View more on these topics

M&E firms could quit network over ICS

M&E members are up in arms over the network charging them for the

quarterly Investors&#39 Compensation Scheme levy.

Some members are considering resigning their membership as a result of the

charge.

The network absorbed the entire ICS levy for the last quarter following a

wrangle with members over a rise in membership and PI costs.

M&E has budgeted for an ICS levy of £88 per member per quarter in its

monthly charges. But the levy total is now £140 and the network is

charging registered individuals the rest, which is £52 each.

Managing director Simon Hudson says M&E is not willing or able to fully

absorb the levy this year as it would cost £120,000 to do so given

that ICS has doubled its requirements in order to raise £66m by

December for payouts.

He says: “We took the hit for the last quarter but in the next quarter the

charge is even bigger. We never made a promise that we would pay it. It is

an industry bill and every RI has to face it.”

R&A Associates IFA Robert Anthony says: “I am resigning from the network

largely because of the escalating costs. It is untenable to continue in

this business. The announcement about the ICS charge was another nail in

the coffin.”

Recommended

Pru says IFAs are integral to £2m with-profits push

Prudential is making IFAs a central part of its aggress-ivecampaign to grow and dominate the with-profitsbond market.In what it describes as a “landmark decision”, Prudential IntermediaryDivision is spending £2m on a marketing push geared at generatingleads for IFAs on the back of its revamped Prudence bond.The campaign starts this week and will run for three […]

Standard Life Bank has introduced Futureperfect

Standard Life Bank has introduced Futureperfect, the UK&#39s first 25 year capped rate mortgage.Futureperfect is capped at a rate of 6.25 per cent for the life of the loan. However if the combined average of the standard variable rates of the Halifax, Abbey National, Cheltenham & Gloucester and Standard Life Bank falls beneath 6.25 per […]

Murray Johnstones new Yen equities fund

Murray Johnstone&#39s new Murray Yen Equities Fund is an open ended investment company that invests in Japan.The fund aims to produce capital growth by investing in a wide range of Japanese securities and uses Yen as its base currency. It is a yen dominated version of the existing Murray Japan growth fund.The fund is targeted […]

Face up to virtual realities

When I first saw the front-page report in last week&#39s Money Marketing thatMisys is to set up a virtual IFA business, I confess the phrase “I told youso” did spring to mind.Only a few weeks ago, Misys was telling me it would only be offeringsimple products via its consumer personal finance portal. At the time, […]

1

MPAA consultation

By Fiona Tait, pensions specialist The chancellor’s announcement of proposed cuts to the Money Purchase Annual Allowance means it will be more important than ever to be able to tell your PCLS from your UFPLS What was in the statement? Not much. The chancellor spared three sentences to inform us that the Money Purchase Annual Allowance will be reduced […]

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