The Tories have unveiled plans to increase tax relief on pension contributions as part of their commitment to tackle the “pension timebomb”.Under the proposals, basic-rate taxpayers would have their tax relief raised by 10p in the pound to 32p, adding £10 to every £100 saved towards a personal pension. The Tories expect that around 10 million people would benefit from the rise, which would cost £1.7bn of the £4bn they have pledged in tax cuts. The scheme would come into effect from April 2006 and Tories say the relief across a working lifetime could boost a pension by up to £500 a year in retirement. Tory leader Michael How-ard says: “Only by encour-aging more people to save can we ease anxieties and give our economy a brighter, better future.” Other proposals include encouraging firms to promote pension schemes and using unclaimed bank assets to replenish failed pension funds. Scottish Equitable pension development director Stewart Ritchie says: “The proposals are a step in the right direction and targeted at the battle- ground of middle-earners.” Split-cap investors will hear this week how and when Fund Distribution is to make compensation payments. Eighteen fund management companies contributed to set up the company in December after a deal with the FSA, with Exeter Asset Management and Teather and Greenwood signing up this month. Former ABI director general Mary Francis has joined the board of Aviva as an independent non-executive director. Francis, who joins the board in October, is also a non-executive director of the Bank of England and Centrica. Total investment in Hargreaves Lansdown’s funds of funds have topped £250m since the company launched its first multi-manager product in 2001. It uses a mixture of qualitative and quantitative analysis with manager Lee Gardhouse. The three multi manager products are UK equity income, UK global growth and balanced managed. Cofunds’ assets under administration have reached £4bn in four years since its launch with the platform taking in £1.7bn last year. The supermarket was set up in January 2001 and at its current rate of growth expects to break even by late 2006/early 2007. The firm expects its rate of asset accumulation to increase when it launches personal pension and investment bond wrappers through a tie-up with Legal & General this year. Framlington managers are in the early stages of management buyout talks. Former chief executive Peter Chambers started the discussions in the autumn but resigned after senior managers at Framlington decided Chambers was not the right person to lead the buyout. The managers are still planning the buyout but have put plans on hold pending the appointment of a new chief executive. Framlington is 15 per cent owned by its staff. Phil Cliff is to take over from Darrel O’Dea, as manager of Threadneedle’s European select growth fund. Cliff has been number two on the team and also manages Threadneedle’s pan-European Accelerando fund. He will switch roles with O’Dea, who becomes deputy manager on he select growth fund. The number of first-time buyers doubled last month while prices in the housing market stayed steady, says the National Association of Estate Agents. FTBs per estate agency rose from an average of 10.1 per cent in February to 22.3 per cent in March. Prudential is looking at developing its own wrap but says it will monitor the market before making any decisions. If it goes ahead, it says it will adopt a model that involves third parties sharing costs. Citigroup Global Markets UK Equity has raised its stake in Kensington Group to 4.02 per cent shares. The movement has again sparked speculation over the future of Kensington Mortgages.
Former Zurich Advice Network director Richard Coulson is understood to have bought into broker Enterprise Mortgage Specialists with former Zurich colleagues. Coulson is now listed with the FSA as director of the Stanmore-based broker along with former Zurich ally Keith Baldwin, who is listed as director as well as chief executive. Baldwin is best remembered […]
The ABI is urging the FSA to improve its enforcement procedures so that they provide “greater transparency, objectivity and certainty”.The ABI’s recommendations are made in its response to the Enforcement Process Review Issues Paper published by the FSA in March. The Association is now proposing that the current system of enforcement be improved in three […]
Scottish Equitable Protect paid out 631 critical illness claims totalling more than 33m last year.
In the Money Marketing article headlined, FSA aims to boost its service standards, you report that IFAs have questioned the confidentiality of the questionnaire which will be held by NOP, the marketing agency we have appointed. I can assure MM readers that NOP will not be giving us the names of the firms which respond. […]
Artemis senior partner Mark Tyndall recognises the short-term ‘dangers’ for investors of a slowdown in China and beyond. But talk of volatility in developed markets is overstated, he says. Click here to watch video
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As someone training to be a cricket umpire, fair play matters to Fortitude Financial Planning director Chris Bowmer. Doing the right thing for clients is something he has adhered to from the start of his career, even in a 1980s sales environment with nothing to gain by delving beyond a client’s surface requirements. While he acknowledges […]
Fund managers who have helped pay compensation over the collapse of life settlement bond provider Keydata will receive a £12m refund, the Financial Services Compensation Scheme has announced. Keydata’s management has been embroiled in a multi-million-pound legal battle with the FCA since it collapsed in 2009. The total bill for compensation stands at more than […]
With no employer to fall back on, the self-employed are on their own when it comes to retirement saving. Irregular income patterns can make it harder to save regularly into a pension and commit to locking money away until age 55. Those who are building a business may see that as their biggest asset and […]