View more on these topics

NU slashes Isa Catmarks

The Government&#39s Cat standards suffered a further blow this week after Norwich Union said it was slashing the number of Catmarked Isas it offers because they are too expensive.

NU is stripping Catmarks from all eight of its actively managed funds from February because it says the 1 per cent cap is uneconomic and hinders its efforts to move further into the IFA market.

The funds, which include UK equity income, UK growth, European equity and UK ethical, will switch to annual charges of between 1 and 1.5 per cent with initial charges of 4 or 5 per cent.

The only NU funds to keep the Catmark are trackers – blue-chip, UK index and international index funds. They will continue with a 0.9 per cent annual charge and no initial charge.

Head of collective investments Cuimin Macmahon says: “The current price cap makes it uneconomic for us to continue to offer actively managed funds within a 1 per cent charge. We are changing the pricing structure to better reflect the true cost of selling and managing them.”

Bates Investment head of research James Dalby says: “It was inevitable this would happen. It is impossible to deliver all financial products with advice under the 1 per cent cap.”

Scott in plea to follow Irish cap example

Norwich Union executive chairman Philip Scott has called on the Government to consider replacing the stakeholder price cap with the model being introduced in Ireland that allows a 5 per cent charge in the first year and 1 per cent thereafter.

At the ABI Saver Summit last week, Scott poured scorn on the 1 per cent cap, arguing that it is more economic to sell alcohol than stakeholder pensions. Scott said that somebody supplying £480-worth of drinks could charge £240 while a firm offering the same amount of stakeholder provision could only charge £4.80.

Scott said: “If we do not continue this debate on the 1 per cent cap with Ruth Kelly, then we will end up with a severely distorted market.”


Smooth talkers debate the prospects for with-profits

Proactive IFAs could replace with-profits, claimed Skandia UK co-founder Paul Bradshaw at a debate last week where Standard Life&#39s David Hare said the product is here to stay although it may be altered in the future.The two were debating the future of with-profits at an event hosted in London by the Financial Services Forum with […]

C-share issue for Downing VCT

Tax shelter specialist Downing Corporate Finance has launched a £10m “C” Share top issue for the Pennine Aim VCT. The Trust is managed by Rathbone Investment Management and was the first Aim VCT to be launched in 1996. To date it has returned 55 pence tax-free to its shareholders and Downing says it has the […]

Zurich appoints Unum chairman as chief executive

Zurich Financial Services has announced the appointment of Lawrence Churchill as its new UK chief executive, replacing Ray Greenshields who resigned last month.Churchill has stepped down as chairman and managing director of UnumProvident to take up the post at Zurich. He is being replaced by UnumProvident&#39s operations director Susan Ring in his role at the […]

Coventry BS appoints new general manager for marketing

Coventry Building Society has appointed Mark Murphy to its executive team as general manager, marketing. Murphy, 36, joins from Abbey National where he worked for 12 years in a number of management positions, most recently as business development director of First National Bank. He will be responsible for all Coventry&#39s marketing activities.

In Focus image

In Focus — May 2015: private medical insurance market in Germany

Welcome to the latest edition of In Focus. In this issue, Jelf examines the private medical insurance market for employers with expatriate workforces in Germany. This includes the common challenges faced in sourcing appropriate coverage, along with a selection of available solutions. This will be of particular interest to HR/reward decision makers with employees based in Germany. It will assess the cultural norms, risks and backdrop that are relevant to organisations with expatriate staff in this location.


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