View more on these topics

IFAs split as Hargreaves sends out &#39sell&#39 mailing

IFAs are divided over whether clients should sell out of equity funds in the aftermath of last week&#39s US terrorist attacks and subsequent market slump.

In a mailshot distributed last Friday, Hargreaves Lansdown advised clients to bail out of poor performing investments in favour of cash or gilts.

Chief executive Peter Hargreaves said he believes US consumer spending will be hit harder than people expect, prompting a possible recession and further market shakeouts.

But rival IFAs are adamant that, with uncertainty still high, investors should sit tight until markets have settled down.

Hargreaves says: “We are telling people to grasp the nettle and get rid of poorly performing products. You get in more trouble for suggesting people sell than buy.”

Chartwell investment manager Tim Cockerill says: “I do not think that when the market is like this – if you are going to sell -you can necessarily get a fair price. There is a lot of emotion out there at the moment, and it is not a time to be leaping out of markets.”

Hargreaves Lansdown&#39s mailing also promoted its Vantage service, a move which provoked accusations of insensitivity and poor timing from across the industry. Hargreaves has since conceded that it received complaints from several clients over the mailshot and apologised.

Hargreaves says: “We sent a card out to our clients. They were concerned at the state of the market. On balance, if we had had longer we would have made it more sensitive. If it happened again, we would not send it.”

Torquil Clark marketing director Mike Attree says: “This was a normal mailshot designed to frighten people into selling. To put that priority into your head at that time was astonishing. It impinged on my grief.”

The FSA is understood to be working with global market regulators investigating claims that those behind the New York terrorist attacks tried to profit by selling shares before last Tuesday&#39s attacks.


Keeping up on drawdown

Regulatory changes could soon be in line for income drawdown which makes heavy demands on the expertise of IFAs, requiring knowledge of tax and investment strategy as well as retirement products.The FSA allows IFAs to advise on drawdown as long as they have FPC3. But other complex areas of advice such as pension transfers are […]

Old Mutual appoints new fund head

Old Mutual Asset Managers has appointed Richard Moore as it new head of UK growth funds.Moore joins from Singer & Friedlander where he was a UK equity fund manager. Previously he worked on the UK equities desk at National Mutual Life for 10 years.In his new role, Moore will report to head of UK equities […]

ABI rejects call for external actuaries

The ABI is calling for an external review of appointed actuaries&#39 recommendations about with-profits funds, saying this would improve clarity about the way funds are operated.However, in its submission to the FSA&#39s consultation on with-profits funds, the ABI rejects calls to force life offices to use external actuaries to set bonus rates or to have […]

Mansfield loosens its tie

Mansfield Building Society has established a two-year discounted rate mortgage that has an extended tie-in of one year.The mortgage has a 2 per cent discount for two years with a current payable rate of 4.49 per cent and is available for loans up to 95 per cent with a maximum loan of £250,000. Borrowers who […]

Guide cover resized

Guide: Johnson Fleming’s managed auto-enrolment service for SMEs

Johnson Fleming has launched its new managed auto-enrolment service, designed to support SME businesses of up to 250 employees. The managed auto-enrolment service is not just about providing businesses with a software system for them to manage themselves, but more about outsourcing the administration of the project and scheme to Johnson Fleming’s auto-enrolment staff.


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