Nationwide is warning hat it might take another three years before the major lenders launch full-scale equity- release products.Chief executive Philip Williamson says he is concerned that Nationwide could become embroiled in a missell-ing scandal if it enters the market too soon. He fears that consumers could complain to the Financial Ombudsman Service that they did not understand the advice given and says the solution could be to insist that customers should get written confirmation from a solicitor that they have understood the advice. HSBC, NatWest and Royal Bank of Scotland have all dipped their toes into the market. Despite Nationwide’s fears, the FOS says complaints about equity release are still low. Williamson says: “We are seriously thinking about equity release but we do not want to get caught up in five years in what has happened with endowments. “None of the five biggest lenders has gone in full pelt. We are all a little fearful that a straightforward mortgage proposition might be challenged by the regulator or by customers who do not understand the advice. “There is great demand but it might take three years before the big lenders enter the market.”
AIG is understood to be entering into the bulk annuities market in the UK. The US insurer will be launching with the technical support of outsourcing firm Higham Group. AIG has been linked with the possible acquisition of Prudential, one of the largest suppliers of bulk annuities in the UK.
Global Emerging Markets Equity Freestyle Fund
The Government will be proposing two alternatives to the administration of NPSS according to leaked details from the white paper on pension reform.The leak to The Guardian this morning suggests that the administration of the national scheme could be organised through providers managing personal accounts.This would allow individuals to choose their own accounts from a […]
Defaqto says bond charges are set to reduce as the impact of competition from wrap providers increases. In its first review of the offshore and onshore bond market, Defaqto predicts that leading advisers will consider offshore bonds more seriously over the next few years as they are becoming an integral part of many wrap propositions.
In this short video, Azhar Hussain, head of global high yield at Royal London Asset Management, explains how his team balance bottom-up with top-down research in constructing multi-asset credit portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up […]
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The Financial Services Compensation Scheme has declared self-invested personal pension operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default. The lifeboat fund has received around 150 claims for compensation relating to the three businesses. Those claims relate to how the businesses set up, operated and administered Sipps through which people invested in […]
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