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US scandals have left investors with no confidence in advisers

Investor confidence in financial advisers has been shattered following international accounting scandals such as Enron and Worldcom, says a survey from Cavendish Asset Management.

Almost half the respondents said they had no faith in advisers, analysts or stockbrokers following the downfall of the US corporate giants.

When asked to respond to “the Enron/ Worldcom scandals show you cannot trust even professional people such as investment advisers, analysts or stockbrokers for investment advice,” 47 per cent said they agreed with the statement.

Younger investors are most concerned, with 59 per cent now refusing to trust advisers, while more experienced investors are more trusting with only 37 per cent of those aged 40 to 49 refusing to place their faith in advisers. In fact, 51 per cent of older investors believe professional investment advice is more important than ever.

Manager of the Cavendish opportunities fund Paul Mumford says: “Our research shows it is not just the market that is taking the hits. Investors&#39 faith in those who provide professional financial advice is also starting to waiver. Stockmarkets can and do recover but investors&#39 faith in those who advise on investment issues may be harder to restore.”


Aegon takes stake in Assureweb

Aegon UK have become the fifth provider to buy a stake in the Misys portal Assureweb. It follows Clerical Medical, Friends Provident, Norwich Union, Scottish Widows purchase of 40 per cent of the portal in January. Misys retains a majority stake of 60 per cent. Collectively the five providers have made a £9.2m investment in […]

53% of brokers back no regulation for buy to let

The majority of intermediaries support the Treasury&#39s decision to leave buy to let out of FSA regulations for mortgages, according to research by specialist lender Future Mortgages. But while its survey of 500 brokers shows that 53 per cent agree with the Treasury, a substantial 41 per cent say the sector should be regulated from […]

Pickering could bring misselling, says Ritchie

Alan Pickering&#39s proposals for pension legislation by principle rather than by prescription could leave IFAs open to charges of misselling, warns Scottish Equitable pensions development director Stewart Ritchie. In the latest edition of the Ritchie Papers, he warns that the less prescriptive approach could lead to different interpretations of the rules, leaving IFAs open to […]

New fixed loans from Chelsea Building Society

Chelsea Building Society has announced the launch of two fixed rate mortgages available from August 31.The first will be capped at 2.99 per cent for two years and the other fixed at 4.69 per cent for three years. Both will revert to the Society&#39s standard variable rate following the fixed periods. The SVR is currently […]

Testing the Foundation

The global economy isn’t headed into recession, at least not yet. This month, David Lafferty, Chief Market Strategist at Natixis Global Asset Management, examines current capital market and portfolio risks for signs of recession. Click Here for Capital Market Notes


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