Nicola York’s article on Newham property prices in your July 14 edition has interestingly scratched the surface of what is probably a far more interesting story for Money Marketing.Newham has a very high number of owner-occupiers on benefits, which means that many people who own their own home in Newham do not have the income to maintain it. These same people have poor levels of financial literacy and capability. The logical response from financial services is equity release. However, given the above, there is a very real risk that these people will be vulnerable to the misselling of equity release. Hence, there is a view held in Newham that retail equity-release products do not actually meet the specific needs of many of the people and, thus, there is substantial unmet demand. As a result, the London Rebuilding Society (www. londonrebuilding.com), an East End Community Development Finance Institution, is developing a more socially responsible approach to equity release, where the CDFI acts as provider and is in partnership with the homeowner. This is radically different from the normal approach of setting out to profit from the sale of a product to a homeowner. What is more, CDFIs do not have shareholders, so the relation- ship of mutual benefit with customers is much more even. Given that the product design process is coming from this place, the way that the product is shaping up looks to be very innova- tive and far more fair to customers.
Fidelity International has appointed Peter Hicks from FundsNetwork as head of its adviser business with responsibility for managing IFA relationships.The position has been created to ensure advisers receive support and service from the firm. Fidelity says Hicks appointment reflects its strengthening of commitment to the IFA sales channel.Fidelity head of UK distribution Michael Jones will […]
Aifa has warned members unwilling to accept multi-tied members to be prepared to pay a 25-30 per cent hike in subscriptions to keep it afloat without them. The trade body has launched a consultation paper seeking feedback from members to help determine its profile and size post-depolarisation. Members have to decide whether they want a […]
The rating downgrades of General Motors and Ford in early May have created value opportunities in bond markets, says New Star. Head of fixed-income strategy Theo Zemek says the market was moving as a whole before the downgrades, with all bonds following the key stocks. Since then, anomalies have emerged, providing opportunities for stockpickers. Zemek […]
The total deficit of UK companies’ final-salary pension plans stands at 100bn, according to analysis by Deloitte. This is an improvement from 130bn at the start of 2005, aided by the 10 per cent rise in the stockmarket since January 1. Deficits among FTSE 100 companies have decreased to 52bn from 65bn at the start […]
Joshua Ausden, Head of Client Investment Strategy, Neptune Read more here Important Information – for Investment Professionals Only. Not for Retail Clients.Investment risksNeptune funds may have a high volatility rating and past performance and forecasts are not a guide to future performance. These are Neptune’s views and as such this document is deemed to be […]
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