Money Marketing
5 December 2001

  • 'Chancer' IFAs investing in future

    10 Dec 2001

    More IFAs are getting into debt to fund expansion according to new research from the Plimsoll consultancy.

  • 'Govt and regulator have new attitude to independent advice'

    6 Dec 2001

    The Government and the regulator are changing their attitude to independent final advice, according to Aifa director general Paul Smee. Speaking at the conference, Smee said 18 months ago the focus was on ways to effectively sidestep advice with tools such as decision trees. He said: "The mindset is changing because of a different political imperative to get people saving." He argues there is now a realisation that advice is needed to achieve this objective. Smee pointed ...

  • 'Govt message on stakeholder getting through'

    6 Dec 2001

    Stakeholder awareness among the public is inc-reasing, showing that the Government's publicity campaign is working, acc-ording to research from Legal & General. Its research shows that 66 per cent of people have heard of stakeholder compared with 47 per cent in May. L&G also asked consumers which features of stakeholder they were aware of. Half said they knew stakeholder can be moved if they change jobs. More than 40 per cent were aware that payments can be stopped ...

  • 'Shun FSA's half-baked fund tables'

    6 Dec 2001

    Consumers should shun the FSA's "half-baked" comparative tables and use websites that contain full fund information, says Autif director of communications Anne McMeehan. Speaking at the Money Marketing IFA UK conference in London last week, McMeehan said: "Go to the FT website and you will see ratings, past performance, risk and cost-based statistics. Go there for your information, not the FSA website, which is half-baked." "The FSA was given a hospital pass by Gordon Brown ...

  • A consumer's view

    6 Dec 2001

    The essence of a good tax avoidance scheme is that not too many people know about it or take advantage of it. If large numbers of wealthy individuals start piling in, the loss of tax revenue to the Treasury reaches a level where the Chancellor feels obliged to plug the gap. The latest stakeholder scheme from Standard Life - Immediate Vesting Personal Pension Select - has received high-profile marketing by some of the heavyweight IFAs in the industry such as Hargreaves Lansdown, retirement ...

  • A stealthy plan

    6 Dec 2001

    Gordon Brown may have won a reputation for stealth taxation but it was Nigel Lawson who first introduced Peps in the 1986 Budget. They became available from January 1987, with the original inspiration being the Govern-ment's wish to expand individual share ownership. But was there a secondary, more sinister objective? Peps were replaced by Isas in 1999 but the idea of investing in equities via compliant collective structures has long proven popular with UK investors. In 2000/01, ...

  • ABI aims to head off commission attack by Sandler

    6 Dec 2001

    The ABI is examining propo-sals for a disclosure regime based on benchmarked or average commission in a bid to seize the initiative before the Sandler review forces the industry's hand. Papers seen by Money Marketing from the ABI's life insurance committee suggest "the commission offered by various providers on the same product might be disclosed, perhaps alongside an industry benchmark or average". To address accusations of product and provider bias, the ABI intends to design ...

  • ABI looking to change definition of heart attacks

    10 Dec 2001

    A broader definition of heart attacks may lead to more people being accepted for critical illness cover under new proposals from the ABI.

  • Access routes

    6 Dec 2001

    Lorna Bourke's article (Money Marketing, November 22) makes some excellent points about the need to give people access to advice to help them make financial decisions which can have a very big effect on their lives. The so-called 1 per cent world has been a factor, albeit not the only one, in the withdrawal of many of the natural sources of advice for low to medium earners, already becoming disenfranchised as a result of the steady decline of home-service business. There is ...

  • Action needed to boost stakeholder take-up, ABI pensions head tells Sofa conference

    7 Dec 2001

    ABI head of pensions Joanne Seagers claimed 80 per cent of employers who must designate stakeholder schemes had already done so, but she admitted work needs to be done to get employees to sign up.

  • Aegon direct-sales firm to be supermart

    6 Dec 2001

    Aegon will be launching its new investment company selling direct to consumers as a fund supermarket. It is not yet known how many fund managers will be on the platform but Aegon hopes it will rival the likes of Ample. Aegon is in negotiations with managers about the proposition which is due to launch in the first half of next year. The supermarket will operate under Aegon's brand. The brand, which will be revealed next year, will be separate from Aegon's IFA-only Scottish ...

  • AMP merges brands into one group

    6 Dec 2001

    IFAs can now get access to AMP's range of NPI, Pearl and London Life products following a merger of its brands into a single marketing group. AMP's product stable has been cut across the group from 189 to 44 by removing duplicated products but products from the separate divisions are being opened up to each distribution channel. Previously IFA-only NPI products are now to be sold through Pearl's salesforce for the first time as well as London Life products. The Pearl salesforce ...

  • Ashburton - Ashburton Dollar Fixed Income Management Fund

    7 Dec 2001

    Friday, December 7, 2001. Type: Oeic. Aim: Growth and income by investing in international fixed income securities and money market instruments. Minimum investment: Euros 40,000. Place of registration: Isle of Man. Investment split: Inflation-linked bonds 58 per cent, other bonds 10 per cent, cash 32 per cent. Isa link: No. Charges: Initial 5 per cent, annual 1.75 per cent. Commission: Subject to negotiation. Tel: ...

  • Autif's McMeehan slams 'short-termist' pension fund strategies

    6 Dec 2001

    Pension trustees and fund managers are becoming "short-sighted, short-termist and lacking in vision" and will continue to move towards less volatile investments, according to Autif director of communications Anne McMeehan. The increasing frequency of reviews of investment strategy of pension funds means individual managers will want to be sure of some positive returns over shorter periods to be retained, and will lead to more pension funds following the Boots pension fund out of equities ...

  • Axa PPP Healthcare appoints new chief exec

    10 Dec 2001

    Axa PPP Healthcare has announced the appointment of Keith Gibbs as its new chief executive with effect from December 17.

  • B&W Isas investment cake

    10 Dec 2001

    Bristol & West is offering a stockmarket-linked cash Isa that tracks the FTSE 100, Eurostoxx 50 and Nikkei 225 indices over a five-year term.

  • B&W offers 6 year combination bond

    7 Dec 2001

    Bristol & West has introduced its 6 year income & growth bond which consists of a guaranteed equity bond for growth and a high interest account.

  • Baillie Gifford - High Yield Bond Fund

    10 Dec 2001

    Monday, December 10, 2001. Type: Oeic. Aim: Income by investing in sub-investment grade fixed-interest securities. Minimum investment: Lump sum £1,000. Investment split: 100 per cent in sub-investment grade fixed-interest securities. Yield: 10 per cent. Isa link: No. Pep transfers: No. Charges: Initial 3.5 per cent, annual 1 per cent. Commission: Initial 3 per cent, renewal 0.5 per cent. Tel: ...

  • Baillie Gifford - Investment Grade Bond Fund

    7 Dec 2001

    Friday, December 7, 2001. Type: Oeic. Aim: Income by investing in investment grade fixed-interest securities. Minimum investment: Lump sum £1,000. Investment split: 100 per cent in investment grade fixed-interest securities. Yield: 5.5 per cent. Isa link: No. Pep transfers: No. Charges: Initial 3.5 per cent, annual 1 per cent. Commission: Initial 3 per cent, renewal 0.5 per cent. Tel: 0800 9174752.

  • Baillie Gifford fixes interest on bond funds

    6 Dec 2001

    Scottish fund manager Baillie Gifford has added the investment-grade bond fund to its range of corporate bond funds.

  • Berkeley blames regulation for increase in network fees

    6 Dec 2001

    IFA network Berkeley Independent Advisers is increasing fees and charging extra for some compliance services, with one month's notice of the changes. The network's 250 member firms have had a letter explaining its revised charging structure from January 1, including a minimum monthly fee being levied for the first time of £562.50 for firms with an annual turnover of less than £45,000. BIA is also increasing its annual fee as percentage of each firm's income ...

  • Bristol & West - 6 Year Income & Growth Bond

    10 Dec 2001

    Monday, December 10, 2001. Type: Guaranteed equity bond and high interest account. GUARANTEED EQUITY BOND Aim: Growth linked to the FTSE 100, Eurostoxx 50 and Nikkei 225 indices. Minimum-maximum investment: £5,000-£1m. Term: Six years. Guarantee: Capital returned in full at end of term regardless of movement in indices. Return: Capital returned in full along with up to 80 per cent of growth in indices. Closing ...

  • Bristol & West six-year bond to pay 5% monthly income

    6 Dec 2001

    Bristol & West is offering a six-year income and growth bond aimed at the IFA market. The bond is comprised of two elements, a guaranteed equity bond aimed at achieving capital growth and fixed-rate deposit account paying a monthly income of 5 per cent gross. The guaranteed equity bond provides a return of up to 80 per cent of the growth of the FTSE 100, Eurostoxx 50 and Nikkei 225 stockmarket indices. The initial investment sum is guaranteed even if stockmarket indices fall. The ...

  • Britannic warning on annuity transfers

    6 Dec 2001

    Britannic Retirement Solutions is predicting that the removal of mortality cross-subsidy from annuities would need returns to increase by between 1 per cent and 4.4 per cent. Research from BRS illustrates that if the Government allows transferability between annuity providers, they face cutting £11,000 off the lifetime income of the average male age 65. The provider argues that when the mortality cross-subsidy is removed, the returns required to meet the required income soar. For ...

  • Bundling up

    6 Dec 2001

    Alliance & Leicester has bundled together a fixed-rate savings account with a range of bonds from Legal & General. Investors in the balanced savings and investment plan must place at least £1,000 in Alliance & Leicester's one-year fixed-rate bond. This is a savings account offering a fixed rate of interest at 6.5 per cent. At least £5,000 must be invested in a Legal & General bond of the investor's choice. This can be a with-profits bond which ...

  • Bupa cashplan complements PMI

    11 Dec 2001

    Bupa has designed a healthcare cash plan that aims to complement private medical insurance (PMI).

  • Bupa offers plan to end paying twice for benefits

    6 Dec 2001

    Bupa is offering a health cash plan which provides cover for everyday healthcare expenses without duplicating the benefits available through private medical insurance. The firm says it has created the Health Additions plan to attract customers who already hold medical insurance and fear paying twice for benefits such as hospital stays and consultations. Customers pay a premium of £10 a month - irrespective of age - for one level of cover, with £90 towards optical, dental, ...

  • C&G quits equity talks with Brain

    6 Dec 2001

    Cheltenham & Gloucester has unexpectedly broken off equity-stake negotiations with Mortgage Brain's owner lenders after completing due diligence with the trading platform. C&G says it will not be pursuing a place on Mortgage Brain's board - which includes lenders Nationwide, Halifax and Alliance & Leicester - and will concentrate its resources on developing its in-house systems. Mortgage Brain director Mike Green says C&G decided to ditch its plans after realising ...

  • CGE&Y urges Sofa delegates to integrate face to face advice with telephone and internet

    7 Dec 2001

    To meet consumer demand for financial advice in the "1 per cent world" IFAs must rethink their current processes according to Cap Gemini Ernst & Young.

  • Chelsea launches new bond

    7 Dec 2001

    Chelsea Building Society is to launch the third issue of the Chelsea Guaranteed Bond, its branch based investment account, on December 8.

  • CII launches administrative benchmark

    11 Dec 2001

    The CII has launched a new qualification aimed at the administrative staff of life and pensions offices.

  • Clerical bonus

    6 Dec 2001

    Paul Wearden's letter (Money Marketing, November 15) discussed the Tunbridge Wells terminal bonus being reduced between the pre-maturity advice and the cheque being received. My own policy with Twefs fell into this category but at the same time I received a letter from Clerical Medical regarding the maturity of one of my client's policies. Clerical clearly stated that if it had to reduce terminal bonuses between the pre-maturity advice and actual maturity, the former would be ...

  • Close offering property fund with 10% yield

    6 Dec 2001

    Close Property Investment is introducing a new property partnership product, offering investors a yield of 10 per cent. The Fareham Fund Limited Partnership will invest in a new innovation centre in the Solent business corridor between Portsmouth and Southampton. The innovation centre will offer funding, accounting and marketing assistance for small firms as well as busi-ness premises. It is the second centre of its kind, following on from the success of the St Johns' innovation ...

  • CML code could be lost as N3 nears

    6 Dec 2001

    The Council of Mortgage Lenders fears it does not have enough time to rewrite the mortgage code before N3 and admits there is a possibility that it may have to be scrapped. The CML says it is highly debatable whether it can revamp the code in the time between publication of the FSA's final mortgage rules - due at the end of the month - and August, when lenders become directly authorised. It claims there is even a chance that the code will cease to exist at N3 but says it is ...

  • Cofunds buys its back office from M&G

    6 Dec 2001

    Cofunds is to buy its back-office from M&G for a consideration of £3.7m next week.

  • Compliance expert warns companies over FSA rules

    6 Dec 2001

    Many retail financial services companies may believe they are compliant with new FSA regulations but still be failing to meet admin rules. Compliance specialist Huntswood director Shaun O'Leary says many companies have put significant resources into ensuring their sales processes are compliant but fail to realise that their back-office admin processes could be in breach of the new rules. He says companies need to be aware that the FSA will be scrutinising a number of their back-office ...

  • Consumer borrowing set to fall amid fear of rate rises

    6 Dec 2001

    Consumer borrowing is set to plummet this month, with Britons intending to borrow an average of £29 a person, according to findings from Alliance & Leicester. This is almost half the amount borrowed per person in July, which stood at £56. A&L's quarterly wealth tracker index shows that Britons fear being burdened with debt if interest rates rise in a recession. The index shows people will have more cash than in July, with the average mon-thly disposable ...

  • Credit Agricole Asset Management sees Eastern promise

    10 Dec 2001

    Asian economies show signs of promise and could be set for a resurgence, according to Credit Agricole Asset Management.CAAM's latest investment report shows strong growth since September. By the end of November the MSCI Asia ex-Japan index was up 19 per cent, compared to 8.78 for the MSCI World index.

  • Darling faces critics at ABI seminar

    6 Dec 2001

    Secretary of State for the Department for Work and Pensions Alistair Darling faced criticism from senior industry figures at an ABI seminar in London last week over his plans for pension credits. Speaking ahead of a Parliamentary announcement that day, Darling said the Bill bringing in the pension income top-ups was likely to be passed in the summer. Darling was unable to give a likely timetable for when the credits will be worked into stakeholder decision trees. In the current ...

  • Davies hints at radical change as he savages 'toothless' PIA

    6 Dec 2001

    FSA chairman Howard Davies has rubbished the PIA's record, labelling it costly, ineffective, intrusive, oppressive, toothless and inadequate while tipping radical change to polarisation. Providers say radical reform is now more likely contrary to expectations following the FSA's open meeting in October when the head of polarisation review David Severn appeared to favour gap-filling over multi-ties. Davies, addressing the Foreign Banks & Securities Association Conference ...

  • Don't go wide of the benchmark

    6 Dec 2001

    Over the last few weeks, I have been conducting a series of seminars on investment portfolio planning for over 1,500 IFAs and around 600 broker consultants. One of the more popular sessions has touched on the interpretation of data in the quality financial newspapers and its uses in mainstream financial planning. Over the next few articles, I would like to expand the content of these sessions, concentrating on information which can be of prime importance to IFAs. This week, I will ...

  • Early retirement hopes dashed

    6 Dec 2001

    Eight out of ten Britons would like to retire early, according to research from HSBC but most people are simply not saving enough to achieve their required annual pension.

  • Equitable compromise scheme in the post

    6 Dec 2001

    Equitable Life policyholders are starting to receive the final compromise scheme details this week and have until January 11 to decide if they will back the deal.GAR policyholders are being asked to exchange their guarantee for a 17.5 per cent uplift in policy value and non-GAR holders are being offered a 2.5 per cent uplift in exchange for giving up mis-selling claims.The policyholder meeting will take place on January 11 at Wembley.

  • Equitable quiz for former directors

    6 Dec 2001

    The net appears to be closing in on former directors and auditors of Equitable Life, with Equitable's new board taking the first steps towards legal action for redress. Herbert Smith has been investigating events leading up to the society's financial crisis on behalf of Equitable Life's new board and examining the conduct of previous boards, auditors, advisers and regulators. The lawyers are now writing to 20 former directors, including three former chief executives, to ...

  • Exclusive - Black expected to leave Towry Law

    7 Dec 2001

    Towry Law chief executive Douglas Black is expected to leave the National IFA soon.

  • F&C clones with-prospects

    7 Dec 2001

    FOREIGN & COLONIALWITH PROSPECTS FUNDType: Oeic.Aim: Growth and income by investing in UK and overseas equities and fixed-interest investments.Minimum investment: Lump sum £2,500.Investment split: International equities 60 per cent, investment grade bonds 40 per cent.Isa link: Yes.Pep transfers: Yes.Charges: Initial 5 per cent, annual 1 per cent.Commission: Initial 4 per cent, renewal 0.25 per cent.Tel: ...

  • FARsighted flexi pay

    6 Dec 2001

    In 1988, Winterthur Life, then Provident Life, launched its professional advisers' division to offer commission-free pension products aimed at the high-net-worth individual. The products did not have any commission loading and adopted a radical approach to charging. We believed that if we really were to offer commission-free pensions that they should also have clear and open charging. Capital/initial units were a favourite method for collecting charges from clients in the early ...

  • Focus on fund managers

    6 Dec 2001

    Investors who want to learn more about the world's top-performing fund managers should attend Excellence in Fund Management, a two-day conference in January hosted by Global Fund Analysis. The first day of the conference will consist of workshops exploring the hedge fund industry, with guest speakers from the pension fund sector, consultants and hedge fund managers. Day two will see presentations from 40 mutual and hedge fund managers that have been rated by Global Fund Analysis. The ...

  • Former Deutsche manager Frost joins Artemis

    7 Dec 2001

    Star income manager Adrian Frost is to join Artemis next week, to take over the management of its flagging UK income fund.

  • Friends says red tape is too tight for stakeholder

    6 Dec 2001

    Friends Provident says the revised money laundering guidelines cannot be justified under the 1 per cent price cap for stakeholder. The new rules make extra demands on IFAs who are responsible for getting identification for policyholders. Friends says there are unnecessary red tape is generated by the rules. For example, where a stakeholder is set up, an ID check is needed on the member. If the member is a child, an ID check is needed on the legal guardian. An ID check is required ...

  • FSA bids to cut PI rates

    6 Dec 2001

    The FSA is in discussions with PI brokers in a bid to reduce the premiums that IFAs have to pay to retain their authorised status. The regulator is telling the PI brokers what it regards as an appropriate policy and is discussing what is in the regulatory and legislative pipeline in an effort to help PI companies determine premiums with better knowledge of future events. The PI market has been wary of regulatory developments since the pension misselling crisis, with concerns over ...

  • FSA move to axe designations in exams overhaul

    6 Dec 2001

    The FSA has unveiled proposals to replace designatory letters, introduce limited retesting, toughen entrance exams and back a single accreditation scheme in the long-awaited paper on IFA qualifications. The news comes as head of industry training David Jackman has provoked a row with IFAs by agreeing with Ron Sandler that IFAs' investment knowledge is not up to scratch and suggesting that many advisers are not viewed as professionals. Jackman told Money Marketing this week that ...

  • FSA to plant more trees but unsure of worth

    6 Dec 2001

    Decision trees will be brought in for other products as well as stakeholder but the FSA admits it may never know if they work, says FSA group manager Norman Digance. With the vast majority of stakeholder sales coming through the IFA channel, the FSA says it is difficult to know where trees have played a part. But it says trees must be given "a fair crack of the whip" and they could well be brought in for other products. It admits it needs to have a better understanding of which ...

  • Further reform necessary

    6 Dec 2001

    The ABI's senior economist believes the pension credit should be one step towards greater reform of the market and that the credit makes it difficult for advisers to know what best advice is. In his address to the ABI pension credit seminar, Chris Curry detailed evidence that further reform is needed to encourage pension saving. Other policy options proposed by Curry included increasing the age when the minimum income guarantee is payable, changing the state pension age or even ...

  • Gan bill could top £45m after big fine

    6 Dec 2001

    Gan Life has been fined £1.4m for serious failures in handling complaints, many from misselling victims, and the total compensation bill could reach £45m. The PIA found that Gan former management had deliberately cut corners on settling complaints to reduce costs and "manipulated" cases that were before the ombudsman to avoid attracting the PIA's attention. The review revealed that many of the mishandled complaints concerned policies sold as 10-year plans when they ...

  • Give Santa the sack, say parents

    6 Dec 2001

    Almost half of parents think their children get too many Christmas presents and more than a third would prefer them to receive money to invest for the future. In a survey of 1,981 parents by the Association of Investment Trust Companies, 44 per cent said that too much money is spent on Christmas presents. Thirty-six per cent said they spend over £150 on their children's presents and 57 per cent spend more than £100. Welsh children fare best, with 52 per cent ...

  • Greenshields takes top media role at Widows

    6 Dec 2001

    Scottish Widows has appointed Robert Greenshields as its new head of corporate communications. He will manage trade and consumer media relations, internal and external communications, including contact with IFAs, and corporate events. Greenshields, 40, left his previous position as head of marketing communications with Scottish Provident in August after it merged with Scottish Mutual. He has worked in financial marketing and communications since 1981 after graduating with a degree ...

  • IFAs at the junction

    6 Dec 2001

    What is the central focus of the discussion paper on exams? We are trying to send a very strong message to the industry that competence is a fundamental basis for good regulation, good compliance. It is quite an important step on the long road to professionalism. It is almost decision time - do we want to be committed to professionalism in a serious long-term way or not? What we are trying to do in the review is come up with a view of what professionalism will look like. It is a chance ...

  • Ill wind buffets sales of industry flagships

    6 Dec 2001

    One of the clearest indicators of how the UK's fund management companies are faring - PBI Newmedia's six-monthly UK fund sales and marketing report - was published last week. Along with PBI's annual fund industry review, this is still the only publicly available breakdown of industry sales figures. Before reading too much into the report, it should be said that these figures cannot be taken as representing the whole story. The figures are reported to PBI by the companies themselves ...

  • Immanis aids advisers with referrals service

    6 Dec 2001

    Software developer Imm-anis is offering its Cris cli-ent-referrer service to IFAs as changes to the regulation of advice given by sol-icitors and accountants are introduced with N2. The service is an electronic online referral tool that allows professionals such as solicitors and acc-ountants to refer clients to IFAs and monitor the adv-ice process for their own compliance purposes. At present, there are 15,000 professional practices authorised to conduct investment business but ...

  • Independent view

    6 Dec 2001

    November marked something of an ending for me. With the FSA assuming its full powers at the end of last month, my job as PIA board director to all intents and purposes has finished. So it is time to indulge in nostalgia and reminiscences. It is over 20 years since I first became an IFA. The term was not invented then. Many people who purported to be independent were largely multi-tied. But there is no way that at that stage the types of changes and increases in professionalism that ...

  • Inside edge

    6 Dec 2001

    Last week, at midnight on Friday November 30, the world's most powerful financial watchdog finally took on new powers over everything from inv-estment banks to friendly societies. The FSA is, no doubt, relieved that four years of preparation are over and the change means we undergo our biggest regulatory change since 1986's Big Bang. This is very significant for all of us with responsibilities for the delivery of financial services, as it marks a step-change in regulation. The ...

  • INVESTMENT Update

    6 Dec 2001

    The merger of Old Mutual Asset Managers and Gerrard Investment Funds has led to head of fixed interest Bob Attridge and head of emerging markets Ashok Shah both losing their positions. They have been offered alternative roles within the company. Lincoln Unit Trust Managers is permanently reducing the initial charge on its corporate bond product to 3.5 per cent from 5 per cent. LUTM says the cut will directly affect yields on the product, increasing income yield to 6.41 per cent ...

  • Investment view

    6 Dec 2001

    I was encouraged to read in last week's outpourings from Lombard Street Research that consumer demand in the UK is continuing to forge ahead. Apparently, this particular measure of the economy rose by 1.3 per cent in the third quarter alone. Given that mortgages are at a 40-year low and that there is usually a lag between cheaper money and any stimulus it may have on consumer spending, there seems little reason to believe any slowdown is likely. Indeed, demand for credit is growing ...

  • Isis techs a gamble

    10 Dec 2001

    Friends Ivory & Sime has established the Isis technology venture capital trust (VCT) to take advantage of undervalued technology companies in the UK.

  • Julian Gibbs

    6 Dec 2001

    While I believe that the best UK equity funds will perform well next year because stockmarkets anticipate recovery in world economies usually by six to nine months, I also believe that the so-called junk bonds will be top performers as well as providing a very high income. Over the past year, both sterling and European high-yield bond funds have taken a nasty dive but are now excellent value for money. It is especially true of the European high-yield funds, where UK investors should ...

  • Jupiter says Isa season is in doubt

    6 Dec 2001

    Jupiter's investment trust chief has warned that this year's Isa season may not happen and could be written off by fund managers unless conditions change dramatically for consumers. Speaking at the Money Marketing IFA UK Conference in London last week, head of investment trust business Andrew Watkins said he did not think there would be an Isa season and added that Jupiter was planning to scale back its advertising spend this year. Asked whether there would be an Isa season, ...

  • Lambeth customers get access to L&G products

    6 Dec 2001

    Legal & General and Lambeth Building Society are teaming up to give Lambeth's customers access to L&G's protection, long-term savings and investment products. The partnership will allow the society's customers to buy a raft of savings and investment products from fixed-interest deposits to actively managed Isas, unit trusts and pensions from the combined range of both companies. Customers applying for a loan from Lambeth will be offered L&G's full range ...

  • Lansons and Penrose lead way in PR

    6 Dec 2001

    Lansons Communications and Penrose Financial are the top two PR consultancies used by unit trust and Oeic companies, according to a review of the UK fund industry. But most companies rely on in-house publicity services rather than appointing PR consultancies, says the Fund Sales & Marketing Report 2001. Of the 118 companies surveyed, 52 contract out all or part of their PR business to a third party while 66 rely purely on internal resources. The report ranks PR companies ...

  • Laundering waste is an indictment of regulation

    6 Dec 2001

    The correspondence we are starting to receive from product providers regarding the money-laundering regulations under the FSA is a further indictment of: The failure of financial regulation to date. The danger of non-practitioners making regulations. The weakness and failure of the regulated to stand up to the regulators and use that simple word: "Why?" The answer that it is in the rules is simply not good enough. Jupiter tells us "that fund providers can only rely on client-verification ...

  • Lenders' anger as Tiner bars questions over monitoring

    6 Dec 2001

    Lenders have slammed FSA managing director John Tiner for refusing to answer questions on how they can comply with the requirement to monitor point-of-sale documents provided by brokers. Speaking to CML members at their London conference this week, Tiner said it was right that len-ders assume responsibility for information disclosed by intermediaries but he blocked questions from the floor on how this should be done. Tiner's stonewalling provoked anger among lenders, who say ...

  • Mellon - Mellon Nippon Absolute Fund

    10 Dec 2001

    Monday, December 10, 2001. Type: Oeic. Aim: Growth by investing in Japanese hedge funds. Minimum investment: Euros 125,000. Place of registration: Dublin. Investment split: 100 per cent in Japanese hedge funds. Isa link: No. Charges: Annual 1.5 per cent. Commission: Subject to negotiation. Tel: 020 7653 2367.

  • Mellon's big in Japan

    5 Dec 2001

    The Mellon Nippon absolute fund is the third sub-fund of the Mellon global alternative investments fund, which is a Dublin-registered Oeic. It aims to produce capital growth by investing in Japan.

  • Merricks tells Govt to get its act together on reviews

    6 Dec 2001

    The chief ombudsman has called on the Government to "get its act together" and align what the Treasury and the FSA are doing with the Sandler and polarisation reviews. Walter Merricks was critical of the number of reviews of the financial services sector. He told the conference: "The industry is suffering with the number of reviews and it would do it good if things settled down a bit." He also defended the structure of how IFAs pay the ombudsman, saying they would rather pay ...

  • Merrill Lynch HSBC - Self-Select Maxi Stocks and Shares Isa

    7 Dec 2001

    Friday, December 7, 2001. Type: Maxi stocks and shares Isa. Aim: Growth by investing in stocks and shares. Minimum investment: £500. Maximum investment: £7,000. Catmarked: No. Charges: None. Commission: None. Tel: 08456 080805.

  • MFR reform will increase pension transfers

    10 Dec 2001

    Scottish Equitable is predicting an increase in pensions transfers as a result of minimum funding requirement reform.ScotEq wants IFAs to be aware of the advice implications for clients following proposals from the Department for Work and Pensions with a scheme specific standard.It believes many members of a defined benefit scheme may be best advised to consider a transfer before long term changes to the MFR are implemented.

  • Mortgage 2000 links to IFA

    6 Dec 2001

    Mortgage 2000's consumer website moneysupermarket.com, has secured a deal to supply national IFA Inter-Alliance with mortgage, life insurance and critical-illness cover leads. The deal marks the first time that consumers on the website can be directed to the services of an IFA, in a move that is aimed at improving the search-to-apply ratio. The website's chief executive, Simon Nixon, says many of the 750,000 page impressions moneysupermaket.com generates each month are from ...

  • Namba chief executive Jennings quits

    6 Dec 2001

    The chief executive designate of the National Association of Mortgage Brokers and Advisers Julian Jennings has resigned amid industry speculation about his role in the demise of Century Mortgages. Jennings, who was compliance consultant to the lender when it was shut down by the DTI in 1999 for compliance failings, says he is stepping down due to the press scrutiny since his involvement was uncovered earlier this year. He says he made a mistake in appointing himself chief executive ...

  • National Australia Bank moves into wealth arena

    6 Dec 2001

    National Australia Bank is off-ering a wealth management service initially competing with IFAs but with plans to target them as a distribution channel in around a year's time. The wealth management service is targeting the 4.5 million customers of NAB's UK regio-nal banking subsidiaries, Clyd-esdale, Northern and Yorkshire, through their 700 branches. NAB's tied salesforce of about 230 is offering the service from outset and it will be extended to its 100 internal salaried ...

  • Norman Digance

    6 Dec 2001

    Lives: Winchester with his wife and three children. Born: Eastbourne. Education: "When you get to my stage in life, where you were educated becomes irrelevant." Career: Started out in the Civil Service at the Department of the Environment, then moved to the Building Societies Commission where his roles included secretary to the commission, head of external affairs, head of central policy unit and secretary to the Building Societies Investor Protection Board. In January 1999, ...

  • Outside edge

    6 Dec 2001

    The growth of unregulated business (for example, term insurance) has always puzzled me as selling someone level term without a conversion option is like giving them a lifeboat with a hole in it. Or worse still, setting up a term plan out of trust (unless for loan cover) can lead to more problems than it solves. I had always assumed that the FSA had plans to bring all such plans into the regulated area but I had missed the fact that the FSA had its own agenda to offer some unregulated ...

  • Panthers get claws into life office regulation

    6 Dec 2001

    The FSA this week outlined plans to radically overhaul life office regulation, including drafting in former senior industry executives dubbed "grey panthers" to provide expertise. The move follows the critical internal report by Ronnie Baird into the regulator's handling of Equitable Life. The Tiner project - run by FSA managing director John Tiner - will tighten up solvency and life office reporting requirements. Life offices will be subject to more "proactive and challenging ...

  • Peak practice

    6 Dec 2001

    Pinnacle Insurance has introduced a healthcare cashplan for the mature end of the age spectrum. The Medex senior plan is available to anyone between 18 and 79 but the benefits are geared towards older people. The plan has five levels of cover with premiums from £1.50 to £12 a week. It includes benefits for a hospital stay, routine dental and optical treatment, hearing aids, lump sums for recuperation and care for the elderly, funeral benefit and complementary medicine such ...

  • Pension credits will not work for all

    6 Dec 2001

    A leading academic has challenged the Government's assertion that pension credits means it will always pay to save. University of Leicester Nuffield community care studies unit's Ruth Hancock's presentation to delegates at the ABI pension credit seminar showed how: "Pensioners who have saved will nearly always have higher incomes than those who have not," Hancock said the thinking behind pension credit was that S2P was no help to current pensioners. The minimum income ...

  • PIA on the warpath again

    10 Dec 2001

    The PIA has expelled five IFA firms because they no longer meet the regulator's financial resources requirements.

  • PMI firms reject claim of no place in NHS reform

    6 Dec 2001

    Private medical insurers have waded into the debate over healthcare funding, rejecting Chancellor Gordon Brown's claim that there is no role for insurers in NHS reform. Insurers are disappointed by the apparent conclusions reached by the Treasury-commissioned report, Securing our Future Health, Taking a Long-Term View, that increased taxation is the best way to pay for healthcare. Providers say the report does not consider that consumers want choice in their healthcare options, ...

  • Polarisation pendulum is still swinging

    6 Dec 2001

    Sir Howard Davies has shed more dark on the matter of polarisation. He says the regime will change, with proposals in the New Year, but didn't we know that already? Has the pendulum swung back towards multi-ties or is it more limited gap filling? The head of the review, David Severn, appeared a few weeks ago to back gap-filling because of the damage multi-ties would do to the IFA market. Now Sir Howard has made some harsh comments about the regime and remarked that markets such ...

  • Portman adds £1bn to loan book with Sun Bank deal

    6 Dec 2001

    Portman Building Society has completed the £95m acquisition of specialist lender Sun Bank from Sun Bank of Canada in a deal which adds almost £1bn to the society's mortgage book. Sun Bank, with 75,000 customers and total assets of £1.2bn, will become the intermediary lending arm of Portman over the next few years as the society concentrates on direct business. The society says Sun Bank will retain its branding and continue to specialise in catering for self-employed ...

  • Product matters

    6 Dec 2001

    The most imp-ortant part of the BuildStore product offering is the self-build facility rather than the actual mortgage deal. It is offering 95 per cent of the land purchase price and build costs with stage payments in advance. The majority of lenders that offer self-build terms will go to a maximum of 75 per cent of the land purchase price, with only a few lenders going up to 85 per cent. Many more will lend up to 95 per cent of the final value but that is not a lot of help if ...

  • Protection business booming for Scottish Provident

    6 Dec 2001

    The protection war is heating up again with Scottish Provident claiming it has seen a 70 to 80 per cent increase in business since September 11. It says IFAs are turning to protection as investors shy away from turbulent markets. It believes there is a renewed interest by people concerned about protecting their families. The firm says new applications have increased by 70 to 80 per cent in the last three months over the period last year. But rivals are suggesting ScotProv has ...

  • Regulator takes action against three more firms

    7 Dec 2001

    Three more IFA firms have been disciplined by the PIA, despite the fact that it no longer exists as a regulatory body, having been replaced by the FSA on Saturday.

  • Scot Life and Scot Mutual quotes go live on IFAonline

    7 Dec 2001

    Scottish Life and Scottish Mutual are the latest product providers to offer IFAs comparative pensions quotations through IFAonline, Synaptic Systems' online quotation system.

  • ScotMut updates retirement system in bid to aid IFAs

    6 Dec 2001

    Scottish Mutual has updated its retirement package CD-Rom for the second time this year in a bid to highlight opp-ortunities for IFAs to meet clients' pension needs. The updated CD-Rom inc-ludes information on ScotMut's internal and external fund links, including its protector fund, options to print the transfer payment calculation test and critical income sections. The system - which can now print reasons-why letters - has been broken down into five sections to help IFAs ...

  • Sedgwick advises on Equitable AVC action

    6 Dec 2001

    Sedgwick Independent Financial Consultants is offering an independent financial counselling ser-vice to company employees with Equitable Life additional voluntary contribution schemes. The IFA says employers and trustees are being put under pressure to provide advice but the decision whether to stay in Equitable Life or transfer and face a penalty is often left to individual scheme members. Sedgwick is making the counselling service for employees available to businesses which have ...

  • Sedgwick advises on Equitable AVC action

    6 Dec 2001

    Sedgwick Independent Financial Consultants is offering an independent financial counselling ser-vice to company employees with Equitable Life additional voluntary contribution schemes.The IFA says employers and trustees are being put under pressure to provide advice but the decision whether to stay in Equitable Life or transfer and face a penalty is often left to individual scheme members.Sedgwick is making the counselling service for employees available to businesses which have ...

  • Seed Capital - Oxford Technology 3 VCT

    5 Dec 2001

    Wednesday, December 5, 2001. Aim: Growth by investing in early stage and start-up technology companies within a 60 mile radius of Oxford. Minimum investment: £5,000. Opening-closing date: February 15, 2002-April 30, 2002. Charges: Implicit. Commission: Initial 3 per cent. Tel: 01865 784466.

  • Tale of the taper

    6 Dec 2001

    In concluding the rather tortuous but nevertheless important issue of how business assets taper relief can be denied in respect of gains arising on a sale of shares in a private company by virtue of the company making an investment, I would like to look at just how a company can "commence a business of holding investments". So, what does constitute the commencement of a business of holding investments? In this respect, the Inland Revenue has advised us in correspondence as follows: ...

  • Talkback

    6 Dec 2001

    Should the Treasury's consultation on annuity reform look to scrap the compulsory purchase rule? "Yes. People should be enabled to make their own choices on what to do with their money after they retire." Jamie Ansell,Ansell Griffin Neville "Absolutely. They have got to give people more choice and more time to wait for rates to improve. There is too much restraining pensioners which is acting as a disincentive to those thinking about starting a pension." Chris Barker,The ...

  • Teaching the teachers a financial lesson

    6 Dec 2001

    FSA chairman Howard Davies is encouraging the education of teenagers by bringing financial education into the classroom and I support this. However,I am not sure whether it is wise to rely upon teachers to provide such education. Most of us would agree that some of the most difficult people to deal with in personal finance are teachers. While it is true that some teachers transfer into a financial services career very successfully, the majority do not have sufficient worthwhile personal ...

  • Technology could cut processing time by 38 per cent, NU tells Sofa

    7 Dec 2001

    Using technology efficiently could cut the time of the average transaction by 38 per cent, according to Norwich Union.

  • The birth of a great notion

    6 Dec 2001

    The headlines for last week's pre-Budget report were dominated by the Treasury's continued determination to roll out tax credits. The media concentrating on this is understandable. Gordon Brown seems determined to face down the calls from some Cabinet colleagues to res-train his tax-credit largesse and instead to concentrate on investment in public services. Yet, while this issue has captured the headlines, there were other interesting developments that will be no less important ...

  • The Derbyshire - 1.35 Per Cent Discount

    6 Dec 2001

    Thursday, December 6, 2001. Discounted term: Five years. Discount: 1.35 per cent. Payable rate: 4.34 per cent. Minimum loan: £25,000. Maximum loan: Up to 75 per cent of valuation subject to no maximum. Income multiples: Subject to negotiation. Arrangement fee: £195-£295. Redemption fee: None. Conditions: None. Introducer's fee: £100. Tel: 0845 6075050.

  • The whole story

    6 Dec 2001

    I am interested in a fee-based wealth management service. What can I expect from the service offered by your company? At the heart of our philosophy is the relationship between investment risk and your personal financial needs. We define risk as being the effect of stockmarket, economic and inflationary risks on the ability of your assets to provide the required amounts of income and/or capital in the fore-seeable future. You may be interested principally in the stream of ...

  • This red tape is over the top

    6 Dec 2001

    Let me say from the outset that I am fully in favour of leaving money launderers no hiding place but, as usual in the UK, we go over the top in enforcement of the regulations, as borne out by the latest rules applying from December 3, 2001. No doubt, all the other European countries will agree to tighten up their rules and then some will quietly turn a blind eye. Thus, we have the situation whereby our regulators apply the rules with all the enthusiasm of the Taliban while, in ...

  • Thomas in attack on PIA over regulation

    6 Dec 2001

    FSA head of regulatory events Lindsay Thomas has hit out at the PIA, criticising its emphasis on making IFAs write everything down to prove they are compliant. In the Money Marketing IFA UK Conference's centrepiece debate, Thomas said the FSA and industry must agree on what regulation is trying to achieve. He said: "Requiring everyone to write everything down is blunt and off the point and, outside of the financial services industry, other industry sectors have greater common ...

  • Three top managers join for ISA roadshows

    10 Dec 2001

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

  • Towry confirms Black is leaving

    10 Dec 2001

    Towry Law has officially confirmed that chief executive Douglas Black is quitting the national IFA, first revealed on the Money Marketing web site last Friday.

  • Treasury fails to make EU insurance deal

    6 Dec 2001

    The Treasury has failed to negotiate a UK exemption from EU legislation which states that all insurance intermediaries will have to become statutorily regulated. If the directive remains unchanged, it will mean the General Insurance Standards Council will either have to become a statutory regulator or the FSA will have to take over the regulation of the advice given on critical-illness cover, income protection and PMI products which are currently non-regulated. An agreement has ...

  • UK banks lose out as US giant collapses

    6 Dec 2001

    Several UK banks, including Abbey National and Barclays, have suffered losses of tens of millions of pounds due to the collapse of US energy giant Enron. Abbey, the UK's second-biggest mortgage lender and owner of Scottish Mutual and Scottish Provident, admitted this week that it has been forced to write off £95m of the £115m it has lent Enron while Barclays' exposure is estimated to be at least £50m. Royal Bank of Scotland is understood to have lost around ...

  • Unattractive face of offshore funds

    6 Dec 2001

    For many investors, the idea of putting their money offshore has an almost mystic allure, conjuring up thoughts of returns out of reach of the taxman. The reality is not quite so simple and, in some cases, investing offshore can even be tax-disadvantageous. I would like to give an overview of the situation concerning the sale of offshore funds back into the UK. It is a topical area as there is a possibility that the Government could come under attack from the European Commission for ...

  • Unicorn Asset Management - Falcon Investment Trust

    6 Dec 2001

    Thursday, December 06, 2001Type: Investment trust. Aim: Growth by investing in UK smaller companies. Minimum investment: Subject to negotiation with stockbroker. Maximum investment: No maximum. Investment split: 100 per cent in UK smaller companies. Types of share: Ordinary. Isa link: Yes. Pep transfers: Yes. Redemption date: None. Charges: Initial subject to negotiation, annual 1 per cent. Commission: ...

  • Up-front renewal plan is an alternative to investing in IFA firms

    6 Dec 2001

    Product providers could pump money into IFAs by buying their renewal commission in advance as an alternative to investing in them directly, a leading consultancy has proposed. The plan would see IFAs exchange the right to future trail commission for cash up front as a solution to the funding crisis in the industry caused by the commission squeeze. While product providers such as Norwich Union, Aegon and Clerical Medical are considering investing in IFAs, the proposal, put forward ...

  • Virgin One campaign bids to double sales via intermediaries

    6 Dec 2001

    Current account mortgage provider Virgin One is setting up a dedicated sales and marketing support service for mortgage brokers in a bid to double its intermediary sales.Virgin is sending marketing packs to 10,000 mortgage brokers and IFAs in a move it hopes will help increase its proportion of sales through intermediaries to 25 per cent from the current level of 12 per cent.The pack offers intermediaries the choice of three levels of support to cater to the different needs of ...

  • Watchdog facing human rights challenge over £500 case levy

    6 Dec 2001

    The Financial Ombudsman Service's £500 case levy is being challenged under the Human Rights Act 1998 by City law firm Halliwell Landau. It says the Act protects people from being deprived of their property and says this applies to IFAs if they are charged a fee when a decision is in their favour. It argues a better way is to increase the fee but refund it if the case is ruled in favour of the adviser. Halliwell Landau previously took a case against the PIA in September ...

  • Watson Wyatt wants annuity supermarts

    6 Dec 2001

    Watson Wyatt is calling for the Government's annuity consultation to pave the way for annuity supermarkets. Responding to last week's pre-Budget statement which announced the consultation, the company is arguing that there should be scope for annuity supermarket services to ensure as many people as possible use their open market option. Watson Wyatt is also att-empting to dispel what it sees as the popular fallacies about annuities as the pension industry prepares to respond ...

  • Wealth managers to see margin squeeze, says KPMG Consulting

    11 Dec 2001

    Wealth managers will see their margins plummet to 1 per cent of assets on mass affluent portfolios, according to a report by KPMG Consulting.

  • Website sells stakeholder for children

    6 Dec 2001

    Punter Southall Financial Management has designed a website for parents who want to start their children's pension planning by setting up a stakeholder scheme. The IFA arm of consulting actuary Punter Southall & Co claims that www.giftastakeholder.com (right) is the first site dedicated exclusively to setting up third-party stakeholder plans. PSFM says that people visiting www.giftastakeholder.com can begin saving for their children and grandchildren from the moment they ...

  • Whitechurch bids to aid IFAs switching networks

    6 Dec 2001

    Whitechurch Network is calling on the industry to set up a clearing house to handle commission payments owed to IFAs when they move networks. The network is calling on rivals and providers to collaborate in a thinktank to tackle delays faced by IFAs in getting commission paid through their old network when they move. Whitechurch points to sev-ere inefficiencies in the current structure, where a network must provide a permission letter allowing an IFA to leave and a list of providers ...

  • Widows' renewal clause angers IFAs

    6 Dec 2001

    Balloon barrage: Consumers' Association director general Sheila McKechnie has written an open letter to the FSA demanding that it identify where consumers are most vulnerable to poor products and financial information in its first 100 days after getting its full authority last week. It wants an FSA action plan on how it will root out rogue providers and advisers. The CA went to Canary Wharf last week to urge the FSA to get tough. IFAs are outraged that Scottish Widows will not review ...

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