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IFAs face added burden on money-laundering rules

IFAs may be forced to collect significantly more information when establishing relationships with new clients under the latest set of FSA proposals aimed at combating money laundering.

Discussion Paper 22, Reducing Money Laundering Risk – Know Your Customer and Anti-Money Laundering Monitoring, published by the FSA this week, proposes extending the information that must be collected by firms under the know your customer requirements.

The obligations could be extended to information such as the purpose and reason for establishing the relationship, the level and nature of activity to take place, the relationships of any signatories, the source of the funds, details of the client&#39s occupation, their sources of wealth and their net worth. IFAs are currently only required to verify a client&#39s name and address.

The paper says firms may find they are falling foul of the high-level moneylaundering requirements if they only collect proof of identification from clients.

Some IFAs say much of what the FSA is proposing is already common practice and they would agree with going beyond simple identification collection.

Momentum Financial Services compliance manager Steve Davie says: “If what they are saying is that money laundering is not all about identifying the client, then we would tot-ally agree. The greatest weakness for us is identifying the source of the funds being invested.”


Baker to head pan-Euro fund at Threadneedle

Dominic Baker will take over responsibility for Threadneedle&#39s pan-European growth fund at the end of August, replacing Susie Roberts who is leaving to pursue a career in sailing. Roberts has been lead manager on the fund since August 2000. Baker has been a member of Threadneedle&#39s European team since 2000 and is deputy manager of […]

Scottish Widows – High Income Bond Assurance/Pension Fund

Type: Unit-linked fund Aim: Growth by investing in the Scottish Widows high income bond fund Minimum investment: Lump sum £5,000 via life products, lump sum £2,000, £50 a month, £600 a year via pension products Investment split: 65% high-yield bonds, 35% Government bonds Charges: Annual 1.5% Commission: Subject to negotiation Tel: 0131 6556000

Scottish Widows – Strategic Income Bond Assurance/Pension Fund

Type: Unit-linked fund Aim: Growth by investing in the Scottish Widows strategic income bond fundMinimum investment: Lump sum £5,000 via life products, £20 via pension products Investment split: 100% in UK and European corporate bonds Charges: Annual 1% Commission: Subject to negotiation Tel: 0845 843 2222

Malcolm Murray

Malcolm Murray has to follow one of the biggest acts in the fund management business, taking over from SG Asset Management founder Nicola Horlick who has let go of the reins of her funds to concentrate fully on the running of the business. Murray has been at SGAM for just 18 months as the company […]

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Auto-enrolment — don’t leave it too late…

With auto-enrolment (AE) well under way for the UK’s largest businesses, over the next three years an additional 800,000 smaller employers (with less than 60 employees) will start their journey to comply with the legislation. AE mandates all eligible employees and their respective employers to make regular pension contributions into a qualifying pension scheme. To learn more about the legislation read our brief Jelf AEase — simple steps to AE compliance guide.


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