View more on these topics

Hampden gets FSA go-ahead for Lloyd&#39s deals

Leading underwriting adviser Hampden Agencies has been given FSA authorisation to facilitate the buying and selling of investors&#39 interests in limited liability vehicles at Lloyd&#39s of London.

Through Hampden, investors will be able to buy an existing Nameco – a limited liability vehicle that all new Lloyd&#39s members have been obliged to invest in since 2003. This means existing Nameco investors can exit whenever they like instead of having to wait the standard three-year accounting period before the results – giving the dividend payout or loss – of the vehicle are determined.

New investors can therefore buy into a 2002 Nameco due to mature in 2005 knowing what the dividend is likely to be. For 2003 or 2004 accounts maturing in 2006 or 2007, investors will have less of an idea of future profit or loss but, as with any account, they will be buying into the Nameco at a discount, usually negotiated with the existing investor.

Hampden says future dividends are looking strong, with agencies such as Moody&#39s predicting that Lloyd&#39s will make around £6bn in the 2003/04 years of account.

Much of this stems from insurance premiums increasing since the terrorist attacks on the World Trade Centre in September 2001.

Before 2003, investors were allowed to come into the Lloyd&#39s market on an unlimited basis, which meant they risked everything they owned if their Nameco made a substantial loss. But since 2003, investors have been forced to participate on a limited basis, with the Inland Revenue all-owing the same tax concessions as before.

Hampden chief executive Nigel Hanbury says: “Lloyd&#39s has emerged strongly since the World Trade Centre tragedy. Insurance can often be uncorrelated to other investment cycles and investing at Lloyd&#39s is an attractive separate asset class for the wealthier investor.”


Putting estate into gear

I am a widow aged 59 with two children who are now in their 30s. I have a variety of assets, including a large amount of cash on deposit. I have some income from pensions but also rely on the interest from my deposits to supplement this. I have heard there are some trust arrangements […]

Positive stand on independence

Positive Solutions has not so much thrown down a gauntlet to potential multi-ties as slapped them across the face with it. Chief executive David Harrison says multi-ties will not serve clients or advisers. He believes that advisers who multi-tie will quickly want to go back to being independent when they see the contracts they are […]

Product matters

With the changes in tax legislation for VCTs in the last Budget there has been a slew of offers trying to capitalise on renewed interest in the sector. Some of these have come from VCT managers with demonstrable track records,others are from the unit trust industry and some observers have questioned the commitment of these […]

Barclays wraps up deal for IFA sector

Barclays is setting up a wrap proposition for the IFA market that will allow advisers and investment managers access to its sharedealing service as well as its fund market. The service, which was originally being developed for the mass retail market but has now been extended to IFAs, allows advisers to wrap all their accounts […]


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