Financial Advisor articles from December 2003

Financial Advisor archives from December 2003

No benefit to FSA reforms.
December 4, 2003... Jon Pain, managing director of Cheltenham & Gloucester, has slammed mortgage regulation plans as "the worst thing for the industry". Mr Pain spoke out over his concerns, warning the consumer will ultimately have to pay for regulation, as...

Mixed messages on compliance.(Brief Article)
December 4, 2003... The Association of Mortgage Intermediaries has raised concerns over proposed FSA rules on the role of compliance directors. The FSA has deemed it unnecessary for compliance officers within mortgage firms to gain approved status unless...

Scandal, rates rise warning.(Brief Article)
December 4, 2003... The mortgage market is heading for a crash following the self-certification scandal and rate rises, said broker Mark Mountney. Mr Mountney, managing director of Premier Mortgage Management in Bournemouth, said the two factors combined could...

Extra News.
December 4, 2003... Opus launches buy-to-let bond Opus Mortgages has launched a protected product offering a safety net to buy-to-let investors. The product Bond 2 Let enables buy-to-let mortgage borrowers to take out a specially designed bond providing up to...

IFAs urged to research networks exit strategies; Many networks are too vague about what happens when members want to leave.
December 4, 2003... Intermediaries could find themselves locked into restrictive contracts if they fail to research networks before joining, Paradigm Consulting has warned. Chris Fleetwood a senior partner with Paradigm, which offers compliance and marketing...

Lenders could save GBP81m by cutting processing costs.(Brief Article)
December 4, 2003... Lenders are vastly overspending on mortgage application processing, according to fresh figures. An independent benchmarking study by financial services support firm Marlborough Stirling, in association with the Council of Mortgage Lenders,...

MCCB hits out at demeaning stands.(Brief Article)
December 4, 2003... The Mortgage Code Compliance Board has criticised exhibitors at this years Mortgage Business Expo for employing "demeaning" promotional tactics. Luke March, chief executive of the MCCB, said some exhibitors at the Earls Court event...

Consumer panel backs calls for Ombudsman to cover mortgages.(Brief Article)
December 4, 2003... The Financial Services Consumer Panel has backed calls for the Financial Ombudsman Service to handle mortgage complaints for pre-regulation products. Ann Foster, chairman of the panel, this week said the Treasury should give responsibility...

New Lord of the manor as Louise takes job at Amber; Louise Lord signs up as new business manager after spending six years with parent company Skipton Building Society.
December 4, 2003... Amber Home Loans has appointed Louise Lord as new business manager. Ms Lord joins after six years working with Ambers parent company Skipton Building Society. She was formerly an adviser in the completions department,but after two years she...

Key dates for your diary.
December 4, 2003... Mercer Human Resource Consulting: 4 December: Pensions knowledge, basic course. To be held in London, but venue to be confirmed. Contact Zu Gatward on 020 7693 3520 or Stuart May on 020 7802 3796. The Learning World Partnership:...

Imla elects Maltby as chairman for 2004.(Brief Article)
December 4, 2003... The Intermediary Mortgage Lenders Association has elected John Maltby as chairman for 2004. Mr Maltby, who is also chief executive of the Kensington Group, will take over from outgoing chairman John Heron on 1 January. Imla has also...

How to improve quality of deals; Implementing neglected, but basic best practice rules could improve an already successful property portfolio.
December 4, 2003... It was while running a seminar to a group of would-be investors on the potential pitfalls of building and developing a successful portfolio, that I realised the considerable benefit of regularly imparting its content to my more established...

Praises for mortgage interview; An MCCB survey of borrowers has found that only 6 per cent of first time buyers had a good understanding of mortgages.
December 4, 2003... In the first half of 2003, the Mortgage Code Compliance Board conducted a major consumer research exercise on a sample of borrowers who had taken out a mortgage in the previous six months. The purpose of the research was to assess what...

Countdown to Mortgage Day.
December 4, 2003... The shape of the market that will emerge post regulation is still far from clear and, not surprisingly, many organisations within the industry seem unsure how best to respond. Some firms are still assessing the implications of impending...

Industrys ill-timed distractions.
December 4, 2003... Before the mortgage industry has had time to brace itself for the full extent of the self-certification scandal fallout, it now faces yet another controversial issue. Last months Mortgage Business Expo raised a few eyebrows among IFAs with...

Staging an orderly slowdown; Although the Bank of England raised the base rate by just a quarter point, it could be the first of many to come.
December 4, 2003... We all now know the decision. The Monetary Policy Committee (MPC) increased base rates by 25 basis points on 6 November. Perhaps one of the most interesting points about the decision is that it is the first rise since early February 2000....

Never mind the size, look for loyalty; Now that customers find it is easier to switch mortgages, lenders need to work out how to retain them.
December 4, 2003... By now, the issue of customer churn and the growing challenge of customer retention is well known in the mortgage industry. The level of market churn has steadily increased since the early 1990s and by the end of 2002, according to research...

Best-Buys.(Brief Article)
December 4, 2003... This issue there are three 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...

Germanys AWD gets boost from Thomsons.(Brief Article)
December 4, 2003... Thomsons, the German-owned IFA firm, has reported its best quarterly results, bolstering its recruitment drive. The companys revenues rose 59 per cent in the first nine months of 2003 from the same period of the previous year, representing...

Staff leave MLP as FSA continues probe; Watchdog investigates IFA after Edinburgh workers complaints.
December 4, 2003... Half of MLP Private Finances Edinburgh advisers have walked out over debt and employment terms, it is believed. The German-owned IFA, has lost eight of its 16 Edinburgh-based advisers. In November, four left the office on Atholl...

With profits fairness in spotlight.(Brief Article)
December 4, 2003... THE FSA was due to warn life insurers about their treatment of with profits policyholders as Financial Adviser went to press. John Tiner, chief executive of the FSA, told the European Insurance Industry Conference last week that the...

Footsie breaks the 4400 barrier.(Brief Article)
December 4, 2003... The FTSE-100 index has broken through the 4400 barrier for the first time this year. It closed at 4410 on 1 December, its highest since August 2002. The strong run was in tandem with gains on the US indices, which hit 18-month highs on the same...

Skandia happy with UK operation.(Brief Article)
December 4, 2003... Skandia UK said there was no criticism of the UK group after an investigation into the Swedish operation. The outcome of the inquiry into internal issues revealed a number of former senior management in Sweden "behaved extremely unethically and...

Defined schemes under pressure.(Brief Article)
December 4, 2003... The survival of defined benefit schemes depends on cost, says Mellon Financial Corporation. Research among 229 Mellon clients found employer support for the schemes had not evaporated, but cost pressures prompted them to look at other options.

Kenny takes top job at the ABI.(Brief Article)
December 4, 2003... Oftel director Chris Kenny has been appointed head of life and pensions at the Association of British Insurers. He succeeds Alan Woods, who is returning to the Department of Work and Pensions from where he was seconded.

CII poaches Turner from FSA to oversee new skills timetable.
December 4, 2003... General Paul Turner is to join the Chartered Insurance Institute (CII) at the beginning of January. Mr Turner is currently on secondment from the FSA to the Skills Councils for Financial Services with responsibility for delivering a...

Kiddie has insight to take BAM role.(Brief Article)
December 4, 2003... David Kiddie, former chief investment officer at Insight Investments, joins Baring Asset Management this week. As director of investment process, Mr Kiddie will head Baring Asset Managements investment process team and report to chief...

Thames River fund finds favour; NEW PRODUCT: fixed income fund.(Brief Article)
December 4, 2003... Thames River has launched a long-short global fixed income fund, to be managed by Paul Thursby and Peter Geikie-Cobb. The Thames River Garret fund will invest in investment-grade global government bonds and government-guaranteed bonds. ...

Sterling borrowers lives become easier; Sterling becomes cheaper as UK economic prospects improve.
December 4, 2003... Good news for the chancellors borrowing plans come in the latest figures on money being raised by other UK borrowers. Ahead of his 10December pre-Budget speech, which is expected to signal higher government borrowing, the numbers show a...

Property is the most popular way to fund a retirement income.(Brief Article)
December 4, 2003... PROPERTY is preferred to pensions as a source of retirement income, according to Mintel. A new report from the market research company revealed property was the most popular way to build up a pension pot, with two in every five adults...

IFAs ill-equipped to advise on changes; Poor understanding of proposed changes creates risk of mis-selling.
December 4, 2003... IFAs risk mis-selling products because they fail to explain the implication of pension simplification to their clients. This is according to Tillinghast-Towers Perrin, which said many financial advisers were "ill-equipped" to answer clients...

Hutton to take new role on FSA board.(Brief Article)
December 4, 2003... Deirdre Hutton has been selected as deputy chairman of the FSA board and chairman of the FSA committee of non-executive directors. Ms Hutton, who has been re-appointed to the FSAs board for a third term, will replace Stewart Boyd when he...

Small firms look to punch their weight; FSAs small business panel calls for greater role for small IFA firms.
December 4, 2003... Small IFA firms have called for the FSA to involve them in its decision making. In its mid-year report, the FSA small business practitioner panel, which represents small regulated firms including IFAs, has highlighted an interest in using...

Regulation update.(Brief Article)
December 4, 2003... FINANCIAL SERVICES AUTHORITY www.fsa.gov.uk CP201: Implementation of the Insurance Mediation Directive for long-term insurance. Responses due 31 January. DP22: Reducing money laundering risk knowing your client and anti-money...

L&G move leaves small funds in crisis; Increase in minimum annuity funding will limit choice for small funds.
December 4, 2003... PURCHASING an open market annuity with a small fund has become increasingly problematic, according to Jardine Lloyd Thompson. Nick Eade, annuity services manager of Jardine Lloyd Thompson, said Legal & Generals announcement that it would be...

Holloways NCP redefines incapacity; NEW PRODUCT: income protection.(Brief Article)
December 4, 2003... Holloway Friendly Society has launched an income protection product called the New Classic Plan. One of the main features of the plan is an own occupation definition of incapacity, meaning policyholders will not be expected to work in...

Speculation over Abbey job losses.(Brief Article)
December 4, 2003... ABBEY has refused to comment on reports that its change of direction will result in job cuts at Scottish Provident. Christine McAllister, head of communication at Abbey, said the company was aware of speculation about the future of the...

Raising Standards raises awareness.(Brief Article)
December 4, 2003... HALF of IFAs are aware of the Raising Standards Quality Mark scheme, according to a survey. Consultancy ORC International conducted an online survey of 500 financial intermediaries and found that 50 per cent were aware of the initiative....

Departing deputy stays upbeat over Equitable; Insurer says business is stabilising and claims against it are under control.
December 4, 2003... Equitable Life, the troubled insurer, is becoming more stable, said the outgoing deputy chairman. Sir Philip Otton, deputy chairman of Equitable Life, announced his retirement from the insurers board of directors and gave an overview of...

Double tax treaty on pensions signed.(Brief Article)
December 4, 2003... CONCESSIONS available under the new US/UK double taxation treaty will allow nationals to avoid paying tax twice on their pensions. Actuaries Lane Clark & Peacock told employers with seconded employees in the US to act now and take advantage...

Canada Life responds to need by helping advisers; Provider works closely with IFAs to offer assistance on business development and practice.
December 4, 2003... CANADA Life intends to increase its business by working more closely with IFAs. The provider, which became part of life and health insurance company Great West Lifeco in July, has restructured its teams of account managers and introduced a...

Under-pensioning likely to continue, warns report.(Brief Article)
December 4, 2003... Reforms of the pension system have failed to solve the problem of the under-pensioned, according to a report. Chris Curry, author of the report and research director of the Pensions Policy Institute, said the structure of the UK pension...

Clericals best foot forward.(Brief Article)
December 4, 2003... CLERICAL Medical customer service staff stepped out in style to raise cash for Children in Need. Kicking off the providers fundraising activities, the Somerset-based department held a Funky Feet competition, with members of staff...

Annuity shoppers need to know rights.(Brief Article)
December 4, 2003... INSURERS and regulators must do more to communicate consumers right to shop around for an annuity. IFA firm the Annuity Bureau said the industry needed to take action to address the latest Association of British Insurers figures that...

Prudential opens up offshore investment bond.(Brief Article)
December 4, 2003... Prudential is to open its high net-worth offshore investment bond to IFAs and discretionary portfolio managers. According to Richard Leeson, investment relationship director at Prudential, the International Prudence Portfolio Bond is being...

IFAs can help with family planning.(Brief Article)
December 4, 2003... Financial advice should be sought from IFAs when it comes to family planning, according to Liverpool Victoria. Malcolm Berryman, group chief executive, said IFAs could play an important role in budgeting for a family. He said with profits...

Regulation could stop innovation.(Brief Article)
December 4, 2003... Fidelitys Gareth Adams has warned that the UKs regulatory burden could have an impact on product innovation. Mr Adams, a director with Fidelity Investments, said: "The regulatory burden is becoming so intrusive and the penalties for making a...

Chelsea introduces monthly interest.(Brief Article)
December 4, 2003... Chelsea Building Society has introduced monthly interest on its Call Direct Advantage savings account. The variable interest rate is 3.4 per cent gross, (AER of 2.72 per cent net). The new monthly interest rate option is 3.35 per cent gross a...

Capita to provide admin for insurers.(Brief Article)
December 4, 2003... Capita is to provide life and pensions administration services to the international operations of Prudential and St Jamess Place. The support services provider is to provide a full range of end-to-end life and pensions administration services...

Employers are less keen on pensions.(Brief Article)
December 4, 2003... Employers are now less likely to believe they should encourage employees to save for retirement, according to the Department for Work and Pensions (DWP). Research by the DWP and IFF Research found that in the past, employers provided a pension...

New edition of buy-to-let guide.(Brief Article)
December 4, 2003... The second edition of the Guide to Buy-to-Let has been published by the Association of Residential Letting Agents and the Council of Mortgage Lenders. The 224-page guide covers property, mortgage finance, legal obligations and insurance. Which?...

Negative equity just around the corner; A 20 per cent fall in house prices could affect homeowners by end of 2004.
December 4, 2003... More than 300,000 households could be plunged into negative equity, economic consultancy Capital Economics has warned. The consultancy predicted that homeowners could begin to be hit by the end of next year as debts pile up and house prices...

Rule changes prompt new offer from L&G.(Brief Article)
December 4, 2003... LEGAL & General has adapted its partners group life assurance policy to take advantage of changes to chargeable event rules. Most policies will now fall outside the changed chargeable event rules, brought in under the Finance Act 2003,...

Lenders should use income test.(Brief Article)
December 4, 2003... Disposable income rather than earnings should be used to test how much borrowers can afford, said a mortgage broker. "Disposable income is the far more important and realistic figure," said James Byrne, of mortgage broker Jim Whites...

Standard increases pension fund range; Platform will have 130 funds available to mutual fund and pension clients.
December 4, 2003... STANDARD Life is to expand the range of external funds available to mutual fund and pension customers. The new multi-fund service is to offer lower administration costs to fund managers that do not have the same scale of business as...