View more on these topics

FSA eyes firm claiming to solve endowment crisis

The FSA is understood to be closely monitoring a company which claims it

can solve the endowment shortfall crisis.

Mortgages Paid for Sure launches this week, arousing fears from both the

regulator and lenders because the venture is not underwritten by any bank

or life office.

The Midlands-based firm is offering endowment policyholders the chance to

pay a one-off £175 fee to guarantee any shortfalls will be paid. If

policies pay out a surplus, MPFS takes a 25 per cent cut.

But suspicion about the firm is rife as it relies only on a reserve fund

stumped up by its five directors, which will be topped-up from the

registration fee.

The reserve fund is also dependent on individuals surrendering their

policies, which incurs a penalty of 10 per cent of the surrender value.

This flies in the face of received wisdom on best advice for endowments

which recommends policies should not be surrendered.

FSA spokeswoman Sarah Modlock says: “The sort of business they are running

requires some sort of financial backing under the Insurance Companies Act.”


Jupiter served notice by three trust boards

Jupiter is facing further difficulties this week as the boards of three ofits investment trusts served notice on the company.The Split trust, dividend & growth trust and investment trust ofinvestment trusts have all secured the right to change fund manager in twoyears.The boards have cited Jupiter&#39s recent change of management and companystructure as the main […]

Nuki&#39s Eye

What causes British consumer regulators continually to allow crooks tobreak the law with impunity?If you think this is a glib question penned only to cause controversy, youare very wrong. It is a serious question intended to highlight a seriousproblem with consumer protection in Britain.Despite having the clearest possible evidence that specific firms arebreaking the law […]

Stakeholder spin off opportunities

We are now seeing significant interest from employers who are becoming aware of the requirements contained in the stakeholder regulations. The forthcoming Government stakeholder advertising campaign will also create further activity. It is this interest which represents a major business opportunity for the IFA market from now through to October 2001. Consider some of the […]

Aisa chief&#39s flying high again as internet hero

IFA James Caldwell is being featured alongside Virgin&#39s Richard Branson ina book published last week entitled book, written by Louise Proddow, features interviews with 50“netpreneurs”, including ex-RAF pilot and IFA Caldwell.Published by Hodder & Stoughton, the book aims to share in the secrets ofthe personalities behind existing big businesses as well as some of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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