View more on these topics

HSBC adds to Pep plus range

HSBC has established the seventh issue of Pep plus as a rollover product for investors in the fourth and fifth issues of the product, although the product is also available to Pep transfers from other providers.

Pep plus IV has already matured and Pep plus V is approaching maturity. Like the previous issues, Pep plus VII allows investors to benefit from growth in the FTSE 100 index over the next five years through a Dublin-based closed-ended fund called HSBC equity growth 7.

Investors in Pep plus VII will get their original capital back whatever happens to the FTSE 100 index during the term, plus 70 per cent of any growth in the index. To calculate the returns, the closing level of the index is measured on 26, June 2002 and this is compared with an average of the closing levels taken on each Wednesday during the final year of the term. Investors get the capped level of growth if the index has increased, but if it has stayed the same or fallen, investors will get only their original capital back.

Pep plus VII could be of interest to investors who want to tie some, or all, of their maturing Pep plus money up for a further five years, without exposing it to stockmarket risks. As it invests through an offshore closed-ended fund, the returns are tax-free, which gives the product some advantage over guaranteed equity bonds that are also stockmarket linked.

Britannia Life International&#39s five-year guaranteed equity bond is also linked to the FTSE 100 index for five years, but it compares unfavourably to HSBC&#39s product because it limits the final return to 135.25 per cent of the investment.


&#39Equity release could boost IFA business&#39

The equity-release market has the potential to be huge despite limited demand so far from IFAs and their clients, according to market analyst Datamonitor.According to the company&#39s figures, the equity-release market was potentially worth £459bn last year but only £750m was realised.Datamonitor says the actual level of business done was so much less than the […]

ABI warning about defined payment

The ABI has warned the introduction of the defined payment system could lead to a decrease in the number of IFAs. Other than its concerns over the funding model for IFAs, the trade body has welcomed the depolarisation proposals, saying more choice at the tied end of the market will mean greater choice and innovation […]

&#39Inequitable&#39 proposals are blasted by Bankhall

Bankhall has branded the FSA&#39s defined-payment system as pointless and confusing in its formal response to the FSA&#39s consultation paper on polarisation.The IFA services provider argues there is little need to change the way that IFAs operate and that the current commission disclosure regime introduced in 1995 means consumers are made aware of the cost […]

Winterthur fears being shut out of Treasury annuity consultation

Winterthur Life is worried that the Government is shutting out the rest of the retirement market from its annuity consultation in favour of existing annuity providers.The drawdown specialist is concerned that the Government has already made decisions on the outcome of the consultation and is not listening to a broad enough representation of the industry.Treasury […]

Who cares?

By Tracey Dickson, marketing consultant There are almost 7 million carers in the UK – that’s around 10 per cent of the population who provide unpaid care for a disabled, seriously ill or older loved one.1 But according to a report from the charity Carers UK, 20 per cent of people providing 50 hours or more of care […]


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