View more on these topics

Bristol & West plays family fortunes

Bristol & West has teamed up with Family Assurance to establish the
Family protected savings plan, a capital-protected unit-linked
endowment linked to the performance of four stockmarket indices.

The product marries the capital protection of Bristol & West&#39s
structured products with the tax privileges of friendly society plans.
Friendly societies can offer tax-free returns on regular savings plans
up to £25 a month without the investor having to use their Isa

With this plan, investors contribute £25 a month over the 10-year term
and they also get up to £2,250 of life cover. The life cover is included
to ensure the tax-free status of the investment and is not a major
benefit of the plan, particularly as it is reduced if policyholders are
over 55.

Providing investors pay the premiums during the term, they will get all
their capital back at the end of the term plus 85 per cent of the
average growth in the indices. This is calculated by measuring the
closing level of each index during the first 12 months of the term and
comparing this figure with the average growth in the indices over the
final 12 months of the term.

It is important that investors can commit to paying the premiums, as
they will get nothing back if they miss a payment within the first 12
months. After this period they are given a month to catch up with
missed payments, otherwise the policy will automatically be

If investors surrender before the end of the term, the capital protection
does not apply. They will have to pay a surrender charge that will
reduce the returns and may incur a tax liability. This makes it more
suitable for long-term savings goals such as saving for children
compared with capital-protected products that are not structured as
an endowment.


Regulate the regulator, says Kennedy

Liberal Democrat leader Charles Kennedy wants to cut the burden of red tape for small businesses by establishing an independent body to regulate the FSA. Speaking at a business forum hosted by the Institute of Chartered Accountants in England and Wales this week, Kennedy pledged to help SMEs escape red tape and bureaucracy. Kennedy said […]

On the four front

Times have been particularly challenging for IFAs over the last three years and 2004 is shaping up to be one of the most demanding. Mortgage advisers and lenders will have to cope with sweeping changes brought by the move to statutory regulation. Pension advisers will need to provide clear guidance to clients in the run-up […]

No reason to panic over Standard&#39s solvency says McPhail

It is premature to suggest there is a solvency problem at Standard Life despite several reports today according to Hargreaves Lansdown head of pensions research Tom McPhail. He says new solvency guidelines from the FSA are only now starting to be applied to the life insurance sector, and it is too early to tell how […]

&#39Borrowers could save £2.2bn a year on mortgages&#39

UK households are thr-owing away £2.2bn each year on expensive mortgages, according to figures from Which?. The Consumers&#39 Association, publishers of Which?, believes that too many households are paying over the odds for their interest-only mortgages. Its research shows that average monthly mortgage expenditure per household is £391. It estimates that borrowers with a standard […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm