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Sole traders to pay less after N2, claims FSA

The FSA claims most of the UK&#39s 1,500 sole trader IFAs will pay less in fees to the regulator after N2 under its proposed fee-raising arrangements.

It says one-person firms currently pay between £1,110 and £1,670 to the PIA depending on the type of business but under the new structure the average fee will be £1,200.

It says those firms facing

a 71 per cent increase will

pay less than £1,000.

But the FSA says if negotiations between the ABI on

continuing the cross-subsidy payment from providers to IFAs do not succeed, networks and bigger IFAs face an inc-reased fee.

The FSA&#39s revised budget for its regulatory work for 2001/02 is £166.9m, up from its original estimate of £164m, to cover the new responsibilities it is taking on from the start of N2 on December 1.

These new responsibilities include the direct regulation of lawyers and accountants, educating consumers, tackling market abuse and reducing financial crime.

Under the new risk-based approach to regulation, the

FSA says insurance firms face the biggest increase in fees because of recent debacles such as Equitable Life and the collapse of Independent Insurance putting consumers in danger.

To cushion the impact of higher fees, the FSA is prop-

osing to phase in the changes over a three-year period.

Spokesman Robin Gordon-Walker says: “We are awaiting the outcome on the talks bet-ween the ABI and Aifa. If they do not succeed, it is the ind-ustry that has decided that it did not want the cross-subsidy to happen.”


Mercantile launches lifetime mortgage

Mercantile Building Society is launching a mortgage with a discount for the life of the mortgage of 1.1 per cent off its base mortgage rate, currently 6.64 per cent.The Mercantile Lifetime mortgage also pays a contribution towards valuation costs up to £200, it has no early repayment penalties and free unemployment insurance for the first […]

SG Life & Pensions starts offshore

Clements says: “The bond has a competitive charging stucture. Themulti manager fund of funds risk-graded managed portfolios are agood method of diversifying investments and spreading risk.”Turning to the bond&#39s disadvantages Ferguson says: “Timingcould work for or against depending on events.” Clementsthinks that no free fund switches are a disadvantage. He goes on tosay: “The minimum […]

Teather & Greenwood – TGIM UK Equity Growth

Wednesday, 26 September 2001.Type: Oeic.Aim: Growth by investing in UK equities listed in the FSTE all-shareindex.Minimum investment: Lump sum £500, monthly £50.Investment split: 100 per cent UK equities listed in the FTSE all-shareindex.Isa link: Yes.Pep transfers: Yes.Charges: Initial 5 per cent, annual up to 1.9 per cent.Commision: Choice of initial 3 per cent or initial […]

RAM rebrands for retail market

Rothschild Asset Management is relaunching into the retail market, with a national advertising campaign that will promote its new brand, “Five Arrows – the investment funds of Rothschild”.RAM is launching a Five Arrows monthly income fund to enhance its Oeic offering and is rebranding its Five arrow private portfolio service as the Five Arrows wealth […]

Why prevention is better than cure

Quoting the famous adage, prevention is better than cure; there are many proactive benefits that can improve wellness in the workplace, decrease stress, increase staff morale and reduce absenteeism, as well as attracting and retaining employees of a higher standard. With a recent study showing that employees in Britain are working below peak productivity, preventative benefits can ensure you address potential health issues or causes of stress at their source and ensure productivity in the workplace remains at an optimum level. With this in mind, how are you using preventative benefits to help keep your workforce happy and healthy?


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