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Tories and LibDems back call to scrap rules on with-profits

The Opposition has called on the Government to scrap the stakeholder

with-profits regulations, backing industry claims that with-profits has

been effectively outlawed.

The Tories and Liberal Democrats claim the low- to medium-risk nature of

with-profits policies make them attractive to clients.

With-profits will be allowed under the stakeholder provisions but policies

must be ring-fenced, preventing the cross- subsidisation which provides

them with their characteristic smoothing of investment returns.

Tories and LibDems echo industry fears that life offices will not be able

to offer ring-fenced with-profits funds within the 1 per cent annual

management charge under stakeholder.

The parties are urging the Government to scrap the rules regarding

with-profits to give thousands the opportunity to invest in the low-risk


Both Jacquie Lait and Steve Webb, the Conservative and LibDem social

security representatives, said at a committee debate on stakeholder that

IFAs play a crucial role in making the pensions work.

Lait says: “Advice is needed and IFAs are best placed to provide it. With

the inflexibility provided under the 1 per cent rule, this is going to be



Widows Bank sets up a loan centre for brokers

Scottish Widows Bank has opened a new mortgage processing centrespecifically tailored to IFAs.Based in its Edinburgh headquarters, the centre, which has been developedby an in-house team, will process complete transactions from the initialmortgage enquiry to the final “letter of offer”.The bank, which has been in the mortgage market for three years, aims toprocess applications to […]

Imro fines Coutts £50k for Pep admin blunders

Imro has fined the Queen&#39s bank Coutts & Co £50,000 for failing toact with due skill, care and diligence in relation to the administration ofits Pep business.Coutts has also been hit with a compensation bill totalling £225,000which has been paid out to 634 investors as a result of the variouscharges.The biggest payout of £125,600 resulted […]

Buying into the biotech boom

There has never been a better time to invest in biotechnology. A number offactors are working together to promote biotech into a dynamic industrythat joins scientific advancement and profits into a powerful investmentopportunity.The sector is only about 20 years old. It came into vogue in 1991 as thepromise of biotechnology was revealed to investors. Stock […]

L&G waits on internet cafe society

Legal & General is using the boom in internet cafes to serve up its range of Isas to the public.The life office has struck a deal to run a campaign in eight of the cafesrun by the Internet Exchange.Staff at the cafes will be wearing specially designed uniforms andbaseball caps prompting customers to visit L&G&#39s […]

Greece: the sideshow continues

Artemis managers James Foster, Mark Page and Laurent Millet comment on the Greek deal, describing it as “just another fudge” getting in the way of bigger developments in China, the UK and the US. To read the full article click here.


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