View more on these topics

Clerical Medical buys in bulk

Clerical Medical has brought out a S32 bulk buy-out plan to take advantage of opportunities within the pension transfer market as a result of the trend for the winding up of final salary schemes.

Clerical Medical says final salary scheme wind-ups are being driven by factors such as restructuring within companies, mergers and takeovers, management buy-outs and insolvencies. It believes the long-term trend towards defined contribution schemes is unlikely to stop and has designed the trustee buy-out solutions plan in response.

The plan accepts transfers from contracted in and contracted out money purchase and final salary schemes. The minimum transfer value per scheme is £3,000 and there is no initial charge or policy charge. An annual management charge is made but this is scheme specific, depending on factors such as the age, transfer values and fund choices of each member. The cost of providing for guaranteed minimum pensions and commission is paid for through an increase in the annual management charge. There are no penalties for transfer or early retirement.

The plan provides access to 25 Clerical Medical funds, including with-profits and three lifestyle options, plus 14 externally managed funds from Newton, Schroders and UBS. Trustees with employers who want to set up a different range of fund choices for different departments within the company can establish different tranches for each category of employee. These will have different annual management charges and different commission levels.

Mike Fosberry, head of financial services at pension consultants Smith & Williamson, thinks there will be some demand for Clerical Medical&#39s plan among schemes that are already winding up and among insolvent employers.

However, he believes the government&#39s new provisions on scheme wind-ups, which guarantee the payment of members&#39 existing entitlements, will make total buyout arrangements more popular for employers who have yet to make the switch to defined contributions.


Millfield stockbroker in dispute with analyst

Millfield&#39s stockbroker Collins Stewart is embroiled in a row with its former analyst James Middleweek who has accused the broker of insider dealing in relation to a media firm. Collins Stewart has acted as Millfield&#39s broker since it floated on Aim in 2001 and has presided over three tranches of fund-raising for the IFA. Middleweek […]

L&G wins mortgage protection deal with major independent estate agent

Europe&#39s biggest independently owned estate agency group Spicerhaart has picked Legal & General to handle its mortgage protection business. Spicerhaart signed the long-term deal with L&G after entering into a short-term arrangement with the insurer in March following Britannic Assurance&#39s withdrawal from the market. Spicerhaart operates 250 branches of Haart, Spicer McColl, Felicity J Lord, […]

Axa &#39in talks to buy Swiss Life&#39s individual book&#39

Axa is believed to be in talks to acquire Swiss Life&#39s individual protection book with a view to reopening it and selling new products to an established market. As revealed in Money Marketing three weeks ago, Axa is developing products to enter the protection market although it refuses to give details. A senior industry source […]

Equity-release business booms

Equity-release lending shot up by 121 per cent in the first half of this year compared with 2002. The figures from the Council of Mortgage Lenders, based on returns from 21 lenders active in the equity release market, show that £498m was borrowed by older homeowners in equity-release mortgages – more than double the total […]


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 advice.

    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