Financial Advisor articles from August 2007

Financial Advisor archives from August 2007

FSA's protection is going by the book.
August 2, 2007... The FSA has confirmed consumer protection measures to be included in its new rulebook for investment business when it is published in November. As well as reflecting the FSA's drive towards principles-based and better regulation, the new...

Not so Equitable advice results in win for client.
August 2, 2007... Byline: Judge orders Scottish Equitable to pay damages in a landmark court battle Scottish Equitable has become the first financial product provider to be ordered to pay damages after giving a client unauthorised investment advice,...

Isas to be revamped in Treasury's reform plans.
August 2, 2007... Kitty Ussher, the new economic secretary to the Treasury, laid regulations last week that will implement a reform package for individual savings accounts. Ms Ussher said the package of measures will make Isas more attractive by increasing...

Consumer debt surges as property market is booming, says report.
August 2, 2007... The UK has the second-most overvalued housing among the world's developed economies, according to a report by ratings agency Fitch. The UK has enjoyed a property boom over the past 10 years as a result of low interest rates, a good economy...

Women and carers gain rights to full state pension.
August 2, 2007... The Pensions Act has received Royal Assent giving certain groups, especially women and carers, stronger rights to a full state pension onretirement. Under the Act, the number of years of contributions required to receive a full basic state...

Banks' fragility shown by Bankers Almanac.
August 2, 2007... Byline: Findings show that over 1400 banks have ceased trading in the last 27 years A total of 431 banks and building societies registered in the UK have folded since January 1980, it has been revealed. This figure excludes the 1065...

Aifa's visionary task force to deal with IFAs' problems.(Association of Independent Financial Advisers)
August 2, 2007... The Association of IFAs has announced the creation of a task force to develop a manifesto for advice to tackle the issues facing IFAs in the 21st century. The association said that the new group - comprised by leading figures from across...

FSA to let banks 'off the hook' on charges.
August 2, 2007... Britain's banks and building societies, which have been accused of imposing unfair charges on consumers, will be let off the hook until legal uncertainties are ironed out, it emerged last week. The City regulator has issued a waiver from...

Standard Life launches solutions pack to ease client estate planning.
August 2, 2007... Standard Life has launched an information pack aimed at demystifying estate planning for financial advisers and their clients. It aims to assist financial advisers and develop their awareness and understanding of the wide variety of estate...

Hips will hike up council tax bills, say the Conservatives.
August 2, 2007... Details collected for home information packs will be used to force up council tax bills, according to politicians from the Conservative party. The Valuation Office, which will be in charge of a future council tax revaluation, has already...

A facelift for the FSA's enforcement manual.
August 2, 2007... Byline: The watchdog's guides on decision-making will be reworked, as proposed The process by which the FSA carries out enforcement will receive a radical overhaul including the appointment of a committee to make decisions on behalf of the...

It is a double whammy for Torquil Clark.(resignations of Jason King and Simon Platt)(Brief article)
August 2, 2007... Two directors of Torquil Clark Life Insurance have announced a surprise double resignation. Jason King and Simon Platt are expected to pursue new interests elsewhere following the sudden announcement of their departure on Tuesday with...

Tracker mortgage demand up to counter interest rate 'peak'.
August 2, 2007... Demand for discounted and tracker mortgage deals will increase in the year ahead, predicts GMAC-RFC the UK mortgage lender. According to GMAC-RFC, the gap is widening between fixed and discounted products as a result of the continued price...

A tumble in global equities signals credit squeeze fears.
August 2, 2007... Byline: Questions hang over 'era of easy lending' as financial stocks fall across the US and the UK Turmoil in credit market spread to global equities last week resulting in the the biggest one-day slide in the FTSE 100 in more than four...

Inheritance expectations fall short of reality: Brewin.(Survey)(Brief article)
August 2, 2007... Some 6m people expect to receive an inheritance within six months following the death of the person bequeathing them assets, and more than a third expect probate to take just three months, according to research published by Brewin Dolphin. ...

Myners to head up personal accounts.
August 2, 2007... Byline: The government body which will deliver the national pensions savings scheme, appointed a popular chairman Paul Myners has been appointed chairman designate of the delivery authority for personal accounts, in a move unanimously...

Route launches film fund.
August 2, 2007... A new film fund is being launched by Route Group to fill the gap left when new tax rules were implemented by HMRC in March. Some of the attractive sideways loss relief benefit was withdrawn in the Budget in 2006 - which allowed investors...

Navigant buys Troika in a bid to be 'top player'.
August 2, 2007... Navigant Consulting, the global consulting firm, announced it has acquired Troika, the UK financial services consultancy. London-based Troika provides consultancy services to the financial services industry, covering operations performance...

Insynergi's academy looks for fresh batch of students.
August 2, 2007... Recruiting specialists Insynergi UK Ltd, are attempting to tackle the lack of new financial advisers in the industry with the launch of a new academy. The compliance training provider said that its academy was intended to tackle the...

Affordability reaches its limit as house prices fall.
August 2, 2007... Byline: Major house price indices point to underlying trend of 'softening' house price growth in the UK The major house price indices are showing a fall in the growth of house prices which experts are predicting will continue into the...

Edward Jones sweeps across the UK in ambitious expansion.
August 2, 2007... US financial services company Edward Jones has continued its rapid UK expansion with the opening of a new office in Nottingham. The move is part of the group's ambitious expansion plans in the UK. Edward Jones now has more than 200 offices...

Exploring Eastern market promise.
August 2, 2007... Byline: The emerging markets are leading the way and are now a wise investment, as a shift in world order has taken place A focus on emerging markets, split caps and the Japanese currency will stand the retail investor in good stead over...

A&L reports AGBP295m in profit for first half of 2007.(Financial report)
August 2, 2007... Alliance & Leicester has announced profits for the first six months of the year totalling AGBP295m - 10 per cent up on the first half of 2006 - slightly ahead of analysts' expectations. The Alliance & Leicester board has declared an interim...

FSA's training book chopped as simplicity takes priority.
August 2, 2007... Regulation The FSA's training and competence sourcebook is to be slashed to a third of its size, as part of an effort by the regulator to simplify the regime. The FSA confirmed the new FSA training and competence regime will come into...

Merger is a bonus for all Portman's eligible members.
August 2, 2007... The FSA has approved the merger between Portman and Nationwide, creating the Nationwide Building Society. The move makes Nationwide the second largest retail mortgage lender after HBoS and the second largest retail savings provider. It...

Take the highs with the lows on the stock market, say Fidelity.
August 2, 2007... Fidelity International is warning savers of the risks of trying to time their stock market investments as volatility returns to the world's equity markets. The investment management group has analysed the performance of UK and European...

Lenders feel the sting of rising rates.
August 2, 2007... Byline: The effects of the latest interest rate rise are starting to become evident as the housing market slows down The first sets of interim results from mortgage lenders are highlighting a potential slowdown in the housing market in the...

Consumers' demand drives the growth of multi-assets.
August 2, 2007... Consumer demand for multi-asset investment platforms is driving strong growth within the intermediary industry, according to new research from Prudential. About 45 per cent of intermediaries reported buoyant investment sales and those...

Weighing up annuity options with Just Retirement's help.
August 2, 2007... Pensions providers are attempting to raise awareness over annuities, with Just Retirement launching a "campaign for better annuities." Just Retirement is joined by Tomorrow, which says financial advisers are underestimating the number of...

New report gives principles-based pensions regulation the thumbs up.
August 2, 2007... A greater principles-based approach to the regulation of pensions could be put in place, if the government accepts proposals in a report it commissioned to look at how to lighten the regulatory load. Among other recommendations made by...

Millionaire grandchildren could reduce IHT liabilities.
August 2, 2007... Grandparents could turn their grandchildren into millionaires - if they invest in a pension on their behalf, says Clerical Medical. If a relative pays up to AGBP300 a month, which includes 22 per cent basic rate tax relief, for the first 16...

PMS records AGBP180bn in mortgage completions.
August 2, 2007... Premier Mortgage Services has announced that it has completed AGBP180bn in mortgage business since its 1996 launch. The mortgage club reached this figure after completing AGBP20bn of loans in the six months to the end of June, an increase...

Funds finally back British equities.
August 2, 2007... Byline: 130/30 funds have soared in the US since their launch, time now to test the waters on the other side of the Atlantic F&C plans to launch what it claims to be the first 130/30 fund to invest in British equities within weeks. ...

The Celtic tiger is still roaring with success.(Brief article)
August 2, 2007... Ireland is the world's second wealthiest developed nation per capita, according to the latest 'Wealth of Nations' annual report from Bank of Ireland Private Banking. Findings from the report showed the nation retains its position behind...

Webline now capture the moment to help advisers and brokers.
August 2, 2007... Webline has launched a client data capture facility on its system that saves advisers time by pre-populating data fields into online application forms. Webline, part of the Capita Group, has always provided the capabilities for an adviser...

Scottish house prices are still soaring ahead.
August 2, 2007... House prices in Scotland are now forecast to rise at a rate of 10 per cent this year, up from the Bank of Scotland's previous estimate of 7 per cent. But this is still down on last year when house price inflation north of the border hit...

Ship's sea of success in the equity release plans market.
August 2, 2007... The total number of new equity release plans sold in the second quarter of this year has increased by 16 per cent to 7439, according to Safe Home Income Plans, the body that represents 90 per cent of the market. Last year in the same...

One site fits all for advisers with L&G.
August 2, 2007... Legal & General is launching a one-stop-shop for financial advisers to help them on underwriting and claims. The online guide will cover protection products such as life insurance, critical illness and income protection. The website is...

Gap deepens between Britain's rich and poor, says A&L report.
August 2, 2007... The gap between rich and poor is increasing with older people in the south holding the lions' share of the savings, according to a new report by Alliance and Leicester. The poorest half the population have an average of AGBP317 in savings...

Lenders charge borrowers 'astronomical admin fees'.
August 2, 2007... Byline: Regulator's 31 July deadline for mortgage lenders to sort their exit fee structures has passed Some mortgage lenders have been accused of reintroducing high exit fees under new names to avoid scrutiny by the City regulator. The...

Taxman fails to keep up with the Joneses.
August 2, 2007... Byline: Law Lords find in favour of tax-saving arrangements of husband-wife firm Small family-run IFA businesses will benefit from last week's House of Lords decision in the Arctic Systems test case brought by the HMRC. Five law Lords...

Skandia's critical illness claims are on the rise after paying out on 89% of the cases.(Brief article)
August 2, 2007... Skandia has increased the percentage of critical illness claims that it has paid out on in the past six months, the provider has claimed. Its figures to June 2007 show that it paid out on 89 per cent of claims, up 1 percentage point from...

Time to get involved with the Rugby World Cup 2007.
August 2, 2007... Can you believe that it is four years since that glorious night in Sydney where England defeated Australia to win the 2003 Rugby World Cup? Since that day, England's standing in world rugby has been severely dented. However, with New...

Interest rate hikes may see private rentals soar.
August 2, 2007... The private rented housing sector remains buoyant, while the prospect of another interest rate rise is likely to contribute to more people in rented accommodation, according to Paragon Mortgages. John Heron, managing director of...

Experian's addition completes package.(N4 Solutions)(Brief article)
August 2, 2007... Experian has acquired N4 Solutions, which provides specialist software for the mortgage and financial planning sectors. N4's products cover the sale of mortgages, general insurance and financial planning. The Cirencester based-firm lists...

Credit review leads it to revamp its offerings.
August 2, 2007... Byline: Asset manager to merger Euro, Japanese and Northern American funds Credit Suisse has revamped its multi-manager range following a review of the products after it lost some of its most experienced team members. The company has...

Seven backs ETFs to take over the world.
August 2, 2007... Exchange-traded funds are going to be more significant in the multi-manager sphere, according to Justin Urquhart-Stewart. The funds give investors the chance to buy whole indices, have low annual charges and so far have been a fairly niche...

Europe is get the hang of multi investing - study.(Survey)(Brief article)
August 2, 2007... The vast majority of distributors in Europe have clients invested in multi-manager products, according to a pan-European survey of distributors from Fidelity International. The survey shows that multi-manager is an important business for...

Stop being one of the herd, warns Chatfeild-Roberts.(John Chatfeild-Roberts)(Brief article)
August 2, 2007... People should not follow the herd when considering investments, according to John Chatfeild-Roberts who runs four funds of funds for Jupiter Asset Management. Mr Chatfeild-Roberts was speaking at the first of a series of investment...

New mortgage strategy behind Skipton's profits.
August 2, 2007... Byline: Building society's profits overshadow the scrapping of yet more exit fees Skipton Building Society's 49 per cent rise in interim pre-tax profits took some of the mortgage limelight away from HBoS' announcement that it had scrapped...

Crispin Henderson replaces Simon Davies at the helm of Threadneedle.
August 2, 2007... Byline: Swip appoints Naish as head of property In the latest of a series of appointments, Scottish Widows Investment Partnership has appointed Malcolm Naish as head of property. He will report to Andrew November, CIO of fixed income and...

Private equity threat to be re-examined.
August 2, 2007... The Treasury and HMRC should examine whether the tax system unduly favours debt as opposed to equity, thereby creating economic distortions, according to the Treasury select committee's interim report on private equity. The report was...

Openwork's CEO soon to be unveiled.(chief executive officer)(Keith Carby)
August 2, 2007... Byline: Insider tips Foster Denovo's Keith Carby 'to be the next CEO of Openwork' when Stephen Leaman steps down Industry old hand Keith Carby, executive chairman of Foster Denovo, is strongly tipped as replacement for Stephen Leaman of...

Lloyds TSB sells Abbey life to Deutsche Bank for AGBP1bn.
August 2, 2007... Deutsche Bank is buying Abbey Life from Lloyds TSB for just under AGBP1bn as the German bank moves to capitalise on the expected convergence between insurance business and capital markets. The announcement came as Lloyds TSB group reported...

Roger Dossett.(Interview)
August 2, 2007... FINANCIAL ADVISER: What is to blame for causing the recent drop in property funds' returns? ROGER DOSSETT: What we have seen in the last three years from direct property are exceptional returns which have come from investors taking a...

Calm after the storm.
August 2, 2007... Last week no sooner than the leading equity markets went through a few days of turbulence, partly because of problems in the US sub-prime mortgage market and partly because of tougher risk management in the debt markets, than the doomsayers...

Taking part in the great debate.
August 2, 2007... Few will imagine, judging from the deafening silence emerging from the market, that there is a historic debate taking place for the soul of how retail financial products are distributed. It is a debate which will determine how products are...

Finally, one rule for all.
August 2, 2007... At last it now looks as if the high street banks are being told in no uncertain terms that treating customers fairly not only applies to small fry, such as financial advisers and mortgage brokers, but to these megaliths. Firing from both...

What a client wants, what a client needs.
August 2, 2007... It is easy to find books in the business sections of any bookshop on the subject of marketing failures and successes. Mere mortals will learn from complete disasters like the Sinclair C5 or the de Lorean, although I accept the latter had a...

A view from the sidelines.
August 2, 2007... A burst bubble Commercial property, as we all know, has suffered a little hiccup recently. I have sat on the sidelines recently while others have commented on the pains of the sector, but I feel it is fair to say investors have suffered a...

In clear terms.
August 2, 2007... In mid-July, the CML hosted the mortgage fees update seminar at which Katherine Webster, manager of the FSA's unfair contract terms team addressed the gathering on FSA's views and position in relation to mortgage exit administration fees. ...

Stupidity can pay off with some insurers.
August 2, 2007... And so, to yet more people with time on their hands. LifeSearch's latest headline grabber has focused on how insurers would react to some of the most stupid ways to accidentally meet your maker, including jet skiing off Niagra Falls just for...

Taxman's sneaky IHT plan to find burial plot.
August 2, 2007... A surprisingly informative snippet from Insider this week in the form of IHT sneakiness. We were shocked and horrified to discover that a former UK resident, no longer domiciled on British shores, is still subject to IHT tax if they have - get...

Passion rides high at Legal & General.(Legal and General Group PLC)(Brief article)
August 2, 2007... Mike Connolly, investment PR guru at Legal & General, has a passion: motorbikes. This may already be well-known, but perhaps what is less well-known is that there is a whole sub-culture of L&G motorbike users who keep in touch daily through...

Di(versify) hard: with a vengeance.
August 2, 2007... Byline: Portfolio diversification can bring both a reduction in risk of losses and portfolio volatility As investors will know, equity markets have increased in value significantly since 2003. Recently, some market commentators have been...

Pearl could scupper Friends Prov and Resolution merger.
August 2, 2007... The proposed merger of Friends Provident and Resolution was last night still undecided, following the intervention by Pearl Group. Resolution is set to change the terms of its deal to merge with Friends Provident after Pearl has been buying...

Just rewards for living to a ripe old age.
August 2, 2007... I propose that medical science has redefined the need for insurance protection. Life cover is a life rider benefit for either income protection or critical illness insurance because the primary need is meeting the financial consequences of...

A slippery road ahead.
August 2, 2007... Byline: Galloping global demand, fuelled by the Chinese economy in ascent, could be a sign of the rising oil costs The global economy has rarely had it this good. Since 2002, global growth, as measured by the IMF, has averaged 4.9 per cent...

Go on, give it a try.
August 2, 2007... Byline: Not excited enough already about the Rugby World Cup? Why not sign up to our fantasy competition? With the weeks ticking away to the start of the IRB Rugby World Cup 2007 in France, Financial Adviser has joined forces with F&C to...

Protection menu or supermarket choice?
August 2, 2007... Are people getting enough protection advice when they take out a mortgage? Do they end up with a mortgage payment protection insurance product when life cover, critical illness or income protection might do a better job? Are they aware of the...

Small fish thinking big.
August 2, 2007... The retail distribution review's much reviled first paper contains the suggestion that smaller firms need to hold more capital. The 07/4 discussion paper issued a few days later contains an important and more neutral discussion of this...

The fight of good and evil.
August 2, 2007... Byline: The attempt to predict our lifespan has both pension holders and providers thinking about the future Recently I went to see the new Harry Potter film, featuring the struggle between good and bad. The future for mortality, or...

Fidelity's EMEA fund to bring in natural resources profits.
August 2, 2007... A new emerging markets fund has been launched by Fidelity International under the guidance of nine-year Fidelity veteran, Nick Price. The investment universe is worth $1.5 trillion (AGBP733bn) and spans the region of emerging Europe, Middle...

Keeping a sharp eye on the target.
August 2, 2007... Byline: Some life companies have dropped MVRs, but was it worth the wait? Norwich Union has announced that, due to investment returns being in advance of their expectations, they are now able to state that all its with profit policies have...

CMLS sells an 'arm' for an amicable rate.(Complete Mortgage and Loan Services)(Brief article)
August 2, 2007... Complete Mortgage and Loan Services will sell its network arm at a rate which is 'particularly amicable' for their authorised representatives, according an industry expert. Vic Jannels, a director of the Professional Mortgage Packagers...

New Product and what We think of them...
August 2, 2007... Mortgages Fixed-Rate mortgage Alliance & Leicester Type: Two and three-year, and fee-saver fixed-rate. Description: The two-year fixed-rate is 5.79 per cent with a maximum loan amount of AGBP250,000. The product fee is...

Localised business tax is slammed by the FSB.
August 2, 2007... The Institute of Directors has said that government plans to allow local authorities to hike up business taxes will bankrupt otherwise viable businesses and pitch the new Prime Minster against the business community. Supplementary rates,...

You've got mail - and brand loyalty.
August 2, 2007... Swift email responses to business enquiries build brand loyalty with 90 per cent of consumers, a survey commissioned by Fasthosts Internet has found. Slow replies to emails has driven 89 per cent of respondents into the arms of a...

Employers' woes over staff retention.
August 2, 2007... The appeal of changing careers is driving high staff turnover, as is the skills gap which means higher numbers of staff are being tempted away from promotions. Those are the findings of the Chartered Institute of Personnel and Development's...

Rise and rise of the high net-worth individual.
August 2, 2007... The assets under management model has long been embraced as an industry standard by the wealth management services sector. It has been used as a way to manage a client's account and decide which adviser should be looking after the account. This...

All work and no play for mortgage brokers - survey.
August 2, 2007... Byline: Mortgage Express' findings reveal 'punishing, gruelling and perhaps a-typical' working hours in mortgage industry Mortgage intermediaries are working "gruelling, a-typical hours" which could have serious consequences in their...

Surf, sun and pension reviews.
August 2, 2007... Monday I like to start the day early and get to the office by 8.15am. After a catch up with the client folders from Friday, I sit down with Julie, my full-time personal assistant, and go through what needs to be done for the week ahead....

IFAs believe commission is here to stay.(independent financial advisers)(Survey)
August 2, 2007... Byline: Research reveals that the majority of advisers are confident that customer remuneration will remain as it is The vast majority of IFAs are confident that we are not heading towards a commission-free IFA world, research has shown....

Honey pot pension plot.
August 2, 2007... According to the report Building Up Pension Rights by Walker, Heaver and McKay (DSS research report 114) we now hold an average of six different jobs in three or more industries over our working lives. With the concept of jobs for life...