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.
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Offsetting the cost of advice this way would benefit clients and advisers alike One of the multiple barriers to better take-up of financial advice is that some people are unwilling or unable to meet the upfront cost. In response to this, the government has allowed people to take small chunks (three lots of £500) out […]
Fund managers like to trade off having a unique style. There thousands of funds out there to choose from – the question I often hear from advisers is: what makes this person different? Sometimes this can be a really tough one to answer. “We invest for the long term” is all fine and good, but […]
With rising costs and an increasingly tough regulatory market more advisers are looking to outsource their investment proposition, with many leaning towards discretionary fund managers. But while the number of advisers using DFMs is on the up, overall satisfaction with them has dipped. According to a recent survey by financial information firm Defaqto, 74 per […]