View more on these topics

Family splitting into three divisions

Family Assurance is restructuring its business into three divisions, which will form the Family Assurance Group.

The reorganisation will include a new company called Family Enterprise, which will explore opportunities arising from the greater freedom that friendly societies will enjoy when the Financial Services and Markets Act 2000 comes into force at N2.

The original Family Assurance will continue to offer taxfree savings plans while a third division – Corporate Services – will provide back-up services such as compliance and risk operations to the group.

The restrictions imposed on friendly societies under the Financial Services Act 1992 will be abolished on the date of N2, allowing fri-endly societies to offer third-party admin and a greater range of financial services.

The restructuring comes at a time when the Association of Friendly Societies is increasing pressure on the Treasury to abolish the restrictions before the introduction of N2.

However, the Treasury does not want to bring in changes on a piecemeal basis and is concerned that friendly societies would not be regulated in their new activities prior to N2.

Family Assurance Group chief executive John Reeve says: “The next decade will offer significant opportunities for friendly societies and the mutual proposition.

“The restructuring means that we are in the best possible position to seize those opportunities and invigorate our business.”

AFS general secretary Marion Poole says: “We do not need to hang around for an N2 deadline which could be in 2002.

“The FSA would have an overriding power to regulate new areas of business.”


Motoring into the market

GMAC Residential Funding executive chairman Stephen Knight says the time is right for the company to adopt a higher profile. Having taken over Knight&#39s own mortgage design and distribution company Private Label in 1998, GMAC has been content to take a back seat. But Knight believes that GMAC will have to take a more prominent […]

David Ainslie

Should IFAs advise on school and university fees planning? This may seem an odd question to put to an IFA as there is such an obvious answer. However, to address the issues, I have put on one of my other hats as a father of children aged four and two. With the eldest already at […]

The wolf at the door

It is one of the Inland Revenue&#39s best kept secrets – fewer than 0.2 per cent of the British public use up their capital gains tax allowance each year. With so many people sitting on unused allowances, there is a great opportunity for IFAs to enhance returns for their clients. We are given three taxation […]

10.25% income on NDF bond

NDF Administration is offering an income and growth stockmarket-linked investment bond. The extra income & growth plan 6 will provide a fixed income of 10.25 per cent net a year over three years or 31 per cent net capital growth over the term. Capital will be returned in full at the end of the three […]

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.


News and expert analysis straight to your inbox

Sign up


    Leave a comment