View more on these topics

Scots firm moves into traded endowments

A new traded endowment policy player is entering the Scottish market claiming to offer with-profits pol-icyholders an average of £2,000 more than the surrender value of their policy.

The new service, First Scottish, will be targeting IFAs. It is being set up by Edinburgh-based First Scottish Searching Services and will be headed by FSSS managing director John Yorkston. In the past, the firm has mainly done financial work for clients of Scottish solicitors.

The company estimates that 100 people a month in Scotland surrender their policies. At an average of £10,000 a policy, this means £1m a month is being surrendered prematurely.

First Scottish claims to be the only player in the Tep market of Scots origin. It will have around 80 staff dealing exclusively over the telephone.

Yorkston says: “With the recent publicity over endowment policies not meeting the cost of mortgages, a large number of people have decided to dispose of their policies. While many policies are being surrendered, we would hope to provide larger sums, sometimes as much as 35 per cent more than the surrender value.”

Recommended

Direct forces claim majority of sales as July Isa figures dwindle

Isa sales have fallen for the fourth month in a row, according to Autif figures released this week.Gross Isa sales in July were down by 12 per cent on the previous month to £703.2m from £795.5m. Sales have now fallen by more than 70 per cent since their peak of £2.4bn in March.Although it is […]

Sub-prime lender calls for clarity in IFA deals

Specialist lender the iGroup is calling on independents to offer more “transparent” deals for their clients when advising in the non-conforming sector.The non-conforming lender says it is concerned about practices which could mean clients are not offered good deals in the long term and says IFAs must be clear about what they are offering.It is […]

Matters of Act

In 1996, the Treasury published a consultation document on the possible repeal of the Trustee Investments Act 1961. A period of consultation followed with overwhelming support for reform.The former Government&#39s intention was that reform of the law regarding trustee investments should be achieved by means of an order under section 1 of the Deregulation and […]

Windfalls of change

Scottish Widows is thanking IFAs for what it views as a very successful merger with Lloyds TSB. The Edinburgh life office claims “IFA intervention” prompted policyholders to vote in favour of demutualisation.Scottish Widows head of IFA sales and development Robert Wyllie says: “We encouraged people to speak to their IFAs and clearly the pos-itive result […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment