Financial Advisor articles from August 2005

Financial Advisor archives from August 2005

Union attacks Fos inquiries.(financial advisers)
August 4, 2005... THE IFA Defence Union has threatened to take the Financial Ombudsman Service to the European Court of Human Rights over the ombudsman's treatment of advisers who have left the industry. The IFA Defence Union is concerned that the Fos is...

McCormick is taking charge at Cheshire.(Karen McCormick joins Cheshire Building Society)(Brief Article)
August 4, 2005... Karen McCormick has taken over as chief executive of Cheshire Building Society. The appointment follows years of poor financial performance and the resignation of Colin Whittle, the former chief executive. Ms McCormick was made interim...

Ex-Sesame adviser could lose house.(Paul Shuker)(Brief Article)
August 4, 2005... Adviser Paul Shuker faces losing his home after being defeated in a three-year battle with Sesame in the Court of Appeal. Mr Shuker had been fighting to convince the court that a membership agreement signed with the Financial Options...

New Product - Pru readies equity release plan.
August 4, 2005... PRUDENTIAL is preparing to launch an equity release mortgage into the market. From September, the Pru will be offering the Property Value Release plan to intermediaries. It promises to give clients the option to take their money, as...

Providers prepare for dash to fixed plans after rate cut.(fixed-rate mortgages)
August 4, 2005... MORTGAGE providers have already factored in an expected interest rate cut in August that has led to an increase in demand for fixed-rate mortgages, according to a mortgage IFA. Richard Smith, IFA for Shrewsbury-based Pi Financial Dixon...

Bestinvest purchases a Surrey IFA firm.(Amilcroft, independent financial adviser)(Brief Article)
August 4, 2005... BESTINVEST has bought Amilcroft, a Kent-based insurance broker, for an undisclosed sum. Amilcroft, which specialises in the corporate market, is a similar size in terms of premiums written to Bestinvest's subsidiary Lovat Insurance...

Ex-Mirror man is set to address CII guests.(Piers Morgan, Chartered Insurance Institute )(Brief Article)
August 4, 2005... PIERS Morgan is the latest addition to an impressive line-up of speakers for this year's Chartered Insurance Institute and Cila UK Insurance and Financial Services Conference to be held in September. The former Daily Mirror editor will...

Tenet puts pension duo on the spot.(Tenet Group provide services through its website)(Brief Article)
August 4, 2005... TENET Group has created a facility on its website that allows advisers to put their pensions questions directly to Scottish Equitable's experts. The "ask the experts" section of the site allows Tenet advisers to submit a question or...

New Product - Kensington cuts rates.(Kensington Mortgage Co., fixed-rate mortgages )(Brief Article)
August 4, 2005... Kensington Mortgages has reduced the rates on its two- and three-year fixed-rate products. The sub-prime lender has reduced the rate on its near-prime two-year fixed-rate mortgage by 0.25 of a percentage point to 4.99 per cent. ...

IFAs back manager of managers process.(Independent Financial Adviser, MLC )(Brief Article)
August 4, 2005... FOLLOWING the announcement that MLC will this week complete its 3000th investment manager interview, IFAs have given their support to manager of managers selection process. Anna Bowes, savings and investment manager for Bath-based Chase de...

ABI is aiming to ease savings consolidation.(Association of British Insurers)
August 4, 2005... PROVIDERS and the government must make it easier for savers to consolidate their pension pots into fewer funds, according to the Association of British Insurers. In a new 16-page policy paper, the ABI argues it is the proliferation of...

New Product - SL aids A-Day advice.(Standard Life)(Brief Article)
August 4, 2005... STANDARD Life has launched an A-Day calculator in line with its Countdown to Simplification campaign. The tax-free lump sum calculator is available online to help IFAs establish whether their client will be entitled to a tax-free lump sum...

Former IFA partner barred from managing.(Jonathan Elms, Teare Rose )(Brief Article)
August 4, 2005... THE FSA has banned a former partner of a Surrey IFA from ever holding a management position within a regulated firm. Jonathan Elms, former partner for Surrey-based IFA Teare Rose was disqualified after the FSA concluded he lied about...

FOS likely to rebuff late claims.(Financial Ombudsman Service; pension review claims)
August 4, 2005... THE MAJORITY of late pension review claims look set to be rejected by the Financial Ombudsman Service, according to Reynolds Porter Chamberlain. Following a lead case conducted by the London-based law firm, new complaints relating to...

Parents failing to save for kids.(savings for future)(Brief Article)
August 4, 2005... THE UK savings crisis has not prompted parents to save for their children's future, research from Fidelity International reveals. According to Barclay's annual graduate survey in April 2005, students will be leaving university this year...

New Product - Newcastle trio is split between bonds, FTSE.
August 4, 2005... Newcastle Building Society has launched three products split between fixed-interest bonds and the FTSE 100. The Guaranteed Equity Bond One offers the fixed rate element at 5.5 per cent with funds being returned to the customer after one...

FSA quick guide plans to ease investment choices.(Financial Services Authority)
August 4, 2005... KEY features documents are to be replaced with a two-page guide setting out factors consumers need to consider before buying an investment, the FSA has said. In a 34-page consultation paper published on Thursday, the FSA said IFAs should...

Home gets a 'dream team'.(Legal and General, Friends Provident, Scottish Provident International Life Assurance Ltd. and Scottish Widow's Fund and Life Assurance Society join the Home of Choice )(Brief Article)
August 4, 2005... LEGAL & General, Friends Provident, Scottish Widows and Scottish Provident are to join the Home of Choice mortgage protection panel. The new mortgage network, which has been accused of poaching Openwork advisers, made the announcement last...

BoS urges investors to use up lump sum.(Bank of Scotland)(Brief Article)
August 4, 2005... AROUND half of investors have no plans to take a tax-free lump sum from their pensions, according to the Bank of Scotland Investment Service. New research from the bank revealed 49 per cent of the people questioned who had yet to retire...

New Product - PMI comparisons free to Exweb users.(Private Medical Insurance launched by The Exchange)(Brief Article)
August 4, 2005... A PRIVATE Medical Insurance comparative quotation service with a special introductory offer for IFAs has been launched by The Exchange. The PMI service will be free to Exweb users until the end of October 2005. After that time, it will cost...

New Product - NatWest cuts fixed rates across range.(National Westminster Bank PLC)(Brief Article)
August 4, 2005... NatWest has launched a range of mortgages for the intermediary market. The range will see all fixed rates reduced as well as buy-to-let and first-time buyer deals that NatWest said were among the best deals in the market. The range...

Advice for elderly to be key after govt call.(free personal care)
August 4, 2005... The government has quashed any hopes of free personal care for the elderly in an announcement to the health select committee on continuing care. This move has placed even more importance on advice for the elderly and their families,...

New Product - Woolwich rolls out six-year plan.(Woolwich PLC)(Brief Article)
August 4, 2005... WOOLWICH Plan Managers has launched the eighth edition of its Capital Plus plan. This six-year plan gives investors the opportunity to receive one of two payouts. Investors will receive the greater of a 22.5 per cent fixed minimum...

Santander ready for lengthy fix for Abbey.(Abbey Financial Corp., Banco Santander S.A.)
August 4, 2005... TURNING Abbey's fortunes around will take three years because there are many things to fix, according to the bank's new Spanish owner. In the bank's interim results, published last Wednesday, owners Banco Santander said Abbey had a great...

New Product - UCB drops self-cert rates.(UCB Home Loans Corporation Ltd.)(Brief Article)
August 4, 2005... UCB Home Loans is offering self-cert clients new two- and three-year fixed-rate mortgages on a purchase and remortgage basis. The rate of 5.39 per cent on its existing two-year fixed self-cert mortgage has been brought down to 5.09 per...

Standard joins Paymentshield's protection panel.(Standard Life)(Brief Article)
August 4, 2005... MORTGAGE payment protection insurance supplier Paymentshield has selected Standard Life to join its protection panel for mortgage-related business. Standard Life protection products, including term assurance, will be available to...

Regulators to be put to test at conference.
August 4, 2005... PERSONAL Finance Society members will be able to put the ombudsman and the regulator under the spotlight at the organisation's inaugural conference. The first conference since the LIA merged with Society of Financial Advisers to form the...

Pru, Friends' success catches analysts out.(Friends Provident and Prudential Corporation PLC)
August 4, 2005... Interim results from Prudential and Friends Provident showed growth in the first half of the year, with both life offices confident of their strategies to pursue the adviser market. The Pru's grab for the adviser market has paid dividends...

Sesame may consider an AR multi-tie arm.
August 4, 2005... SESAME will consider an appointed representatives arm for its multi-tie panel if there is sufficient demand from members, according to its commercial director. Charles Bryant said an AR version of Sesame Select could follow the...

Datamonitor puts spotlight on growing Islamic market.
August 4, 2005... THE Islamic mortgage market is expected to reach AGBP1.4bn in gross advances by 2009, according to a report from independent market analysts Datamonitor. Datamonitor estimates the market has grown by an average of 68 per cent annually...

Janis swings by Gleneagles.(Janis Davie, Medical Money Management)(Brief Article)
August 4, 2005... JANIS Davie, personal assistant to Craig Watson, a partner for Glasgow-based IFA Medical Money Management, has won a weekend for two at the Gleneagles hotel, the venue for the G8 meeting, in the Perthshire hills, courtesy of Standard Life. ...

FSA puts focus on complaints.(Financial Services Authority)
August 4, 2005... THE FSA has warned providers to employ more comprehensive reporting systems for complaints, or face its wrath. The regulator wrote to chief executives of 80 leading providers at the end of last week reminding them to check their systems....

L&G retains its protection lead despite dropping sales.(Legal and General)(Brief Article)
August 4, 2005... INTERIM results for the first half of the year from Legal & General showed growing individual pension business, but falling protection sales. However, the life office has maintained leading market share for protection, despite falling...

Em markets are on course -- Aberdeen.(emerging equities)(Brief Article)
August 4, 2005... THE prospects for emerging equity markets remain good despite a likely correction in the market, according to Aberdeen Asset Management's new head of global emerging markets. Devan Kaloo, who took on the leadership post in July, said strong...

New Product - Friends trust tackles IHT.(Friends Provident)(Brief Article)
August 4, 2005... LIFE and pensions company Friends Provident has launched a trust that it claims will help families safeguard against potential IHT liabilities. The Lifetime Nil Rate Band trust has been set up in conjunction with its investment portfolio...

Equity release providers are risking lifetime losses.(mortgages)
August 4, 2005... PROVIDERS rushing into the equity release market are risk- ing significant losses on lifetime mortgages, according to a report by Defaqto. The latest research from the financial services research company revealed that lenders offering "no...

Skandia follows suit with disclosure.(publishes details of unpaid claims for protection policies )(Brief Article)
August 4, 2005... SKANDIA has fallen in line with other life companies and has published details of its unpaid claims for protection policies. The figures showed that 21 per cent of claims on critical illness and term assurance policies were not paid. ...

Bankhall talks to deal with wealth planning.(Brief Article)
August 4, 2005... THE retirement market and wealth planning will be tackled during a series of Bankhall seminars running throughout August. Bankhall said that it designed the seminars to cover the two key areas that present opportunities for IFAs to obtain...

Mayland joins Newcastle board.(Newcastle Building Society appoints Richard Mayland)(Brief Article)
August 4, 2005... A former partner with PricewaterhouseCoopers has joined the board of Newcastle Building Society as non-executive director. Richard Mayland, 52, began his accountancy career in 1976, later becoming partner with PwC in Newcastle where he...

Standard on acquisition trail.(Standard Life acquires stakes in Tenet Group)
August 4, 2005... Standard Life is on the lookout for further IFA acquisitions, following the purchase of its 20 per cent stake in Tenet. Nathan Parnaby, managing director of sales for Standard Life, said that capital for purchases would not be a problem if...

New Product - Britannia deals fail to measure up to competing offers.(Britannia Building Society)(Brief Article)
August 4, 2005... BRITANNIA has launched two mortgages available to existing as well as new clients. The flexible mortgage, currently offering a rate of 5.25 per cent, guarantees to track the Bank of England base rate plus 0.5 of a percentage point for the...

Waugh takes reins at Chase.(AWD Chase de Vere appoints Simon Waugh)(Brief Article)
August 4, 2005... AWD Chase de Vere has announced that Simon Waugh, former boss of Centrica, will take over as chief executive of the German-owned IFA. Mr Waugh has previously worked at a senior level for Saga, Lloyds TSB and American Express. He...

Charles Stanley poaches six from Gerrard for its Birmingham office.(appointments at Charles Stanley and Company Ltd.)(Norman Pappas appoints Mark Lovelock, Harry Landy, Andy Brooke)(Andy Power joins Intelligent Pensions)
August 4, 2005... General Stockbroking group Charles Stanley has recruited six professionals from a rival to open its Birmingham office. David Inions, Marcia McKenzie, Paul Smith, Martin Tatlow, Simon Sharp and Lawrence Fagg all join from Gerrard to...

IFA anger grows over Northern's processing.(Independent Financial Adviser)(Northern Rock PLC)(Brief Article)
August 4, 2005... MORE IFAs have raised concerns about the slow processing of mortgage applications and problems with payment of procuration fees by Northern Rock. Paul White, consultant for London-based Belgravia Insurance Consultants, said he had...

Imla says consumers are ignoring disclosure aids.(key fact illustrations)(Intermediary Mortgage Lenders Association)
August 4, 2005... EIGHT months after regulation, there is little evidence that key fact illustrations have helped customers choosing a mortgage, according to the Intermediary Mortgage Lenders Association. Research conducted among association members revealed...

The most important challenge is to win and defend distribution.(Interview)
August 4, 2005... FINANCIAL ADVISER: Can you tell us about your role at the Chelsea? TOM GURRIE: There are two parts to my role. One is corporate sales controller. Effectively, on the intermediary side of this business, Chelsea has a number of national...

Killik is under fire over pension 'churn'.
August 4, 2005... STOCKBROKER Killik & Co has been accused of churning its group personal pension scheme by a current employee. The member of staff has complained that the administration of the company's group personal pension scheme had changed hands, to...

Fos attacks IFAs who did not explain MVAs.(Financial Ombudsman Service)(Independent Financial Advisers)(market value adjustments)
August 4, 2005... THE Financial Ombudsman Service has criticised IFAs who failed to warn investors that a market value adjustment could be made to with profits policies. The ombudsman said intermediaries in the wrong are those who thought it was irrelevant...

Cofunds pushes to improve standards.(Brief Article)
August 4, 2005... COFUNDS has pledged to resolve slipping service standards by the end of August, following complaints from intermediaries about problems at its Essex-based call centre. Dean Burns, a broker for Surrey-based Asset and Investment Management,...

ScotEq clients drowning not waving.(Scottish Equitable Global Growth )(Brief Article)
August 4, 2005... HOW have certain life funds been able to get away with turning in dreadful investment returns year-in, year-out? I can see how those sold through tied agents get away with it, but what about Scottish Equitable Global Growth sold through IFAs?...

Serious drinking ahead.(Skandia Cowes Week)(Brief Article)
August 4, 2005... LOOKS like it will be heads down and hands on the ropes with no time for silliness at this year's Skandia Cowes Week. Some 20 sailors at this year's event in the Isle of Wight, 30 July -- 6 August, will have a distinct advantage over the...

Isas are sunk without investment incentives.(individual savings accounts)
August 4, 2005... FIGURES published by the Investment Management Association last week make bleak reading. In June this year just AGBP62m net was invested into stock market Isas, around half the AGBP121m invested in June 2004. At this rate it will not be...

Advisers won't get fooled by NU again.(Norwich Union PLC)(Brief Article)
August 4, 2005... NORWICH Union cannot buy IFAs, at least not those who emailed me about its increased commission levels on stakeholder pensions. A number of consistent points came through, mainly regarding service to IFAs and choice of funds -- or lack of it....

Insurers to work on HIV group.(ABI HIV)(Brief Article)
August 4, 2005... INSURERS will work with the medical profession and interest groups on the ABI HIV expert working group. The aim of the group, launched this week, will be to ensure that insurers treat people with HIV fairly in the underwriting of insurance...

Regulation is needed now.(equity release; mortgages)(Brief Article)
August 4, 2005... LENDERS are rushing into the equity release market, even though the research company Defaqto has warned of likely tears before it is all over. But the complexity and regulatory tip-toeing has meant there is something not quite right about...

A strong case.
August 4, 2005... ON page 29, there is a powerful piece by Gill Cardy on giving basic advice to the low paid -- or at least those on low salaries. In her own inimitable way, Gill has made the case for what Financial Adviser has been saying for a long time --...

Things that slip under the radar.(retirement planning)(Column)
August 4, 2005... For several years now I have been doing retirement counselling for employees of a charity. Some people are not highly paid, but over time it has emerged that many of them can afford to be paid less as they have a number of other resources and...

Coates hassles the Hoff.
August 4, 2005... DAVID Coates, managing director of Walker Joice Specialist Financial Services Recruitment, has meeting celebrities licked. The 33-year-old recruitment guru encountered living legend David Hasselhoff at The Telegraph pub in Brixton recently...

The basic instinct is proving false.(Financial Services Authority)
August 4, 2005... TO the FSA, labelling a new sales process as "basic" must have seemed a good idea at the time. But a few months after the introduction of the basic advice regime, the branding looks unfortunate. For a start, a "basic advice" service...

Glamour career dashed.
August 4, 2005... ONE FA journalist has now found her new calling -- as a BM Solutions dolly girl. The potential new recruit was observing the scantily-clad girls, decked out in tight little BM T-shirts and red hot pants, when Michael Bolton, managing director...

Protecting your loved ones.(inheritance tax planning)(Column)
August 4, 2005... IT always seems to me that the folly of people knows no bounds -- especially when it comes to inheritance tax planning. To illustrate this point, I am going to look at a married couple in their mid-60s who have been successful in their...

Feeding frenzy for IFA deals will go on.(Standard Life acquires stake in Tenet Group)
August 4, 2005... At last, Standard Life has finally left the touchline and joined in the scrum for IFA businesses. Its purchase of a fifth of Tenet Group last week was greeted with cries of "about time" by many who were waiting for the famously cautious...

Feeling the fallout of Citigroup affair.(Financial Services Authority)
August 4, 2005... AS the dust settles following the conclusion of the FSA's action against Citigroup, many in the market are taking stock of its implications for them. Commentators have already pointed to the potentially serious issues that arise when...

Mixed blessing of RU64's end.(Financial Services Authority)
August 4, 2005... THE FSA's announcement that it intended to abolish RU64 was met with much glee throughout the financial services industry. A careful read of the paper, however, should leave the IFA community angry that the regulator has chosen to favour...

Think global to beat downturn.(Bank of England; interest rates; stock markets)
August 4, 2005... As the global economy turned down sharply in 2001 and 2002, the Bank of England's Monetary Policy Committee tried to protect the UK economy from the economic ravages of the world outside by cutting rates quite aggressively. As they did, so...

Halifax FS joins fierce income fund market.(Halifax Financial Services launches new income fund)
August 4, 2005... A NEW managed income fund from Halifax Financial Services has been welcomed by a specialist. Nick Hanson, director of Cambridgeshire-based Hanson Financial Management, said the pricing structure for the fund was very attractive. ...

Caution reigns in market despite rises.(euqities market)(Brief Article)
August 4, 2005... THE UK equity market is continuing to push upwards, according to a report from Brewin Dolphin Securities. However, with technical indicators pointing to some overbuying of the market, some caution remains. But, according to Anna Bowes,...

ScotWids ups bonus rates after markets rise.(Scottish Widow's Fund and Life Assurance Society increases policy rates)(Brief Article)
August 4, 2005... SCOTTISH Widows has boosted its with profits rates following changes in the investment markets. Scottish Widows has increased final bonus rates for 99 per cent of its policyholders. This move follows announcements earlier this year...

Britannia to add to its range with fixed-rate trio.(Britannia Building Society launches mortgage products)(Brief Article)
August 4, 2005... Britannia Building Society has launched a new mortgage product range. It includes a two-year fixed rate priced at 4.49 per cent, a five-year fixed rate, priced at 4.59 per cent and a 10-year fixed-rate product, priced at 4.99 per cent. ...

Lenders launch a race to the bottom over rates.(mortgages)
August 4, 2005... Lenders are tripping over themselves to produce market-leading fixed-rate mortgages as swap rates continue on a bumpy, but downward path. Despite rates being a world away from Britannia's famous two-year 3.24 per cent deal -- available...

Buy-to-let providers ease lending criteria.(mortgages)(Brief Article)
August 4, 2005... Lenders in the buy-to-let arena are beginning to relax their criteria after stabilisation and further anticipated growth in the market, a report from property investment specialists Assetz, has claimed. One indicator of this is the...

ScotEq wins praise for investment position.(Scottish Equitable)
August 4, 2005... SCOTTISH Equitable's Universal Balance Collection fund may be one of the best choices for when considering a section 32 transfer, according to an IFA. The fund, which can be used to transfer a tax-free lump sum under section 32, has been...

Just Retirement has AGBP117m sales.(Brief Article)
August 4, 2005... JUST Retirement has announced annual sales of AGBP117m for its first financial period. The annuity and equity release specialist reported sales of AGBP57m in the three months to the end of June, with that month alone achieving sales of...

Expert urges staying flexible with lump sum.(pensions)(Brief Article)
August 4, 2005... PENSIONS choice should not only be based upon income after retirement, according to a specialist. Jo Roberts, partner for Staffordshire-based NeedanAdviser.com , said people should seriously consider investing a tax-free lump sum rather...

Enhanced annuities backed for raising income.(Brief Article)
August 4, 2005... ENHANCED annuities can substantially boost income, according to the investments, life and pensions arm of Moneyfacts. According to its recent review, smoker rates can produce enhancements of up to 23 per cent on top of the highest...

Pair lift individual pensions game.(Norwich Union; Legal & General)
August 4, 2005... PENSION providers Norwich Union and Legal & General, in one combined effort, have raised the game when it comes to commission payable on individual pensions policies. Last month, NU announced it is to crank up the commission on its...

ABI instigates a review of application form designs.(Association of British Insurers)(Brief Article)
August 4, 2005... A lack of protection insurance awareness has prompted the Association of British Insurers to investigate application form design. The ABI has published a consultation paper on draft guidelines for insurers on the design of protection...

A&L targets businesses with a tiered offering.(Alliance & Leicester)(Brief Article)
August 4, 2005... ALLIANCE & LEICESTER has brought out a new, high interest deposit account for businesses, which will offer customers tiered interest rates of up to 4.55 per cent gross. The product is aimed particularly at businesses such as estate agents,...

L&G to bring protection products together.(Legal & General)(Brief Article)
August 4, 2005... Legal & General is planning to streamline its protection products, bringing them all under one umbrella. The provider is intending to shed the large number of products it has at the moment, and just bring its protection offering under one...

Pinnacle replacement product is 'confusing'.(Paymentcare)
August 4, 2005... A protection product from Paymentcare, launched after Pinnacle dropped 3000 ASU policies has been criticised as potentially confusing and detrimental to consumer confidence. Peter Chadborn, principal for Essex-based IFA Chadborn, Baker &...

CIPD survey reveals AGBP12bn cost of employee sickness.
August 4, 2005... THE latest research into absence in the workplace has revealed British businesses lose more than AGBP12bn a year through 168m days of employee sickness. A survey from the Chartered Institute of Personnel and Development has revealed that...

DTI fund to help businesses put roots into disadvantaged areas.(Department of Trade & Industry)(Brief Article)
August 4, 2005... Entrepreneurs growing their businesses in the most disadvantaged areas could receive help from a new AGBP5m fund. The Business Incubation Development fund has been created by the department of trade and industry's small business service to...

Time invested detecting lies pays for itself.
August 4, 2005... Q I have been informed by one of my HR team that an employee lied on his CV in order to get his job with the company. How do you combat this at the recruitment stage? Additionally, I am concerned about the legislation regarding employment...

Blair appoints Treasury post.(Nicholas MacPherson)(Brief Article)
August 4, 2005... Tony Blair has appointed a permanent secretary to the Treasury. Nicholas Macpherson -- who has been managing director of the Budget and Public Finance Directorate, the Treasury's largest directorate, since 2004 -- steps into the shoes of...