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NU in £500,000 cash rescue of Burns-Anderson

Norwich Union provided a £0.5m bail-out to IFA network Burns-Anderson last month after it had failed to meet FSA capital adequacy requirements for at least four months, Money Marketing can reveal.

It had been operating without adequate capital since at least the end of March and it was not until August that NU provided the cash. The network&#39s accounts reveal that at the end of March it failed to satisfy the regulator&#39s capital adequacy requirements, while chairman Steve Kelland said in a statement dated April 30 the matter was still unresolved.

As Burns-Anderson would have been in violation of FSA regulations during the period, it would have had to receive a waiver from the regulator to continue doing business.

Although the problems were mentioned in the company accounts, many members who do not receive a copy of the document are still unaware that the company was facing capital problems.

In the report, Kelland said: “Due to pensions reviews, FSAVC reviews and as a result of the introduction of services to directly registered firms the company no longer satisfies the FSA capital adequacy requirements.”

Burns-Anderson Independent Network chief executive Ian Parsons says: “As of April 30, we did not meet capital adequacy requirements. This was resolved subsequently and Burns Anderson has remained capitally adequate since as a result of the support of a major life company.”

NU spokesman Ian Beggs says: “We gave Burns-Anderson a £0.5m working capital injection in August.”


Wesleyan in deal with the BMA

Wesleyan Assurance Society is buying Professional Affinity Group Services from the British Medical Association for an undisclosed sum. PAGS will continue to trade as British Mediacal Association Services.Wesleyan Assurance Society chief executive Peter McNamara says: “We are delighted to have reached agreement with the BMA to operate their membership services business, BMAS. I strongly believe […]

Chelsea launches new step rate bond

Chelsea Building Society is launching a step rate bond on September 23 with the offer of three fixed rate periods from one to three years. The fist fixed rate period offers a bond with an interest rate of 3.95 per cent until November 2003. The second fixed rate period offers a bond with an interest […]

FSA scraps authorised adviser proposal and defined payment set to be replaced

The FSA is set to amend the defined payment system to one which is more acceptable to the majority of IFAs, allowing more to retain their independence and scrapping authorised adviser status, according to head of the polarisation review David Severn.It is thought that plans for all other aspects of polarisation including allowing multi-ties will […]

Retirement dreams are shattered

People&#39s dreams of early retirement are fading fast with 10 per cent less expecting to retire before 60 than two years ago, according to research by Virgin Money.It says the prospect of people retiring early in their 50s is diminishing as awareness of the cost dawns on many who are now putting back retirement plans […]


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