The FSA must wake up to the fact that current industry reporting requirements are not based in reality, according to independent consultant Ned Cazalet.Cazalet warned the IEA annual conference last week that product providers are not disclosing real profits as their new business numbers in life and pensions are based on money being recycled around the industry. Data collated by Cazalet Consulting shows that life offices spent 21bn on commission in the last three years, excluding mortgages and general insurance, but the amount of net new pension business attracted stands at -12bn. Cazalet said: “How on earth are providers saying that they are profitable? What is the FSA doing? This suggests that the regulator needs to wake up on Icas. The FSA must ensure that Icas statements and individual capital guidance is founded in reality.” He also said that the closed life fund sector, which currently stands at a total of around 80bn, will double by 2010 because of further with-profits fund closures and the growth of open architecture. He said: “Half of life offices’ business is dead – it looks open but is actually dead. The closed fund sector is going to get an awful lot bigger and legacy activity will also increase. It will all be surpassed by open architecture. This is starting to happen right now.” Cazalet predicts that platforms will help to stem the recycling of pension money around the industry. But he said there will only be three or four big open architecture players by 2010.
Skandia Investment Management is set to launch a global best ideas fund this summer, which the group says will aim to take the 10 best ideas from 10 of the world’s top fund managers and put them into a single fund.
The Institute of Financial Services says there are signs that advisers are showing an appetite for equity release despite fears in the industry of a shortage of brokers.The IFS, which celebrated the first anniversary of its certificate in lifetime mortgages last month, says it has had a good take-up for the qualification that was launched […]
Matt Goodburn looks at whether we are approaching a market watershed
Norwich and Peterborough Building Society chief executive Matthew Bullock has been elected Chairman of the Building Societies Association for 2006-2007.
By Neil Jones Technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The treatment of non-UK domiciles that are resident in […]
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Aviva has triggered a five day platform blackout as it moves to new technology. The platform will be unavailable from 6pm on Wednesday 17 January through to Monday 22 January while the provider manages its transition onto an updated system run by technology provider FNZ. The downtime will affect Aviva’s investment platform only, but other adviser […]
JLM Mortgage Services has launched the first stage of its new ‘robo advice’ service. The mortgage and protection network claims it is the first network to launch such a tool to its members. The Virtual Adviser will allow member brokers to offer an online service to residential and buy-to-let customers. This service will offer an […]
Providers should listen closer to advisers and consumers when deciding what initiatives will work