Money Marketing
4 December 2002

  • ྌ% of IFAs dancing with the debt devil'

    5 Dec 2002

    Almost 80 per cent of IFA firms are "dancing with the devil" by financing their business through debt, according to the latest research from Plimsoll Publishing. Plimsoll's Portfolio Analysis 2003 found that 63 of the 1,000 IFAs questioned for its survey - 6 per cent - are in danger of becoming bankrupt by carrying dangerously high levels of debt as a permanent means of financing the firm. All 63 in this danger zone under Plimsoll's ratings system have carried debt for at ...

  • 'Get an IFA's advice when marriage is all shook up'

    5 Dec 2002

    The carve-up of marital assets that is likely to follow actor Nicholas Cage's divorce from Lisa Marie Presley should remind couples in similar circumstances of the need to seek expert advice, says Bradford & Bingley. B&B says high-profile celebrity separations, including the ending of singer Jennifer Lopez's marriage to Cris Judd after only eight months, should bring home to the public the need for independent financial advice. In 2000, 141,135 couples were divorced ...

  • 'Unprecedented' shift bolsters stockmarkets

    5 Dec 2002

    An unprecedented change of view among fund managers has helped the stockmarket continue to rally, according to multi-manager Credit Suisse. Speaking at the IFA UK conference in London last week, director Robert Burdett said the upturn which has seen the FTSE 100 break and remain over 4,000 partly stemmed from a drastic change of opinion among fund managers. He said that after contacting the 70 investment houses in Credit Suisse's portfolio, he was surprised to find most were ...

  • 5 into 1 does go with Fidelity Isa

    9 Dec 2002

    FIDELITY5 IN 1 INVESTMENT TRUST ISAType: Mini or maxi investment trust Isa Aim: Growth by investing in Fidelity Asian values, Japanese values, European values, special values and Edinburgh investment trusts Minimum investment: Lump sum £1,000, monthly £100 Maximum investment: £7,000 Catmarked: No Charges: Initial 3.25%, annual 0.84% Commission: Initial 3% Tel: 0800 414181Broker panelAdrian ...

  • 55% pass mark for mortgage exam in October

    5 Dec 2002

    Nearly 1,300 people passed the Mortgage Advice Qualification exam out of 2,352 candidates who sat the test in October, says the Chartered Insurance Institute. The figure takes the total number of holders of the qualification to 11,162, with the CII having a further 5,220 candidates registered to take the exam. To assist the remaining advisers to pass the exam, the CII is offering access to its interactive Maq training material at a reduced rate of £50, down from the normal ...

  • A consumer's view

    5 Dec 2002

    There are two important messages from the Chancellor's pre-Budget statement which IFAs should pass on immediately to their clients. First, anyone with a significant amount of borrowing, in particular a big mortgage, should fix or cap the rate as soon as poss-ible. Depending on how mortgage fixed-rate packages react, it might even be worthwhile paying a penalty to get out of an existing concessionary mortgage and switch to a fixed or capped rate. Second, anyone coming up to retirement ...

  • A fine prospect

    5 Dec 2002

    With the uncertainty in financial markets, it is hardly surprising that the subject of income has taken centre stage. As commercial property often offers a yield of over 7 per cent a year, this sector has attracted great attention. However, there is speculation that the commercial property sector is overheated and about to crash. Is this the case? Is there just one property sector? One myth which needs to be exploded is that the residential and commercial property sectors ...

  • A gender for change

    5 Dec 2002

    For some time, I have been interested in the role that sex has to play in the field of pension planning. So I would like to look at a very recent judgment in respect of a transsexual. The judgment has the potential to cause much wider repercussions to occupational pension schemes, in particular. Arguments have continued for many years as to whether occupational pension schemes which pay benefits to a surviving spouse should also be prepared to pay benefits to a surviving common-law ...

  • Abbey man joins Equitable as financial consultant

    4 Dec 2002

    Equitable Life's chief finance and investments officer Charles Bellringer has quit the troubled firm. After the publication of the latest financial accounts and the completion of the compromise scheme, which was approved by policyholders in January, Bellringer says he 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. 

  • Abbey National - Safety Plus Growth (Issue 10)

    10 Dec 2002

    Tuesday, 10 December 2002 Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £3,000-£500,000, Isa £1,000-£7,000 Term: Five years six months Guarantee: Capital returned in full along with 17.5% growth at end of term regardless of performance in index Return: Up to 45.1% growth Closing date: February 11, 2003 Commission: None Tel: ...

  • Aifa fears dumbing down

    5 Dec 2002

    Aifa fears the FSA's proposed exam framework could reduce protection for lower-income consumers buying from the stakeholder suite of products. It believes the review could lead to a dumbing down of the minimum investment qualifications for RIs. But the FSA rejects the claim, arguing that it will be consulting separately on lower-risk products. The FSA published consultation paper 157, Examination Framework for Retail Financial Services (Investment Advice Strand 1), last week. ...

  • AMP appoints new chairman

    10 Dec 2002

    AMP has appointed Peter Willcox as its new chairman. He will occupy the post of deputy chairman until outoing chairman Stan Wallis leaves in July next year.AMP has recently also seen the departure of its chief executive and chief finance officer, as well as its UK managing director Tom Fraser.

  • AMP axes Pearl DSF and plans retirement multi-tie

    5 Dec 2002

    AMP is to slash 1,900 jobs at Pearl in a radical overhaul of distribution at its troubled UK operations. It is axing the 1,000-strong Pearl direct salesforce, with the rest of the job losses to come from admin staff. AMP expects to save £160m next year from the move. The firm will create a stand-alone salesforce of between 50 and 100 specialising in retirement planning which it plans to multi-tie using the Towry Law back office. It also plans a mortgage advisory service. AMP ...

  • Are you the world's best manager?

    5 Dec 2002

    Money Marketing and International Money Marketing have teamed up with one of the top international players in capital-protected funds - Scottish Life International - to kick off our own premier league of IFA fund managers' competitions for 2003. The top prize that is awaiting the winners of the IFA Manager of Managers Competition 2003 and the Best Protected Investment Management Service (PIMS) Return Competition 2003 is a ticket to watch the European Champions League final at Old ...

  • Axa PPP Healthcare - Cashback

    10 Dec 2002

    Tuesday, 10 December 2002Type: Healthcare cash planMinimum premium: £4.81 level one, £9.62 level two, £14.43 level threeMinimum-maximum ages: 18-60Maximum benefit: Level one - dental treatment £45, dental accident up to £10,000, optical benefit £35, physiotherapy, osteopathy, chiropractic, acupuncture and homeopathy £130, chiropody and podiatry £40, specialist consultation fees including diagnostic tests ...

  • Axa PPP Healthcare unleashes cashback plan

    10 Dec 2002

    Axa PPP Healthcare HSA brought out a healthcare cash plan called cashback, which has three levels of cover and a range of 23 benefits.Cover is available on a single or joint basis and full cover for children is provided free. Premiums are payable on a weekly, monthly or annual basis.Under the plan, policyholders get 50 per cent of the cost of dental treatment up to £45 for level one cover, £90 for level two cover and £135 for level three cover. There is ...

  • Bamford takes top role at Sofa

    5 Dec 2002

    Sofa has elected Informed Choice managing director Nick Bamford as its new chairman at last week's Update Conference in Birmingham. Bamford replaces Kingsbridge Financial director John Porteous, who steps down after two years in the post and a total of four years on the board. Phil Billingham of Phil Billingham Associates was re-elected as vice-chairman and will be joined in the role by Park Row head of communications Jo Smith. Five new directors were voted on to the board. ...

  • Beard's a gooner

    5 Dec 2002

    The old City dictum, never trust a man with a beard, is being challenged by yet another financial services mover and shaker, Darragh Leeson of Prudential. He was spotted at last week's Money Marketing boat party sporting the beginnings of a peppery grey goatee. But all is not what it seems. Leeson's real intention is to do a Robert Pires of Arsenal fame. The goatee is a transitional phase which he was forced to adopt because, not being a morning person, when he tried to grow ...

  • Bristol & West - Global Income & Growth Bond

    5 Dec 2002

    Thursday, 5 December 2002 Type: Guaranteed equity bond and high interest accountGUARANTEED EQUITY BONDAim: Growth linked to the FTSE 100, SMI, S&P 500 and Nikkei 225 indicesMinimum-maximum investment: £2,500-£1mTerm: Seven yearsGuarantee: Capital returned in full at end of term regardless of movement in indicesReturn: Up to 80% of growth in indicesClosing date: January 31, 2003HIGH INTEREST ACCOUNTMinimum-maximum ...

  • Britannic Asset Management appoints COO

    4 Dec 2002

    Britannic Asset Management has appointed Gavin Stewart as chief operating officer.Stewart, who was previously Aegon UK group development director, will join the three-strong executive director team in January 2003.The new COO will be responsible for finance, legal and secretariat, information systems, corporate development, investment trusts and product development.

  • Britannic Retirement Solutions - Purchased Life Annuity

    9 Dec 2002

    Monday, 9 December 2002Type: Purchased life annuityMinimum investment: Lump sum £10,000Minimum age: 50Income frequency: Monthly, quarterly, half-yearly, annuallyCharges: ImplicitCommission: Initial 2%Tel: 0845 3003321

  • Britannic Retirement Solutions launches purchased life annuity

    10 Dec 2002

    Britannic Retirement Solutions is launching a purchased life annuity paying enhanced rates to people with qualifying lifestyles or medical conditions. Research carried out for Britannic Retirement Solutions shows the purchased life annuity market has grown 23 per cent to £207m in the first three quarters of 2002 from £168m in the first three quarters of 2001.

  • Buy-to-let code aims to plug gap in regulation

    5 Dec 2002

    The Mortgage Code Compliance Board is backing a voluntary code of practice on buy-to-let mortgages. The move is aimed at plugging the regulatory gap as BTL is not covered by regulation. The code has been drawn up by the National Association of Commercial Finance Brokers, which has 300 members, and the Intermediary Lenders' Association. It aims to tackle the problem of buy to let falling outside the MCCB's current remit or the FSA's regime from 2004. The MCCB says the code's ...

  • Cap Gemini Ernst & Young appoints financial services industry specialist

    9 Dec 2002

    Cap Gemini Ernst & Young has appointed Martin Barber as vice president of its financial services team. Barber joins from KMPG Consulting where he held the position of partner within the financial services sector consulting group.He has 17 years experience of working within the financial services sector and specialises in business change programmes.

  • Cater Allen move set to drive out small accounts

    5 Dec 2002

    IFAs are having to tell clients they are no longer rich enough to benefit from private bank accounts with Cater Allen, after the firm scrapped interest payments on balances below £5,000. The move has been called unfair and harsh by advisers. It follows a decision by the bank that it needs to encourage the right type of customer. From February, it will also charge a £10 monthly fee on balances below £5,000 . IFAs have attacked the Abbey National subsidiary, claiming ...

  • Chartwell extends cashback scheme

    5 Dec 2002

    Chartwell Investment Management is extending its cashback service to include refunds on renewal commission for investors in with-profits and distribution bonds. The IFA has offered a cashback service on Isas and Peps since 1999. It will now refund 75 per cent of the renewal commission it receives on investment bonds. On a typical investment of £20,000, where renewal commission of 0.5 per cent is paid, Chartwell will rebate £75 a year to the investor. But it says Prudential ...

  • Check your storm cover, says Halifax

    5 Dec 2002

    Halifax Bank says it is offering first-time buyers extra help to get on the property ladder with a range of special deals and assistance with the cost of moving. Its rates for people trying to buy their first home start from 4.25 per cent and all its first-time-buyer mortgages are available with loans to value of up to 97 per cent. Halifax also offers £250 cashback which it says can help with the cost of moving or a refund of the cost of its mortgage valuation report. At ...

  • Christmas brings out the savings habit in adults

    5 Dec 2002

    A third of people save money towards the cost of Christmas, with 8 per cent putting aside more than £500, says online bank Goldfish. It suggests the figures contradict the assumption, fuelled by the reported £27bn UK savings gap, that Britons cannot save. In a poll of 2,000 UK adults, people aged 25 to 34 were most likely to have saved money towards Christmas, with 39 per cent putting away an average of £237 each. Manual workers saved an average of £186 ...

  • Coming clean on launderers

    5 Dec 2002

    Every IFA firm in the UK could inadvertently be laundering an average of £1.5m each year - a staggering £11bn in total - according to a study by Compliance Consultants presented at Sofa's recent forum on money laundering. Such statistics make shocking reading and most IFAs would vehemently deny that their firm has any involvement with money laundering. However, of 56,000 disclosures of money-laundering activity to the National Criminal Intelligence Service since ...

  • Company chiefs complain of high costs and needless red tape

    5 Dec 2002

    The FSA's first year has been marked by growing regulatory costs, lack of guidance and unnecessarily complex rules, says an authoritative survey of the heads of the UK's financial services companies. The 2002 Financial Services Practitioner Panel survey of 3,890 senior executives in regulated financial services firms, highlights industry anxiety over the cost of red tape and the complexity of the FSA handbook. Three out of four senior executives thought the current system ...

  • Consumer panel fights filtering

    5 Dec 2002

    The Financial Services Consumer Panel has attacked the FSA's mortgage regulation proposals and is warning that the new sales processes will confuse borrowers. Its response to CP146, the FSA's Approach to Regulating Mortgage Sales, argues against the introduction of three types of selling process - information-only, full advice and a "middle way" of filtering questions falling between advice and information. Instead, it favours the consumer having a straight choice between ...

  • Correspondent's week

    5 Dec 2002

    I was delighted to be asked to take part in a Tour de France-style cycling challenge to raise money for disadvantaged children. That the challenge covered 540 miles did not deter me. That the route ran from Nashville to New Orleans, home of country and western to home of jazz, was an added bonus. Ten months after agreeing to take part, I arrived at Heathrow to join the challenge team, made up of 30-plus Zurich colleagues, friends and family. With Hurricane Lily looming, any concerns ...

  • Crash Bland

    5 Dec 2002

    The Diary hears that those folks at the Henley office of Invesco Perpetual are being a bit mean to one of their PR colleagues. A certain Jane Bland has been adopted as a housing market barometer by the fund managers. Bland, who has been seeking a property somewhere in the Henley area while watching the market rise, has been told by Neil Woodford and co that, when she does eventually buy, they will know that the housing market has peaked. Meanies.

  • Cut out the hurdles for direct access

    5 Dec 2002

    Could someone explain where the benefit comes from in speaking with "a centralised and single point of contact" who will inevitably have a shallower understanding than the specialists? Direct access and not unnecessary hurdles is what I want. If Abbey National thinks that I will put business with Scottish Mutual or any of their other components to reduce the number of provider interfaces I have, they do not only have another think coming but they can try and write a compliant suitability ...

  • David Harrison

    5 Dec 2002

    It may seem incongruous that national IFA Positive Solutions chief executive David Harrison declares his commitment to independence while selling a majority stake to Aegon UK but his argument seems to stack up. Last week, he sold 60 per cent of the IFA which he has built up from its launch in 1997 to 600 RIs. He also signed a deal to sell Aegon the other 40 per cent in 2006. Harrison is emphatic that Positive Solutions, which has its headquarters in Newcastle, will remain IFA. ...

  • DBS members get weekly commission as Misys heads toward network merger

    5 Dec 2002

    DBS members will get commission on a weekly basis from January, bringing them in line with the rest of the Misys networks ahead of the proposed merger of all its IFA network brands. Misys IFA Services chief executive officer Patrick Gale, speaking at the company's convention in Newport last week, also introduced the giant network's retirement package, the first stage in its promised recruitment, retention and retirement programme, ahead its flotation within two years. The ...

  • Downing Corporate Finance - Electra Kingsway VCT

    5 Dec 2002

    Thursday, 5 December 2002Aim: Growth by investing in unquoted and Aim listed companiesMinimum investment: Lump sum £5,000Opening-closing date: November 20, 2002-April 4, 2003 for 2002/2003 tax year, April 30, 2003 for 2003/2004 tax yearCharges: Initial 5.5%, annual 1.5 % in year one, 2% in year two, 2.5% thereafterCommission: Initial 2.5%, renewal 0.25%Tel: 020 7411 4700

  • Downing tops up Electra VCT

    6 Dec 2002

    Downing Corporate Finance is raising up to £10m to top up the Electra kingsway venture capital trust (VCT).Electra kingsway was established in September 2001 and is managed by Electra Partners. It invests in a portfolio of unquoted and developing companies that are listed on the alternative investment market (AIM). So far, it has invested in four companies at a total cost of £2.5m.The top-up investment will allow the VCT to invest in more companies with high ...

  • EC could control mortgage regulation in UK

    5 Dec 2002

    The FSA is warning there is a real risk that all UK mortgages will fall under the remit of the European Commission from 2006, usurping its own role in mortgage regulation. Speaking at the Council of Mortgage Lenders' annual conference in London this week, FSA high-street firms director Sarah Wilson said "there is a significant chance" that the European consumer credit directive will be extended to cover more than just equity release and remortgaging. If implemented, the directive ...

  • Expose the WP myths

    5 Dec 2002

    Over the last couple of years, a lot has been written and said about with-profits products. Much of it has been negative and while some criticisms have a ring of truth, many are sensationalist and have no foundation. Together with Sandler and the FSA, the industry is soon to re-invent the with-profits concept. We should be careful that in creating the new with-profits we should not throw out what is good about the old. In particular, we should squarely bust those myths that are plainly ...

  • Focus on Sandler's vision

    5 Dec 2002

    The financial services industry is at a crossroads. One road stretching out in front of us is straight and narrow but it calls for brave explorers and innovators. The other is a safe but murky dogleg that leads right back to where we started Why does Sandler's road hold such fear? One problem is that providers are still using the old-fashioned "cycle of paranoia" approach when evaluating stakeholder business. Traditional pensions had high up-front charges to recover the costs ...

  • Former Tory minister Gummer to chair Aifa

    5 Dec 2002

    Former Conservative Party chairman John Gummer MP is to replace Lord Hunt of Wirral as Aifa chairman. Gummer will take up the post on January 1 when Lord Hunt steps down from the role that he has held since the trade body was launched in September 1999. Gummer says he is particularly concerned with the impact of the EU on the industry and hopes to ensure that developments at a European level do not burden the sector. He was a Cabinet minister for 16 years under Margaret Thatcher ...

  • Friends simplifies pension complexity

    5 Dec 2002

    Friends Provident is publishing an IFA guide to pensions which explains the different types of plans available and includes technical information such as scheme rules. The 70-page Simplified Guide to Pension Schemes is part of Friends Provident's ongoing technical support for advisers. The guide covers state benefits, contracting out and pension transfers. In-depth technical details and general information are illustrated with easy to understand tables and clear examples. It ...

  • FSA expels IFA after failure to pay ombudsman award

    5 Dec 2002

    The FSA has expelled a Derbyshire IFA, preventing it from carrying out any regulated business, after it failed to pay two PIA Ombudsman awards. William's Life Pension, Mortgage and Insurance Services of 48 South Street, Ilkeston, Derbyshire, has been struck off the books for not meeting the awards against it, despite repeated warnings from the regulator. In addition to being prevented from advising clients, the firm must write to all its clients in the next 14 days to inform ...

  • FSA fines Abbey Life £1m for endowment misselling and other failings

    4 Dec 2002

    The FSA has fined Abbey Life Assurance Company £1 million for mortgage endowment misselling and other deficiencies in compliance procedures and controls between 1995 and 1999.

  • FSA is marked down after poor first year

    5 Dec 2002

    The FSA has been told it must do better in an end of year report card marked by major trade bodies, influential politicians and senior industry figures. Compiled by Money Marketing, the report card shows that while some admit that the regulator has done a reasonable job in 2002, most believe it must try harder to rectify mistakes and identify potential problems before they spiral out of control. Aifa director general Paul Smee scores the FSA seven out of 10, praising its decision ...

  • FSA is turning the tables on advisers

    5 Dec 2002

    Is the financial services industry so bent on destroying itself that it is now paying its own regulator to compete in its own marketplace? One look at the FSA's comparative mortgage tables and the needs-based filters, makes it blindingly obvious that they are giving tacit mortgage advice which is being funded by the fees paid by the good people of the industry. No wonder the FSA is proposing to exclude training and competence requirements for non-advised mortgage sales. It has ...

  • Fund firms and life offices fear baby bond ban

    5 Dec 2002

    The Treasury is playing down fears that fund firms and life offices could be barred from offering child trust funds, saying a decision has yet to be taken over providers. In his pre-Budget statement last week, Chancellor Gordon Brown confirmed the Treasury would press ahead with the funds, branded as baby bonds by providers, but indicated that banks, building societies and friendly societies would be the only companies able to offer them. The Investment Management Association reacted ...

  • Gateway is opened by under 250

    5 Dec 2002

    The Government's savings gateway scheme piloted by Halifax has attracted fewer than 250 people in four months despite a pledge to match an individual's payments pound for pound. Halifax has been working with local community groups since August to sign up people to the scheme, which the Government believes will encourage low-earners and the disabled to save. But despite a Government promise to match the amount an account holder has saved after 18 months, Halifax says only ...

  • Gavin Stewart goes to Britannic Asset Management

    9 Dec 2002

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

  • Govt decision 'will halve income for 1,400 Maxwell pensioners'

    5 Dec 2002

    A row is erupting over the Government's refusal to refund a £30m surplus to one of the Maxwell pension funds, meaning the pension income of 1,400 members of a sister scheme may have to be halved. Law Debenture, the trustee of the Maxwell Communication Pension Plan - one of the schemes plundered by the late media mogul Robert Maxwell - claims a £40m black hole in the scheme should be plugged with the surplus from the healthier Works scheme, rather than it being retained ...

  • Gullwing swoops on property

    5 Dec 2002

    The Gullwing exempt property unit trust is a unit trust that invests in a portfolio of commercial properties within the retail and leisure sectors. The fund invests in those areas because Gullwing believes the returns are likely to be higher over the next five years than the returns from the office sector, which has suffered due to falling demands in the South-east. Investments will be made in properties let to companies such as fashion retailers Dorothy Perkins and Etam on long-term ...

  • Has critical-illness cover got a terminal illness?

    5 Dec 2002

    Having spent a day attending a seminar by a product provider, I am tempted to ask if critical-illness protection has acquired a terminal illness. It has been a few years since serious or critical-illness protection was introduced into this country and we should feel proud of an industry that devised such a brilliant protection plan. I am of the opinion that it was one of the best types of insurance policies that was ever created and that such a plan should be considered by everyone. I ...

  • Hathaway enters unit trust market

    5 Dec 2002

    Hathaway Investment Management has created its first unit trust, the MFM Hathaway unit trust in conjunction with Marlborough Fund Managers.Hathaway is an investment management firm which usually manages portfolios for private clients and institutions. It was formerly part of Birmingham-based solicitors Shakespeare and has been operating independently for the past two years. It will act as investment adviser of the fund, while Marlborough Fund Managers will manage the fund on Hathaway's ...

  • IFA E&H and iimia to merge

    9 Dec 2002

    The parent company of investment manager iimia and the partners of pension advice specialist Eveleigh & Huckle have signed a heads of agreement to merge.

  • IFAs reassure split-cap investors in AITC guide

    5 Dec 2002

    The Association of Investment Trust Companies has produced a consumer guide highlighting the views of key IFAs on how investors should be responding to the splitcap controversy and volatile stockmarkets. The main aim of the guide is to encourage investors in split-caps not to over-react as not all split-cap trusts are in difficulties. Professional Partnerships financial planner Gillian Cardy suggests investors should visit www.splitsonline.co.uk to review the performance of their ...

  • Independent view

    5 Dec 2002

    It's the economy, stupid! Bill Clinton's famous election sign should be hung over the entrance to every IFA's office in Britain at the start of 2003. Maybe then we will concentrate on finding plans to help our clients rather than being so obsessed with our own future. This year looks like marking the most dismal three years in the markets that any of us can remember. The result for our clients has been near catastrophic in the short term and, far more worryingly, surprisingly ...

  • Innocent majority take blame for the bad risks

    5 Dec 2002

    Interesting though it was to read the recent article, Network dilemma, it was equally disheartening to hear so much evidence of this latest professional indemnity insurance pressure on IFAs to "jump on board and let the network take care of all your problems". Indeed, they can, and do so, but it does seem that this is fast moving us back to the bad old days and the perception that not only was a network a good place to learn the skills of independence but also a convenient place to"lie ...

  • Inside edge

    5 Dec 2002

    Having always lived at least a 90-minute train journey north of London, I have always had a degree of jealousy of those who live in the capital and can enjoy the nightlife, sporting events and so on. In terms of the current buy-to-let market, however, I am delighted to be at least 90 minutes from London. I think it is possible that the buy-to-let market could fall dramatically in London - almost as fast as it rose. But beware the prophets of doom. I believe the UK-wide prospect for ...

  • Insight buys Rothschild Asset Management

    4 Dec 2002

    HBOS subsidiary Insight Investment has bought Rothschild Asset Management for £61m.

  • Investment view

    5 Dec 2002

    In those days when I wrote regularly to clients on investment matters, there were some commonly used terms and phrases that I would not use. My clients would not receive letters saying how much pleasure I had in enclosing a contract note or valuation or how very pleased I was to be sending our latest report. Receiving a cheque in payment of the annual management fee or reporting significant outperformance might give me pleasure but I doubt that the feeling was always mutual. To me, these ...

  • Jupiter boss backing fund manager after below-par performance

    5 Dec 2002

    Jupiter chief executive Edward Bonham Carter says he is backing all his fund managers after UK growth manager Justin Seager came under fire from IFAs for poor performance. Speculation had been mounting over how long Seager would remain with the group following his failure to maintain the performance of the £463m fund, previously managed successfully by Bonham Carter. According to Lipper, the fund has fallen by 36.7 per cent since Seager took over in January 2001 against a ...

  • L&G launch medical underwriting course with university

    6 Dec 2002

    Legal & General has teamed up with Cardiff University to roll out a new medical underwriting course.The 20-week course, which has been organised by Professor Mansel Aylward and Professor Peter Halligan, will provide 60 hours of customised lecture presentations and workshops for new and experienced underwriters.L&G says lectures will be given by leading internationally recognised speakers with backgrounds in academia and the insurance industry.

  • Landlords more confident in market

    5 Dec 2002

    Landlords are factoring in a 6.9 per cent increase in house prices to their property investment decisions over the next year, according to Paragon Mortgages. The specialist lender's quarterly survey of trends in the buy-to-let market shows that landlord confidence is returning to the high levels of last spring. Most landlords expect to increase the size of their rental portfolios by 21 per cent over the next year to an average of 10.9 properties from nine. Over the past three ...

  • Lifeboat in Domain link-up

    5 Dec 2002

    Lifeboat Financial Group is linking up in a partnership with mortgage network Domain Financial. The exclusive deal will enable Domain to offer mortgage expertise to Lifeboat advisers while Lifeboat will offer protection expertise to Domain intermediaries. Domain and Lifeboat aim to expand rapidly to become one of the major players in the market within the next few years.

  • M&G outsources retail admin

    4 Dec 2002

    Fund manager M&G is outsourcing its retail admin service to International Financial Data Services. Following a review of its IT systems platform, M&G has decided to transfer its admin functions to IFDS by the end of the third quarter in 2003. All areas of customer and intermediary contact will remain in-house.  

  • Men seek low rate but women prefer mortgage security

    5 Dec 2002

    Men look for the best deal when searching for a mortgage while women want security, according to a survey of brokers by specialist lender Sun Bank. Fifty intermediaries were questioned during the last fortnight on what male and female clients are looking for from a mortgage and other financial products. Sun Bank says brokers believe men have a greater initial understanding of mortgages and interest rates, absorb information more easily and make quicker decisions. But brokers ...

  • Metamorphosis for Misys

    5 Dec 2002

    Misys is to become a fully fledged mega network, fusing its network stable together to face the brave new post-polarisation world. A new organisation is promised in the lead-up to the float, with better branding, weekly commission payments for DBS bringing it into line with the other networks, the encouragement of regional hubs,dedicated helpdesks and incentive points. The name for this new corporate creature is as yet undecided and will be revealed next year. Perhaps Misys should ...

  • Misys mega merger of five networks

    5 Dec 2002

    Misys IFA Services will merge its five networks in the new year, creating a single mega network with almost 4,000 member firms and over 7,000 RIs. DBS, Financial Options, Kestrel, IFA Network and Countrywide expects to get recognition as a single ent-ity by the FSA by the end of January, although the new name is not due to be announced until March. One-off savings from the amalgamation are estim-ated to be £250,000 and will be shared with 7,000 members, according to Misys ...

  • Misys to outsource compliance to India

    5 Dec 2002

    Misys IFA Services is outsourcing compliance and monitoring services for the 7,000 members of its five networks to New Delhi in India. It says a new quality assurance centre in the Indian capital will let it increase the services it provides to IFAs while controlling costs. The initiative is part of a five-year $10m agreement with Indian technology company NTIT SmartService. Misys says the move will not result in job losses in the UK, where about 30 people provide compliance ...

  • Moody's says oultook is stable for UK mortgage lenders

    10 Dec 2002

    Moody's Investor Service says UK mortgage lenders retain stable rating outlooks and are unlikely to undergo downgrades as long as economic and monetary conditions remain benign. According to its report on the market out this week the stable rating outlook is reinforced by the greater structural strength of mortgage lenders compared with a decade ago and improved lending practices.

  • Mortgage Brain claims to be first to guarantee data

    5 Dec 2002

    Sourcing system Mortgage Brain is to verify that the product data it supplies to brokers is correct. It says the move will make it the most accurate supplier of information on the market. By comparison, the FSA's mortgage tables offer no guarantee that the data is correct. Mortgage Brain says it is the first in the market to give brokers this reassurance. It adds that it will extend the verification to provide a firm guarantee of accuracy, with lenders taking full responsibility ...

  • Multi-brand service platform for HBOS

    5 Dec 2002

    HBOS is placing a £25m contract with software and consultancy house Cap Gemini Ernst & Young UK to build on Equitable Life's admin sys-tem and create a multi-brand service platform. The firm says the new platform will reduce customer service costs by 25 per cent and improve service to IFAs. An enhanced customer service capability will build on the existing Equitable Life platform, which it bought from the troubled life office last year, to support the full range of ...

  • Mutuals must differentiate themselves, not compete on price, suggests report

    5 Dec 2002

    Up to a third of mutuals are likely to disappear through merger, consolidation or closure in the next five years, warns a report on the UK financial services industry by consultancy Ernst & Young. The report entitled, Returning to radicalism? Mutual financial institutions in the 21st Century, warns that the pressures of intensifying competition and the increasing burden of regulation will lead to a contraction of the sector. But E&Y says the future is not all doom and gloom ...

  • New chairman for NAPF announced

    9 Dec 2002

    Terry Faulkner will be the next chairman of the National Association of Pension Funds, taking over from Peter Thompson who steps down next May.

  • New global asset management director at Henderson

    9 Dec 2002

    Henderson Global Investors is appointing Chris Wozniak as director of global asset allocation in the UK-based fixed interest team.

  • nvesta links bond to index duo

    9 Dec 2002

    nvesta has unveiled the safety first plan, a guaranteed equity bond that is linked to the FTSE 100 and S&P 500 indices over a three-year term.The bond provides a choice of annual income at 8 per cent, monthly income at 0.62 per cent a year or growth at 26 per cent at the end of the term.The closing level of each index is recorded at the start of the term on February 13, 2003. The performance of the indices will be ignored during the first 22 months of the term, but will then ...

  • Out of context

    5 Dec 2002

    •"If I grow a neck beard, can I get into the Diary?" - Standard Life press officer Barry Cameron. •"Ooh, I'm vibrating." - Bristol & West PR Debbie Stavely enjoys receiving a phone call. •"I thought I would come dressed as David Beckham but people tell me I look like Jamie Theakston." - Inter-Alliance corporate relations manager Charlie Ansdell. •"We love Standard Life, they take all the flak off us." - CIS press officer Alison Richardson. •"The ...

  • Outcry if relief is axed on pensions

    5 Dec 2002

    I have read some strange letters in the press from time to time but the one from Michael Royde (Money Marketing, November 21) takes the biscuit I am intrigued to learn that removing tax relief on pension contributions will not increase taxation for those in final-salary schemes. He obviously seems to work from a different text book from myself but I would respectfully point out that unless the schemes are non-contributory, which are very much in the minority, that at the moment tax ...

  • Outside edge

    5 Dec 2002

    It never fails to amaze me how the pundits change their views on the housing market. Last week, Hometrack lowered its projection of 7 per cent house price inflation for next year to a drop of 5 per cent - a movement of 12 per cent in less than a month. We should give its view more prominence than most as its data is the most up to date in terms of sentiment in the market. Contrast this with the Chancellor's more bullish outlook for the economy and you are left asking if anyone knows ...

  • Polar climate left customer choice out in the cold

    5 Dec 2002

    I had the pleasure recently of attending Aifa's annual dinner. FSA chairman Sir Howard Davies chose the occasion to announce the FSA's decisions on CP121.I did not observe any IFAs collapse into their port following his speech and the many IFAs I know were still on cordial speaking terms with me after the dinner. The main decision announced was that the FSA is going to remove the current polarisation restrictions. It has always been a curious market intervention by a regulator ...

  • Product Equitable Life findings delayed until summer

    5 Dec 2002

    The Penrose inquiry has confirmed it will not publish its findings into the Equitable Life collapse until next summer and is ruling out an interim report despite calls from MPs. The secretary to the inquiry issued an open letter last week confirming the publication timetable after Liberal Democrat trade and industry spokesman Vincent Cable condemned the slow progress of the inquiry and demanded that Lord Penrose publish at least some findings soon. The letter said summer publication ...

  • Product matters

    5 Dec 2002

    Norwich Union has changed the name and mandate of its income opportunities fund and turned it into the distribution fund. Up to now, the fund has always had around 50 per cent in fixed interest and 50 per cent in equities. It has always had a reasonable record and for the last two years has been run by Roger Webb and Scott McKenzie. They will continue to run the revamped fund and will be looking for an asset mix of 65 per cent fixed interest and 35 per cent equities. Fixed interest ...

  • Pru cuts terminal bonuses again

    5 Dec 2002

    Prudential has cut terminal bonuses on with-profits policies by around 7 per cent with immediate effect. The life office blames troubled stockmarkets for its third bonus rate cut since February and the second in two months. Typical maturity values on Prudential and Scottish Amicable pension, investment, savings and mortgage endowment policies have fallen by 12 per cent this year against a decline in the FTSE 100 of more than 20 per cent to the end of November. The impact on ...

  • Raymond James Investment Services - Sipp

    4 Dec 2002

    Wednesday, 4 December 2002 Type: Full SippMinimum investment: Lump sum £1,000, monthly £150Investment choice: All Inland Revenue permitted investments except commercial propertyCharges: Subject to negotiationCommission: NoneTel: 020 7337 0706

  • Raymond James Investment Services launches online Sipp

    10 Dec 2002

    Private client manager Raymond James Investment Services is launching an online Sipp administration service for IFAs and stockbrokers. Parent Raymond James runs £54bn of assets in wrap accounts in the US. The RJIS desktop tool offers manager of manager programmes, bespoke analysis and trading of third party funds and asset allocation. .

  • Royal London to axe 670 jobs

    4 Dec 2002

    Royal London has announced that 670 jobs are to go across its business including 200 at its Scottish Life subsidiary.The cuts follow a thorough strategy review of the business. The Royal London direct sales force will be reduced from 350 to 150. The other cuts are made from its servicing and IT departments of the group as it seeks to eliminate duplication following on from its acquisition of Scottish Life and United Assurance.

  • ScotProv mortgage manager wins case at tribunal

    5 Dec 2002

    An employment tribunal has found Abbey National guilty of acting unfairly to a Scottish Provident consultant in the way it integrated ScotProv's sales team into Scottish Mutual. A string of other claims against Abbey are under way with six more long-serving ScotProv consultants claiming their incomes were slashed when all their best IFAs were taken off their accounts and given to Scottish Mutual consultants. The ex-employees bringing the claims argue that their treatment under ...

  • Self-employed should get access to S2P - ABI

    10 Dec 2002

    Enabling the 2.5 million self-employed workers access to the State Second Pension would close the savings gap by £2bn, according to consumer research from the ABI. The ABI survey showed fifty-one per cent of self-employed workers said they had lost confidence in their retirement saving compared with 39 per cent of employees. Only 1 per cent of the self-employed intend to rely on equity in their business when they retire.

  • Shareholder pressure ousts Watt at EFM

    5 Dec 2002

    Edinburgh Fund Managers chief executive Iain Watt has been forced to quit following months of intense pressure from shareholders, including institutional investor Hermes. In a dramatic boardroom shakeout, chairman John Wright and three non-executive directors have also left the embattled company, which is likely to face another takeover bid or radical reconstruction following a strategic review in the coming weeks. Hermes, which had a bid for EFM dismissed last November, is believed ...

  • Spowart to take IF to US and Europe

    5 Dec 2002

    Intelligent Finance chief executive Jim Spowart is quitting the role for another position in HBOS, reporting directly to group CEO James Crosby. He is being replaced at IF by head of intermediary sales at HBOS Retail, Grenville Turner. In his new role, Spowart, based at group headquarters at The Mound in Edinburgh, will be responsible for exploring the introduction of IF's proposition to continental Europe and the US. He will also work on applying IF's technology within the ...

  • Standard adopts Origo universal password system

    10 Dec 2002

    Standard Life's extranet is now enabled for Unipass Unipass, the new individual digital certificate for IFAs from Origo that replaces the need for individual passwords to access different extranets.

  • Standard is paving the way for more cuts, claims IFA

    5 Dec 2002

    IFAs have accused Standard Life of opening the way for more interim cuts in bonus payouts by scrapping 30-day valuation guarantees for with-profits policyholders. Standard says the move, which IFAs were not told about, is designed to bring the procedure for with-profits policies into line with investment-linked policies. The life office, which cut maturity bonuses on pensions and endowment policies by 10 per cent in October, says the 30-day guarantee is an antiquated hangover from ...

  • Standard Life Healthcare goes to Hell and back to help hospices

    5 Dec 2002

    Directors and senior managers at Standard Life Healthcare have raised over £2,500 for two children's hospices after taking part in a whitewater rafting trip in Wales. Seven members of the executive management group were joined by six representatives of suppliers on the15-mile trip along the River Wye, which took in six rapids, including the infamous Hell Hole. Sponsorship money raised will be split between the Chase Children's Hospice Service in Guildford and Francis ...

  • Supermarts finally stack the shelves

    5 Dec 2002

    Fund supermarkets Cofunds and FundsNetwork admit that part of the reason they finally struck a deal last week was because they were running out of time. With the Isa season looming ever larger - and looking increasingly like a damp squib - both needed to boast a full complement of fund managers to help attract what business there is likely to be around. FundsNetwork, in particular, says it "pushed very hard" to clinch the deal, which ensures the funds of Cofunds' backers - M&G, ...

  • Switch out of Aberdeen funds, says IFA Bates

    10 Dec 2002

    Bates Investment Services is advising investors to sell their Aberdeen unit trust holdings immediately. ]The IFA has written to all clients it advised to buy Aberdeen funds to urge them to consider switching into alternative funds as soon as possible. Only Aberdeen's progressive growth unit trust, which invests in split-caps, is spared the sell warning, with Bates advising investors to wait for the fund's uplift package before moving.

  • Taking stock

    5 Dec 2002

    The UK opportunities Oeic from SVM Asset Management invests in medium and smaller UK companies. Commenting on how the fund fits into the market, Laymond thinks it is an ideal fund for a portion of any portfolio. Gilbey says: "This is a difficult fund to categorise. It is an Oeic that is included in the Investment Managers Association's UK all companies sector classification but potentially has a lot in common with funds in the UK smaller companies sector." Hosking says ...

  • Talkback

    5 Dec 2002

    "I don't believe a word of it. They have changed their stance on most matters. The FSA will do what they like and shouldn't be trusted." Anthony O'Donnell, O'Donnell Park Associates "No. It is a Government department - what more do you need to say? I think public pressure means more to them than IFAs." Andrew Kent,Choices Financial Services "Yes. I believe Howard Davies when he says that he will do something that it will be the case." Frank Dennis,Frank ...

  • Teething troubles

    5 Dec 2002

    On the weekend, the FSA marked its first anniversary as the UK's single financial regulator. It has certainly not been a dull year for the folks down at Canary Wharf. Between crises blowing up in their faces and seeing their mandate expand to unprecedented proportions, regulators have had their plates full. So, how has the world's biggest single financial regulator performed in its infancy? The general consensus appears to be fair to middling, but with plenty of room left to ...

  • Thames River Capital - Thames River Japan Fund

    4 Dec 2002

    Wednesday, 4 December 2002Type: Oeic Aim: Growth by investing in Japanese equities Minimum investment: Lump sum Euro 15,000, £10,000Place of registration: Dublin Investment split: 100% in Japanese equities Isa link: No Charges: Initial up to 5%, annual 1.75% Commission: Initial 3%, renewal subject to negotiationTel: 020 7440 0840

  • The exclusion zone

    5 Dec 2002

    Many people on moderate incomes take for granted their ability to hold a range of different financial products. Although we might moan about our banks, we hardly notice the benefits they provide us with. Try imagining running your finances, indeed your life, totally excluded from mainstream financial instruments. It soon starts to get difficult, yet this is the situation that many thousands of people find themselves in. Financial exclusion is a big issue and has risen up the Government ...

  • The Government's pension paradox

    5 Dec 2002

    It has finally happened. A client of ours has declined to increase his presently modest pension contributions for the explicit and simple reason that he does not want to be bound to having to spend three-quarters of his fund at retirement on buying an annuity. This may come as no great surprise to those of in the industry already well acquainted with the annuity crisis (and who are entirely scornful of those who try to claim that annuities still represent good value) What is mildly ...

  • Those of you

    5 Dec 2002

    Those of you setting off to work in the dark, spare a thought for the Inter-Alliance golf team, who this week are teeing off at the final of The Times JP Morgan Fleming Corporate Golf Challenge at La Manga Club in Spain. Star of the team, that put out St James's Place on the way to the final, is adviser Oliver Pughe, carrying a handicap of just one.

  • Threadneedle fuses bonds with equities

    6 Dec 2002

    THREADNEEDLEDEFENSIVE BOND AND EQUITY FUNDType: Unit trustAim: Growth and income by investing in Threadneedle funds Minimum investment: Lump sum £2,000 Investment split: Bonds 75%, equities 25% Yield: 4.27% Isa link: Yes Pep transfers: Yes Charges: Initial 3.75%, annual 0.25% Commission: Initial 3%, renewal 0.5% Tel: 0800 06840005The panel: Bruce Bulgin, partner, Chadney Bulgin, Alan ...

  • Trackers Of their tears

    5 Dec 2002

    Investment IFAs are warning that tracker funds should no longer be marketed as low-risk investments. This view is echoed across the Atlantic by fund guru John Muresianu, former manager of Fidelity's American fund. He goes as far as describing so-called "closet" trackers as "insidious" and even blames the rise of index trackers, not technology shares, for the US equity bubble. IFAs such as Chase de Vere think tracker funds are too restrictive in forcing investors to put all their ...

  • Treasury figures out pension crisis

    5 Dec 2002

    Public spending on pensions as a share of GDP will not have to increase over the next 50 years, according to the Treasury's pre-Budget report. The figures show pension spending as a percentage of GDP, currently 5 per cent, actually falling over the next 20 years and remaining broadly the same over the next 50 years, leading some sources to question industry assumptions of a pension crisis. The report believes income tax payable by wealthier pensioners will boost Treasury coffers ...

  • Trigold signs deal with three mortgage clubs

    4 Dec 2002

    Sourcing system and trading platform Trigold has signed a deal with broker clubs Mortgage Intelligence and The Mortgage Alliance, Scottish Mutual and Scottish Provident's club. A customised version of the software offering TMA's 3000 members mortgage point-of-sale and processing solutions has been developed. And Mortgage Intelligence's 5,000 members can now choose from Trigold or Mortgage Brain. 

  • Warning on income products

    5 Dec 2002

    The FSA has issued a paper warning investors of the risks they face from structured products, corporate bonds and other high-income-producing products. The factsheet, Make Sure You Understand the Risks, advises investors to avoid high-income products unless they appreciate that their capital could fall considerably. The regulator warns that some products are designed to give maximum benefit only after a set period, often five years. It says many of these products mature next year ...

  • We suspect the phrase

    5 Dec 2002

    We suspect the phrase, "Blessed are the meek for they will inherit the earth", is not likely to be adopted as a motto at Intelligent Finance. From its latest brochure: "At the age of four, Tiger Woods could handle 18 holes without embarrassment. And Bach was no mean pianist by the time he was three. But did anyone, hand on heart, expect Intelligent Finance to be leading the way in offset banking after a mere 24 months? Well, actually, yes. It is a phenomenal achievement but it's one ...

  • Website offers Sterling fund data

    5 Dec 2002

    F&C Management is offering a free guide to investing in the Pacific region. The guide is aimed at current investors or anyone considering investing in the area and includes information on potential investment opportunities, a short history of the Pacific markets and an outline of how to invest in the region. It also outlines details of the different markets including Japan, Hong Kong and China, Korea, Taiwan, Australia, South East Asia and India. F&C Pacific Investment ...

  • Winterthur selects M&G bond

    5 Dec 2002

    Winterthur Life is adding the M&G corporate bond fund to its Tailored Selection, now numbering 42 funds available to Sipp investors. The fund is managed by Anna Lees-Jones and invests purely in sterling-denominated securities.

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