View more on these topics

IFAs will not face bill to compensate Equitable Life clients

IFAs will not foot the compensation bill for Equitable Life clients they advised to exercise an open-market option following the guaranteed annuity debacle.

There had been fears that IFAs would be hit by claims from clients they advisedto purchase an annuity from other providers following Equitable&#39s defeat over guaranteed annuity payments in the House of Lords.

IFAs advised clients to seek an Omo after Equitable refused to pay out terminal bonuses with guaranteed annuity rates.

But following the Lords&#39 ruling this year, Equitable was ordered to stand by its guaranteed annuity rate promise. This led to IFAs&#39 concerns that they would be liable to pay for any losses suffered by clients who had taken the open-market option.

Retirement specialist Wentworth Rose has received written confirmation from Equitable that these clients will be compensated by the life office.

Wentworth Rose got the confirmation after submittingone of its own cases and asking whether the individual would be entitled to compensation.

It has now been revealed that Equitable Life is appointing an actuary to work out thelevels of payout to policyholders who have been affected.

Wentworth Rose managing director Philip Rose says: “This should allow IFAs to sleep more easily as the question of liability had been a very real one. The process of calculating compensation for open-market option schemes is likely to be very complex and long-winded.”

Recommended

BFS Takes Dual Approach

BFS Investments has packaged the shares of its UK Dual Return Trust into two types of unit aimed at different investors.Geared ordinary units consisting of income shares and capital shares are most suitable for charities and pension funds and investors who are willing to put their capital at risk in the pursuit of high income.Growth […]

Powerful forces moving to kill off polarisation

There is very definitely an agenda to destroy or severely damage polarisation.The process has been apparent and growing over the last 15 months. In August 1999, the British Bankers&#39 Association was on record as opposing continued polarisation and their spokesman actually referred to the term Bastardised Independent Financial Advice in the pink weeklies.The attack was […]

Royal London to go direct

Royal London is offering its European Growth Trust Isa directly to first time savers. The scheme was previously only available through the life office’s financial advisers. The Isa will now be available direct for first time savers. Royal London’s Product Group Manager Gareth Evans says: “This direct offer provides a great opportunity to invest in […]

Diminishing returns

The Government has a stated aim of increasing the proportion of self-responsibility for financial provision during retirement. This has been its goal since before the last election and the proposal for stakeholder pensions was supposed to be part of the grand design.The first Budget of Chancellor Gordon Brown, however, took positive steps to reduce by […]

Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com