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&#39End MVA discretion in contract&#39

Life office discretion over the implementation of market value adjusters on with-profits policies should be abolished, said leading IFA and FSA Small Practitioners Panel joint chairman Roger Sanders.

Speaking at the FSA&#39s with-profits open meeting this week, Sanders said providers should be forced to state their policy on MVAs in the form of a contractual statement.

He said IFAs, who were accused of commission bias in the meeting, want clear bonus policy statements, asset class benchmarks and risk-graded funds to improve transparency.

Life offices were accused by IFAs and consumer groups of misleading investors by advertising headline terminal bonuses that are paid on maturity, when many policies are surrendered early.

Actuaries came under fire after Clerical Medical chief executive Robert Walther claimed that to ensure appointed actuaries give unbiased advice they should not be board directors.

He said boards should receive two bonus recommendation reports, a chief executive report from a commercial perspective and an appointed actuary report ignoring commercial or competitive considerations.

Sanders says: “There is a danger of complacency but there is also a danger of losing a product consumers value. The review is perfectly timed for the FSA to take control rather than accept the findings of other reviews.”


Mortgage Board mauls FSA red tape plan

The FSA has been slammed by the Mortgage Code Compliance Board for issuing draft rules on mortgage regulation which could swamp borrowers with unnecessary product information.MCCB chief executive Luke March claims FSA proposals outlined in a consultation document last week are likely to leave borrowers in the dark about the terms and conditions of their […]

Bowes top on national press quotes

Chase de Vere spokeswoman Anna Bowes is the most quoted pundit in the national press, according to the PressWatch financial analysis for May.The monthly monitoring of financial national media coverage found Bowes was quoted almost twice as much as any other IFA last month.The report says: “She continues to make personal financial advice a readable […]

Principality adds to its discount options

Principality Mortgages has introduced the discount option five mortgage.Aimed at first time home buyers as well as people who are looking to remortgage their properties, the mortgage has an interest rate based on a discount of 0.86 per cent, giving it a payable rate of 5.59 per cent for loans of up to 95 per […]

Passive tense as FTSE floats free

Passive fund managers are having to make serious upheavals to index tracker funds after changes to the way the FTSE evaluates companies.From close of trading last Friday, the FTSE will exclude any strategic holdings that normal investors cannot participate in when calculating index weighting.This means cross-holdings from other companies, family-owned or Government-owned shares will no […]

Developing your personal relationships – Webex

Read more 9amFinancial advisers and solicitors working together Presented by Ian Muirhead, director & chairman at Solicitors for Impartial Advice (SIFA) Listen to Ian’s expert insight and experiences of how financial advisers and solicitors can work together to deliver mutual benefit and enhanced client outcomes. Register here 10am Financial advisers and accountants working together Presented […]


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