View more on these topics

Conversion charge fear on property vehicles

The Consumers&#39 Association is considering tailoring its new code of ethics to fit IFAs.

Last week, the CA started consulting with the industry on its code which it hopes will improve corporate governance and business ethics by moving the industry away from commission towards more performance-related bonuses.

The code is aimed at product providers but senior policy adviser Mick McAteer believes there are elements of the code that can be adapted for the IFA market and says some of the bigger networks could sign up to the code now.

McAteer is proposing a model where a fee is agreed up front with the consumer who then has the option to pay the fee in instalments.

He says this would break IFAs&#39 links with providers and avoid the perception that advisers are influenced by commission.

McAteer also believes that IFAs should provide more evidence that they add value and wants to see more explicit performance-related information provided by IFAs.

McAteer says: “We want the code to work both ways, with providers ensuring that their standards are up to scratch and IFAs abiding by the code and putting pressure on firms to treat customers fairly. We are focusing on pro-viders for now but some of the bigger networks could sign up to the code at this stage.”

A lobby group from the commercial property sector has warned the Government that its proposed tax-efficient property vehicles will fail if the conversion charge is set too high.

The British Property Federation, the Royal Institution of Chartered Surveyors and the Investment Property Forum have handed a 130-page submission to the Treasury exp-laining why they believe the vehicles need to be as flexible as possible.

The groups believe that if the Government imposes too much red tape on the vehicles, they will fail to attract investors.

Reit-type vehicles are used in the US and are typically capital gains tax exempt and tax-free on property rental income. In return for the tax breaks, the vehicles distribute most of their income as dividends.

The Treasury consultation document implies that the Government wants to see the vehicles listed and may dictate the types of property they invest in.

IPG research steering group chairman John Gellatly says: “If the conversion charge is too high and the investment structure and criteria is too restricting, it will not be in shareholders&#39 interest to convert and the Government will not achieve its objective.”

Recommended

Barclays and Woolwich offer two fixed loans

Barclays and The Woolwich are offering two new fixedrate mortgages. The first is a three-year fixed-rate mortgage for first-time buyers set at 5.69 per cent. The deal includes cashback of £250, an application fee of £100, no mortgage indemnity premiums up to 95 per cent and 95 per cent loan to value. The second is […]

UCB Home Loans – FlexiPlus 2 Year Tracker

Type: Flexible tracker mortgage Tracker term: Two years Tracker rate:: Loans up to £199,999 &#45 0.99% above Bank of England base rate, loans of £200,000 and over &#45 0.89% above Bank of England base rate Payable rate Loans up to £199,999 &#455.49%, loans of £200,000 and above &#45 5.48% Minimum loan: £25,001 Maximum loan: Up […]

Talkback

“Yes. I would assume it would better to reattribute them than to keep them.”Richard Goodfellow, Richard Goodfellow Insurance & Mortgage Services “If they are distributing the surplus among policy-holders, that must be better than nothing.”Julian Oliver, Adobe Independent Financial Consultants “Yes I certainly think they should. Whatever they finally decide on, I should imagine it […]

Mortgage Next receives MTA

Mortgage Next has received its minded to authorise letter from the FSA and says it is the final piece in its regulatory jigsaw as it prepares to become a network principal after October 31. Mortgage Next marketing director Justine Tomlinson says: “We are delighted to receive our MTA letter at long last. This will give […]

Mark Page: “A good time to be a European fund manager”

With European markets picking up in early 2015, Mark Page, Artemis European Opportunities Fund manager, discusses the ‘macro’ drivers and whether the improvements are sustainable. Largely driven by economic stimulus by the European Central Bank, European stockmarkets have performed strongly so far in 2015. Mark discusses the relative merits and sustainability of ECB policy with […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com