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…but market-makers see a massive boost

Traded endowment market-makers say the FSA&#39s new rule forcing life offices to tell policyholders about the option to sell their policy on the open market has provided a “massive” boost to the industry.

As a result of the regulator&#39s policy statement 106 introduced in September, Tep provider Surrenda-link says enquiries from people looking to sell their policies on the open market rocketed by around 50 per cent between August and September.

Breaking down the increase, it says it received a 31 per cent rise in enquiries from IFAs and a 76 per cent leap in those submitted online during September.

Industry trade body the Association of Policy Market Makers supports this finding, with figures showing it got an average of 4,461 enquiries a month between September 2001 and August this year but this jumped to 6,662 in September and 9,379 last month.

Beale Dobie agrees that PS106 has helped the market but says it had been growing since life offices started sending out endowment review letters at the end of 2000 which led to a 33 per cent jump in policyholders asking about their options.

Policy Portfolio managing director Brian Goldstein says: “Three factors in increasing enquiries are bad press around endowments, the FSA inviting policyholders to look at their options and then the major impact of PS106 on life offices.”


Pensions high on US election agendas

Democrat and Republican candidates have put pensions and financial advice high on their campaign agendas as voting closes in the US mid-term elections.With the ageing US electorate growing increasingly concerned with retirement issues, both parties are promoting policies that will make pensions more secure, says American Benefits Council retirement policy director John C Scott.Scott, who […]

Abroad range

IFAs are divided on the future of the Tep sector and some companies are trying to widen their appeal by moving into international markets.Falling bonus rates and scare stories in the media have seen policyholders in panic-selling mode, flooding the market with second-hand policies.In the 1980s, Teps were often used by IFAs to diversify high-net-worth […]

ProACT service aids IFAs on claims

ProACT Legal is launching a service to counter the class actions on split caps and endowments affecting IFAs. Partner Gareth Fatchett says many claims are being manufactured by “trying it on” assuming that IFAs will pay up. The firm offers IFAs a package service including standard letters.

L&G tracking fund offers links to 100 global companies

Legal & General has set up a tracking fund, the global 100 index trust, giving investors exposure to 100 of the biggest international companies.It says with forecasters, including the G7 economic intelligence unit, predicting growth in some of the world&#39s major markets over the next five years, global companies could be the right sector to […]


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