View more on these topics

MP Butterfill bids to strengthen mutuals

Conservative backbencher Sir John Butterfill is to table a private member’s bill in Parliament aimed at improving the competitiveness of building societies and making it easier for mutuals in different sectors to merge.

The bill will be presented in March and calls for changes to rules which require at least half of a society’s funding to come from retail markets. Butterfill says the proposed changes would allow up to 75 per cent of funding to come from other capital markets giving mutuals greater flexibility and increasing their competitiveness, subject to prudential supervision.

The bill also aims to lift restrictions to allow for the merger of mutuals across different sectors, such as life mutuals, building societies and friendly societies.

The other element of the bill puts forward changes to rank depositors and ordinary investors on the same footing in the event of a collapse.

A Treasury consultation closed this week on increasing funding flexibility, such as treating a mutual’s offshore funds as retail rather than wholesale.

Butterfill says: “The aim of the bill is to remove obstacles to the competitiveness of financial mutuals and ensuring that they continue to flourish.”

Building Societies Association director general Adrian Coles says: “The BSA enthusiastically supports Sir John’s objectives which would mean that our members would be even more competitive in the mortgage market.”


Tax crackdown on final-salary cash incentives

The Revenue is to tax cash incentives offered by employers to persuade workers to transfer out of final-salary pension schemes.The move has led to predictions that the controversial practice will be wiped out or become less widespread.Concerns have arisen that lump-sum incentives could lead employees to transfer out of schemes when it would be in […]

IT glitch hits brokers using Nationwide’s new platform

Nationwide has pledged to rectify a technical glitch that means brokers using the latest Microsoft web browser are unable to access its new trading platform.It admits that its platform, shared by subsidiary UCB, is not available to brokers using Internet Explorer 7.Nationwide launched the platform last month to speed up broker transactions after heralding the […]

AMI caught in Paymentshield trail row

The Association of Mortgage Intermediaries has been reluctantly dragged into the furore over Paymentshield’s decision to cease paying trail commission to retired advisers.The AMI has been deluged with calls from brokers wanting information on how to join a new legal action group being set up to try to recover millions of pounds in compensation.The group […]

Question of trust over Sipp provision

Jan Regnart’s article provides a valuable and informed insight into some of the reasons why many providers of self-invested personal pensions appear to have delayed submitting their application for FSA authorisation. However, the issues she describes so accurately do not apply to a small number of Sipp providers that are already regulated and have been […]

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


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