The FSA’s failure to name and shame the companies profiteering on payment protection insurance will result in consumers being put at risk for at least another year, warns Which?Which? has called for quic- ker action after both the Off-ice of Fair Trading and the FSA released damning rep- orts into PPI last week claim- ing that consumers are being overcharged by up to £2bn a year. The OFT is referring the industry to the Competition Commission but the FSA says that any clampdown on PPI sales practices will not come into force until the fourth quarter 2007. Which? Personal finance campaigner Pula Houghton says: “It is very disappointing that the FSA has not named and shamed the companies who exhibit bad practice. “Consumers will be left with no idea which companies are not complying with reg-ulation, which will leave them vulnerable.” The OFT probe, requested by Citizen’s Advice, found the product is not delivering choice or value to consumers and providers are consist- ently failing to treat consumers fairly. Bank and building societies routinely give the impression that the loan will not be granted without it and fail to check whether the policy is suitable. The OFT also voiced concerns that consumers do not shop around for the product. OFT chief executive John Fingleton says: “PPI can provide worthwhile cover for some consumers. “However, evidence sugg-ests that how consumers purchase their PPI, their understanding of the product and the quality of information available to them hinders competition.” FSA managing director of retail markets Clive Briault says: “Despite some improvements in standards, major weaknesses remain which go to the heart of the culture surrounding PPI sales.” Liberal Democrat Shadow Chancellor Vince Cable says: “The principle of PPI is a good one but it has been turned into a cash cow by greedy banks.”
IFA reaction to Jupiter’s planned global income fund has been mixed, with some advisers voicing concerns that star manager Anthony Nutt may become overstretched. Nutt already runs £4bn in retail money split across the £3.4bn income and £600m high-income trusts. Bestinvest head of communications Justin Modray says: “My main concern would be whether they are […]
Investment trusts have several advantages over unit trusts. Most investment trusts have beaten inflation over the past 10 years – and many of them both in terms of income and growth.
I refer to your article in Money Marketing, 19 October, ‘Balls is set to axe ASPs’. Is it unreasonable to assume that ASPs will survive the pre-Budget statement which is expect- ed in December? One of the main objections to pension schemes that we encounter is a reticence to invest in them because death shortly […]
Fidelity American special situations manager Bob Haber has slashed the fund’s number of holdings from 200 to 54 stocks in his first three months at the helm. Haber, who took over from Neal Miller in July, has also shifted the fund’s bias towards more large cap stocks, with a greater emphasis on quantitative screening. In […]
Jelf Employee Benefits has launched Jelf AEase, an enhanced auto-enrolment (AE) service aimed at companies with fewer than 50 employees that are due to stage from August 2015.
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As the outlook for the UK’s economy remains uncertain, how can advisers prepare portfolios for any change in inflation? As higher inflation fails to appear on the horizon and wages grow faster than expected, fund managers are weighing up their portfolio moves for any potential changes in the economy. The UK consumer prices index rose […]
IFA directors Kevin and Cheryl Neal have been banned from being company directors by the Insolvency Service for six and four years, respectively. The married couple ran the now-defunct Hertfordshire-based Kevin Neal Associates Wealth Management. They were disqualified for taking assets from an insolvent company. The firm had been incorporated to take over the business interests […]
Hartley Pensions has bought the “untainted” assets of the Lifetime Sipp Company, which went into administration earlier this year. An update published today on the website of Lifetime’s administrators Kingston Smith & Partners says Hartley Pensions has also agreed to administer the tainted Sipps held by Lifetime Sipp. The administrator described tainted assets as those where […]