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Firms urged to tighten security to halt Tessa money laundering

The maturing Tessa market could open the door for millions of pounds-worth

of money laundering, according to the UK fraud advisory service Cifas.

In an article for the Pep and Isa Managers&#39 Association this month, Cifas

executive director Peter Hurst warns that the lack of anti-fraud

precautions on maturing Tessa certificates has made them easy to

counterfeit. Current regulations stipulate that individuals can reinvest

Tessas up to six months after maturity. But Hurst says this gives

fraudsters the chance to launder money into Tessa rollover accounts with

fake maturity certificates. The money can then be withdrawn before the

Inland Revenue catches up with them.

Although providers are unlikely to lose any money in these instances,

Hurst warns that reputations could be sullied if firms are embroiled in

money-laundering scams and he has called on the industry to raise security


He says there are several types of commonplace financial services fraud.

In many inst-ances, he says, Isa accounts have been opened and closed

within a few days, with providers returning funds before the initial cheque

has been cashed.

Hurst says Pep and Isa managers have not yet become mainstream victims of

fraud but this may make them more likely targets in the future.


North-south divide grows in house market

Homes in Greater London cost nearly twice as much as the national UK average, according to new figures released by Halifax.House prices in the capital surged by 7.7 per cent in the second quarter of this year and are now 87 per cent higher than the UK average.Northern Ireland saw the greatest surge in new […]

Windfall shares test case goes to court

The windfall shares test case to decide whether demutualisation shares and benefits should be taken into account when calculating loss in the pensions review is being heard next week. The &#39Needler Financial Services Limited v Taber&#39 case is expected to start on 16 July for three days at the High Court at the Royal Courts […]

New Star Asset Management – New Star European Growth Fund

Tuesday, 10 July 2001.Type: Oeic.Aim: Growth by investing in European companies.Minimum investment: Lump sum £1,000, monthly £100.Investment split: 100 per cent in European equities excluding UK.Isa link: Yes.Pep transfers: Yes.Charges: Initial 5.25 per cent, annual 1.5 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 0845 6088702 

Britannic proves trustworthy

Britannic Asset Management has introduced its third investment trust, the Britannic UK income trust.This split capital investment trust is divided into a growth portfolio consisting of UK shares and an income portfolio containing split capital shares and corporate bonds. The ordinary shares and zero dividend preference shares are aimed mainly at institutional investors such as […]

Value for money in DC pensions

The Pension Policy Institute (PPI)’s recent report “Value for money in DC pensions” tries to identify factors by which people can assess whether their pension offers fair value for money (VFM). Fiona Tait provides an overview of the findings. Positive Outcomes It is extremely hard to assess VFM in a pension. Press activity naturally focuses […]


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