View more on these topics

NDF recovery plan wipes away the tears

NDF Administration has targeted the NDF recovery growth plan at investors who have had a miserable time on the stockmarket.

This guaranteed equity bond is linked to the FTSE 100 index and was designed to give investors the chance to recoup some of their financial losses, while giving a degree of capital protection during the five-year term.

Unlike other guaranteed equity bonds, this bond allows investors to receive 100 per cent of any rise in the index during the term. Plus, the original capital will be returned in full unless the index falls by more than 50 per cent and fails to recover to its starting value by the end of the term.

Where these conditions are not met, and the final level is lower than the starting level of the index, investors&#39 capital is reduced by 1 per cent for each 1 per cent fall in the index.

The problem with some guaranteed equity bonds is that investors lose out on a percentage of growth potential if they opt for an element of capital protection. This bond avoids these pitfalls, which makes it attractive to cautious investors.

However, there is no guaranteed minimum return above the original investment, such as that offered by Skipton Building Society&#39s five-year guaranteed growth fund. Also, investors looking for income are excluded from the NDF bond, even if they like the concept, which is the bond&#39s main weakness.


Swim the multi-channels

Financial services retailers are no longer restricted to offering transactions during normal office hours as consumers demand access around the clock via telephone and the internet. Intermediaries looking to develop their multi-channel strategies can learn about the benefits of channel selection and integration at a twoday conference in London in March.A host of industry figures […]

FSA wants trees to be updated annually

Decision trees are to be updated every year in line with changes in the Budget, according to proposals by the FSA.In the consultation paper entitled, Stakeholder Pensions: Maintaining Decision Trees, the FSA sets out how it wants to keep decision trees up to date and accurate.It suggests that trees are updated annually to incorporate Government […]

Advice will still be poles apart

When talking of consumers&#39 interests, the FSA should consider the following – ll insurance and investment policies are legal contracts entered into by two parties – the provider, who devises the contract, and the client.It is not contentious to say that anyone entering into a legal contract without first taking professional advice is being silly.For […]

Ways and means of the pension credit

The Government has finally unveiled detailed proposals for the pension credit but what does it all mean for advisers? The first point to note is that the pension credit has been renamed in the Bill which sets forth the proposals. Now we should talk about state pension credit to avoid any possible confusion with the […]


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