Cofunds made a further loss of 19.5m last year but the platform is upbeat about take-up of its investment bond, which attracted 670m since it launched in April.The company’s retained losses for its first five years total 120m. Finance director Andrew Harris says 9bn in assets are held through the platform and revenue was up by 60 per cent to 15m last year from 9m in 2004. He expects revenue growth to strengthen and exceed 26m next year driven by asset inflows of 1bn a month and a stable cost base. Harris says the timing of the shift to profitability is in the management’s control but the platform will continue its long-term strategy of focusing on building scale and market share. He says take-up of the investment bond, launched in partnership with major shareholder Legal & General, has beaten expectations. Harris says L&G’s unit-linked investment bond took 1.2bn in the first six months of the year so Cofunds has achieved more than half of this figure in its first six months from a standing start. The investment bond accounts for 30 per cent of Cofunds’ new business, helping drive down its reliance on costly re-registration business, with total new business and re-registered business split 50/50. Harris says: “We are seeing top-line and market share growth and are controlling our costs and building recurring revenue into the business which our shareholders are comfortable with.”
Direct Life & Pensions sales and marketing director Richard Verdin says Icob advisers should sell pension term assurance without advice rather than with a caveat which says they cannot advise on the suitability of the product. Verdin says he knows of specialist protection advisers that do not sell PTA because they are uncomfortable with the […]
In the US, a great discussion revolves around the age-old debate of fees v commission. In my own firm, the ratio of fees to commission has changed substantially over the last few years to the point where some fees have no potential to lead to the sale of an insured or collective investment. As a result, we will soon need to set up a separate company for that revenue, if only to keep the VAT return simple.
The Association of Finance Brokers insists it can self-regulate the secured loan market after officially launching last week. AFB chairman John Gummer, who holds the same role with Aifa and the Association of Mortgage Intermediaries, says the market is capable of getting its own house in order rather than requiring FSA policing. AFB director-general Chris […]
Edeus chief executive Michael Bolton says he expects the FSA to start querying high procuration fees and improve disclosure. DB Mortgages is offering up to 2.75 per cent for fully packaged business while Advantage is going up to 3 per cent, higher than other lenders such as BM Solutions and Edeus. Bolton says the FSA […]
After an “interesting” year, Peter Saacke separates the so-what stories (the Swiss franc, Grexit) from the ones with lasting impact on global equities.
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The Treasury select committee has published an internal memo in which staff at Royal Bank of Scotland were told to let struggling businesses “hang themselves” in the wake of the financial crisis. Staff at the now defunct RBS Global Restructuring Group listed in a document written in 2009 a number of tips to leverage fees […]
Newly-merged adviser trade body Pimfa is calling for the FCA to change how it plans to calculate the Financial Services Compensation Scheme levy, to take discretionary fund managers out of its remit. The FCA’s consultation on FSCS funding reform said all firms falling under its investment provision funding group are classiffied as product providers and […]
Who holds the power when advisers make investment decisions?