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Networks sideline GE plan amid capital fears

Leading networks have struck the latest GE Life high-income plan off their approved lists after the recent FSA warning questioning the suitability of some high-income products.

Misys and Tenet Group, with a combined 5,700 RIs, say they will not allow their advisers to recommend GE Life&#39s high income & growth plan VI.

Under the product terms and conditions, if the Dow Jones Euro Stoxx 50 index more than halved by the end of the plan&#39s three-year term, investors with the growth option would lose their entire investment.

Those with the income option would only receive the annual instalments of 10.25 per cent, meaning they would recoup just 30.75 per cent of their initial investment.

The Tenet Group says this is not outlined clearly in the literature and could leave IFAs open to complaints. Research officer Eddie Chilvers says: “The growth investor is penalised more heavily in a downslide than the income investor.”

Misys says it is concerned about the term of the product although it says it has the same concerns with a number of competing products.

GE Life managing director David Evans says: “IFAs have the key role of assessing each individual&#39s attitude to risk and the balance of their total investment portfolio, current investment conditions and the level of the relevant index.”


Bristol & West – 5 Year GEB Isa

Wednesday, 12 September 2001.Type: Guaranteed Isa.Aim: Growth linked to the performance of the FTSE 100, Eurostoxx 50and Nikkei 225 indices.Minimum-maximum investment: £3,000 mini cash Isa,£3,000-£9,000 Tessa only Isa.Investment choice: Mini cash Isa, Tessa only Isa.Term: Five years.Guarantee: Capital returned in full regardless of the performance ofthe indices.Return: 70 per cent of the growth over five […]

Lenders tear into FSA&#39s &#39confusing&#39 proposals for mortgage regulation

FSA proposals for mortgage regulation will be slammed as anti-competitive, ineffective and likely to stifle innovation in consultation responses sent to the regulator this week. Several major lenders say their responses to the FSA&#39s consultation document – due in this week – rip apart the proposals as being a backward step for the market and […]

Orbitex set for move into UK retail sales

Institutional fund manager Orbitex is to launch into the UK IFA market this autumn following calls from IFAs to open its top-performing fund to retail investors. US-owned Orbitex is to offer an Oeic next month, with the first sub-fund expected to be a managed product run by global chief investment officer Robin Geffen. The new […]

IFonline sets up single solution for lenders

Electronic trading platform IFonline is setting up a data management system which it claims will dramatically ease the compliance burden of lenders after mortgage regulation comes into force next year. It says the system, which is due to be launched in late October, is designed to give greater control to lenders which are concerned that […]

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(Another) downhill stroll — retirement planning

A report published this morning by the CIPD (CIPD Employee Outlook March 2015) provides yet more interesting data to the changing landscape of retirement planning. It should be remembered that we are in a period of genuine flux here given that the default retirement age was scrapped three years ago, and new pension freedoms come online in April. Both of these alterations will have a huge impact on how employees plan for their retirement.


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