Money Marketing
20 November 2002
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"Trackers caused equity bubble"
20 Nov 2002
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'DPS would have harmed IFA sector'
21 Nov 2002
The FSA was forced to adopt the menu system over its defined-payment system because of fears that the market would be damaged if it delayed its decision, says chairman Howard Davies. Testifying before the select committee, Davies said the FSA accepts that too few people are willing to pay fees for independent advice and it would have been damaging to the IFA sector to proceed with the DPS. He said many providers were busy second-guessing the outcome of the depolarisation review. ...
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'FSA gave pyramid selling a good name'
21 Nov 2002
FSA chairman Howard Davies has been accused by MPs of giving "pyramid selling a good name" due to the regulator's performance in the split-cap investment trust crisis. Davies and his deputies, managing directors John Tiner and Michael Foot, appeared before the Treasury select committee last week to defend the performance of the FSA throughout the collapse of the split-cap sector. The committee rounded on the trio, accusing them of failure to act sooner to warn investors about ...
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'Seller's packs will not end gazumping'
21 Nov 2002
Mortgage lenders and brokers are warning that seller's packs, confirmed in last week's Queen's Speech, will not end gazumping and may dampen sales by increasing costs. The packs, which are part of the Homes Bill, are expected to be mandatory for house sale transactions by 2006. But the Council of Mort-gage Lenders warns that the cost for vendors, which commentators estimate will average £700 per pack, could be a constraint on people moving in less buoyant areas of ...
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'Tied advisers to cost 30% more than IFAs'
21 Nov 2002
Multi-ties will be more expensive than IFAs and driven by commission, according to an analysis by leading reinsurer Swiss Re. The Swiss Re 2002 Insurance Report says that following depolarisation, the cost of term insurance sold through an IFA will further reduce by 6 per cent while increasing by 5 per cent on the tied side. It says a consumer going from an IFA to a single-tied or multi-tied adviser will see a price increase of 30 per cent. The report says 70 per cent of this ...
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1% is no solution
21 Nov 2002
No one could ever accuse Ron Sandler of being afraid of saying what needed to be said and his report says much that needed saying about medium and long-term savings. But equally, it is not an easy industry to understand and there are a number of oddities about his prescription that leave the Government, the FSA and the industry with a number of tricky issues to deal with. At the October 9 Treasury seminar on the Sandler report, Treasury Financial Secretary Ruth Kelly said that a new ...
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A case in point
21 Nov 2002
Some of you who have a passion for employee benefits beyond the wonderful world of pensions may have become involved in the interesting area of employee trusts. This covers a wide range of tax and legal issues including deductibility (for the employer) and assessability (for the employee). A perhaps worrying trend in respect of the marketing of employee trusts is the very fact that they have become marketed. It is even arguable that they have become commoditised. But so have a ...
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A consumer's view
21 Nov 2002
If the recession and collapse in share prices has performed any useful function, it has separated the wheat from the chaff where fund managers and investment advisers are concerned - and there is a lot of chaff to get rid of. The benefits of professional fund management have always been somewhat dubious, with the vast majority of fund managers failing even to match their relevant indices, let alone outperform them. This failure has been masked by years of almost consistently rising ...
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A step forward for fund firms
21 Nov 2002
Some of you may be familiar with the mythical figure of Sisyphus who was condemned to an eternity of pushing a large boulder up a hill only to see it fall back down again on reaching the top. Those of you whose jobs involve reviewing the seemingly endless consultation papers issued by the FSA, the Treasury and the Inland Revenue may sometimes feel that Sisyphus got off lightly. This is a little harsh as, despite the number of areas, which seem to be moving very slowly, there have been ...
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Abacus Permanent launches product range
26 Nov 2002
New correspondent lender Abacus Permanent has unveiled its first range of mortgages available only through intermediaries. This includes three self-cert products paying a 0.5 per cent procuration fee with interest rates starting at 4.50 per, three buy to let loans paying a proc fee of 0.4 per cent with rates from 4.35 per cent and three full status loans paying a proc fee of 0.4 per cent with rates from 1.99 per cent.
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Aberdeen backs Equitable investment
20 Nov 2002
Aberdeen Asset Management has defended its position as one of the biggest bondholders in stricken insurer Equitable Life, insisting it remains a good investment. Aberdeen, which holds around 9 per cent of Equitable's £346m debts across six funds and an investment trust, says the bonds - which the life office admits it may not be able to repay - are a decent investment as Equitable is unlikely to become insolvent. It points out the bonds only comprise 1.1 per cent of its £1.2bn ...
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ABI brings in code to regulate LTC
21 Nov 2002
The ABI has issued a binding code of conduct restricting sales of long-term care insurance to specially qualified IFAs and changing the way the contracts will be written. ABI member companies will only be allowed to sell LTC through IFAs who are members of IFACare or who have passed their G80 exams or equivalent. The code requires insurers' own representatives to attain the same standards. From January 1, 2003, all LTC contracts will be required to have a flexible structure ...
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ABI brings in code to regulate LTC
21 Nov 2002
The ABI has issued a binding code of conduct restricting sales of long-term care insurance to specially qualified IFAs and changing the way the contracts will be written. ABI member companies will only be allowed to sell LTC through IFAs who are members of IFACare or who have passed their G80 exams or equivalent. The code requires insurers' own representatives to attain the same standards. From January 1, 2003, all LTC contracts will be required to have a flexible structure ...
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Accrual twist of fate
21 Nov 2002
Throughout the articles in this series, I have looked at the key stages in formulating, presenting and implementing a share-purchase arrangement in a limited company, using Owl Sewerage Services Ltd as a worked example. First, then, to summarise the last few articles. The first key points I have tried to stress revolved around comprehensive fact-finding to det- ermine which individuals should be participating in the share-purchase arrangement, either as future buyers or sellers, or ...
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Actuaries reveal stakeholders are just empty shells
21 Nov 2002
Research from the Association of Consulting Actuaries shows that 81 per cent of new stakeholder schemes are empty shells. It says take-up among the Government's target market of employers which did not offer pension schemes is disappointing. The ACA says four-fifths of new schemes have seen less than 5 per cent employee take-up and 46 per cent have no members at all. The survey shows that no company employing over 1,000 people saw more than 5 per cent employee take-up after ...
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AITC calls for split compensation
26 Nov 2002
The AITC is urging split-cap managers to compensate investors who bought zeros without advice and outside of savings or share schemes as they cannot seek restitution through the Ombudsman. The AITC says the managers and professional advisers who made money from selling zeros should "consider their responsibilities" to investors who can only attempt restitution through the courts.
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Alliance trusts appoint finance director
22 Nov 2002
International investment companies Alliance trust and Second Alliance trust have appointed David Deards as finance director.Deards, who will join in January, was previously director of product development at Ansbacher & Co, which he left in July.Alliance trusts chief executive Gavin Suggett says: "I am delighted to welcome David to the team. He is a long-standing stockholder and well understands our objectives, structures and policies."
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AMP NPI roadshows aim to explain income-drawdown details of IFAs
21 Nov 2002
AMP NPI is running a series of IFA roadshows during November and December explaining income drawdown. The life office says the tour follows demand from over 1,000 IFAs who want to know more about the product. The Income Drawdown - Road to Wealth seminars aim to unravel the perceived complexities which many IFAs believe surround the product. It points out that last year, the drawdown market was worth an estimated £3bn for IFAs and says many predict it is set to grow. The ...
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AMP writes off £303m and looks for loanbook bids
21 Nov 2002
AMP has written down £303m in UK business and is putting its mortgage business up for sale. AMP NPI accounts for £213m of the writedown with lower valuations of other businesses, including Towry Law, Pearl and London Life, accounting for the rest. The company blames difficult operating conditions and stockmarket falls. The Australian giant says the figures are subject to change and an independent valuation of the company's assets is under way. It has decided ...
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ASA tells IF it must prove it's No 1
21 Nov 2002
Intelligent Finance claims the Advertising Standards Authority comes to decisions without evidence. The accusation from the internet and phone bank comes after the ASA last week told IF not to run its newspaper ads claiming to be the UK's number one direct bank, after a complaint from HSBC-owned First Direct. IF says the ASA has no evidence to show it is not the UK's biggest direct bank. IF says HSBC does not differentiate First Direct business from its other subsidiaries ...
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Award brings a rallying call for women to kickstart industry and restore confidence
21 Nov 2002
Cheshire IFA Viv Belcher is the first Woman IFA of the Year. She won the inaugural Women's IFA Group award in competition with a short list of four other women. The five finalists were assessed on applied technical knowledge, holistic approach, interpersonal skills and life balance in a series of tests, interviews and role playing over the past six months. Belcher, who is a director of Hornbuckle Mitchell Group. was presented with a trophy and holiday for two to the isle of ...
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Baille Gifford launches child savings plan
22 Nov 2002
Baillie Gifford has announced the launch of a Children's Savings Plan which provides a flexible way to buy and hold shares in its range of six investment trusts.
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Banks test internet help software
20 Nov 2002
Three unnamed high street banks are trialing software that connects website visitors to sales staff. Proficient Systems says its Sales Server product made website visitors twice as likely to buy online in US trials. Online customers are invited to telephone sales staff who are then able to guide them around the website, take them off the site to best-buy tables elsewhere on the web and then back to the site to help fill in application forms.
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Banks test internet help software
20 Nov 2002
Three unnamed high street banks are trialing software that connects website visitors to sales staff. Proficient Systems says its Sales Server product made website visitors twice as likely to buy online in US trials. Online customers are invited to telephone sales staff who are then able to guide them around the website, take them off the site to best-buy tables elsewhere on the web and then back to the site to help fill in application forms.
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Banks trial online adviser technology
20 Nov 2002
Three unnamed high street banks are trialing software that connects website visitors to sales staff. Proficient Systems says its Sales Server product made website visitors twice as likely to buy online in US trials. Online customers are invited to telephone sales staff who are then able to guide them around the website, take them off the site to best-buy tables elsewhere on the web and then back to the site to help fill in application forms.
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BBB sets up benefit company
20 Nov 2002
Berkeley Berry Birch has launched an employee benefits company, Berry Birch and Noble Employee Benefits. The new company will work closely with Berry, Birch & Noble Trustees to provide employee benefits consultancy, pension scheme administration, and trustee services for small and medium sized businesses.
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Bedlam in the UK
21 Nov 2002
Bedlam Investment Management has established the Bedlam UK fund, an offshore Oeic that invests in companies of all sizes in the UK.
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Bonus book
21 Nov 2002
IFAs looking for a little light reading somewhere between Jackie Collins and Mills & Boon might want to flick through the pages of Embedded Values, the latest novel from former actuary Dex Cameron. A steamy mix of suburban sex and actuarial office policies, the plot follows four friends' loves and lives in financial services over 30 years, and lives up to the old saying - actuaries do it until death or disability, whichever comes first.
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Bradford & Bingley International - Base Rate Notice
26 Nov 2002
Tuesday, 26 November 2002Type: High interest accountMinimum-maximum investment: £10,000-£1mPlace of registration: Isle of ManInterest rate: £10,000-£24,999 Bank of England base rate, £25,000-£99,999 0.1% above Bank of England base rate, £100,000 and above 0.25% above Bank of England base rate Term: Until March 31, 2003Offer period: Until further noticeWithdrawal penalties: 90 days' notice ...
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Bradford & Bingley International - Notice 30
25 Nov 2002
Monday, 25 November 2002Type: High interest accountMinimum-maximum investment: £10,000-£1mPlace of registration: Isle of ManInterest rate: £10,000-£24,999 3.65% gross a year, 3.5% gross a month, £25,000-£49,999 3.75% gross a year, 3.65% gross a month, £50,000-£99,999 3.85% gross a year, 3.75% gross a month, £100,000-£249,999 3.95% gross a year, 3.79% gross a month, £250,000 and above 4.05% ...
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Brand aid
21 Nov 2002
Is protection best sold under a stand-alone brand? Martin: A single brand rather than stand-alone for each market/products sector presents a simple understandable focus for consumers and distributors. Supported by appropriate values and characteristics, the single-brand approach can communicate the consistency that customers relate to. For example, value for money and quality service readily span financial services markets and products. Hamilton: If that implies a specialist protection ...
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BSA slams the watchdog after N&P loses case
21 Nov 2002
The Building Societies' Association has criticised the Financial Ombudsman Service after a High Court decision upheld a ruling against Norwich & Peterborough. N&P is to pay out £1.3m to 50,000 customers after last week's decision, At the BSA's annual lunch within hours of the judgment, chairman Graham Stow criticised the ombudsman for "regulating by individual complaints" and described the environment as a "regulatory jungle". Stow, who is Britannia Building ...
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Busting the trust busters
21 Nov 2002
"Trust-busting" or "pension liberation" schemes offer clients immediate cash from their pension funds, whatever their age. Although Opra has been aware of such trust-busting schemes since 1997, it is only recently that procedures designed to stop such payments have been introduced in the form of IRSPSS Pensions Update 132. These schemes appear to all intents and purposes as normal UK approved pension schemes but they pay out cash at any age with no regard for Inland Revenue limits. As ...
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Chelsea Buliding Society - 1 Year Fixed Rate Bond (23rd Issue)
26 Nov 2002
Tuesday, 26 November 2002Type: High interest accountMinimum-maximum investment: Lump sum £1,000-£500,000Interest rate: 3.95% gross a yearTerm: One yearOffer period: Until further noticeWithdrawal penalties: 60 days' loss of interest on amount withdrawnTel: 01242 283593
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CIS chief retires after 38 years
26 Nov 2002
CIS chief general manager David Hollas is retiring after 38 years with the insurer. His duties are being passed to Finian O'Boyle who is appointed chief operating officer of CIS. At the same time Sheila Macdonald has been appointed chief operating officer for The Co-operative Bank.
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Clerical Medical - Flexible Growth Bond
20 Nov 2002
Wednesday, 20 November 2002Type: Unit-linked bondAim: Growth by investing in Clerical Medical, UBS and Newton fundsMinimum investment: £15,000Fund links: Choice of Clerical Medical adventurous managed, balanced managed, cautious managed, non-equity managed, distribution accumulation, with-profits, cash, equity high income, ethical life, European, gilt & fixed interest, index-linked, international, Japan, North American, Pacific, property, UK equity, ...
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Clerical Medical - Income Bond
21 Nov 2002
Thursday, 21 November 2002Type: Unit-linked bondAim: Income by investing in Clerical Medical equity high income, distribution, with-profits income, managed income funds Minimum investment: £15,000Fund links: Choice of Clerical Medical equity high income, distribution, with-profits income, managed income funds Allocation rates: 100%Charges: Initial 2%, annual 1-1.4%Switches: Unlimited free switchesCommission: Initial ...
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Clerical Medical designs annuity for the open market
25 Nov 2002
Clerical Medical has entered the open annuity market to take advantage of recent changes in the pensions industry.
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Clerical Medical phases in bond
26 Nov 2002
Clerical Medical has introduced the flexible growth bond. a unit-linked bond that provides access to a range of 19 internal funds, including with-profits and four managed funds. Ten externally managed funds from Newton and UBS are also available.
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Consultancies target Scottish businesses
21 Nov 2002
Scottish-based Zurich tied adviser Ken Anderson of Anderson Ross Financial Consultancy is starting a new financial and business planning consultancy aimed at small businesses and entrepreneurs. One Solution will be made up of five individual consultancies - One Corporate Finance, One Business Solution, One Mortgages, One Wealth Management and One Risk. One Corporate Finance and One Mortgages were launched six months ago, while One Business Solution has been operating for a year ...
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Correspondent's week
21 Nov 2002
Monday morning, 5am, am I really the only person awake at this time of the day? The answer is no, as the similarly weary faces of fellow commuters will later testify, as they prepare to leave the West Country and run the gauntlet of First Great Western on their way to the great metropolis. Radio 5 Live comes on as I tuck into life-sustaining muesli, (my spellchecker suggests measly, how appropriate). I experience a sense of wonder when I discover that Brian Tora is not only awake but ...
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Cutter's way
21 Nov 2002
Skipton operations director David Cutter cut quite a dash at the annual Building Societies Association lunch recently in a rather startling tweed jacket and pinstripe trouser combo. News of the fashion disaster (allegedly the result of a hasty exit from home that morning) travelled ahead of the unfortunate soul who found himself stood up by his lunch guest at the last minute. Most unfortunate of all was the fact that David's wallet was in the pocket of the jacket he left behind, ...
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Drawdown strategies
21 Nov 2002
Prudential introduces its flexible income-drawdown plan with the choice of three investment strategies - cautious, standard, adventurous or self-management with 25 funds from M&G, Prudential, Merrill Lynch, Newton, Invesco Perpetual, UBS and Schroders. Asked how the plan fits into the market, Perdisatt says: "This product is a useful addition to the market, the options available add a good deal of flexibility that is not readily apparent in other products available." Wingar ...
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DWP in Serps correction mailshot to 500,000
20 Nov 2002
The Department for Work and Pensions is writing to over 500,000 people to correct earlier letters that confused how much money they are entitled to under Serps. The DWP was forced into the mailshot after the parliamentary ombudsman's office concluded the original letters were "not entirely accurate".
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Employee benefits must recognise new lifestyles
21 Nov 2002
Scottish Equitable Employee Benefits believes that a flexible approach to employee benefits which recognises changing lifestyles and the growing influence of women is the key to closing the protection gap. SEEB claims that women who work have only half the level of protection benefits of men. But it points out that salary levels between the sexes are converging and employment levels are set to equalise over the next decade. It says an open and adaptable approach to providing ...
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Enterprise Investment Schemes - Lacomp British Enterprise EIS Funds
22 Nov 2002
Friday, 22 November 2002 Aim: Growth by investing in four to seven companies at an early stage of development and companies seeking to expandOpening-closing dates: June 21, 2002-December 18, 2002Charges: Initial 6.5%, annual 1.5%Commission: Initial up to 4%, renewal 0.5% in first three yearsTel: 01276 475123
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Entertainment Now has stars in its eyes
26 Nov 2002
Entertainment Now is a record production company that aims to raise £600,000 through an enterprise investment scheme to finance its plans for expansion.
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Equitable Life Director Quits
25 Nov 2002
Equitable Life's chief finance and investments officer Charles Bellringer has resigned from the company.After the publication of the latest financial accounts and the completion of the compromise scheme, which was approved by policyholders in January, Bellringer is looking for further opportunities in corporations undergoing major change.A team will take over Bellringer's day-to-day duties until a new appointment is made.
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European investment managers should offer simpler products - PWC
26 Nov 2002
European investment managers need to stop churning out new products and concentrate on investors' needs, according to a report by PricewaterhouseCoopers. The report says that, if fund managers want to attract business from the 80 per cent of European households without fund holdings, they should offer simple savings solutions rather than launch new products into a saturated market. To further serve investors better, PwC says fund managers and distributors should forge stronger partnerships ..
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Fact-find ruling by EU rings death knell for execution brokers
21 Nov 2002
Execution-only business faces the guillotine following the publication of the European Commission's investment services directive this week outlining requirements for a fact-find on all investment business. In the section entitled Provisions to Ensure Investor Protection, the directive states: "The necessary information shall be obtained from the client reg-arding their knowledge and experience in the investment field, their investment objectives and financial situation so as to ...
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FSA announces introduction of multi-ties with scrapping of polarisation
22 Nov 2002
FSA chairman Howard Davies has announced multi-ties will be introduced with the scrapping of polarisation as a result of CP121.
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FSA confirms scrapping of polarisation
22 Nov 2002
The FSA has announced that it will proceed with the scrapping of polarisation as outlined in CP121.
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Fund firms plan equity and fixed-interest ad blitz
21 Nov 2002
Fund managers are preparing to blitz the IFA market with ads for equity income and fixed-interest funds during what they believe will be the worst-ever Isa season. Research by JP Morgan Fleming shows that 40 per cent of investors expect the stockmarket to be lower in six months and fund managers are gearing up to compete for the small amount of transfer business they expect from intermediaries. They believe the main battleground will be equity income and fixed interest and have ...
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Fund focuses on health privatisation
21 Nov 2002
Healthcare investment specialist Chart Investment Management is sponsoring the launch of the Cheney healthcare fund No 1, a loan stock fund aimed at opportunities from the growing involvement of the private health sector in the UK. The closed-end fund is seeking to raise £25m, which it will lend to growing companies in the sector, particularly care homes. It has a five-year term and aims to have a growing annual yield starting at 5 per cent in the first year. CIM chairman ...
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Heald to probe the Treasury on semi-retired tax
21 Nov 2002
Shadow pensions minister Oliver Heald is writing to the Treasury asking why people who partially retire are being taxed on the lump-sum payment they take from their pension pot. In the letter to Treasury Financial Secretary Ruth Kelly, Heald says that throughout the 1990s, people were allowed to semi-retire, take their 25 per cent lump sum and continue working for their employer in a changed or reduced capacity. Heald says that, from 1997, this was no longer allowed and he wants ...
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Heroic theme to IF ads
21 Nov 2002
Intelligent Finance is running an advertising campaign which portrays IFAs as heroes. The drive aims to show how advisers can provide solutions to clients' problems rather than simply sell financial products. It uses straplines such as: "You saw a way their mortgage could help pay their daughter's university fees - they saw their financial saviour." As well as placing ads in the trade press, ads will appear on banners on trade websites. Last month, IF sent out a pack to IFAs ...
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Household name set to crash soon, says FSA's Kenmir
21 Nov 2002
A "household name" financial firm will fail in the next year or two, according to FSA head of investment firms David Kenmir. His comments came at the Eye to Eye conference held at Gleneagles golf course and conference centre in Scotland. Responding to questions on Equitable Life, Kenmir is reported to have told a packed room of IFAs and life offices: "In the next year, or possibly two, a major high-profile company will fail and there will be ramifications for you all. Public confidence ...
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Household name set to crash soon, says FSA's Kenmir
21 Nov 2002
A "household name" financial firm will fail in the next year or two, according to FSA head of investment firms David Kenmir. His comments came at the Eye to Eye conference held at Gleneagles golf course and conference centre in Scotland. Responding to questions on Equitable Life, Kenmir is reported to have told a packed room of IFAs and life offices: "In the next year, or possibly two, a major high-profile company will fail and there will be ramifications for you all. Public confidence ...
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Housing fear over 'Fulham yuppies'
21 Nov 2002
FSA chairman Howard Davies has admitted that the regulator is concerned about "Fulham yuppies" - borrowers taking out loans with increasingly higher income multiples and smaller deposits. Davies' comments came under questioning from the select committee about the FSA's plans for mortgage regulation and whether he had any concerns about overheating in the housing market. He told MPs that the FSA is worried about the market in London and the South-east where borrowers are taking ...
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HSBC set to launch three Fofs
21 Nov 2002
HSBC Asset Management is entering the fund of funds market with a range initially offered through its parent's branch network before rolling out to IFAs. It will launch income, growth and global growth fund of funds in the first quarter of 2003, all managed by Guillermo Konecny, who works in the company's fund selection unit looking after its portfolio management service. If the trial period through HSBC's 1,600 branches is successful, the funds could be offered to IFAs ...
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IFA issues guide to structured plans
21 Nov 2002
High-net-worth specialist IFA Brooks Macdonald Financial Consultancy is offering investors a guide to structured products. The firm says there are still valid investment opportunities in structured products despite concerns that many may not return any cash to investors when they mature. It says it wants to reassure consumers that the entire sector is not tarnished and to warn them about "duff" products they should avoid. It says some good products either have full capital ...
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IFA wins £95K in poaching case
20 Nov 2002
Buckinghamshire-based IFA Asprey Harris has obtained a high court judgement against former employee Nicola Owen for poaching business from the firm in the six months before she moved to Carrington Investment Services. Owen was ordered to pay £95,000 to Asprey Harris after the judge said that he could see no excuse for her conduct.
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IFAs can buy and sell online for clients
21 Nov 2002
Stockbroker James Brearley & Sons is offering a service which allows IFAs to buy and sell shares and investment products online on behalf of clients. The firm claims to be one of the first to offer advisers the ability to deal online for their clients in practically all UK equities, along with many European and US indices. Once an adviser has registered on its Icon trading platform they will be able to buy and sell stocks and unit trusts as well as deal through Pep, Isa and Sipp ...
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IFAs welcome end to uncertainty on polarisation rules
22 Nov 2002
IFAs are welcoming the clarification given by the FSA's statement on the future of the intermediary market. Wentworth Rose managing director Philip Rose says IFAs will now be able to plan their business strategy.
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Independent view
21 Nov 2002
The whole issue of honesty has overnight been raised to a higher, and dare I say, political level by the arrival on our desks of An Ethical Framework for Financial Services, the latest missive from the FSA. It will now enter the public domain almost as if it were not there before. The FSA's message seems to be that as we have all misbehaved so badly in the past that they will rule with an iron rod. But if we could only just start to behave and learn how to be honest, they will be ...
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Industry leads in charity donations through payroll
21 Nov 2002
Financial services companies occupy the top 10 positions in the charitable donations league, according to figures compiled by the Giving Campaign. Investment trust specialist 3i tops the chart with 27 per cent of staff contributing to charity through a payroll giving scheme. It is followed by Schroders at 22 per cent, Zurich Financial Services 17 per cent, Lloyds TSB 16 per cent, Royal Bank of Scotland 12 per cent, Abbey National 9 per cent, Alliance & Leicester 8 per cent, ...
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Inside edge
21 Nov 2002
Last week, the Treasury select committee held its third hearing in an inquiry into split-capital investment trusts. The AITC gave evidence at that hearing for the second time this year. At that hearing, the AITC spoke up for IFAs. Our view is that, in many cases, IFAs recommending zero-dividend preference shares could not reasonably have been expected to work out there was any pros-pect of the shares going bust. If the manufacturers themselves had not recognised this fact and, ...
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Insight looks to Europe
25 Nov 2002
Insight Investment has brought out the European discretionary fund, which invests in Europe excluding the UK.
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Investment analysis
21 Nov 2002
With the exception of Japan's Nikkei 225, all the major indices posted gains last week, responding well to Iraq's acceptance of a UN resolution on disarmament and better than expected US retail sales figures. In the US, economic data provided mixed signals. On the positive side, consumer sentiment was on the rebound according to the preliminary University of Michigan consumer sentiment index, which rose for the first time in six months and US Labour Department data confirmed ...
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Investment view
21 Nov 2002
Some years ago, one of the members of the investment committee I chaired used to refer to "torpedo stocks" during the discussions that took place over what to include in portfolios. In his opinion, these stocks should be avoided at all costs. He meant those companies that could deliver nasty, unexpected surprises and lose investors a lot of money very quickly. They were capable of putting a torpedo into a portfolio. Then, companies that fell into that category appeared easy to spot. ...
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Julian Gibbs
21 Nov 2002
Julian Gibbs, veteran commentator, former leading broker and bon viveur is 70 next week, clocking up half a century in UK financial services in the process. Gibbs has been with Money Marketing since its foundation in 1985. His mission was "to write about the good things",a tradition that continues in his investment column today. The young Gibbs was let loose in the City in the 1950s following National Service as an officer in the Green Jackets, including a year in Germany. He first ...
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Julian Gibbs
21 Nov 2002
NDF is offering another ingenious plan called 7+7. Plan assets are invested with Abbey National Treasury Services. The plan allows investors to invest up to 50 per cent of their investment in a 7 per cent one-year fixed-return plan with full capital security. The return is treated as a capital gain and is, therefore, an ideal tax-free investment for those unlikely to use up their CGT allowance next year. The other half is invested in a three-year stockmarket-linked plan giving 7 per ...
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Labour MP calls for automatic pensions
21 Nov 2002
Labour MP James Purnell is setting out a plan for a "third way" on pension contributions which would see all adults automatically enrolled in a private scheme unless they opt out. Purnell, a member of the work and pensions select committee which is conducting an inquiry into the future of pension policy, calls his alternative a "presumption to save" and says it lies between voluntary and compulsory and could dramatically increase contributions. The idea was floated in a debate ...
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LIA set to name director general
21 Nov 2002
The LIA is understood to have chosen former Sun Life of Canada divisional director Mark Oomanney as successor to chief executive Jeff Travis. The appointment is not expected to be finalised until January but sources say it is unlikely there will be any obstacles to the appointment in the new role of director general. It is believed the creation of the role is to allow Oomanney a clean slate and to bring the LIA in line with the structure of rival bodies. Oomanney left Sloc, ...
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Lifeboat has taste for expansion with A La Carte network
21 Nov 2002
Lifeboat Financial Group is set to launch an IFA network called A La Carte in January. The move is the latest in the group's plans for expansion in the run-up to seeking two product provider buyers for 9.9 per cent stakes in the business in the second quarter of next year. A La Carte has a transparent charging structure and all members pay charges of 9.9 per cent of commission earned across the board. It will also offer members share ownership and hopes to set itself apart from ...
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London Life looks for Equitable transfers
21 Nov 2002
AMP London Life has come under attack for a mailing which puts itself as an alternative for Equitable Life policyholders. The company sent letters to Equitable policyholders to coincide with the interim report setting out cuts to with-profits annuities and warning of Equitable's precarious financial position. In its mailing, London Life introduces itself as established in 1806 and says it does not pay commission to its advisers or support staff. Equitable Life was well known ...
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London Life looks for Equitable transfers
21 Nov 2002
AMP London Life has come under attack for a mailing which puts itself as an alternative for Equitable Life policyholders. The company sent letters to Equitable policyholders to coincide with the interim report setting out cuts to with-profits annuities and warning of Equitable's precarious financial position. In its mailing, London Life introduces itself as established in 1806 and says it does not pay commission to its advisers or support staff. Equitable Life was well known ...
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Majority of IFAs support retirement age increase - Axa
25 Nov 2002
A strong majority of IFAs would support an increase in retirement age to 70 from the current 65 according to research from Axa.
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Merrill Lynch searches for growth
21 Nov 2002
Merrill Lynch Investment Management has established the MKIF European growth fund, a Luxemburg-based Sicav which invests in European large and mid-caps.
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Mind the gap
21 Nov 2002
Last week, I was back in my home town of Glasgow for a friend's 50th birthday. Back in 1978, we were just starting our training as inspectors with Sun Life, so next year we will have been talking pensions to each other for 25 years. Perhaps we should give each other a silver anorak? This led me to consider whether the savings gap is a new phenomenon or if it is just a new name for an old problem? I would contend that most people are motivated by short-term rather than long-term ...
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Module behaviour
21 Nov 2002
Back in the 1980s and early 1990s, the words "flexible protection" would probably have conjured up visions of the all-singing and all-dancing unit-linked whole-life plans that were so popular at that time. However, the financial services world has moved on a long way since then and today the menu-based term insurance cover packages have largely taken over. They now account for a large proportion of IFAs' protection sales. A typical package should give an adviser's clients ...
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More providers want to relocate admin overseas
26 Nov 2002
Two thirds of senior life company executives believe they will relocate part of their operations overseas, according to a survey by software house Marlborough Stirling. The research found 40 per cent of life company executives thought moving operations oversees would improve customer service operations, with 44 per cent saying it would make no difference and 16 per cent saying service would get worse.
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Mortgage 2000 adds Future Mortgages to its lender panel
25 Nov 2002
Mortgage 2000 has added specialist lender Future Mortgages to its m2-mortgage club panel. This brings the total number of lenders on its panel to 28 which it says account for about 90 per cent of the mortgage market. Future says this move is a sign of its commitment to intermediaries which are the foundation and future of its business.
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MPs urge FSA to act on mutual PI system
21 Nov 2002
Support for a mutual professional indemnity insurance fund for IFAs is growing after FSA chairman Howard Davies told the Treasury select committee there are arguments for such a system. Davies' comments come with select committee member Labour MP Jim Cousins urging the FSA to champion such a scheme, warning that, unless it is implemented, the sector will disappear as it cannot afford escalating PI premiums. Cousins predicts that without the lead of the regulator supported by ...
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MPs urge FSA to act on mutual PI system
21 Nov 2002
Support for a mutual professional indemnity insurance fund for IFAs is growing after FSA chairman Howard Davies told the Treasury select committee there are arguments for such a system. Davies' comments come with select committee member Labour MP Jim Cousins urging the FSA to champion such a scheme, warning that, unless it is implemented, the sector will disappear as it cannot afford escalating PI premiums. Cousins predicts that without the lead of the regulator supported by ...
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MX Moneyextra launches online budget analysis
22 Nov 2002
Financial website MX Moneyextra.com is providing a run-down of the economy and the likely tax measures that are expected to be included in the pre-budget report.After Gordon Brown's speech on November 27, Mx Moneyextra's team of analysts will also summarise and review the proposals.Information can be found at www.moneyextra.com/prebudget2002
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N&P offers cruise prize to promote tracker mortgage
21 Nov 2002
Norwich & Peterborough Building Society is promoting its tracker mortgage with a competition giving homebuyers the chance to win a Caribbean cruise. It says people wanting to enter the draw should call into a N&P branch or click onto its website by January 13 to find out more about its tracker product and take part in the competition. The tracker is linked to Bank of England base rate, currently 4 per cent, for the life of the mortgage. It is set at a percentage above the ...
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No relief for self-employed
21 Nov 2002
Pensions are deferred pay. The proposition for removing tax relief on pension contributions would split the working population into two halves. First are those in final-salary schemes, whether defined-benefit or defined-contribution, where there would be no increased taxation. Second are the self-employed, who make their own provision, who would suffer an increase in taxation from this proposition. It is interesting to note that those who put forward the proposition are members ...
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No retrospection for misselling - FSA
22 Nov 2002
FSA chairman and chief executive Howard Davies promised IFAs they will no longer be held accountable by retrospective changes to rules.
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Norwich union continues to prosper
20 Nov 2002
Norwich Union has established the second issue of the Prosper income bond, which is a guaranteed equity bond with a four-year term.
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Nothing like a Dame...
21 Nov 2002
The Diary brings news that a Mr Peter Williams, head of industry development at Aegon, has been passing himself off as a 54-year-old female divorcee with an underperforming endowment. The news shocked those gathered at the Woman IFA of the Year awards at Canary Wharf in London last week. It was made public by none other than the first Woman IFA of the Year herself, Viv Belcher of Hornbuckle Mitchell, Knutsford, Cheshire. However, fans of vaudeville were disappointed to hear that ...
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Out of context
21 Nov 2002
•"He's obviously not going to the gym enough judging by his cartoon." - Mainland PR Simon Astley on the cartoon of colleague Andrew Appleyard's in the Diary. •"I liked the company so much I bought It." - Skipton Building Society group commercial director Alan Scotter about new purchase PMI intermediary. •"Aren't you Mark Dampier from Hargreaves Lansdown?" - A London cabbie star-spots Dampier •"I won't even mention Basel, not as a Liverpool supporter." ...
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Outside edge
21 Nov 2002
When a star dies, gravity prevails and it falls in on itself. The outer parts are blown away, leaving a crushed core which, depending on the star's original mass, may not even then stop collapsing. It becomes a black hole, drawing in all around it. Although it may be easy to infer from some reports that the recent suspension of shares in 19 out of a total 136 split-capital investment trusts heralds the imminent demise of the entire sector, that conclusion is unlikely. Similarly, ...
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Paragon MD appointed IMLA chairman
26 Nov 2002
The Intermediary Mortgage Lenders Association has appointed Paragon Mortgages managing director John Heron as chairman for 2003. He takes over from Britannic Money chief executive Tony Ward who has been chair for the past two years. Kensington Group chief executive John Malty becomes vice chairman. Heron says he will ensure Imla plays a vital role in a meaningful debate on mortgage regulation and other Government measures.
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Pension friends disunited
21 Nov 2002
John and Pete were the best of friends from school onwards. John went to work for a big engineering firm while Pete eventually set up as an IFA. John was made redundant at 35, with a lump-sum severance settlement and a preserved pension in his employer's final-salary pension scheme. He went to his old friend for advice. Pete suggested he clear some of his mortgage, invest some of the balance of his lump sum and, after a careful comparative analysis by the best known standards ...
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Pensions need a lifetime lifeline
21 Nov 2002
It is widely agreed that there is a crisis in pensions. The Government has made many mistakes but there are other factors that have contributed to the crisis. The closure of finalsalary schemes to new members is partly a response to changes in the labour market, for example. Improvements in longevity are another factor. But this makes it all the more important that Governments get it right with the things they do control. Unfortunately, the Government has made a difficult situation ...
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Picking up the pension points
21 Nov 2002
I believe the card-based savings and pension system devised by myself and inventor Kerr Dunlop is the answer to the savings and pension mess we find ourselves in at the moment in the UK. We believe passionately in our system and have registered it with the UK Patent Office. Our scheme allows the consumer to contribute to their savings or pension in two ways. First, by converting bonus and loyalty points into cash and by having a little flutter with a prize draw savings scheme similar ...
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Portman fixes for three years and caps for five
21 Nov 2002
Portman Building Society is introducing a new range of mortgages which it says are designed for borrowers wanting to take advantage of the continued low interest rate environment. New products with a maximum LTV of 95 per cent are a three-year fixed mortgage with a rate of 4.14 per cent and a five-year product capped at 4.79 per cent. Portman's standard variable rate is currently 5.65 per cent. On the five-year capped mortgage there is a fees-free option which gives it a rate ...
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Premier Fund Managers - Premier Protected Growth Plan
22 Nov 2002
Friday, 22 November 2002 Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £7,000-£1mTerm: Three, four, five or six yearsGuarantee: Capital returned in full regardless of the performance in the indexReturn: Three year term 21% growth at end of term, four year term 36% growth at end of term, five year term 55% growth at end of term, six year term 100% average 6th ...
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Protect and thrive
21 Nov 2002
Becoming a household name in the protection market is not as tricky as it used to be. Even supermarket chains are beginning to get in on the act. The Abbey National takeover of Scottish Provident in 2000 sparked a protection boom that blew open the market for new providers. The market can now be broadly divided into three sections: •Old school providers such as Scottish Provident, Friends Provident and Legal & General. •New recruits such as Scottish Equitable ...
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Protection brokers hit by huge laundering check costs
21 Nov 2002
Protection brokers are facing huge costs on money laundering requirements introduced on September 1, with two companies reporting total costs of £400,000 over the coming year. Providers and brokers say there is no justification for the checks, which were previously only required for investment business, to be applied to protection as there is little chance of term insurance being used to launder money. Two leading protection brokers, Direct Life & Pensions and Lifesearch, ...
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Return to returns
21 Nov 2002
3d Consulting is running its fifth annual series of three-day workshops on FSA returns in December and January. They are designed for finance directors, actuaries, accountants, financial controllers, auditors and compliance and regulatory reporting officers. The workshops will include a mix of lectures and practical exercises which will take delegates through the complexities of reporting requirements and will also allow time to explore issues pertinent to individual businesses. Topics ...
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RJ Temple warns young not to miss out on equities
26 Nov 2002
Millions of younger savers risk losing out on tens of thousands of pounds by shunning stock market schemes over the longer term, says national IFA RJ Temple.
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Sell-off plea as Equitable Life slashes annuities
21 Nov 2002
Annuity Direct director Stuart Bayliss is calling on Equitable Life to sell its term insurance and conventional annuity business and liquidate its remaining assets amid fears that the stricken insurer is edging closer to insolvency. In its interim report last week, Equitable cut annuities by up to 30 per cent and disclosed that it could breach regulatory solvency margins. It says its assets exceed its liabilities by only £400m. The FSA requires a buffer zone of 4 per cent ...
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Sell-off plea as Equitable Life slashes annuities
21 Nov 2002
Annuity Direct director Stuart Bayliss is calling on Equitable Life to sell its term insurance and conventional annuity business and liquidate its remaining assets amid fears that the stricken insurer is edging closer to insolvency. In its interim report last week, Equitable cut annuities by up to 30 per cent and disclosed that it could breach regulatory solvency margins. It says its assets exceed its liabilities by only £400m. The FSA requires a buffer zone of 4 per cent ...
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Single buyers take 40% of mortgages
21 Nov 2002
Single people are the fastest growing category of mortgage borrower, accounting for 40 per cent of all mortgage loans despite only making up 27 per cent of households, according to Charcol. The finding comes from a new report produced for the national broker by analyst Capital Economics, called The Power of One. It examines historical industry data, such as mortgage borrowing and purchaser type, and includes a survey of single owners' behaviour and attitudes. It says four ...
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Skipton buys stake in PMI partnership
21 Nov 2002
Skipton Building Society has bought a specialist private medical insurance intermediary, the Private Health Partnership. The deal sees it taking an 85 per cent stake in the Yorkshire firm which has two partners. PHP will keep its brand name and remain independent but will benefit from investment from Skipton. This is Skipton's first move into the private medical insurance intermediary market although it owns 15 other intermediary subsidiaries. PHP was set up in 1988 ...
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SLI launches UK opportunities fund
26 Nov 2002
Standard Life Investments is this week launching a UK opportunities fund investing in small and medium-sized stocks with market capitalisations from £10m to £2bn. Managed by Mark Niznik, who joined SLI from Invesco Perpetual in April, the fund will seek long-term returns by using fundamental research-driven analysis of UK equities in the FTSE 250 and FT small cap indices. I has an initial charge of 3.5 per cent and annual management charge of 1.5 per cent. The minimum investment ...
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Stakes and pains of unprofitable business
21 Nov 2002
Like many IFAs before them, the two biggest stakeholder providers, Standard Life and Norwich Union, are pulling away from low-premium individual business. The two heavyweights have been slugging it out for market share for a year. But they feel it is time for a breather, leaving the main players in the Government's target market as Legal & General, Scottish Widows and Friends Provident, with Virgin Money also making a play. Axa has also made it clear that it is focusing on corporate ...
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Standard Life adds to Oeic range
22 Nov 2002
Standard Life Investments has introduced the UK opportunities fund, the 18th fund in its Oeic range.
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Standard Life Investments - UK Opportunities Fund
25 Nov 2002
Monday, 25 November 2002Type: OeicAim: Growth by investing in FTSE 250 companies and FT small cap companiesMinimum investment: Lump sum £500, monthly £50Investment split: FTSE 250 companies 50%, FT small cap companies 50%Isa link: YesPep transfers: YesCharges: Initial 3.5%, annual 1.5%Commission: Initial 3%Tel: 0131 245 5935
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Standard Life Investments launches UK opps fund
25 Nov 2002
Standard Life Investments is this week launching a UK opportunities fund investing in small and medium-sized stocks with market capitalisations from £10m to £2bn. Managed by Mark Niznik, who joined SLI from Invesco Perpetual in April, the fund will seek long-term returns by using fundamental research-driven analysis of UK equities in the FTSE 250 and FT small cap indices.
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Standard sets its staff a challenge for charity
21 Nov 2002
Standard Life hopes to raise over £250,000 for three charities by encouraging staff to support its Give it Life initiative. The three charities - chosen by Standard Life employees - are the Breast Cancer Campaign, Prostate Cancer Charity and Royal National Institute for the Blind. Representatives from all three charities were at Standard Life's main offices in Edinburgh last week to explain their work and how donations are spent. Standard Life is proposing that each ...
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Standard slashes equity holdings
21 Nov 2002
Standard Life has dramatically changed the shape of its with-profits fund, according to its annual life and pension investment report. The equity-backing ratio of the £35bn fund has been cut from 71 per cent in September 2001 to around 53 per cent. The company says the current growth of units in its with-profits fund is 4 per cent a year, a fall of 0.5 per cent on the previous year. The top 10 holdings in the with-profits fund in order of size are: BP Amoco, Glaxo SmithKline, ...
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State of affairs
21 Nov 2002
I have recently received a forecast of my state pension entitlement from the Department for Work and Pensions, having completed form BR19 at your suggestion. This has merely brought home to me how little I understand about how the state pension system works. I would be grateful for a simple summary. Can you help? The state pension system does not lend itself to a simple explanation as there are numerous permutations and small details can have a significant affect on the retirement ...
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Survey shows shift on benefit expectations
21 Nov 2002
A survey by online stockbroker comdirect shows that more people are starting to realise that they may not be able to rely on the Government to provide for them. Only 29 per cent believe they can still depend on the Government to fund their pension while 53 per cent think the NHS will care for them for the rest of their lifetime. People are less optimistic about long-term care, with only 25 per cent expecting free provision although there are distinct regional variations. Only 18 ...
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SVM sees opportunities in the UK
21 Nov 2002
UK Opportunities FundType: Oeic Aim: Growth by investing in medium and smaller UK companies Minimum investment: Lump sum £1,000 Investment split: 100% in medium and smaller UK companies Isa link: Yes Pep transfers: Yes Charges: Initial 5.25%, annual 1.5% Commission: Initial 3%, renewal 0.5% Tel: 0800 0199110Broker panel: Michael Gilbey, managing director, Atlantean Financial Management, Andrew ...
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Take up the LIA challenge
21 Nov 2002
The aim of the President's Challenge 2002/03 is for 100 teams to participate over the challenge period (November 2002 to April 18, 2003) and raise in the region of £500,000 to fund a new hospital unit for the Teenage Cancer Trust. The challenge is to put together a team of eight and raise sponsorship of at least £500 each. You will then spend 48 hours competing in a number of events at Barton Hall, a specialist activity centre in Torquay, Devon. Activities include: Abseiling, ...
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Talkback
21 Nov 2002
"No. Because nobody is going to sell it and there is no money in it." Craig Richardson, Falkirk Independent Financial Consultants "No. Insurance companies are not making enough money from the 1 per cent world. Why doesn't the Government set up its own insurance company to sell loss-making products?" Mike Dear, Mike Dear Independent Life Assurance Investment &Pension Adviser "Yes. I believe there is a market for it but I do not see it deliberately targeted at IFAs." Nigel ...
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Thames River Capital - Thames River Edo Fund
21 Nov 2002
Thursday, 21 November 2002Type: OeicAim: Growth by investing in Japanese equitiesMinimum investment: Lump sum $100,000 class A shares, Euro 100,000 class B shares, Yen 1.2m class C sharesPlace of registration: Cayman IslandsInvestment split: 100% in Japanese equitiesIsa link: NoCharges: Initial up to 5%, annual 1.5%Commission: Initial 3%Tel: 020 7440 0840
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The code for the e-road
21 Nov 2002
Many of the bigger IFA firms are gaining access to new capital with the regulatory regime ready to remove the better than best advice restrictions, making it possible for providers to take unlimited stakes in IFA firms when previously they were only allowed to own less than 10 per cent of any individual IFA. Providers are looking to increase their stakes in IFAs. This will give the bigger IFA operations their first real opportunity to update systems, moving to highly automated electronic ...
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The wind-ups of change
21 Nov 2002
My previous two articles on pensions tried to focus on what is wrong with our pension system, why changes are needed and what changes might be beneficial and acceptable to the public and the Treasury. Above all, any changes that are adopted must be in the long-term national interest. It is important that the pension system is not run in isolation from the overall economic order. I believe the only way to achieve total simplification of pensions will be to draw a line under existing ...
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Third of savers 'too apathetic' to switch products
21 Nov 2002
Consumers are losing out because they cannot be bothered to switch to better savings products, according to research by Virgin One. The lender's Inertia index, which gathers the views of 1,000 adults across the UK, shows that 39 per cent of people think their money would work better for them if they changed accounts. Yet 75 per cent of these - equal to 30 per cent of all savers - do not intend to do anything about it. Nineteen per cent of savers have never even considered that ...
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Three-year date with Destini to be a top national IFA
21 Nov 2002
Destini Financial Services, a new national IFA, is launching with the aim of breaking into the top 25 IFAs within three years through an ambitious acquisition programme. It is targeting profitable and mature medium-sized IFAs with a turnover of above £500,000. Although the firms are being bought out for a mix of cash and shares, the national Destini branding will be used alongside established local identities. The firm has already acquired three firms and is in talks with ...
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Three-year date with Destini to be a top national IFA
21 Nov 2002
Destini Financial Services, a new national IFA, is launching with the aim of breaking into the top 25 IFAs within three years through an ambitious acquisition programme. It is targeting profitable and mature medium-sized IFAs with a turnover of above £500,000. Although the firms are being bought out for a mix of cash and shares, the national Destini branding will be used alongside established local identities. The firm has already acquired three firms and is in talks with ...
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Tiner says most life offices have passed resilience test
21 Nov 2002
There has been no regulatory reason for life offices to sell equities as a result of the recent stockmarket turbulence as most have remained well within the boundaries of the life insurance resilience test, according to FSA managing director John Tiner. Answering a question from the select committee about the continuing strength of the embattled life insurance sector, Tiner said most life offices have not failed the test. The resilience test was introduced in June and provided ...
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Tiner warns of buy-to-let dangers
21 Nov 2002
The FSA has warned that the buy-to-let market could fall as quickly as it rose and is one of two areas of most concern despite falling outside its remit when it regulates mortgages from 2004. At the Building Societies Association annual lunch last week, FSA managing director consumer, investment and insurance John Tiner warned that "two main areas of concern are buy to let and commercial lending". He pointed to an increasing tendency for lenders to offer high loans to value. The FSA ...
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Tiner warns of buy-to-let dangers
21 Nov 2002
The FSA has warned that the buy-to-let market could fall as quickly as it rose and is one of two areas of most concern despite falling outside its remit when it regulates mortgages from 2004. At the Building Societies Association annual lunch last week, FSA managing director consumer, investment and insurance John Tiner warned that "two main areas of concern are buy to let and commercial lending". He pointed to an increasing tendency for lenders to offer high loans to value. The FSA ...
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Tories bid for private bill to reform annuities
21 Nov 2002
The Conservative Party says one of its backbench MPs is likely to table a private members' bill on annuity reform after this week's Parliamentary draw determining who gets a chance to put forward legislation. Shadow Work and Pensions Secretary David Willetts says the party expects a backbench MP to table a bill at the first available opportunity. Backbench MPs who want to bring forward a private member's bill are entered into a draw. Any bill would be similar to Tory MP ...
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Understanding underwriting
21 Nov 2002
It has been said that submitting applications to life offices is like entering a black hole - a frightening experience in that you have just lost control and, even worse, it feels like the provider's back office has also lost control. At a recent seminar by US underwriting guru Hank George, a schematic was used comparing banks operating on a transactional level with life insurance companies operating on a seasonal level - you apply in the autumn and get your commission in the spring. ...
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Wesleyan completes revamp
21 Nov 2002
Wesleyan Assurance has completed a six-month restructuring of its marketing team to keep pace with the changing financial climate. The new-look team is the brainchild of head of marketing Jo Cardwell, who was appointed early in 2001 to reorganise the marketing department to improve efficiency. Job descriptions and staff structures were assessed and a series of new appointments made to meet the demands of an increasingly busy department that has recently overseen the launch of three ...
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Widows' Graham and Hogg to retire after restructure
21 Nov 2002
David Graham and Sandy Hogg are both set to retire at the same time after 37 years at Scottish Widows following an internal review of the company's management structure. Brand and network development director Graham, 56, and IFA sales director Hogg, 53, will leave by the end of the year despite both being offered new roles. Widows says they are leaving on good terms. Robert Wyllie becomes intermediary and partnerships director and will lead the company's push in the depolarised ...
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Wig gets ahead / Dual control
21 Nov 2002
The IFA sisters are doing it for themselves in the immortal words of Annie Lennox. The Women's IFA Group has accelerated from a handful to a staggering 700 members in a year and selected the first woman IFA of the year, Viv Belcher. The organisation, founded by Fiona Price, encompasses around half of the UK's female advisers and has sent a warning message to the vast majority of their colleagues - the men - that women are on the march. Although we doubt that the male ...
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Will Bedlam start a new craze?
21 Nov 2002
Bedlam Asset Management, the fund company named after a lunatic asylum, has in its short life generated almost as many headlines as New Star did when it launched last year. Unlike the much hyped New Star, however, Bedlam boasts no star fund managers, no particularly exotic funds and no John Duffield. It is also launching at the worst possible time for a fund manager. So why the blaze of publicity? The name, derived from the notorious medieval hospital in the City of London, is ...
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Winterthur adds two Threadneedle funds to investment bond range
26 Nov 2002
Winterthur Life is adding the Threadneedle strategic bond fund and Threadneedle European select growth fund to the range of funds available through its new investment bond product.
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Winterthur Life - Investment Bond
20 Nov 2002
Wednesday, 20 November 2002Type: Unit linked bondAim: Growth by investing in a choice of 50 funds and seven managed portfolios from Artemis, Baillie Gifford, Credit Suisse, Dresdner RCM, DWS, Exeter, Fidelity, First State, Gartmore, Investec, Invesco Perpetual, Jupiter, Liontrust, M&G, New Star, Newton, Norwich Union, Schroder, Threadneedle and WinterthurMinimum investment: Lump sum £15,000Fund links: Choice of 50 funds from Artemis, Baillie Gifford, ...
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Winterthur makes multi-manager bond debut
21 Nov 2002
Winterthur Life has created its first multi-manager unit-linked bond, which is available to investors with at least £15,000.
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Witan Investment Trust - Witan Single Contribution Pension
25 Nov 2002
Monday, 25 November 2002 Type: Personal pensionMinimum premium: Lump sum £3,600, monthly £234Minimum-maximum ages: From birth-75Fund links: Witan investment trustCharges: Purchases - dealing 0.2%, transaction £6, sales - dealing 0.2%, transaction £50Allocation rates: Premium minus £50Minimum term: One dayCommission: NoneTel: 0800 0828180
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Xmas volunteers wanted at Manchester drop-in base
21 Nov 2002
CIS is backing a campaign by charity Lifeshare to recruit volunteers for its drop-in centre for the homeless at Christmas. Every year, the Manchester-based charity runs a centre for 10 days which serves over 5,000 hot meals. Lifeshare is looking for 200 volunteers and donations of food, presents, toiletries, winter clothing or money. It is holding training sessions in early December. Spokeswoman Debra Molyneaux says: "We need to recruit around 200 volunteers for the project ...
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Zurich FS appoints O'Sullivan as finance director
26 Nov 2002
Zurich Financial Services has appointed Patrick O'Sullivan as its new group finance director. He reports to group chief executive office James Shiro and assumes responsibility for all group finance issues. O'Sullivan was previously chief executive of general insurance and banking of Zurich's UK Ireland and South Africa division. That position will now be occupied by Geoff Riddell.
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Zurich is shutting Eagle with-profits for smooth fund
21 Nov 2002
Zurich Financial Services is to shut the door on with-profits by closing its Eagle Star fund and replacing it with what it says is an innovative smoothed equity fund. The fund, designed with an unnamed major bank, will offer a transparent daily price and a guarantee of 80 per cent of an investment's highest value, made possible by equity and cash switching techniques. Eagle Star's current fund 100/0 fund replaced its £3bn traditional 90/10 fund which closed in 1995. ...
