Money Marketing
3 December 2003

  • 'Blair wants lifetime limit to be eased'

    4 Dec 2003

    The Prime Minister is understood to be calling on the Treasury to relax the proposed £1.4m lifetime limit for executives whose companies contribute to pensions for their staff. The Treasury is continuing to review whether the lifetime pension fund limit should be raised, indexed to wages rather than prices and whether funds over the limit should be returned less tax relief ahead of the publication of its pension simplification proposals next week. Money Marketing ...

  • 'CI guarantees will stay but become more expensive'

    4 Dec 2003

    Guaranteed rates will still be available in the critical-illness market in a year's time, according to Lifesearch senior technical adviser Kevin Carr. Following talks with reinsurers and providers, Carr says he is confident that guarantees will still be available next Christmas. In Lifesearch's inaugural quarterly protection market report, he warns that there are likely to be more rate changes in the new year, following 42 changes made this year by 16 key providers, ...

  • 'Focus on planning and delegate fund selection'

    4 Dec 2003

    Independent insurance analyst Ned Cazalet believes the time has never been better for giving independent advice. In his Life 2003 report, Cazalet says an increasingly older and wealthier population means that, despite difficulties such as increasing regulatory costs and falling commission levels, there are great opportunities for IFAs. However, he says many IFAs have been product pushers and are lacking the technical skills and resources to deal with an environment focused ...

  • 'Pension advice needs stochastic modelling'

    4 Dec 2003

    Financial advisers are ill-equipped to cope with customer enquiries on how proposed changes to occupational and personal pensions will affect their pen sion funds, says management consultant Tilling-hast-Towers Perrin. The company is warning that investors risk getting poor advice and could be missold due to advisers' lack of knowledge about changes such as the possible introduction of a £1.4m lifetime contribution cap on pension funds with excess taxed at 60 per cent. Tillingha

  • 'Reviewable rates may lead to unfair contract claims'

    4 Dec 2003

    The Financial Ombudsman Service is telling insurers to tread carefully on reviewable rate products such as critical illness to ensure they do not breach the unfair contract rules. Principal ombudsman Tony Boorman says he has raised the issue to generate debate but the FOS has no official policy in the area and has not received any complaints. The concerns relate to consumers not understanding that a product is reviewable. The ombudsman is thought to be concerned that ...

  • 'Small pension funds squeezed out of Omo'

    4 Dec 2003

    An employee benefits consultant says Legal & General's decision to raise its minimum fund requirement for annuity purchase from £1,000 to £5,000 could hit tax-free cash and block the open-market option. Standard Life is now the only provider to accept applications for open-market annuities for values under £5,000. Its minimum is £2,000. Jardine Lloyd Thompson says around 6 per cent of annuities it placed last year were for funds below or ...

  • 0.3% deal threatens to widen squeeze

    4 Dec 2003

    The deals that Standard Life has struck with the fund groups on its panel could lead to a crippling margin squeeze as rival platforms seek similar agreements with fund firms. Industry observers believe that by agreeing to run money at 30 basis points, as some groups are believed to have done, the panel members have prompted rival platforms to reassess their existing fee structure. Skandia, which has a renegotiation clause triggered when any group signs another deal undercutting ...

  • A consumer's view

    4 Dec 2003

    The wise men of the Treasury select committee are to conduct an inquiry into how to restore confidence in long-term savings and whether the Association of British Insurers' claim of a £27bn savings gap stands up to scrutiny. The obvious answer to restoring confidence is to have a different approach to regulation because, to date, the existing system of fines and disciplinary proceedings has totally failed to prevent even one disaster. The misselling of pensions ...

  • ABI says reforms will help customers to see the benefits of with-profits

    8 Dec 2003

    The ABI says the FSA has adopted much of its proposals for with profits reform in CP207 published this week, and says life offices are not treating customers unfairly at the moment.The FSA proposals call for the introduction of the publishing of targets for payouts, the application of MVRs to be limited to cases where there has been a significant change in the value of the fund's assets or surrenders are high and restrictions on distribution of surpluses. ABI director ...

  • Advice on authorisation

    4 Dec 2003

    The FSA, supported by the Institute of Financial Services, is holding a seminar to help firms wanting to become authorised. Being held in Manchester on December 17, the presentation is one of a series of events aiming to help firms identify the standards they need to meet in order to gain authorisation. The seminar also gives delegates a chance to discuss with the IFS changes to training and compliance and the new regulatory advice programme. Further details can be obtained at ...

  • Affordability is critical

    4 Dec 2003

    That old adage "life insurance is sold, not bought" still gets uttered today when the distribution of protection insurance comes up in conversation, although perhaps "recommended" rather than "sold" is the appropriate word these days. Customers still do not usually wake up thinking "I must buy some life insurance today." The same is true of critical-illness cover, which these days is an increasingly popular add-on or alternative to life insurance products. Affordability A ...

  • Another regulator for pension rescue

    4 Dec 2003

    A new pension regulator will form part of the pension protection scheme aimed at covering company schemes that have folded. The Queen's Speech last week set out plans to step up efforts to educate the public on pensions, including a website giving consumers access to details of their likely state pension entitlement. From 2005, employers will have to pay into a fund which will cover staff pensions if a firm becomes insolvent. Under the current rules, which ...

  • Axa: regional recruits plan to sign up further advisers

    4 Dec 2003

    Axa is believed to be looking to recruit an IFA firm in each region around the UK to co-ordinate the recruitment of further advisers as part of its plans for creating multi-ties following depolarisation. The company intends to use the experience it has obtained through sister companies in non-polarised nations and from running a tied agency network and direct salesforce to develop a distinctive multi-tie proposition, Money Marketing understands. Further details of Axa's ...

  • Berkeley Berry Birch reduces losses

    3 Dec 2003

    Berkeley Berry Birch has reduced its pre-tax losses by 23 per cent to £3.8m for the six months to September 2003, compared to £4.9m for the same period last year. The Berkeley Independent Advisers network subsidiary has seen its RI numbers grow to 671 from 584 in six months bringing total groupwide RI numbers to 830.

  • Big five set to tighten grip on with-profits bonds

    4 Dec 2003

    Five companies took two-thirds of with-profits bond business in 2002, up from half in 1999, says the Life 2003 survey. Principal Ned Cazalet says the trend will increase as more than a third of companies, each responsible for generating at least £20m of direct sales last year, have stopped or are planning to stop actively writing new business. The report shows that the top five players took 66.8 per cent of market share last year, writing £6.9bn in new business. ...

  • Borrowers do not understand long-term risk says Miles

    9 Dec 2003

    Mortgage borrowers attach much more weight to the initial monthly repayments they will have to make rather than the overall cost of their loan over its entire term, Professor David Miles has concluded in his interim report published by the Treasury today.The Miles Review of the UK Mortgage Market says that borrowers have a poor understanding of risk and pay scant attention to the security and insurance long-term fix rate mortgages could offer them, providing protection against ...

  • Bristol & West - Global Income & Growth GEB

    3 Dec 2003

    Type: Guaranteed equity bond and choice of two high interest accounts GUARANTEED EQUITY BONDAim: Growth linked to the FTSE 100, Nikkei 225, SMI and S&P 500 indices Minimum-maximum investment: £2,500-£1mTerm: Seven yearsGuarantee: Capital returned in full at end of term regardless of movement in indices Return: Up to 70% growth in indices HIGH INTEREST ACCOUNT Fixed Income BondMinimum-maximum ...

  • BSA chief says industry will rue 'unnecessary' regulation

    4 Dec 2003

    Building Societies' Association chairman and Skipton chief executive John Goodfellow has hit out at the FSA over mortgage regulation, saying it is totally unnecessary and will be regretted by the industry. Speaking at the CML's annual conference on Tuesday with FSA chief executive John Tiner and chief financial ombudsman Walter Merricks, Goodfellow told delegates the industry is shooting itself in the foot with statutory regulation. He said: "I think that regulation ...

  • Canada Life revamp focuses on IFAs

    4 Dec 2003

    Canada Life is restructuring its sales process to focus on helping IFAs. The move comes as the company raises its individual income protection rates by an average of 40 per cent to stem demand while it carries out a review of the product. The restructure sees Canada Life cut its account managers from 65 to 55. They will work through six core teams across the UK and supplemented by specialist sales teams for offshore business and onshore retirement income and inheritance ...

  • Cazalet foresees more mergers and closures

    4 Dec 2003

    The life and pension sector will continue to be a hotbed of merger and acquisition activity, according to Cazalet Consulting's Life 2003 report. In a round-up of major life offices, principal Ned Cazalet says now could be a good time for Skandia to sell its UK business. He says establishing Skandia Investment Management to provide manager of manager services was well timed to "surf the sea-change" in the IFA business model in favour of outsourcing manager selection. Cazalet ...

  • Chelsea Building Society - 2 year Fixed Rate Option (3rd Issue)

    8 Dec 2003

    Type: High-interest accountMinimum-maximum investment: £1,000-£500,000Term: Until February 14, 2006Interest rates: 4.75% gross a year, 4.65% gross a monthOffer period: Until further noticeWithdrawal penalties: Loss of 90 days' interest during the termTel: 0800 429429

  • Chelsea Building Society - 3-Year Fixed Rate Option (3rd Issue)

    5 Dec 2003

    Type: High-interest accountMinimum-maximum investment: £1,000-£500,000Fixed term: Until February 14, 2007Fixed rate: 5.15% gross a year, 5.03% gross a monthWithdrawal penalties: Loss of 90 days' interest during the termTel: 0800 429429

  • Chelsea launches children's saving account

    9 Dec 2003

    The Chelsea Building Society is launching a new children's account available at 4 per cent gross pa. It will offer instant access with a minimum opening balance of £1 with a maximum of £5000.

  • Child trust funds still face uncertainty on charges

    4 Dec 2003

    The final shape of the child trust fund remains unclear. The joint Treasury and Inland Revenue team has taken more than two years to develop the proposals but has failed to conduct any qualitative research on who will use the funds. A bill was included in the Queen's Speech but no decision has been made on charges. Several major providers have said they would be unwilling to make a commitment to the funds if they are forced to offer them at 1 per cent. The ...

  • Close Fund Management launches Japan fund

    8 Dec 2003

    Close Fund Management is launching a Japan accelerated performance fund aiming to provide capital protection and enhanced return on the Nikkei 225 index over six years. The fund, which is open until December 11, is designed to offer five times the growth of the Nikkei subject to a maximum return of 100 per cent. Unless the index falls to below 50 per cent of its starting level, investors' capital is fully protected.

  • CML urges Government to intervene positively in housing market

    3 Dec 2003

    At the Council of Mortgage Lenders' annual conference yesterday director general Michael Coogan said the Government should resist the temptation to intervene in the housing market unless intervention would result in lower costs, major efficiency gains, practical market improvements, or an increase in sustainable home-ownership.He said: "It must be tempting for any Government to see the housing market as a cash-cow. But the reality is that home-owners are disadvantaged in terms ...

  • Correspondent's week

    4 Dec 2003

    Christmas is all around at Canary Wharf, home of the Daily Mirror, as artificial trees have been put everywhere over the weekend and the central atrium is festooned with strange pine cone and glitterball arrangements. It is terribly festive unless you are at the FSA, which has not yet joined in although I am sure there is loads of goodwill to all. Monday also marks the third day of English Rugby World Cup celebrations and even Scots like me must rejoice. There are only ...

  • Countrywide proposes sale of life assurance operations

    5 Dec 2003

    Countrywide Assured has proposed the sale or demerger of its life assurance operations. It believes there is no longer any compelling reason for the life business to remain part of the group, as the capital requirements and investment propostions of the two businesses are entirely different.It says that since it substantially closed the life business to new business in August 2002 it has been approached by a number of interested parties. It will make a choice between a demerger ...

  • Credit will be a liability

    4 Dec 2003

    Making financial decisions is never easy. There is always a lot of thinking to do, whether the decision is which fund to buy, which pension vehicle to choose in planning for retirement or whether to invest those extra savings in the stockmarket or property. But the big decision that working-class Britain will be forced into thinking about before long is whether or not to save for retirement. It seems like a simple enough decision but the recently introduced pension credit has, ...

  • Disappointment for AITC as sales dip in third quarter

    4 Dec 2003

    Sales of investment trust saving schemes fell by 5 per cent to £48.7m in the third quarter of 2003 from £50.5m in the same period last year. Figures from the AITC show sales of investment trust Isas were down by 10 per cent to £12.2m £13.5m. The global growth investment trust sector accounted for 55 per cent of saving schemes sold in the third quarter, up from 42 per cent in the second quarter, while 7 per cent of sales were in the UK growth and ...

  • Equities Outpace property Increase

    4 Dec 2003

    IFAs must urge investors not to chase flavour-of-the-month sectors such as property without looking at the bigger picture, says The Money Portal. TMP is concerned that investors are continuing to shun equities in favour of sectors it says are often at their peak, slowing or lagging behind other asset classes. As an example, it says from March to November, the FTSE All Share rose by 27 per cent while the Halifax house price index was up by less than 13 per cent. It says ...

  • Ethics row erupts over global resources fund

    4 Dec 2003

    Hargreaves Lansdown and the Ethical Investors' Group have clashed over the environmental credentials and investment case of First State's recently launched global resources fund. HL investment manager Ben Yearsley criticises EIG director Lee Coates' contention outlined in Money Marketing last week that few investors would choose the fund if they knew of the environmental costs. Yearsley questions if Coates has met First State's management team, which he says emphasises ...

  • Euro law could bring VAT on medical reports

    4 Dec 2003

    Insurers are at risk of being hit with a bill for VAT on medical reports following a clarification of the European sixth directive on VAT issues in the European Court of Justice. At present, UK law states there is no need to charge VAT for services provided by certain categories of people, such as registered medical practitioners. But the clarification says such activities are only exempt if undertaken with a therapeutic aim. ABI taxation manager Leigh Francis says this ...

  • Fidelity slows with the flow

    4 Dec 2003

    As the world's biggest privately owned fund company, Fidelity has for many years blazed a trail for rivals to follow. But there is a sense among some IFAs that its crown may be slipping as it begins to face increasingly stiff competition from its traditional challengers. The most immediate sign that things may not be going well is Fidelity's third-quarter net retail sales figures which stand at just £7m. In comparison, rivals such as Schroders and Newton had net retail ...

  • Flaws show in foundation for house sellers' packs

    4 Dec 2003

    Home information packs and home condition reports may finally be introduced in the next Parliamentary year with the inclusion of the Housing Bill in the Queen's Speech. The packs will require a seller to compile information about the property. Supporters say this will deter gazumping but critics believe that the information will become rapidly outdated and say the packs will increase the cost of buying and selling a house. The National Association of Estate Agents ...

  • Free test is offered to IFAs for Funds Library

    4 Dec 2003

    Hargreaves Lansdown is offering 600 IFAs and stockbrokers six months' free subscription to Funds Library, its online index of mutual funds. The online database, set for launch in the second quarter of 2004, has secured the support of 20 fund firms and covers over 410 retail funds. HL is presently embarking on a full technological development of the 20 groups, and expects to secure support from many other UK fund managers. At present the library contains data from managers ...

  • FSA in pledge to crack down on misselling by bank salesforces

    4 Dec 2003

    The FSA is pledging to come down hard on banks which fail to bring in controls to end misselling to customers who lack adequate financial product knowledge. Chairman Callum McCarthy warned delegates at the annual British Bankers' Association conference in London this week that the FSA would exercise its enforcement powers in a bid to stamp out the often encouraged irresponsible actions of salesforces. He said it was up to the banks' senior management to scrap incentives ...

  • FSA proposals for fair treatment of with profits policyholders

    5 Dec 2003

    The FSA has issued new guidelines for the fair treatment of with profits policyholders. The proposals include publishing target ranges for payouts and MVRs only applied if there has been either a significant change in the value of the fund's assets or if a high volume of surrenders has occurred or is expected.It also suggests restrictions on what firms can charge to their with-profits and that compensation for policy holders should be paid first from any inherited estate and ...

  • FSA warning it is set to swoop on equity release

    4 Dec 2003

    The FSA is warning that it will take swift regulatory action against firms which missell lifetime mortgages and says it has already seen evidence of poor financial promotion in the sector. Speaking at the Council of Mortgage Lenders' annual conference in London on Tuesday, chief executive John Tiner said there is clearly potential for misselling in the area of equity release and revealed that a review of the sector could be an early priority for the FSA. He told delegates ...

  • FSA warns about unauthorised firms

    9 Dec 2003

    The FSA has put out a warning about two unauthorised firms that have been actively targeting UK investors in the last few months. Firms trading under the name Jackson Cole and Smith Fairchild are not authorised and the FSA is warning investors that while these firms have not done anything illegal, caution is needed when dealing with unauthorised firms.FSA director of enforcement Andrew Procter says: "Companies contacting you out of the blue at work or at home offering to ...

  • FSA warns IFAs that promotions are trivialising pension unlocking

    4 Dec 2003

    The FSA is warning IFAs specialising in unlocking pensions at 50 that their marketing campaigns are unbalanced. The regulator is writing to firms to express concerns that TV and press campaigns do not adequately describe the risks involved and the long-term effects of a reduction in pension income. The FSA has written to senior management at around 10 firms saying the marketing of pension unlocking is emotive and light-hearted, with the effect of persuading consumers ...

  • Gilt fund uses derivatives

    4 Dec 2003

    Close Finsbury Asset Management has created a gilt fund that uses derivatives to enhance returns. The UK gilt fund is an offshore Oeic that will draw on the skills of fixed-interest specialist Charteris Treasury Portfolio Managers. Charteris was appointed manager of the fund because its investment philosophy is based around risk management. When selecting gilts, Charteris will use Giltsoft, an analytical tool it has devised to look at yield curves. Yield curves indicate the relationship ...

  • Graham Bates

    4 Dec 2003

    Graham Bates is a firm believer in the IFA as entrepreneur. The extrovert founder of Leeds IFA Bates Investment Services has been setting up and running businesses since he was at school. He recalls sitting in the back of maths class working out calculations for his own enterprises - at the time a disco and a gardening business in which he employed his schoolfriends. Sure of his calling, after a year out, he went to Manchester Business School to do a course for entrepreneurs before ...

  • Grey areas in planning

    4 Dec 2003

    In my last few articles, I have identified, summarised and discussed the implications of some recent and upcoming pension developments. This week, I am moving on to a very recent bit of legislation which will not only have a massive impact on pensions but also on most other aspects of financial planning. The Government has recently confirmed that from December 2006 it will be illegal for employers to force an employee to retire on the grounds of age. The vast majority of employers ...

  • Head of fund groups summoned to FSA meeting

    8 Dec 2003

    The chief executives of leading fund groups have been summoned to a meeting with the FSA amid fears that the problems plaguing the US market have spread to the UK. FSA chairman Callum McCarthy is concerned that some fund managers have been the unwitting victims of late trading and market timing, which have been the subject of an investigation in the US. The FSA has conducted initial research but wants to inform fund managers how its own probe into will proceed.

  • Heated over cold-calling ban

    4 Dec 2003

    I see that the FSA is going to ban cold-calling in respect of mortgage marketing. Frankly, that is like telling the building industry that they are no longer allowed to mix concrete. The FSA says that "this follows in line with EU regulations, etc". Do you know what I intend to do in relation to this absurd new law? I am going to do what the French and Italians do - which is to ignore it. So what are the FSA going to do? Lock me up? I can hear the prosecution ...

  • Holloway Friendly Society - New Classic Plan

    8 Dec 2003

    Type: Individual income protection planMinimum benefit/premium: £50 a week/£2.13 a monthMinimum-maximum ages: 18-65Deferred periods One day, 4, 13, 26 or 52 weeksDefinition of disability: Own occupationOptions: choice of retirement ages 50,55, 60 and 65Commission: 150% of Lautro, 157.5% of Lautro for online applicationsTel: 0800 716654

  • Holloway goes universal

    8 Dec 2003

    HOLLOWAY FRIENDLY SOCIETYNEW CLASSIC PLANType: Individual income protection planMinimum benefit/premium: £50 a week/£2.13 a monthMinimum-maximum ages: 18-65Deferred periods One day, 4, 13, 26 or 52 weeksDefinition of disability: Own occupationOptions: choice of retirement ages 50,55, 60 and 65Commission: 150% of Lautro, 157.5% of Lautro for online applicationsTel: 0800 716654Holloway Friendly Society's ...

  • Home information packs only part solution - MS

    8 Dec 2003

    Marlborough Stirling says the introduction of home information packs is only a part solution to the problems that dog the home buying process. Mortgage consultant Nik Halton says: "HIPs should speed up the house buying process and make it easier for consumers. However, it is doubtful as to whether they will go far enough. There are still too many 'weak points' within the mortgage supply chain that could be automated in order to speed up mortgage applications. Utilising straight ...

  • How will this little piggy go to market?

    4 Dec 2003

    The Chancellor's proposals for child trust funds will put a silver spoon - or at least a silver-plated one - in the mouth of every child born after September 1, 2002. But for the financial services industry, it is less clear whether child trust funds represent a golden opportunity or a poisoned chalice. On the upside, the Chancellor has created a sizeable new sector in the savings market. On the back of my trusty envelope, I calculate that the bonds are likely to be ...

  • Independent view

    4 Dec 2003

    We were recently approached by a client who had been on our books for many years (although not very active) to conduct a financial review for him and his family. He was sent our terms of business, which detail how we are paid, as well as a financial planning questionnaire to read and complete in advance of our meeting. At our meeting, we discussed the basis on which we would work, what exactly he wanted from us and an idea of the work that we would conduct by providing ...

  • Investment analysis

    4 Dec 2003

    Stockmarkets recovered most of the previous week's losses during the last week of November although trading was generally light as a result of the US Thanksgiving holiday. However, share prices would probably have moved even higher if it was not for the dollar which continued to decline against most major currencies. By the close of trade last Friday, the FTSE World index had gained 2.1 per cent, taking its gain for the year to 23.6 per cent. In the UK, mm02 led the ...

  • Investment view

    4 Dec 2003

    Once upon a time we had to really worry about currencies when managing money. They would shoot around all over the place, undermining the best laid plans of portfolio managers. I well recall visiting the West Coast of America in the mid-1980s when the pound nearly reached a parity with the dollar. Today, £1 will buy you more than $1.71. It is indicative of how the mighty greenback is losing popularity. Life really has changed recently. Back when I started in the ...

  • It shouldn't happen to a vet

    4 Dec 2003

    Two old acquaintances from the public service were reunited at this year's Aifa dinner - FSA chairman Callum McCarthy and Aifa director general Paul Smee. After McCarthy's keynote address, reassuring IFAs that the regulator is here to help, Smee felt the need to complete some unfinished business. Smee told McCarthy: "When you were secretary to the secretary of state, I was private secretary to the permanent secretary. So, Callum, if you want to know what the permanent ...

  • Julian Gibbs

    4 Dec 2003

    Despite a few structured products failing to return investors' capital in full, nearly 500 products have been offered this year compared with just over 300 for the whole of 2002. There are now over 80 product providers, including a few IFA groups, which are issuing their own products, so the competition is hotting up. Future Value Consultants has launched datapricer.com, an innovative system which helps product providers in the pricing, analysis and design of new structured ...

  • Just who has terminated who?

    4 Dec 2003

    So, Sesame would have us believe that the exodus of members from their network is, in the main, a result of the network having "terminated" (what a choice of a word, underperforming IFAs. Personally, I do not know of anyone "terminated' by Sesame for underperformance, whatever Sesame means by that. I do know of more than two dozen who have "terminated" Sesame as a result of poor service and poor value for money and gone elsewhere. If I were running such a business, ...

  • Keir is joining Swip in UK equities investment role

    4 Dec 2003

    Scottish Widows Investment Partnership has appointed David Keir as investment director UK equities. Keir is a chartered accountant and joins Swip from Edinburgh Fund Managers where he has been investment manager covering UK equities. He will take charge of retail and institutional business, including research, replacing Graham Campbell who left the firm to set up Edinburgh Partners. Keir's appointment follows the recent appointments of Peter Cockburn, Joel ...

  • Kevin Duffy on mortgages

    4 Dec 2003

    England's epic achievements in Sydney triggered a morass of media features all striving to expose newsworthy sub-plots. My own keepsake was the revelation that England coach Clive Woodward had twice remortgaged his home along the path to personal financial security. Woodward is a man of convictions. So much so that his services are now courted by the FA. However, it is not the Football Association that are in greatest need of remedy - it is another much maligned body which ...

  • LEBC eyes expansion after profits leap by 84%

    4 Dec 2003

    National IFA LEBC Group nearly doubled its profits to £314,000 in the year to May from £171,000 the previous year. The firm, which launched in June 2000, headed by former Towry Law-owned Advizas advisers, saw a 19 per cent rise in turnover to £5.1m from £4.3m. LEBC says it hopes to increase its number of RIs from 36 to 50 by the end of the year across nine regional offices. The firm, which recently opened a City office in Leadenhall Street, ...

  • Leeds & Holbeck - 25-Year Fixed Rate

    4 Dec 2003

    Type: Fixed-rate mortgageFixed term: Until March 1, 2029Fixed rate: 5.99%Minimum loan: £25,000Maximum loan: Up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £500,000Income multiples: Up to 90% of valuation - 3.5 times principal income plus second or three times joint, up to 80% of valuation - four ...

  • Leeds & Holbeck offers fixed fortunes

    4 Dec 2003

    LEEDS & HOLBECK25-YEAR FIXED RATE MORTGAGEType: Fixed-rate mortgageFixed term: Until March 1, 2029Fixed rate: 5.99%Minimum loan: £25,000Maximum loan: Up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £500,000Income multiples: Up to 90% of valuation - 3.5 times principal income plus second ...

  • Legal & General bridges tax efficiency and growth

    9 Dec 2003

    Legal & General has brought out the distribution trust, a unit trust which aims to balance tax efficiency and growth potential in the light of Isa changes next year.In April 2004, equity Isas will lose some of their tax efficiency, as it will no longer be possible to reclaim a 10 per cent tax credit on dividends. However, the rules on corporate bond Isas and cash Isas will not change and funds with at least 60 per cent in corporate bonds will have their ...

  • Legal & General confirms principal status for mortgages

    5 Dec 2003

    L&G has confirmed that it will take principal status under mortgage regulation next October. It is starting discussions with business partners to communicate how it intends to operate in the new market.Managing director, intermediary solutions Graham Newitt says: "The development of our proposition is a significant project and it is progressing well across a number of workstreams. Many people from across Legal & General's business are now involved in making our proposition work."

  • Lender competition results in cross-subsidisation - Miles

    9 Dec 2003

    The way mortgage lenders compete for new business results in cross-subsidisation from existing borrowers paying standard variable rates to new borrowers taking out discounted variable and short- term fixed rate mortgages according to Miles' findings. He says this practice means that longer-term fixed -rate mortgages appear expensive when compared with discounted mortgages.

  • Lender helps brokers on road to regulation

    4 Dec 2003

    Kensington Mortgages is offering a service to help intermediaries prepare for mortgage and general insurance regulation. The lender, which specialises in non-conforming and impaired-credit cases, plans to issue a series of monthly guides from January to help brokers implement changes ahead of regulation. Mortgage brokers will be regulated from October 2004 and general insurance brokers from January 2005. Kensington will provide regular email bulletins of regulatory ...

  • Liability and Unipass

    4 Dec 2003

    I refer to the article, IFAs face potential £15,000 personal liability with Unipass (Money Marketing, November 27). The article is misleading in that it wrongly suggests that IFAs using Unipass under any circumstances are putting themselves at financial risk. This is not the case and I am writing to you to ensure that any IFA misunderstanding created by your article is corrected. The liabilities attached to the use of Unipass are explicitly defined in the ...

  • Life after depolarisation Zurich: 10-year multi-ties with initial cash and buyouts

    4 Dec 2003

    Zurich Advice Network is understood to be offering IFAs a 10-year deal with an initial cash payment and buyouts of up to five times annual earnings as part of its multi-tie plans. Money Marketing believes the provider intends to have part of its business remain IFA and the rest tied in a process it has dubbed "bifurcation". Zan would take over ownership of the clients and it is believed support services such as compliance and marketing support will be offered, with enhanced ...

  • Life company panel backs new broker for special risks

    4 Dec 2003

    A new specialist insurance brokerage has set up to offer a quick way of finding life protection for difficult cases. Risk Placement Services has been established with a panel of UK insurance providers, including Standard Life, Skandia, Scottish Equitable, Royal Liver, Norwich Union and Friends Provident, to which all cases will be referred. The new firm joins Special Risks Bureau, which launched in September, in the market. RPS says the company's creation ...

  • Life offices say FSA is facing online compliance chaos

    4 Dec 2003

    The FSA is not prepared for the chaos that could result from making advisers submit compliance returns online, say leading life offices. The move could see the regulator deluged with forms delivered electronically from more than 4,000 firms. Measures to force all advisers to submit their compliance returns online by the second quarter of 2005 were included in CP198, published in September, but no further details have emerged from the regulator. The bulk of responsibility ...

  • Lifeboat Financial Advisers appoints new director

    8 Dec 2003

    Lifeboat Financial Advisers has appointed Roy Wicks as a regional development director, covering the Midlands region.

  • Margin sees some fund firms shun Standard fund platform

    4 Dec 2003

    Standard Life's mutual fund platform, which is due to launch next year, will not feature funds from major groups such as New Star, Threadneedle and JP Morgan Fleming. The platform will offer links to a number of Standard Life Investments' funds and around 60 from external groups, including Schroders, Jupiter, Liontrust and Invesco Perpetual. A separate pension platform includes 13 external groups and offers 70 funds. Standard says the panel reflects its selection ...

  • Market boosts endowments

    3 Dec 2003

    The number of underperforming mortgage endowment policies has fallen to 1.5m because of improvements in the stockmarket, according to ABI research. The Consumers' Association website says more than 4.4m endowment mortgages may suffer a shortfall but the ABI says campaign groups have inflated numbers of people affected.

  • Mental illness is biggest cause of claims at Friends

    4 Dec 2003

    Mental illness was the biggest cause of claims under Friends Provident's income protection plan last year. Twenty-four per cent of claims were due to mental disorders, including chronic fatigue syndrome and stress. Musculoskeletal disorders accounted for 21 per cent of claims, followed by conditions such as bronchitis, asthma and glandular fever at 16 per cent, heart disease and strokes at 13 per cent, accidents at 11 per cent, cancers at 8 per cent and nervous system ...

  • MGM keeps bonus steady

    4 Dec 2003

    MGM Assurance is keeping bonus rates unchanged following its quarterly bonus rate review. The reversionary bonus rate on the bonus growth life fund will stay at 3 per cent a year and 3.5 per cent on the bonus growth pension fund. MGM reports investment returns of 2.1 per cent after tax and expenses for the third quarter. New IFA general manager Mark Burley, who joins from pension services partnering company UBSi Group, says the decision not to change bonus rates and market ...

  • Miles report to be published Tuesday

    8 Dec 2003

    Professor David Miles' report on the mortgage market will be published on Tuesday, the day before the pre-Budget report.The report is expected to say that there is no quick fix to increase the uptake of long term fixed rate mortgages in the UK. It is also expected to criticise the lack of competition in the mortgage market.

  • Millfield cuts loss by 4.5 per cent

    5 Dec 2003

    National IFA Millfield Group's losses have fallen 4.5 per cent to £5.6m in the six months to September 2003, from £5.9m for the same period last year. The Aim-listed firm saw turnover for the period increase 65 per cent to £23.5m for the six months to September 2003, from £14.2m for the same period in 2002.The firm has also agreed with Norwich Union for the insurer to invest £10m in the Lifetime wrap venture. Under the deal Millfield receive £800,000 ...

  • Muddled thinking on making pension provision

    4 Dec 2003

    I read with interest Richard Gillingham's letter (Money Marketing, November 13) in response to Lorna Bourke's article on pensions. The article referred to calculations carried out by actuaries at Mercer Human Resources which indicated that a pension fund of £180,000 needed to be accumulated by the age of 65 to provide the equivalent to the current level of minimum state benefits, including pension credit plus related housing support and council tax benefits. A ...

  • My hopes for Misys were dashed by charges

    4 Dec 2003

    Until December 2002, I was a member of DBS Financial Management for over 14 years. During this period, Ken Davy and Don Westacott achieved their goal by making the company the biggest and best network in the UK. When the takeover by the Misys group was announced, I, like many of my colleagues, thought that now we have the financial backing of a large FTSE-100 company, my business will take off. How wrong one can be. Within months of the takeover, Misys announced increased ...

  • National IFA census launched

    8 Dec 2003

    A nationwide census of IFAs is to go live in January 2004. IFA Census, launched by NMG Research in association with Aifa, will be a monthly survey of IFA opinions and attitudes focusing on issues of most interest to IFAs. IFAs who are Aifa members can complete the survey on the Aifa website or by telephone, and NMG will donate £2.50 to Crisis at Christmas for every registration received before January 9th.

  • Network firms' internet interest fades

    3 Dec 2003

    Network members are losing interest in the internet according to the latest survey from Henry Samuels Marketing Services. The survey of 461 advisers shows the number of firms with a website has fallen to 40 per cent from a peak of 48 per cent recorded last year. Very few members use their website as a means of selling their services and over the past three years, not more than 6 per cent of network members claim to have used the internet as a means of selling.

  • New trust from new company

    8 Dec 2003

    New Scottish fund management company Edinburgh Partners has established the EP global opportunities trust, an investment trust that invests in undervalued companies around the world.Edinburgh Partners was founded earlier this year by Sandy Nairn and Graham Campbell, who previously worked together at Scottish Widows Investment Partnership. They will be the lead managers of the investment trust.Nairn joined SWIP in 2000 as its chief investment officer ...

  • No change in Bank of England base rate

    4 Dec 2003

    The Monetary Policy Committee voted today to keep base rate at 3.75 per cent for another month. This was largely expected by the industry following a 0.25 per cent increase last month.Charcol senior technical manager Ray Boulger says: "Any decision other than no change would have been a major surprise - we do not expect further Base Rate increases for a couple of months yet."

  • October house prices up 1.8 per cent - ODPM

    9 Dec 2003

    The Office of the Deputy Prime Minister's house price index for October shows that the average house price in the UK was £161,365 up from £158,576 in September, a 1.8 per cent rise. The figures are significantly greater than Nationwide's October index which said the average house cost £131,947, an increase of 2.0 per cent. The ODPM index also says that annual house price inflation was 12.1 per cent in October up from 11.0 per cent in September.

  • Oftel's compliance chief to join ABI

    4 Dec 2003

    The ABI has appointed telecoms regulator Oftel director of compliance Chris Kenny as its new head of life and pensions. He replaces Alan Woods who is returning to the Department for Work and Pensions after being seconded to the ABI. Kenny has also worked at the Department of Health and the Treasury. He will start his new role in January, taking responsibility for the ABI's work on the savings gap, pension reform, health insurance and life industry regulation. ABI ...

  • Online quotes could save IFAs £71m a year

    4 Dec 2003

    The IFA sector could save £71m a year by using technology to provide policy valuations for existing clients, according to figures from the Financial Technology Research Centre. The research analyses how much more expensive it is for an IFA to provide a quote for their client by phoning and researching it through provider sites compared to doing an electronic valuation. Providers are working together to offer an electronic system that will give advisers and clients ...

  • Out of context

    4 Dec 2003

    •"Have I depolarised yet?" Sofa chairman Nick Bamford on the delays over the depolarisation project. •"I've got a trilby but in the end I decided not to wear it." - Lansons PR Lisa Stanley dresses down for Money Marketing's Christmas boat party. •"I don't think there is a person here more than half my age." - Paul Bradshaw. •"There's someone for everyone. For me, it's Kylie." - Richard Hurst of RCH Communications. •"Are ...

  • Pathways maps out a career structure

    4 Dec 2003

    A career development programme for professionalism in financial services has launched with industrywide support. The Pathways initiative has received the backing of Norwich Union, Zurich and Aegon, IFAs Momentum and Simply Biz and industry bodies Aifa, the Financial Services Skills Council, the LIA, Sofa and CII. The purpose is to encourage and retain graduates and professionals in the financial services industry. The programme aims to provide a complete and portable ...

  • Pension reforms need to take heed of history lesson

    4 Dec 2003

    People will still be retiring with insufficient pensions despite reforms to the pension system because the changes ignore people who do not have a full employment history, says the Pensions Policy Institute. The PPI report says increased redistribution through the state second pension and the rapid expansion of the pension credit will not fully compensate the under-pensioned groups. The PPI says policymakers assume the stereotypical person has a full working history before ...

  • Pensions edge

    4 Dec 2003

    Not so long ago, to compare the relative merits of Sipps and stakeholder would be like arguing over which would win in a fight between a polar bear and a crocodile - it is intellectually stimulating if you are drunk but otherwise fairly pointless because they live in totally different worlds (besides, the crocodile is bound to win because it can disguise itself as a pair of cowboy boots and matching handbag). Not so any more. Now it is hard to tell where Sipp territory stops and ...

  • Pensions edge

    4 Dec 2003

    To argue that more people should be using a self-invested personal pension as opposed to a stakeholder pension based on past performance alone rather skirts the issues involved in deciding which pension route to take. The launch of stakeholder has been followed by the whole pension market simplifying and reducing the charges on other pension contracts. This has led to an upsurge in popularity for such vehicles as Sipps. Whatever helps to increase individuals' pension ...

  • Portman Building Society - Two Year Fixed Rate

    5 Dec 2003

    Type: Two-year fixed-rate mortgageFixed term: Fixed until December 1, 2005Fixed rate: 4.25%Minimum loan:£15,500Maximum loan: Up to 95% of valuation subject to a maximum of £250, up to 90% of valuation subject to a maximum of £400,000, up to 85% of valuation subject to a maximum of £500,000, up to 75% of valuation subject to a maximum of £1mIncome multiples: Up to 3.5 times principal income plus second or ...

  • Product matters

    4 Dec 2003

    Advisers working with blue-collar workers should sit up and take note of a new kid on the income protection block. Holloway Friendly Society has taken an innovative look at this too often underestimated product. Unlike more traditional products, its plan has day-one cover, no female or smoker loadings and, most significantly, no occupational loadings. Combine this with the own-occupation definition of disability and you get a product that has unique appeal. One of the ...

  • Protection IFAs voice fears over CI developments

    4 Dec 2003

    Leading protection IFAs met with reinsurer Munich Re last week to discuss the future of critical-illness cover and the need for co-ordination in developing new products. Life Policies Direct director Jason King and Lifesearch senior technical adviser Kevin Carr met with Munich Re's head of marketing Will Adler to share ideas on where the product should go. King and Carr believe the CI concept should be "fixed" rather than building a new product based on income protection. ...

  • Providers face fines over baby bonds

    4 Dec 2003

    Providers could be fined for mismanaging child trust funds. A draft of the Child Trust Fund Bill, included in the Queen's Speech, says a provider which "fraudulently or negligently makes an incorrect statement or declaration in connection with a claim" under sections relating to Inland Revenue contributions and income and capital gains tax could face a £3,000 fine per account. A provider that misses contribution deadlines imposed by the regulation could be fined ...

  • Prudential - Flexible Investment Plan

    9 Dec 2003

    Type: Unit-linked portfolio bondAim: Growth and income by investing in choice of five Prudential bondsMinimum-maximum ages: 18-89Minimum investment: Lump sum £10,000Allocation rates: Initial charge option - £10,000-£19,999 - 102%, £20,000-£49.999 - 102.5%, £50,000- £74,999 - 103.5 £75,000 and above £103.75% No initial charge option - £10,000-£19,999 - 100%, £20,000-£

  • Prudential appoints new director

    5 Dec 2003

    Prudential UK has appointed David Tildesley, who joins from AMP as the new sales director of its business to business channel.

  • Prudential bond wraps up for Christmas

    9 Dec 2003

    PRUDENTIALFLEXIBLE INVESTMENT PLANType: Unit-linked portfolio bondAim: Growth and income by investing in choice of five Prudential bondsMinimum-maximum ages: 18-89Minimum investment: Lump sum £10,000Allocation rates: Initial charge option - £10,000-£19,999 - 102%, £20,000-£49.999 - 102.5%, £50,000- £74,999 - 103.5 £75,000 and above £103.75% No initial charge option ...

  • Prudential offers maximum choice

    3 Dec 2003

    Prudential has established the flexible investment plan, a unit-linked portfolio bond that provides access to a range of investments through five existing Prudential bonds.The product consists of the cautious bond, corporate bond, property bond, prudence bond and managed bond. The cautious bond invests in the cautious portfolio, which is made up of three M&G fixed-interest funds and the Prudential property fund. The corporate bond invests in the M&G ...

  • Raising cap won't close the gap

    4 Dec 2003

    As a nation, we are not investing enough to provide decent pensions. The reasons for the pension gap are lack of affordability, a collapse in consumer confidence following frightening stockmarket volatility and a litany of scandals which have left a legacy of mistrust in the insurance industry. With its new-found social conscience, the ABI has been lobbying fiercely, claiming, without foundation, that the 1 per cent price cap on stakeholder pensions stops insurers selling pensions ...

  • Regulation will focus on principles, not definitions

    4 Dec 2003

    FSA chairman Callum McCarthy says the approach to regulation will be based increasingly on broad principles rather than strict definitions. Speaking at last week's Aifa dinner in London, McCarthy said while there are those in the industry who favour the heavy-handed approach, the FSA is not interested in dotting every i or crossing every t. His remarks have been interpreted by IFAs as a strong indication that the FSA will not pursue a firm definition of misselling ...

  • Regulator looks at limits on MVAs

    4 Dec 2003

    The FSA is issuing a consultation paper on with-profits that could see new restrictions on market value adjustments and target payout ranges for maturity and surrender values. The proposals, put forward by head of insurance firms division David Strachan this week, call for MVAs only to be applied when they are needed to protect the interests of remaining policyholders. Under the proposals, which would take effect in March 2005, firms would be required to manage with-profits ...

  • Reid all about it

    4 Dec 2003

    I have never been one to focus on the number of shopping days to Christmas but I recognise its proximity when it is time for the Money Marketing boat party, the Sofa conference and last but not least the Round Table Christmas collections. This year, a troublesome acquisition led to me missing the boat, and no I do not mean that metaphorically. The Sofa conference saw us welcome John Tiner in person and Callum McCarthy courtesy of a satellite link to the Aifa dinner. Both speeches ...

  • Replacement business costs St James's Place £250k fine

    4 Dec 2003

    St James's Place has been fined £250,000 by the FSA for serious breaches of monitoring and record-keeping requirements relating to replacement business. The action refers to recommendations to customers made by the firms' appointed representatives to surrender and replace existing investment contracts arranged by competing providers, a process referred to as a replacement sale. The FSA says the failing exposed investors to the risk of surrendering and putting ...

  • Review leader Miles rejects fixed views on long-term loan outlook

    4 Dec 2003

    Professor David Miles, who is conducting a review into long-term fixed-rate mortgages for the Government, has dismissed comments there is no appetite for the product in the UK. At the CML's annual conference in London, Miles said the low demand for fixed rates stems from many factors, including consumers' understanding of risk and the portability of fixed rates. He told delegates this should be seen as a starting point rather than as an answer to the question. Miles ...

  • Risky business

    4 Dec 2003

    I left you last week with the thought that those relying on their business as the sole means of delivering financial security are effectively making a choice to invest wholly into a single - usually unquoted - equity. The risk of market forces, technological developments or even Government policy moving against the business at a time when it is planned to realise the capital value cannot be underestimated. There is also the risk of the owner's ill-health forcing a ...

  • ScotEq Protect extends clawback to four years

    4 Dec 2003

    Scottish Equitable Protect has angered IFAs by extending its clawback period from two years to four years. The firm says the changes come into effect from January 10 and affect all policies issued from that date onwards. It says IFAs will get letters about the change this week and believes the notice period of a month is adequate. The move is aimed at bringing the company in line with the rest of the market. Some intermediaries say the notice period includes Christmas ...

  • Scrummy stocking fillers

    4 Dec 2003

    A big thumbs-up to those cheeky rugger boys from Clerical Medical. Last year's winners of the life insurance challenge - the Preece Competition - are pictured in a 2004 calendar in a series of suggestive poses with strategically positioned rugby balls. At £5, which goes to HBOS's chosen charity, Macmillan Cancer Relief, the calendar is a perfect stocking filler, the Diary thinks.

  • Select committee says FSA ignored misselling

    4 Dec 2003

    The Treasury select committee has accused the FSA of ignoring a culture of systemic misselling and tolerating endemic mispricing of mortgage endowments. Labour MP Angela Eagle told FSA chief executive John Tiner, who was appearing on Tuesday before the inquiry on Restoring Confidence in Long-term Savings, that alarm bells should have rung over misselling. Chairman John McFall said Tiner was "not so much sleeping on the job as comatose". But Tiner defended the ...

  • Shares and share alike

    4 Dec 2003

    My two business partners are considerably younger than me. I am 48. Unfairly, I believe, they have started to make comments along the lines of what will happen to my shares in the business if I die? Their concern, as I understand it, is that my family will inherit my shares when I die and my wife and children have no interest in the type of work we do. What do you recommend? I am sure your partners are not being cruel. Quite the opposite, they are sensibly thinking about ...

  • SIPPcentre offers IFAs co-branding facility

    8 Dec 2003

    The SIPPcentre is offering IFAs a co-branding facility which will see advisory firms' logos on the pensions administrator's website and marketing literature.The offer is only available to IFAs registered with the SIPPcentre, which is a subsidiary of Sippdeal. IFAs can register through www.sippcentre.co.uk.Managing director Andy Bell says: "The true brand loyalty for most financial transactions lies with the IFA ...

  • Skandia - Protected Investment Portfolio

    9 Dec 2003

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

  • Skandia links for distribution bond

    3 Dec 2003

    Skandia is this month launching a distribution bond giving access to a range of third-party fund links. Investors can build a portfolio by mixing and matching the retail distribution funds of groups including Axa, Prudential, Norwich Union, New Star and DWS. To mark the launch, Skandia is offering 103 per cent allocation until April 6. The move comes as Skandia UK Group announces that its operating profit for the first nine months of 2003 rose to £82m from £67m in the same ...

  • Small firms face paying high price for success

    4 Dec 2003

    The FSA's plans to move to a new fee structure for IFAs based on income rather than the number of RIs in a firm could hit successful smaller firms with high turnover. In a document circulated to trade bodies and seen by Money Marketing last week, the FSA says by 2005 it is aiming to change the tariff base for fee blocks from approved persons to an income-based measure for firms advising on investments. It is a move that the FSA seems to have been contemplating for ...

  • Sun Bank stops execution-only self-cert loans

    4 Dec 2003

    Sun Bank is amending the criteria for its self-certification mortgage and will no longer offer it on an execution-only basis. The maximum loan to value has been reduced from 85 per cent to 75 per cent for the self-employed and 70 per cent for employed applicants. First-time buyers will no longer be eligible for self-cert. Sun Bank will continue to rely on a declaration of affordability from the applicant, verified by the mortgage adviser rather than asking for a disclosure ...

  • Talkback

    4 Dec 2003

    Do you support FSA plans to levy regulatory fees on IFAs based on turnover rather than the current system of number of RIs? "It depends on the figure, if it's cheaper then I would support it." Eric Rushton,Powsney & Co "In principle, I do support it but it depends on the structure and how it will affect me personally." Andrew Robertson, Robertson & Co. "Yes, basically I am not against the idea as long as the FSA does not gain significantly ...

  • Temple officially in default

    3 Dec 2003

    The Financial Services Compensation Scheme has officially declared RJ Temple in default opening the way for individuals who have lost money to claim compensation from the FSCS. The Scheme says most claims against the firm will be resolved within six months.

  • Thai is top as Far East recovers from Sars

    4 Dec 2003

    The Far East was the leading investment trust sector in October according to figures from the AITC. The Far East has bounced back following the Sars scare this year which sent prices plummeting. Thailand has emerged as the focus of a lot of speculative market activity. The Japanese smaller companies sector is the top performer over five years. The Aberdeen New Thai fund is the top-performing fund over one year. Fund manager Hugh Young says Thailand has been the ...

  • The Private Health Partnership - HealthSaver

    3 Dec 2003

    Type: Budget individual private medical insuranceMinimum-maximum ages: 45-79Minimum premiums: Selected self pay level £1,500 - £42.19 level 1 hospitals, £33.70 a month level 2 hospitals, selected self-pay level £3,000 - £31.10 a month level 1 hospitals, £25.54 a month level 2 hospitals, selected self-pay level £5,000 - £25.32 a month level 1 hospitals, £21.30 a month level 2 hospitalsMaximum benefits: ...

  • To catch a theif

    4 Dec 2003

    IFAs do not only have the regulator and product providers to contend with. The Diary was shocked to learn of the plight of Simply Biz chairman Ken Davy, who has been dealing with some trouble of his own. The Diary bumped into a somewhat shaken Davy at this year's Aifa dinner, where we learnt that PI cover and the latest consultation paper are the least of Simply Biz's problems. "They come in through the window at night," said Davy "They came in through the front, ...

  • Treasury says policy change could boost loan market

    9 Dec 2003

    Legislative and accounting constraints on building societies may require "a policy response" in order for the market for longer-term fixed rate mortgages to develop, according the Treasury. Responding to the interim report of the Miles review of the UK mortgage market, the Treasury says policy may need to be changed to help societies overcome capital requirement and accounting rule constraints, among others. However, it says specific recommendations will not be made until the final ...

  • Turner moves from FSA to deliver new CII exams

    4 Dec 2003

    Paul Turner is to join the CII in January to develop a new exam framework. He will focus on driving through the CII's review of its financial planning examinations and qualifications. Turner has been seconded from the FSA to the Financial Services Skills Council where he had responsibility for delivering the new exams. He has worked at Edexcel as subject officer and qualifications leader. Turner says: "Having been involved in the examination review ...

  • TV controversy brings surge of self-cert interest

    4 Dec 2003

    Birmingham Midshires has seen an increase in self-cert enquiries after a recent BBC programme showed its brokers encouraging clients to falsify their incomes on applications. Midshires, which has suspended self-cert from its branches, says the programme has made borrowers more aware that self-cert is an option. The HBOS subsidiary is thought to be unlikely to return self-cert to its branches but will continue to offer it via intermediaries. PR manager Matt Grayson ...

  • UBS nets butterfly economies

    3 Dec 2003

    UBS ASSET MANAGEMENTUBS GLOBAL EMERGING MARKETS FUNDType: OeicAim: Growth by investing in emerging markets Minimum investment: Lump sum £1,000, monthly £50Investment split: 49.6% Pacific, 10.1% Europe, 9.8% South America, 9.2% North America, 7.7% South Africa, 7.4% Asia, 2.5% China, 3.7% cashIsa link: YesPep transfer: YesCharges: Initial 4%, annual 1.5%Commission: Initial 3%, renewal 0,5% Tel: ...

  • Watchdog's view is critical

    4 Dec 2003

    The Financial Services Ombudsman is reckoned to be looking warily at the trend towards reviewable premiums on critical-illness policies, with some product providers saying that the watchdog has indicated that such contracts may fall foul of unfair contract principles. It has indicated its concerns that policyholders may not understand the premiums they are being quoted at time of purchase are only valid for the first five years or however long the initial term lasts. This ...

  • Web tool aids planning

    4 Dec 2003

    Adviser technology firm Distribution Technology is offering an internet-based financial planning tool for IFAs. Distribution Technology was set up two weeks ago by former mPower managing director Ben Goss and IT consultants Patrick Fitzgerald and Adrian Hall. Advisers can access the software by logging on to a secure website rather than loading it from a disk. It can be used to design individual plans for clients by mapping their cashflows, investments, retirements, protection ...

  • Widows adds new fund links

    5 Dec 2003

    Scottish Widows has added a range of fund links to its life and pension offering.The funds are Jupiter's distribution, income and undervalued assets funds, New Star's fixed interest, higher income, managed distribution and UK aggressive funds and Schroders' UK alpha plus fund. Widows' marketing director Peter Jordan says: "We constantly review the full range of our investment options and are delighted to be able to enhance the fund management team with these additions."

  • Win a dream trip Down Under

    4 Dec 2003

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

  • Woolwich Plan Managers - The Premium Protected Growth Plan

    4 Dec 2003

    Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £3,000-£500,000, £1,500 Isa/Pep transfers, £3,000-£7,000 IsaTerm: Five years and six monthsGuarantee: Original capital returned in full at end of term regardless of movement in indices Return: Up to 100% growth in indexClosing date: January 15, 2004, Isa/Pep transfers December 17, 2003Commission:

  • Yorkshire says 10-year fixes beat shorter deals

    4 Dec 2003

    Long-term fixed-rate mortgages could prove cheaper than short-term deals, claims Yorkshire Building Society. Yorkshire says the recent base rate rise could make longer deals the cheaper option although brokers generally advise clients to choose the cheapest two-year fix and switch to another when it runs out. Based on its current expectations for rate rises, Yorkshire says five two-year fixed-rate deals including fees would cost £57,150 over 10 years but a 10-year ...

  • Zurich signs up 281 firms to test mortgage offering

    4 Dec 2003

    A total of 680 advisers have been signed up to test Zurich's mortgage network since its launch 12 weeks ago, according to director Richard Coulson. Advisers at 281 businesses are sampling the mortgage network, which offers products from a panel of 17 lenders. Zurich aims to have 1,600 RIs on board by the end of 2004 and Coulson hopes to bring the total up to 2,000 in 2005. He says many advisers who sign up to networks will realise during the course of 2005 ...

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