Providers are risking significant loss on lifetime mortgage products if their actuarial research is inaccurate, warns financial research company Defaqto.The firm’s equity-release report warns lenders offering guarantees against negative equity that they need to be certain their actuarial calculations and house price projections are robust. Head of banking David Black warns lenders not to rush into this niche market and to understand that the product is a long-term investment and commitment and not a get-rich-quick product. Sales costs are high as customers require more advice and families need to be consulted on transactions, he warns. Black says: “If the actuar-ial tables used are incorrect and house price inflation is lim- ited or even negative, the risks to the lender for a large part of their equity-release portfolio are potentially substantial. It is essential that providers to understand the implications of their actuarial calculations.”
In these edgy times, while walking through the City of London, I am always amazed at the stoicism of the British people. Most of us are innately coded to carry on regardless. Those of us in the area of fund marketing have read a plethora of compliance documents recently. But a small, recently introduced paper […]
Credit Suisse Asset Management has introduced the Incubator fund, which is believed to be the first limited-issue fund of funds in the UK.
Law firm Clarke Willmott’s Freedom of Information Act request says the FSA conducted a desk-based review of self-certification last year after a full-on investigation. Should the FSA take it upon itself to investigate more thoroughly now that self-cert has come under its regulatory umbrella?
GE Life’s chief executive believes business is a simple affair. There are the needs of customers and you must have competitive products but service is the key. James Phillipps met him to discuss work, play and post-A-Day opportunities
In the five years since we launched the Artemis Global Income Fund, its manager Jacob de Tusch-Lec has built a distinctive portfolio that is first among its peers. Here he explains why his “quality, cyclical and value yield” stocks, and flexible approach, leave the fund better placed to benefit from uncertainty than funds that depend […]
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- Top trends
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- Martin Lewis wins claim against PPI chaser that used his image
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- How much are advisers charging for pension transfers?
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Two company directors have been disqualified for a combined 20 years after running a fine wine investment scam that lost investors nearly £1m. An Insolvency Service investigation found that Crimson Fine Wines cold-called customers and then did not purchase or allocate wines to those who had paid for their investments. The investment scheme offered investors […]
AJ Bell has won a case against a client who wanted his platform fees for the past 14 years reduced. A client, referred to as Mr N, complained to the Pensions Ombudsman that, because he did not have enough information about what fees would be payable, he sold a property holding in his Sipp far […]