I have a classic example of the garbage being distributed by life offices, working on the instructions of the FSA.My client has received a letter from his flexible mortgage plan provider carrying an “amber alert”. The target amount is £56,000 in 2026. My client’s attention was drawn by the red box emblazoned across the front page of the letter which set alarm bells ringing for him to phone me in something of a panic. The letter tells him that in the year 2026, and using the 7 per cent growth rate (middle of the road), he should expect a shortfall of just £13. I ask you?I have carefully explained to my client that world markets can move up as well as down, and that the fund in which his contributions are being invested put on 21 per cent in value in the past year to date. My client’s mortgage plan was set up four years ago and has weathered a bear market in the interim period. It is small wonder that thousands upon thousands of endowment policy and mortgage plan holders are panicking and making wrong decisions. Mr Tiner – I seriously hope that when the chickens come home to roost and you are accused of misadvising that the money you use to pay your fine will not be garnered from the IFA community. Laurence NormanPartner,The Mortgage Managers
Allchurches Investment Management, the fund management arm of Ecclesiastical Insurance, is making a push into the IFA market with the recruitment of its first dedicated sales team.
Close Fund Management is offering a two per cent discount on its UK escalator 100 fund. The Close UK escalator 100 fund looks to smooth returns through the use of derivatives, and capital protection on a quarterly basis by locking in gains. If the stockmarket is lower at the end of a quarter than it […]
Lifesearch senior technical adviser Kevin Carr and Friends Provident head of protection marketing Peter Hamilton are hereby banned from consuming alcohol together or getting anywhere near a karaoke machine. This is what happens when the world of pop and protection collide. Sing these words, if you can bear it, to the tune of Robbie Williams’s […]
The FTSE 100 broke through the psychologically-important 5000 level today, before closing at 4990.The spike in the index has been greeted as positive news by advisers and fund managers but they warn there is a long way to go before investor confidence will fully return.F&C Asset Management head of strategy Paul Niven says: “This will […]
So are the new Pension Freedoms being used? The answer to this appears to be a very clear ‘yes’. Figures from the Financial Conduct Authority (FCA) this week provides firm evidence of such usage.
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Passive assets are on track to surpass active funds in 10 years, according to a new EY report. ETFs will benefit disproportionately from the shift because of their low fees and intraday liquidity in volatile markets, EY says. The Global ETF Research 2017: reshaping around the investor report found 67 per cent of the industry expects most […]
The FCA’s focus on vulnerable customers shows no sign of abating, with its recently published Future Approach to Customers once again highlighting its expectations firms treat them fairly by providing a flexible and tailored response. But just as there is no ‘”one size fits all” definition of vulnerability, there is also no single way to […]
Fiona Gray Financial Planning director on differentiating yourself as a female IFA