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Costs split agreed on watchdog

A deal has been reached between Aifa and the ABI which will see insurers

meet 85 per cent of subscription costs for the new Financial Ombudsman


The proposed split will see IFAs paying the remaining 15 per cent. The

agreement is subject to regular review under the principle of “the user


IFAs are responsible for generating slightly morethan 50 per cent of

premium income but the split of comp-laints received by the PIA is 84.7 per

cent about product providers and 15.3 per cent concerning IFAs.

The ABI will seek members&#39 approval for the policy change which will see

the subscription element for insurance companies increase by £206,000 to


Former PIA-regulated firms will initially be responsible for meeting

£8.24m, equivalent to 40 per cent of the £20.6m total budget of the new


Half of the £8.24m will be payable through a subscription on all regulated

firms and the remaining half raised through case fees. As half is payable

by subscription, insurers and IFAs will be levied £4.12m. IFAs&#39 share will

be around £620,000.

The ABI has sent a circular to members seeking app-roval for devising a

“more equitable means of sharing the costs” of the service with independent



Widows, CGU, Clerical win Misys panel places

Super-network Misys has drawn up a list for its stakeholder panel withlife offices Scottish Widows, CGU and Clerical Medical winning the muchsought after places.The panel will initially run with three members but two to five otherplaces are believed to be up for grabs in the near future.Life offices which are said to be vying for […]

Friendly face of Foresters retires

Foresters Friendly Society chief executive Bob Pollard retires at the endof May after 27 years of service.Pollard, a former president of the Association of Friendly Societies,joined the Southampton-based friendly in 1973 as secretary of itssecond-biggest district.He says: “I have seen many changes but our traditions still remain firmlyin place – a sharing and caring approach […]

Independent View

A national newspaper claimed recently that Friends Provident is likely touse its proposed flotation to raise about £1bn to help fund itsparticipation in the fiercely competitive stakeholder pension market.This should, quite rightly, strike fear into the hearts of some of thesmaller product providers which intend to be players in the pension marketin 2001 and beyond. […]

Canadian company ties up bond deal with Newton

Sun Life Financial of Canada is linking up with Newton Fund Managers toroll out two investment bonds in August.The Basingstoke-based life office plans to link two Newton funds into itsSelect Investment bond.Sun Life Financial, which recently floated on the stockmarket, will alsobe launching a protected growth fund with Edinburgh Fund Managersin August.Downside protection will be […]

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]


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