried out by Mortgages plc. The MCCB says there are currently about 36,500 mortgage advisers in the market, with around 15,500 unlikely to want to be appointed rep-resentatives. About 5,000 are already appointed representatives, ...

  • London BTL yields increase to 7%

    19 Nov 2003

    Buy-to-let yields in London increased to 7 per cent in October from 6.79 per cent in September, according to Paragon Mortgages monthly buy-to-let index. Nationally, yields remained unchanged at 7.60 per cent, while yields in the north have decreased to 9.45 per cent in October down from 9.58 per cent in September. Paragon says this shows that the North South divide is continuing to diminish.

  • Make the conversion

    20 Nov 2003

    It is time for advisers to urge corporate clients to face the facts. An uneconomic defined-benefit scheme can deplete a company's profits, decimate its share price and damage its competitive position. It may even threaten the company's viability. With the DB liability now based on the full buyout cost of immediate and deferred annuities, most employers should close their schemes to all future accrual, to existing members as well as new entrants. The alternative is to increase ...

  • Mark Chilton on mortgages

    20 Nov 2003

    I heard recently that as many as 30 per cent of the people currently advising on mortgages have been practising for less than four years. In many ways, the industry should take heart from this as we do not face the problem that the mainstream IFA market has of an ageing adviser base. In no small part is this due to the mortgage boom of the past four years and its immediate attraction in terms of a relatively easy and possibly substantial income stream. Again, the contrast with ...

  • Matrix Goes for healthy option

    20 Nov 2003

    MATRIX MONEY MANAGEMENTSITKA HEALTH FUND VCTType: Venture capital trust Aim: Growth by investing in unquoted companies in the healthcare sector Minimum investment: Lump sum £2,500 Opening/closing date: October 21, 2003/April 2, 2004 for 2003/2004 tax year, June 30 2004 for 2004/2005 tax year Charges: Initial 5.5%, annual 2.25% Commission: Initial 2.25%, renewal 0.375% Tel: 020 7292 0825 The Sika Health ...

  • MCCB looks at self-cert sales to salaried employees

    20 Nov 2003

    The Mortgage Code Compliance Board is to look closely at sales of self-certification mortgages to salaried employees. The FSA has relaxed its rules on self-cert, allowing loan to be taken out by employed people. But MCCB chief executive Luke March says future compliance monitoring will look into how sales of self-cert products are being justified as "most suitable" for the consumer, particularly if the individual is employed. Writing in this week's Money Marketing, ...

  • McDonald Glencross - McDonald Glencross Approved EIS Fund 5

    19 Nov 2003

    Type: Enterprise investment scheme fundAim: Growth by investing in unquoted companiesMinimum investment: Lump sum £50,000Opening/closing dates: December 1, 2003//March 26, 2004Charges: Initial 5%, annual up to 2.5%Commission: Initial up to 3%Tel: 020 7229 0054

  • McDonald Glencross - McDonald Glencross Approved EIS Fund 5

    19 Nov 2003

    Type: Enterprise investment scheme fundAim: Growth by investing in unquoted companiesMinimum investment: Lump sum £50,000Opening/closing dates: December 1, 2003//March 26, 2004Charges: Initial 5%, annual up to 2.5%Commission: Initial up to 3%Tel: 020 7229 0054

  • Millfield in estate agent tie-up

    24 Nov 2003

    Millfield Group is signing a deal with London-based estate agent Chesterton Residential to offer independent advice to its clients. The strategic alliance will see clients from Chesterton's 17 London offices given access to Millfield's 280 mortgage advisers.Millfield chief executive Paul Tebbutt says: "We are delighted that Chestertons has chosen to work with Millfield on this venture."Chesterton Residential managing director David Taylor says: "This is a landmark ...

  • Moore hits a sour note

    20 Nov 2003

    The Diary would like to congratulate Money Marketing alumnus James Moore on his latest appearance in an illustrious publication. The former MM news editor and now Torygraph hack was more than a little red-faced during a meeting of the Treasury select committee last week when his mobile phone went off in the middle of proceedings. As the panel of MPs paused to listen to the tuneful melody blaring from the phone, the shorthand-writer carried on scribbling, recording comments ...

  • Mortgage Next - BM Solutions Self-Certification Tracker Discount

    24 Nov 2003

    Type: Discounted-rate self-cert tracker remortgage product Discounted term: Three yearsDiscount: 0.9%Tracker term: Life of loanTracker rate: Bank of England base rate plus 0.85% in first three years, Bank of England base rate plus 1.75% thereafterPayable rate:4.6%Minimum loan: £25,001Maximum loan: Up to 85% of valuation subject to a maximum of £350,000, up to 80% of valuation subject to a maximum of £500,000, ...

  • Mortgage Next - Platform Self-Certification Tracker Discount with Cashback

    24 Nov 2003

    Type: Discounted rate self-cert tracker remortgage productDiscounted term: Two yearsDiscount: 1.4% in year one, 0.36% in year twoTracker term: Life of loanTracker rate: Bank of England Base rate plus 0.35% in year one, Bank of England base rate plus 1.39% in year two, Bank of England base rate plus 1.75% thereafterPayable rate: 4.1%Minimum loan: £50,000Maximum loan: Up to 85% of valuation subject to a maximum of £300, ...

  • MPs probing lack of confidence in saving

    20 Nov 2003

    The Treasury select committee is to conduct an inquiry into how to restore confidence in long-term saving following misselling scandals and the controversy over split-caps, precipice bonds and Equitable Life. The inquiry, called, Restoring Confidence In Long-Term Savings, will address the extent and nature of the savings gap in the UK and look into the reason for shortfalls in the take-up of savings products. Committee chairman John McFall says he is interested in finding ...

  • New chief executive for Association of International Life Offices

    21 Nov 2003

    The Association of International Life Offices has appointed its first ever full time chief executive in a bid to breath new life into the organisation and give it some lobbying teeth.The association is the offshore equivalent of the ABI and Stuart Fairclough is taking on the new role, with a brief to increase the offshore life industry's profile in the IFA market as well as with industry bodies and regulators.Fairclough says: "I am looking forward to moving offshore ...

  • New Star appoints Hodesdon to Fofs operation

    19 Nov 2003

    New Star has appointed John Hodesdon to develop the fund of funds business it acquired from his former employer Edinburgh Fund Managers earlier this year.Hodesdon was managing director of intermediary sales at EFM, where he helped grow its Fof to more than £420m from £9m, making it the third-biggest independent operation in the UK. He is now charged with further developing the business for New Star, which is keen to use its brand and performance to outstrip rivals.Managing ...

  • New Star in term deal for EFM Fof operation

    20 Nov 2003

    New Star has set up a portfolio service offering threeyear term insurance to investors in the fund of funds operation it acquired from Edinburgh Fund Managers earlier this year. Designed to safeguard against stockmarket volatility, the Galaxy portfolio service offers investors between the ages of 20 and 70 protection over the value of the total investment in the event of death in the three years after entry. If capital has eroded within this time, the policy will make up the shortfall ...

  • Norwich Union pulls long term care bond

    24 Nov 2003

    Norwich Union has announced it is pulling its Flexible Protection Bond product and leaving the pre-funded long term care bond market. However, it will still offer a pre-funded insurance product.Effective from November 24, NU says there will be no impact on existing customers from the change. Applications for the product received prior to close of business on January 30 will be accepted if accompanied by a new business illustration. Pipeline applications must ...

  • NU raises equity-release rate as cost of cash rises

    20 Nov 2003

    Norwich Union is to increase the fixed interest rates on its mortgage-based equity-release product the Flexible Cash Release Plan to reflect the upward trend of long-term interest rates. The change, which comes into effect from November 24, means rates for IFA-introduced business rises to 7.35 per cent from 7.15 per cent and to 7.49 per cent from 7.29 per cent for business going directly to Norwich Union. Head of equity-release marketing Paul Stokes says that,as long-term ...

  • Nvesta offering two FTSE tracker plans

    20 Nov 2003

    Structured product provider Nvesta is introducing two six-year variations of FTSE 100 tracker plans, aiming at investors who want to capitalise on recovery in the index. The secure tracker plan offers full capital return and 100 per cent of any rise in the FTSE 100 with no maximum while the quad tracker offers a return equal to four times the rise in the index during the term. As long as index does not fall by more than 40 per cent, 100 per cent capital return is provided ...

  • Out of context

    20 Nov 2003

    •"It's Jon here from Lansons, no Zurich." - The strain of moving jobs is clearly too much for Jon Atkins. •"I think that's Quake 2000." - Disturbed by a mobile phone ringing, a Treasury official starts a round of name that ring tone at a select committee meeting. •"If Standard Life was a racehorse I'd be running it in a cellar at Plumpton" - Horse trainer Jenny Pitman at the IFA Women of the Year Awards. •"Is that Standard Life down ...

  • Outside edge

    20 Nov 2003

    News that the FSA is conducting interviews among network members to assess the role their networks play may well be causing fluttering in a few collective dovecots. However, what sort of network member is being contacted? The term network covers a number of business models which are different from each other. The first-generation network takes responsibility for the advice given by its collection of advisory companies and individuals. That responsibility is its Achilles heel and ...

  • Outward bound?

    20 Nov 2003

    In my last couple of articles, I started to identify and discuss recent and upcoming developments affecting pension planning. This week, I would like to do a quick but important tour of two further topical issues - contracting out of the state second pension and the pension credit. Contracting out of the state second pension is an issue which might well haunt a large number of financial advisers in the not too distant future unless they take a more proactive approach. For ...

  • Package deals

    20 Nov 2003

    I am an employer who put in place a benefits package for my staff over five years ago. I want to make sure that it is still good value and want to utilise technology wherever possible. What can an IFA do to help me? One of the biggest recent drivers in the provision of employee benefits has been the stakeholder requirements introduced from April 2001. The group pension market is very different from even five years ago and will continue to change as employers move from defined-benefit ...

  • Park Row arms itself to advise all types of client

    20 Nov 2003

    National IFA Park Row is forging ahead with its multi-distribution strategy by setting up a new division, Corporate and Private Clients. The move follows last week's launch of The Mortgage Partners, a support services firm for brokers. J-P Wilkins, one of the three original Park Row board directors, is very excited about Park Row's new proposition. He says the group wants to be able to provide advice to everyone, no matter what sort of client they are or what they ...

  • Park Row takes Citadel and sets up arm for high-net-worth advice

    20 Nov 2003

    Park Row has bought former LIA president Peter Sprung's IFA Citadel Financial Services and is launching a new division, Corporate and Private Clients, that will be advising on high-net-worth and corporate business. Citadel's five advisers will form the core of the new division, which will be headed by Sprung. He hopes to take on 10 to 15 advisers from Park Row and aims to have 50 to 60 certified financial planners on board in three years' time. Park Row is setting ...

  • Pearson Jones adviser is IFA Woman of Year

    20 Nov 2003

    Pearson Jones IFA Yvonne Goodwin has been named as the IFA Woman of the Year 2003. Goodwin saw off competition from finalists Kerry Houghton of the James Hay Consultancy, Yorkshire Investment Group IFA Caroline Keegan and Carole Nicholls from Bristol-based Nicholls Stevens Financial Services to pick up the award at last week's annual IFA Woman of the Year dinner in London, Goodwin began as secretary to the two founding partners of Pearson Jones in 1979, becoming an associate ...

  • PI firms not linked

    20 Nov 2003

    In view of the list of inaccuracies contained within the letter from Keith Lewis in your November 6 edition, I have no alternative other than to reply. The first inaccuracy which I must address is Mr Lewis's assertion that Collegiate and Magian are basically the same firm. Had he conducted any research, he would know that there are no links between the two companies, either financial or in directorships. The only link between the two firms is a common interest in providing ...

  • Planning for gold

    20 Nov 2003

    Investors have never been more in need of financial advice. With a savings gap of more than £30bn and rising, investors need a financial plan for how they can accumulate sufficient funds to enjoy their retirement. But, at the same time, financial advisers are coming under ever more pressure. Regulation has been tightened, professional indemnity costs are rising and the three-year bear market hit sales. The FSA has also questioned the ability of advisers to provide investment ...

  • PMI sales up by 50% over past five years

    20 Nov 2003

    Sales in the private medical insurance market have risen by around 50 per cent over the last five years, according to Mintel. Business has reached around £2.95bn so far this year from £1.97bn in 1998. The premium per person has gone up by around 35 per cent to £433 this year from £321 in 1998. Over two-thirds of total sales in the private medical insurance market come from the corp-orate sector and just under seven million people had PMI ...

  • Policyholders fear new claims after Penrose

    20 Nov 2003

    Equitable Life policyholders fear that the society could face a raft of new claims following publication of the report by Lord Penrose into its collapse. This follows the release of the society's interim accounts for the half-year, in which Equitable says it remains "cautiously optimistic" about its future and it is solvent despite its fund for future appropriations falling by £103m to £453m over the six months to June 30. In its accounts, Equitable has ...

  • Portal picks narrow niches for funds

    20 Nov 2003

    The Money Portal is to offer a raft of sector-specific funds next year in a bid to fill gaps it believes exist in the UK investment universe. The funds, to be managed by stockbroker TMP, will include pharmaceutical, heavy industrial, ecology and financial funds and all will have narrower than usual investment bands. Managing director Richard Craven says the new funds' marketing literature will overaccentuate the dangers of such funds, shunning the "flagrantly misleading" ...

  • Portman ponders Sun Bank self-cert

    20 Nov 2003

    Portman Building Society is reviewing subsidiary Sun Bank's non-status self-certification mortgage, which could leave GMAC-RFC the only player in the market. Portman says it feels uncomfortable being one of only two lenders offering the product which does not require an income to be stated. GMAC-RFC, which is the only other lender with a similar product in the market, has no plans for change. Chief executive Robert Sharpe underlines the fact that he is happy ...

  • Postcode annuities on HL supermarket

    20 Nov 2003

    Postcode annuities are now available through Hargreaves Lansdown's annuity supermarket following a deal with specialist annuity provider MGM Assurance. MGM says five million manual workers in Northern England, Scotland, Wales and Northern Ireland are likely to miss out on enhanced rates because they do not know there is an annuity available for them. MGM's Select Annuity gives rates on average 8 per cent higher than standard annuities. It is the only provider to ...

  • Pre Christmas lull in housing market - NAEA

    24 Nov 2003

    Potential house buyers started putting their house purchase plans on hold last month according to the National Association of Estate Agents.The average number of properties currently available for sale with estate agents fell to 49 in October (from 61 in September) and the number of new instructions to sell fell to 14 from 16 in September.President Melfyn Williams says: "With the festive season now approaching fast and less than 30 shopping days left before Christmas, home ...

  • Proc fees increased at Mortgage Next

    25 Nov 2003

    Mortgage Next is increasing the procuration fees payable on many of its product lines. The scheme, which is running between 1 December and 29 February, will result in typical fee payments rising by between 10 and 20 per cent.Marketing director Justine Tomlinson, says: "The objective of this special promotion is to make as many mortgage brokers as possible aware that Mortgage Next's marketing proposition - products, service and procuration fee payments - is the best in the market."

  • Product matters

    20 Nov 2003

    Abbey for Intermediaries has launched a large loan deal aimed exclusively at its Premier Mortgage service introducers. It is offering a variable tracker rate of Bank of England base rate plus 0.5 per cent, which gives a pay rate of 4.25 per cent (4.3 per cent APR). This is available for large-case applications, which is any loan of £250,000 or over. It is clearly targeting the remortgage market, with clients being aware of costs of remortgaging so it is offering ...

  • Puzzling approach to reprojections

    20 Nov 2003

    Although the FSA has wriggled away from all calls for a formal review of low-cost endowment sales practices, it seems to be doing everything else in its power to ensure that the public are encouraged to complain about them. For example, we are now seeing: •Reprojections of possible maturity values based on assumed future growth rates which are significantly lower than those approved by the FSA's predecessors at the time that most policies were sold. •Reprojections ...

  • Rate rise sees dip in home asking prices

    20 Nov 2003

    The housing market has cooled significantly since the Bank of England increased base rate to 3.75 per cent earlier this month, according to property website rightmove.co.uk. Its November house price index reveals that asking prices have dipped by 0.1 per cent after rising by 3.3 per cent last month, leaving year-on-year house price inflation at 9.9 per cent - the third consecutive month it has stayed under 10 per cent. In January, house price inflation was running at ...

  • RJ Temple is set to become biggest call on the FSCS

    20 Nov 2003

    Collapsed IFA RJ Temple looks set to be one of the biggest burdens that the Financial Services Compensation Scheme has faced since the failure of Independent Insurance two years ago. General insurance broker Independent cost the FSCS £78.8m in 2002 and generated thousands of complaints from its policyholders. RJ Temple was forced to fold in July, owing more than £1.5m to its creditors. The firm's advisers were sold on to Lighthouse but its liabilities were ...

  • Rue Britannic

    20 Nov 2003

    In a market where businesses are regularly preceded in the media by words such as "troubled", "embattled" and "beleaguered", Britannic Group stands out. Its decision last week to close Britannic Retirement Solutions to new business came after it closed its life insurance division to new business in March and sold its mortgage arm Britannic Money to Paragon for £19m just six months after buying a 40 per cent stake in the business for £56.5m. BRS shone brightly ...

  • Savills Private Finance tackles consumer debt fears

    19 Nov 2003

    Savills Private Finance has responded to fears of rising consumer debt by upgrading its computer system. Advisers will now be able to provide clients with standard illustrations for every mortgage proposal, showing borrowers exactly what their monthly repayments would be if interest rates continue to rise.The client will be able to see the monthly repayment costs at the initial rate which has been negotiated, along with a projected monthly repayment figure at 6.5 per cent and 7.5 ...

  • Sesame in cash bid to lure back leavers

    20 Nov 2003

    Sesame is trying to lure ex-members back into the fold with the promise of cash for rejoining. In a letter to former members, the mega-network says returning members are eligible for a "recruitment incentive" of £7,500 for the first RI and £2,500 for subsequent advisers if they rejoin the network. In the promotional material aimed at IFAs who left a Misys network before the formation of Sesame, the firm says it has enhanced its commission rates to be the best ...

  • Skills council paper to define advice

    20 Nov 2003

    The Financial Services Skills Council is to publish a discussion paper on the definition of advice in an effort to make a clear distinction from other financial services offerings. The paper is to be launched in conjunction with the release of the ISO standard for financial planning, which will take place December 2. The ISO will be launched by a coalition of trade and consumer bodies, including the British Standards Institute, the FSSC, Aifa, Sofa, the Institute of Financial ...

  • Software firm sees upheaval from menu system

    20 Nov 2003

    The menu system will cause massive upheaval among IFAs as firms struggle with the burden it will add to their compliance, says software firm Dunstan Thomas. It says the menu will add another layer of cost and complexity for IFAs. The firm has customised its flagship software component ahead of what it expects to be a surge in demand for its services once the final CP166 rules are published. It says it expects these rules to come in next summer after the delay to publication ...

  • SRB launches online service for IFAs

    21 Nov 2003

    The Special Risks Bureau is launching an IFA online service with Webline. The service will allow Webline's 9000 advisers to transact impaired lives business online.

  • Stamp duty change set to boost Muslim mortgages

    20 Nov 2003

    Ahli United Bank is aiming to expand its network through distribution deals with brokers to cope with a boost in demand for Muslim remortgages after stamp duty changes. AUB is about to launch a deal with national broker franchise Mortgageforce to offer access to AUB's range of Islamic mortgages. Under Islamic law, Muslims are forbidden to pay or receive interest so a traditional mortgage is not viable. A mortgage compliant with Islamic law involves the provider buying ...

  • State pension guide from Friends

    21 Nov 2003

    Friends Provident is publishing a pensions guide to the UK pension system and contracting out. The guide aims to give financial advisers, trustees and employers information on basic state pension including: eligibility, categories of pension, death benefits, state pension forecast, deferring state pensions, retiring abroad and equalising state pensions. It also looks at graduated retirement schemes, Serps, state second pension and the pension credit. Friends Provident head ...

  • SVM appoints fund manager

    25 Nov 2003

    SVM Asset Management has appointed Andrew Dykes as European fund manager. Dykes was previously with Martin Currie, where he was assistant manager of Pan-European equities. He joined the group 1998 after training as a chartered accountant with PricewaterhouseCoopers, a background SVM says is ideal for its investment style. Managing director Colin McLean says: "In keeping with SVM's distinctive style, where fund managers also act as analysts, Andrew's analytical background ...

  • Take note of the material witness

    20 Nov 2003

    What faith should an adviser place in marketing material from providers these days? That is the question being asked by the FSA of IFAs, inspired by the problems associated with structured products and split-capital investment trusts. The answer is probably that some IFAs sometimes place a little too much faith in what they have been told. In both product cases mentioned above, it would have been better if the products had been stress-tested against the prospect ...

  • Talkback

    20 Nov 2003

    "No. She's wrong. I disagree." Don Beattie, Beatties Financial Services "I think that IFAs are being pilloried unjustifiably in what she has said." Ian Cave, Ian A Cave "Of course not, if it were not for us, a lot of people would be left unprotected. This incessant persecution is totally unjustified and should stop." Bill Lyons, Bill Lyons Independent Financial Adviser "No. The industry has moved on considerably from people's perceptions. Hopefully, ...

  • Tenet launch multi-manager service

    25 Nov 2003

    Tenet's M&E and Interdependence Networks have launch a campaign to help members use Multi-Managers with exclusive support from Scottish Widows, Skandia Investment Management and Abbey.The three providers are working with the networks to share their expertise and resources and help members inform their clients. Tenet director of group marketing & communications Alison Dootson says: "By outsourcing fund manager selection, monitoring, and reporting, the Multi-Manager concept is ...

  • The LIA's view

    20 Nov 2003

    The Financial Times on November 4 carried a rather sad comment on the reorganisation at the FSA instigated by John Tiner. It said: "The FSA is trying to bridge the gulf between a caveat emptor system and the ignorance of the emptor. Unless its education initiatives bite, the best it can do is to limit the damage. It would, of course, help if the financial services industry minded its reputation as closely as it does its bottom line." Of course, there is much gratuitous adverse ...

  • Thousands may be hit as Govt gets set to axe Furbs

    20 Nov 2003

    Funded unapproved retirement benefit schemes, seen as one of the main alternatives for people hit by the lifetime limit, could face the axe. A senior Department for Work and Pensions official told industry representatives at a closed meeting last week hosted by pensions minister Malcom Wicks that Furbs would cease to exist following A-Day. A DWP spokeswoman says: "What was said was that under the Revenue's proposals, Furbs will become irrelevant, not abolished." Furbs ...

  • TrustNet website offers extra services

    20 Nov 2003

    Online fund research specialist TrustNet has expanded its website to offer users an extensive range of additional features. The site now contains a newsfeed from the Financial Times and the FTSE 100 index, including interactive world market indices charts. It lists the top 10 unit trust and Oeic risers and fallers and the top 10 investment trust risers and fallers. The site now also includes interactive charting on fund factsheet pages and performance charts ...

  • Try before you buy rebate offer on merged funds

    20 Nov 2003

    New Star is offering a try before you buy annual management charge rebate to investors in the Edinburgh Fund Managers portfolios it is merging into its own range. Some of the seven EFM funds it is combining carry lower AMCs than New Star's standard 1.5 per cent so investors who remain registered in them on the second anniversary of the merger will be offered rebates. Typically, these will amount to the difference between 1.25 per cent and 1.5 per cent over two years, giving ...

  • TUC claims firms are still taking pension holidays

    20 Nov 2003

    Employers are continuing to take pension holidays despite huge deficits in final-salary schemes, according to the Trades Union Congress. TUC analysis of Inland Revenue statistics shows that in the five years to 2002, employers with final-salary schemes clawed back £1.1bn into company coffers either by reducing their contributions or by not paying in anything at all. But advisers say this figure reflects the time lag caused by most schemes doing accounts every three ...

  • TV tussle puts Fidelity top of press league

    20 Nov 2003

    Television put Fidelity on top of the Presswatch table in October, with 297 mentions in the national press. The ITV merger saw an unprecedented level of coverage on Fidelity, with star manager Anthony Bolton in the spotlight. However, the consistent performance of Northern Rock products, particularly its tracker online savings account and its mini cash Isa, saw it get the highest number of positive mentions in the press, ahead of Nationwide and Fidelity, tying in second ...

  • UBS adds emerging markets fund to retail range

    20 Nov 2003

    UBS Global Asset Management has made its institutional UBS global emerging markets equity fund available to retail investors.The fund has a two-year institutional track record and is being added to the retail range to expand the offering to a total of six funds. It is managed by the UBS emerging markets team headed by Singapore-based Geoffrey Wong. Wong is assisted by four portfolio managers, 10 emerging markets analysts and five dealers.The emerging ...

  • Warning of delays on agency arrangements

    20 Nov 2003

    IFAs looking to leave a network to become directly authorised should be prepared for lengthy delays in getting new agency agreements following reports that the process can take up to 18 months. Bankhall says it can take up to three months in a worst-case scenario. One IFA describes having to wait between four and six months for some providers to get agreements in place and was told by a Norwich Union consultant it was taking up to 18 months in some instances. He ...

  • What IFAs are looking for from a wrap service

    20 Nov 2003

    Your November 6 edition devoted more column inches to wraps than I can ever recall reading previously. This reflects growing interest among both providers and advisers. The articles highlighted some of the confusing aspects that confront advisers. Transact was probably the first to offer a wrap service to UK IFAs and is certainly the leading independent operator in the field. I think this background and our experience of the thoughts of a large number of financial advisers ...

  • Why should we subsidise general insurance firms?

    20 Nov 2003

    Open letter to the FSA On behalf of fellow financial planners and the IFA community in general, I would like to draw to your attention to what I consider to be a serious flaw in your proposals for the regulation of general insurance. I refer to your intention to treat all pure protection insurance contracts (term insurance, critical-illness cover, income protection, etc) as general insurance. I would point out to you that there are many directly regulated firms such ...

  • Win a Christmas shopping trip to New York

    20 Nov 2003

    You could win a Christmas shopping weekend for two to New York at a five-star hotel with £500 to spend in this great competition with Franklin Templeton Investments. Franklin Templeton Investments, one of the world's biggest mutual fund managers with assets over $300bn, is celebrating the launch of its four new funds for UK investors, and would like to offer you and your partner the chance to win a shopping trip to New York. New York can fulfil every shopping ...

  • Zurich sets up best of breed fund range

    19 Nov 2003

    Zurich is launching a new range of corporate branded pension products offering a best of breed fund choice from Threadneedle, Barclays Global Investors, Hendersons, Deutsche Asset Management and JP Morgan Fleming. The range covers group personal pensions, group stakeholder, occupational money purchase and group AVCs.

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