View more on these topics

Life offices say waiver would let them buy equities again

Norwich Union and Standard Life are claiming that applications for solvency waivers from the FSA would give them the flexibility to start buying equities again.

There is speculation that the regulator is concerned about the drag of life companies on the stockmarkets and it believes that relaxing the rules will help a recovery in the markets as well as ease solvency pressures.

In a speech in Edinburgh last week, FSA managing director John Tiner invited companies to apply for the waiver. He said the changes to the capital system for insurers were “significant and urgent”.

Other life offices applying for waivers include Scottish Widows, Legal & General, Britannic and AMP.

But Prudential, Scottish Equitable, Clerical Medical, Axa, CIS, Zurich Financial Services and Royal London say they have no immediate plans to apply. Friends Provident was unable to comment.

NU executive chairman Philip Scott says: “The FSA&#39s position is to be welcomed. The current rules can lead to overreserving and loss of investment flexibility.”

Standard Life deputy chief executive Sandy Crombie says: “The existing statutory basis is unhelpful, forcing companies to sell in weak markets. The waiver gives companies investment freedom.”

FSA spokeswoman Karin Loudon says: “We do not want companies to be forced into a technical selling or to be in a position that is detrimental to policyholders in the long term.”


Nurseries enterprise

Teather & Greenwood Investment Management has introduced Childcare Corporation 6, an enterprise investment scheme that aims to raise up to £10m for the building and operation of around 10 purpose-built children&#39s nurseries in the Midlands and the South of England.This EIS takes up the objectives of the previous five Childcare Corporation schemes by providing private […]

National Savings goes for growth

National Savings and Investments has introduced the fourth issue of its guaranteed equity bond. The bond is linked to the FTSE 100 index for a five-year term and offers 100 per cent capital protection, whatever happens to the index during that period. If the index increases by up to 60 per cent, investors get all […]

Inside Edge

Dear Mrs Brown, I thought now would be a good time to write to you as we have only a few weeks left of the 2002/03 tax year to decide what to do with your and your husband&#39s £7,000 Isa allowances.As you know, in previous years, I have consistently recommended that we should always be […]

Twenty firms declared in default

The Financial Services Compensation Scheme has declared 20 IFA firms in default and is urging consumers who feel they are due redress to make a claim. Full details of the firms and how to make a compensation claim are on the FSCS&#39s website.

Johnson Fleming is a finalist at UK Pensions Awards 2016

The UK Pensions Awards shine the light on excellence and recognise the advisers, providers and investment managers that offer the highest level of innovation, performance and service to occupational pension schemes and their members. This year’s awards looked at advisers and providers across 31 different categories and were rigorously judged by a panel of senior […]


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