Financial Advisor articles from December 2002

Financial Advisor archives from December 2002

Extra News.(Building societies)
December 4, 2002... October advances soar to GBP3.15bn Building society gross advances amounted to GBP3.15bn in October, increasing from GBP2.3bn in October last year, according to the Building Societies Association. It said net advances were GBP859m, up from...

Endowment rules change.
December 4, 2002... By Lisa Bowman THE FSA has approved plans to reduce the risk of endowment policyholders running out of time to lodge mis-selling claims. Consumers will be sent a red reprojection letter as notice of the potential for loss. They will...

Smaller brokers quitting sector.(Brief Article)
December 4, 2002... DESPITE help with regulation, intermediaries with little mortgage business are outsourcing or pulling out of the sector. Two mortgage experts say many advisers doing large volumes of mortgage business have taken their exams and are...

Self-build fails to attract.(BuildStore)(Brief Article)
December 4, 2002... IFAS are predicting low demand in the self-build market despite the existence of good deals. This follows the launch by Mortgage Operation and BuildStore of a loan into this specialist niche of the mortgage market. Steve Gibson, a...

House price inflation falls for sixth successive month; National Hometrack survey finds November price rises averaged only 0.2 per cent.(Brief Article)
December 4, 2002... By Lisa Bowman HOUSE price inflation fell for the sixth month in a row in November, according to the Hometrack national survey. The report found price rises averaged only 0.2 per cent in November; the slowdown being largely due to...

Brokers identify gender difference.(Brief Article)
December 4, 2002... MEN look for the best deal while women look for security when buying a mortgage, according to Sun Bank. In a survey of brokers experiences, the specialist lender found that brokers saw men and women as having different approaches to buying...

Changing needs mean panels face expansion.(Brief Article)
December 4, 2002... MORTGAGE panels are growing as customer needs change and brokers seek help dealing with the variety of lending requirements. This follows the expansion of networks such as Mortgage Promotions, which has added specialist lender Mortgages plc...

MPPI fears are just hype, say IFAs.(borrowers w/ preexisting medical conditions)(Brief Article)
December 4, 2002... THE problem of mortgage borrowers with pre-existing medical conditions being tied to unsuitable deals has been exaggerated, according to IFAs. This reaction follows claims by goodinsurance.co.uk that borrowers get tied to mortgage...

Big is not always best.(Stafford Railway Building Society)(Brief Article)
December 4, 2002... STAFFORD Railway Building Society believes keeping things simple is the key to a successful mortgage business. The mutual has just one mortgage product and 10 staff, but serves 1600 accounts bringing in GBP24m in gross advances. ...

Its dangerous to muddy the advice waters; In simplifying the sales process there is a risk consumers will fail to grasp whether or not they are receiving advice.
December 4, 2002... Luke March THE Mortgage Code Compliance Board has welcomed the opportunity to respond to the FSAs Consultation Paper 146 on regulating mortgage sales. After studying the 350-plus pages of the paper in great detail, the board has now...

Theres a challenging year ahead; Alan Mudd gazes into his crystal ball and perceives a promising time ahead for mortgage brokers, despite regulatory challenges.
December 4, 2002... GENERALLY speaking, 2003 should be an interesting and challenging year for mortgage brokers. I see the mortgage environment being shaped by three key issues: the impact of mortgage regulation, uncertainty in the housing market and...

The future is bright for mortgage advice.(Brief Article)
December 4, 2002... HIGHER value properties have seen prices fall in London and the south-east, according to Hometrack. This came in a survey showing a fall in house price inflation for the sixth successive month, with price rises averaging only 0.2 per cent...

A busy month awaits the mortgage market; There may be signs of a slowing in the housing market but with remortgage activity continuing business should not suffer from the seasonal slowdown.
December 4, 2002... Barry Naisbitt IN RECENT weeks the climate around base rate views has changed a little and perhaps in an unexpected way. In October, the Monetary Policy Committee voted by six votes to three to hold rates at 4 per cent. The three...

Prices hit record levels in 2002; House price to earnings ratios are nearly back at late 1980s levels but does that mean the boom is about to explode?
December 4, 2002... Alex Bannister THIS year has proved to be another strong one for the housing market with the rate of house price inflation and the number of house purchases at their highest levels since the late 1980s. The price of the average house...

Future imperfect for prime lending; The big lenders are starting to spread their net to the sub-prime sector in an attempt to increase market share.
December 4, 2002... Peter Beaumont CRYSTAL ball gazing is a wonderful pastime, because you are always right. Or, to be slightly more accurate, no one can prove that you are wrong until you reach a point in time when hindsight becomes the true judge and by...

The rush for a better debt; Borrowers are remortgaging in greater numbers than ever the evidence suggests they do so for all the right reasons.
December 4, 2002... Ricky Okey THE remortgage train keeps trundling on. In fact, the latest figures from the Council of Mortgage Lenders suggest it is actually powering ahead at full speed. Remortgaging activity hit yet another record high in October,...

Clients are king of the castle; Repayment mortgages have surged in popularity since the early 1990s and it looks likely the trend will continue.
December 4, 2002... Jeremy Hicks WHEN you turned up for an appointment with your friendly high-street building society manager 25 years ago, he put you on his mortgage allocation list and asked you to come back in three months time. When you returned,...

Best-Buys.(mortgag brokers)(Brief Article)
December 4, 2002... This month there are four pages of mortgage facts and figures to help you select the best mortgage for your clients. On this page the graphs show the average of all discount, fixed rate, and first and second time buyer fixed and discount rates...

Kilminster signs up to Simply Biz compliance.(Brief Article)
December 4, 2002... BRISTOL-BASED IFA Kilminster Financial Management has joined Ken Davys new support firm Simply Biz. Kilminster, ranked 82nd in the latest FA/Matrix Data Top 100 IFAs survey, has signed up for compliance services. Mr Davy accepted that...

IFAs predict limited child trust provision; Wary IFAs remember stakeholder and fear for new child trust funds.
December 4, 2002... By Susan Butterworth ONLY a small number of providers are expected to offer the planned child trust funds, say IFAs. Patrick Connolly, a director of Chartwell, expects fewer than 10 per cent of providers to enter the market and...

Towry Law escapes AMP jobs axe.(Brief Article)
December 4, 2002... TOWRY Law has escaped unscathed as Australian financial services group AMP axes 1900 jobs. Following a strategic review of its UK business, the entire 1000-strong salesforce of its Pearl Assurance subsidiary has been cut, along with 300...

Support services firm helps with PI.(IFA Professional Services)(Brief Article)
December 4, 2002... IFA Professional Services has arranged professional indemnity insurance on preferential terms for clients. It has launched a facility to enable clients, otherwise unable to obtain insurance immediately, to access a quality PI policy at sensible...

Unschuld quits as Schroders manager.(Brief Article)
December 4, 2002... One of Schroders top-rated fund managers is to leave and set up a fund management business. The departure of Ira Unschuld, manager of the popular US Smaller Companies Fund a top-quartile performer for three out of the four years up to 2002 has...

Charities missing out on donations.(Brief Article)
December 4, 2002... Charities are missing out on GBP372m this year as consumers are not donating tax-efficiently, according to IFA Promotion. The latest figures from IFAPs campaign on wasted tax revealed that of the 18m Britons giving to charity in 2001, a mere...

Barings appoints marketing head.(Baring Asset Management)(Brief Article)
December 4, 2002... Baring Asset Management has announced the appointment of Hilary Denby-Jones as group head of marketing communications and product development. Ms Denby-Jones has worked for BAM since 1993 in a number of roles including head of marketing in...

Moving On.(Alliance Trust)(Second Alliance Trust)
December 4, 2002... The Alliance Trust and the Second Alliance Trust have announced the appointment of David Deards as finance director. Mr Deards, 42, studied zoology at St Catherines College, Oxford, before qualifying as a chartered accountant with Arthur Young,...

Investment movers.(Merrill Lynch)
December 4, 2002... Merrill Lynch has announced the appointment of Christopher Garman as head of high-yield bond strategy. Mr Garman replaces Marti Fridson and was previously number two in the strategy team, responsible for providing analysis of market performance...

Gerstner selected as Carlyle chairman.(Brief Article)
December 4, 2002... Private equity firm Carlyle has appointed Louis Gerstner as chairman, taking over from Frank Carlucci. Mr Gerstner, 60, was a director of management consulting firm McKinsey&Co, which he joined in 1965 after completing a bachelors degree...

Insurer backs adviser launch.(Friends Provident)
December 4, 2002... By James Mawson FRIENDS Provident has helped to launch the Silver Advice Network to offer independent banking and mortgage advice. Silver is tied to Friends Provident for its investment, protection and pensions products. However, it...

Regional loan trends vary.(Mortgages)(Brief Article)
December 4, 2002... DIFFERENT housing market trends across the country are causing great variation in borrowing patterns. While 20 per cent of Londoners are opting for fixed rates to ensure stability, only 8 per cent in the Midlands and 12 per cent in the...

HBOS revamps service.(Cap Gemini)(Ernst and Young)(Brief Article)
December 4, 2002... HBOS has awarded Cap Gemini Ernst & Young a GBP25m contract as a consultant in its life and pensions business. The group, created last year by the merger of Halifax and Bank of Scotland, has a programme to transform and standardise service...

Generali acts on a new vision; NEW PRODUCT: Life policy.(Brief Article)
December 4, 2002... GLOBAL insurance firm Generali International has re-launched its unit-linked life policy Vision, introducing six new funds and more flexible conditions. Based on research with IFAs, Generali aims to boost its flagship product by offering...

Class Law to launch its group splits claim; Solicitor to issue a group action claim against split fund advisers.
December 4, 2002... By Sam Dunn CLASS Law is expected deliver its group action claim against splits managers and brokers at the High Court next week. Led by Stephen Alexander, the solicitor acting for more than 1000 investors burnt by the split-capital...

Friends is there with booklet for IFAs.(Friends Provident)(Brief Article)
December 4, 2002... FRIENDS Provident has published a detailed guide to pensions for IFAs. The 70-page booklet is intended as a summary of Inland Revenue legislation and practice governing all types of pension schemes. The guide Tell It Like It Is: A...

Pension cash should be more accessible; B&CE argues that funds be made available for unemployment or sickness.
December 4, 2002... By Holly Thomas THE UKs biggest stakeholder provider has called for pension scheme funds to be accessible before retirement. B&CE made the proposal during a spate of attacks on the governments pensions system at a work and pensions...

Moneynet provides check for pensions.(free pensions health check )(Brief Article)
December 4, 2002... PERSONAL finance website Moneynet has revamped its pensions service to offer a free pensions health check. The service will help trace multiple pension plans as a result of being employed by a number of different companies. Richard...

Middle-earners left out of life insurance; Swiss RE report claims 6.8m households are financially excluded.
December 4, 2002... By Simoney Girard INSURERS are "financially excluding" 6.8m middle-income households, according to a report by Swiss Re. A survey conducted among the target group, which has an average annual income of between GBP9500 and GBP24,999,...

Sunbanks move means job losses.(Brief Article)
December 4, 2002... SUNBANK has lost its chief executive Peter Lucas and marketing director Chris Cummings in a major restructuring programme. The programme includes transferring the entire staff to Bournemouth. The changes began when Portman Building...

EFM chief executive departs under cloud; Edinburgh Fund Managers chief asked to step down as part of a shake-up.(Edinburgh Fund Managers)
December 4, 2002... By Ash Kumar Ian Watt, chief executive of Edinburgh Fund Managers, has stepped down as part of a major shake-up. Mr Watts stewardship of the beleaguered Scottish fund manager was under a cloud soon after EFM lost its most lucrative...

Savills adds 12 to team.(Savills Private Finance)(Brief Article)
December 4, 2002... SAVILLS Private Finance is adding 12 advisers to its London offices and is looking to expand across the UK. The specialist in financial and mortgage advice for high net-worth individuals has revealed plans to grow its 55 strong London team...

Currie sells off private business.(Martin Currie)(Brief Article)
December 4, 2002... MARTIN Currie has hived off its private client business and taken a 10 per cent stake in the newly-created company. The Edinburgh-based fund manager has struck a deal to merge its GBP190m private client arm (MCPC) with rival private client...

BM Solutions adds online tool to website.(Brief Article)
December 4, 2002... BM SOLUTIONS is adding an on-line processing facility to its intermediary website. Over 1000 intermediaries have already pre-registered to use the service that, following an initial pilot, will become available to the entire finance market...

Abbey sales director resigns after revamp; Abbey Nationals Retail head moves on to pastures new after six years.
December 4, 2002... By Bjorn Sodeland THE head of Abbey Nationals retail division has resigned following the announcement of an organisational restructuring. Andrew Pople, who had been director of retail banking since 1996, will leave his position on 13...

Islamic funds to make an impact.(Islamic mortgages market)(Brief Article)
December 4, 2002... THE market for Islamic mortgages could be worth 4.5bn in five years if costly obstacles are removed, according to Datamonitor. Muslims who take out an Islamic mortgage are being charged stamp duty twice. The reason is that to avoid paying...

Pru holds hands up to annuities blunder.(Prudential)(Brief Article)
December 4, 2002... PRUDENTIAL has admitted that it could not cope properly with its heavy workloads over the summer, which resulted in late annuity payments. The insurance group held its hands up when customers came forward complaining that they had not...

Cost of compliance is too high, firms claim; Survey finds that FSA compliance is costly and guidance given is sparse.
December 4, 2002... By Jason Corcoran THE FSA has come under fire for "excessive and growing" costs faced by financial services firms in complying with its regulation. A survey carried out by the Financial Services Practitioner Panel, a statutory body...

Christmas comes early at Nationwide; NEW PRODUCT: Members Xmas Bond.(Nationwide Building Society)(Brief Article)
December 4, 2002... NATIONWIDE Building Society is launching a three-year fixed rate Members Christmas Bond at 5 per cent a year. The bond is available for anyone who has been with the society for three years or more, this being the fifth time in four years...

Mortgage market faces soft landing; House prices could be badly affected if global downturn is extended.
December 4, 2002... By Bjorn Sodeland THE housing market could suffer a sharp correction if the global downturn is more protracted than expected, warns CML. Although predicting a soft landing in its 2003 and 2004 forecast for the mortgage market, the...

Gartmore reveals fund launch date; NEW PRODUCT: cautious fund.(Brief Article)
December 4, 2002... Gartmore Investment Management has announced that the launch date of its Cautious Managed Fund, run by Chris Burvill is 31 January 2003. The fund is aimed at cautious investors, balances the benefits of bonds and equities and offers a...

Schwab set to offer investment advice; Advice service to be set up early next year by Charles Schwab Europe.
December 4, 2002... By Dan Bloch Online stockbroker and funds supermarket Charles Schwab Europe is to launch an investment advisory service early next year. Charles Schwab offers stockbroking online, by phone and through its three branches in London,...

Brown brushes pensions problem under the carpet; Expert accuses the government of not taking the pensions crisis seriously.
December 4, 2002... By Holly Thomas The chancellors speech revealed the government was not taking the pensions crisis seriously, according to an expert. In his pre-Budget speech last week, the industry was hoping for some insight into the chancellors...

Chancellor attacked over pensions.(Brief Article)
December 4, 2002... APCIMS has attacked the chancellor for doing nothing in his pre-Budget report to defuse the savings timebomb. Angela Knight, chief executive of the Association of Private Client Investment Managers and Stockbrokers, said the chancellor had...

Increase in borrowing could lower bond prices.(Brief Article)
December 4, 2002... THE governments additional borrowing of GBP20bn for next year could push UK bond price downwards, warned economic experts. In his pre-Budget report, Gordon Brown announced he would borrow GBP9bn more than forecast this year and an extra...

Brown revealshis Budget plans.(Bank of England)(Brief Article)
December 4, 2002... Borrowing to rise from GBP11bn to GBP20bn Growth targets for this year revised down from 2.5 per cent to 1.6 per cent Mervyn King to be the new governor of the Bank of England, replacing Sir Edward George who is retiring New...

Revenue review to appear with green paper.(Brief Article)
December 4, 2002... The Inland Revenue simplification review of the tax system of pensions is to appear "alongside" the pensions green paper. This revelation appeared in Gordon Browns pre-Budget speech which claimed the proposals would be "radical". The...

Pima to ?ght Brown over abolition of Isa tax breaks; Pep and Isa Managers Association claims investment will drain out of savings vehicles.
December 4, 2002... By Jason Corcoran THE Pep and Isa Managers Association is to boost its campaign against the abolition of tax breaks for Isas. The trade body had hoped that Chancellor Gordon Brown would abandon his plans to abolish the tax credit on...

King to take Old Ladys throne.(Bank of England)(Brief Article)
December 4, 2002... MERVYN King is to replace Sir Edward George next year as the governor of the Bank of England. The announcement was made by Gordon Brown during his pre-Budget statement. Mr King, currently the deputy governor of the bank, beat off...

Child funds to be handed over to the open market.(Brief Article)
December 4, 2002... GORDON Brown, has decided that the open market will deliver the governments proposed child trust funds. He is considering giving every newborn GBP500 cash to be kept in a special account until age 18. Additional government payments at later...

Change to offshore tax rules will go on.(Brief Article)
December 4, 2002... THE government is expected to continue with controversial plans to change the rules for non-domicile UK residents. The pre-Budget report said a background paper on this subject would be released by the Treasury and the Inland Revenue. ...

Spotlight falls on stamp duty regime.(Brief Article)
December 4, 2002... THE government is planning to introduce a new regime for stamp duty next year. According to the pre-Budget report, the current system was likely to be replaced by a new regime that would make sure that duty was applied fairly to similar...

Liability insurance review welcomed.(Brief Article)
December 4, 2002... INSURERS welcomed the governments move to review employers liability insurance as an opportunity to bring the sector back from collapse. The chancellor said the Department for Work and Pensions would undertake a formal review of how...

Broker calls for equity release to be transparent.(Brief Article)
December 4, 2002... MOST equity release products lack sufficient transparency and fail to appeal to intermediaries, according to a broker. Sally Laker, managing director of Mortgage Intelligence, said that lenders were losing out on a potentially large market...

HBOS examining ways to export mortgage expertise; Lender to approach US and European markets with hopes of introducing its online system.
December 4, 2002... By Charlotte Wretman and Bjorn Sodeland HBOS is looking at ways to export its offset mortgage expertise abroad. The UK banking group is considering several options for expansion, including the introduction of the Intelligent Finance...

Alliance Trust Savings offers pension with Witan; NEW PRODUCT: pension.(Brief Article)
December 4, 2002... ALLIANCE Trust Savings is offering a new pension with The Witan Investment Trust. The Witan Simple Contribution Pension is an investment trust personal pension allowing investments of up to GBP2808 a year, for which the government...

Aifa claims credit for FSA dropping fee-based system; Smee says trade bodys lobbying changed the direction of the regulators proposals.
December 4, 2002... By Hal Austin LOBBYING by Aifa persuaded the FSA to drop proposals for a fee-based payment system, according to Paul Smee. Mr Smee, director general of the Association of IFAs, told the 275 delegates at the Misys conference last week...

Site aims to educate on pensions.(Website)(Brief Article)
December 4, 2002... THE Bureaux, comprising The Annuity Bureau, The Drawdown Bureau and The Care Funding Bureau, has launched a pensions education website. The site is aimed at people approaching or already in retirement. It contains current and historical...

Police is a quality act.(Police Mutual)(Brief Article)
December 4, 2002... POLICE Mutual has become the first friendly society to be awarded the Raising Standards quality mark. The award was presented to Graham Berville, chief executive of Police Mutual, and Sir Keith Povey, president of Police Mutual and chief...

Kelly praises standards push.(Brief Article)
December 4, 2002... THE Raising Standards scheme has shed light on the industrys ability to increase quality levels, according to Ruth Kelly. Ms Kelly, financial secretary to the Treasury, sang the praises of the Raising Standards scheme last week at the...

Winterthur Life teams with M&G on bond fund; NEW PRODUCT: investment fund.(M and G Corporate Bond Fund)(Brief Article)
December 4, 2002... WINTERTHUR Life, the UK life and pensions arm of Credit Suisse, has added the M&G Corporate Bond Fund to its Tailored Selection. The fund is the only corporate bond fund in the Tailored Selection, which is Winterthurs fund range offering 40...

BM Solutions beefs up website tools.(Brief Article)
December 4, 2002... BM Solutions is adding an online processing facility for intermediaries and IFAs. In addition, three broker tools have been added to the firms broker website, the sales tools covering remortgaging, savings, the benefits of buy-to-let and the...

IFA tops the list for giving to charity.(Ethical Investors)(Brief Article)
December 4, 2002... Gloucestershire-based IFA Ethical Investors has topped the list of companies giving to charity. According to the Guardians The Giving List, Ethical Investors, founded in 1989, donated a higher proportion of its pre-tax profits to good causes...

Jupiter considers group Sipp.(self-invested personal pensions)(Brief Article)
December 4, 2002... Jupiter plans to launch group self-invested personal pensions next year with a discounted charging structure. Colin Maloney, pensions development manager for Jupiter, said a group Sipp plan was on the cards "well into the new year"....

Mortgages plc added to panel.(Brief Article)
December 4, 2002... Mortgage Promotions has added Mortgages plc to its panel of lenders. It will give the broker networks 3000 members direct access to Mortgages plcs full range of products. Nick Baxter, director of Mortgage Promotions, said: "The diverse range of...

Nationwide grabs a bigger share.(Nationwide Building Society)(Brief Article)
December 4, 2002... Nationwide Building Society has reported an increase in its share of the mortgage market in the six months to 4 October. Net advances rose from GBP100m in the same period of the previous year, to GBP2.9bn. The mutual also reported that its...

Swiss Life puts IFA directory online.(Brief Article)
December 4, 2002... IFAs can now be tracked down through Swiss Lifes website. Swiss Life is the first life office to incorporate IFA Promotions media services directory into its site. Rosalind Pearson, personal finance research and planning manager of Swiss Life,...

Pension to invest in properties.(Central Financial Planning)(Brief Article)
December 4, 2002... Central Financial Planning is launching a pension linked to a property investment vehicle in January. The IFA has teamed up with Merchant Investors to provide a direct commercial property investment vehicle with a protected rights option....

FSA maps out route to professionalism; Regulator finally sets up road map of modules to improve qualifications.
December 4, 2002... By Jason Corcoran THE FSA has set out a "road map to professionalism" in its examination framework for retail financial services. David Jackman, head of industry training for the FSA, outlined his proposals in CP157 following a...

A Humble charity bike ride.(Mike Humble)(Brief Article)
December 4, 2002... Mike Humble, regional director of Heath Lambert Consulting, is aiming to cycle 255 miles along the River Nile for charity. If he succeeds, Hull-based Mr Humble, 51, will raise at least GBP3000 for the learning disability charity Mencap. ...

Gummer taken on as Aifa chair.(Association of Independent Financial Advisers)(Brief Article)
December 4, 2002... JOHN Gummer MP is to succeed Lord Hunt of Wirral as chairman of the Association of Independent Financial Advisers. Mr Gummer, former chairman of the Conservative party and MP for Suffolk Coastal, will take up the post on 1 January. ...

Bristol & West revamps its global income bond; NEW PRODUCT: Income & Growth bond.(Brief Article)
December 4, 2002... Bristol & West is re-issuing its Global Income & Growth Bond, combining stock market opportunities with a fixed monthly income. The stock market-linked element, a seven-year guaranteed equity bond, offers 80 per cent of the uplift in four...

A blurred level of mortgage service.(Brief Article)
December 4, 2002... Clarity is an age-old issue in the financial services industry and mortgages are no exception. In this weeks Mortgage Extra, free with FA, Luke March, chief executive of the MCCB, expresses concerns about the blurred boundaries between advised...

Bamford appointed as Sofa chairman.(Society of Financial Advisers)(Brief Article)
December 4, 2002... The board of the Society of Financial Advisers has elected Nick Bamford to serve as its chairman. Mr Bamford, who owns Surrey-based IFA Informed Choice, takes over the role from John Porteous who stepped down at the Sofa conference last week...

HBOS close to finalising RAM deal.(Rothschild Asset Management)(Brief Article)
December 4, 2002... HBOS may be close to finalising a deal to purchase Rothschild Asset Management for about GBP70m. HBOS is understood to have been granted exclusive negotiating rights and may announce a deal this week. Rothschilds announced it was considering...

IMLA questions sellers packs.(Intermediary Mortgage Lenders Association)(Brief Article)
December 4, 2002... The Intermediary Mortgage Lenders Association has questioned the benefits of sellers packs for mortgages. Tony Ward, chairman of Imla, said he was surprised the packs had been brought back on the political agenda without addressing the concerns...