View more on these topics

Meteor opts for lock-in

Meteor Asset Management has established a structured deposit that provides a choice of annual or quarterly interest payments that are locked in and paid at maturity, depending on the performance of the FTSE 100.

The FTSE accumulation deposit has a term of six years and two weeks. It provides 7.5 per cent growth a year or 1.5 per cent growth a quarter locked in provided the index closes between 4,500 points and 7,000 points at each quarterly or annual observation period. If the closing level of the Index is less than 4,500 or more than 7,000 on any business day during an Observation Period, no interest will accrue for that period. This means it may be possible for the plan to pay no interest at all at maturity.

The maximum potential return on the annual growth option is 45 per cent and the maximum potential return on the quarterly option is 36 per cent.

As a structured deposit, capital is never at risk from index performance. But it will depend on the ability of RBS as the deposit taker to return the capital to investors at maturity. RBS has a current rating of ‘A’ from Standard & Poor’s.

This plan is unusual in the way its return depends on the index trading within a specific range. As its name suggests, Gilliat’s Range Deposit – June 2012 also calculates returns using a trading range, but does so in a different way that does not provide a like for like comparison. Not only are the annual returns payable each year rather than at maturity, the trading range for the FTSE 100 is expressed as a percentage up or down that increases by 6 per cent each year.

For example, in year one, 7 per cent growth is payable if the index rises or falls by up to 21 per cent. In year two, another 7 per cent growth is payable if the index rises or falls by up to 27 per cent.

Choosing between the two products may depend on whether investors want the potential for a payment each year or just one payment at maturity.


Rockingham clients rescued by Carey Pensions UK

Clients who invested their Sipps with collapsed IFA Rockingham have been given a lifeline with the transfer of their investments to Sipp provider Carey Pensions UK. Rockingham Independent was put into liquidation in March. The process of putting Rockingham into liquidation meant the firm had to apply to be closed down, and therefore could no […]

David Finlay takes temporary charge of Barclays’ direct channel

Barclays intermediary channel director David Finlay has assumed responsibility for the bank’s direct mortgage channel on an interim basis. Finlay was given the role following managing director of regulated customer advice Philip Northey’s decision to leave the bank last month. Finlay will run the bank’s branch and telephony channels alongside his current role until the […]

MM Leader: Single-tied deals and servicing small pots

The growth of single-tie annuity deals should be treated with caution, although new thinking is required over how to economically service small pots. Openwork and Partnership recently announced a single-tie deal for standard and enhanced annuities which commits Partnership to offering top-five rates. Openwork will retain its whole-of-market referral service for clients with greater needs. […]


Charging confusion after HMRC has costs rethink

Confusion over HM Revenue & Custom’s treatment of adviser and consultancy-charging has hit providers’ RDR preparations with just seven months to the December 31 deadline. Last week, Money Marketing revealed details of HMRC’s redraft of its adviser-charging guidance. It now plans to allow implementation costs to be included in an adviser charge. However, concerns remain […]


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 thought leadership.

    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