Financial Advisor articles from December 2006

Financial Advisor archives from December 2006

Shared equity only 'scratches surface'.
December 7, 2006... Gordon Brown's plans to double the number of people buying homes using shared equity schemes would only "scratch the surface", according to David Hollingworth, a mortgage specialist with London & Country. However, he said the chancellor's...

Departments to be hit by budget cutback.
December 7, 2006... The government revealed it will cut the budget it allocates to civil service departments by 3 per cent a year from 2008 until 2011. There will also be a 5 per cent reduction in administration budgets across all civil service departments...

Reit flotation rules to encourage sector.
December 7, 2006... The Treasury has announced it will allow newly-formed companies to become real estate investment trusts without having floated on the stock exchange. The pre-Budget report sets out a relaxation of conditions that must be met before giving...

IFAs believe future of pensions is Sipp.
December 7, 2006... More than two-thirds of IFAs believe that sales of self-invested personal pensions will increase in the next 12 months, according to MetLife, the newest player in the UK market. The US-based insurance group found that more than three...

FSCS caught off guard by claims surge.(Financial Services Compensation Scheme)
December 7, 2006... The Financial Services Compensation Scheme has grossly underestimated the amount of pension claims it would receive during the current financial year. Figures published by the FSCS in an outlook for the year ahead show that the number of...

PPF payouts begin for failed pension plans.
December 7, 2006... The Pensions Protection Fund has made its first payments to members of failed occupational schemes. But while the PPF heralds the payment as a "milestone in the financial security of thousands of pensioners", one pensions expert has said...

Watchdog must show off its teeth - Which?
December 7, 2006... Byline: Consumer monitor warns FSA to raise its game in order to build confidence Regulation The FSA must try harder if it wants to claim that consumers are properly protected, according to a report from Which? As the regulator...

Trust charges down for second year - AIC.
December 7, 2006... Charges made by investment trusts have fallen for the second year running, according to research from the Association of Investment Companies. But the data does not include performance-related fees that have increased during this year with...

Symponia to call on MPs to raise standards on advice for over 65s.
December 7, 2006... National advice network Symponia is lobbying MPs as part of its campaign to see the FSA tighten regulations. The care fees and financial planning specialist for the over 65s claims that the FSA is not doing enough to protect vulnerable...

Investec warns new cautious funds to focus on performance.
December 7, 2006... Poor results in the second quarter of this year indicate that new cautious managed funds are too complex, according to Investec. David Aird, managing director of Investec Asset Management, said: "New entrants do not have the a track record...

Call centre faces flack from firms.
December 7, 2006... performance The FSA Firms Contact Centre, which is designed to convey detailed and complex regulatory requirements in an easy to understand and practical manner, is failing small financial companies, a survey has found. The Financial...

Lenders riding high on M-Day wave.
December 7, 2006... Byline: PMS reports surge in remortgaging against November trends and despite Bank of England interest rate increases Mortgages A massive surge in mortgage applications, which could result in a record month for brokers and lenders, was...

Contracting out to be scrapped under Bill.
December 7, 2006... nContracting out for defined contribution schemes would be abolished under the Pensions Bill. The department for work and pensions said the abolition of contracting out was part of plans to remove unnecessary regulation and simplify...

Mystery remains around the plans for a delivery authority.(Brief article)
December 7, 2006... The government's Pensions Bill gives scant detail about the composition of the government's proposed delivery authority for its new system of personal accounts. However, it does state that the authority will be an independent body that...

State second pension accrual will be simplified, claims government.
December 7, 2006... The government's Pensions Bill includes plans to simplify accruals for the state second pension, with only one rate by 2030. Under the Bill, a two-stage transition to a flat-rate state second pension is proposed. The current system of three...

Legislation timeline.(Chronology)
December 7, 2006... n May 2006: Pensions White Paper published in May, which was November 2006: Pensions Bill published. n 12 December: Estimated date set for the second White Paper to be published. Document to include more details on the chosen delivery...

Caution urged by Nationwide as house prices buck expectations.
December 7, 2006... Prices House prices have continued to increase despite predictions of a fall after the Bank of England raised interest rates, Nationwide Building Society has revealed. Figures from the building society showed average property prices...

Concordia shows united front to prevent efforts to divide and conquer.
December 7, 2006... An alliance between five of the UK's top mortgage brokers has been forged to negotiate better deals from lenders. The group, called Concordia, includes Savills Private Finance, Alexander Hall, Chase de Vere Mortgage Management, Hamptons...

Prestwood revamp to put focus on simplicity.
December 7, 2006... Byline: IT specialists stripping down back-office software package to help advisers Planning Prestwood Financial Services, the company run by the founder of the Institute of Financial Planning, has developed a simplified version of...

Paaleads tailors web client leads.
December 7, 2006... Distribution Advisers can now request specific types of client when they ask for leads from Paaleads.com. The feature was launched last week on the lead distribution business' new eBay-style auction system. IFAs focusing on...

Scottish societies to build up union.
December 7, 2006... Mergers Scottish Legal Life and Scottish Friendly are to merge marking further consolidation within the sector, according to Jim Galbraith, director of strategy for Scottish Friendly. The two societies confirmed plans to transfer...

We have a large, experienced team which needs to have new challenges.(Andrew November)(Interview)
December 7, 2006... FINANCIAL ADVISER: Why re-structure the fixed income and property team now? ANDREW NOVEMBER: There are a couple of reasons. We have been active in the international side for five to six years, and we are at a point where we have a...

A burden or a crisis?
December 7, 2006... The pensions crisis cannot be solved overnight -a point made clear by John Hutton last week, when he stated that the Pensions Bill was an attempt to not "burden our children and grandchildren" with the cost of retirement. This altruistic...

Anniversary woes.
December 7, 2006... The champagne may have to be put on ice at Canary Wharf as the FSA's fifth anniversary has been somewhat overshadowed by a chorus of "must try harder" from the industry. The watchdog has been criticised by Which?, while the Financial Services...

Liv Vic mimi pot is growing fast.(Liverpool Victoria's mimi promotion)(Brief article)
December 7, 2006... After its first month, the prize fund in Liverpool Victoria's mimi promotion, run in conjunction with Financial Adviser, has reached a total of almost AGBP7000. The total, which now stands at AGBP6820, increases every time an adviser uses...

UK's midas touch is weighing heavy.
December 7, 2006... Afew days ago the Davidson Review was published. Predictably, it received little notice in the national press, or even among those of us involved in monitoring directives coming out of Brussels and how they are implemented in the UK. The...

No way to spin failings.
December 7, 2006... Pensions pirates on the attack A few weeks ago I was contacted by retired DJ Ed Stewart. Ed had just been going through a divorce and at the same time had come up to his 65th birthday and retirement. Fortunately, Ed was prepared. Being a...

Adaptations will tackle problems.
December 7, 2006... Assets under management by the EU investment funds industry have grown four-fold over the past decade. Now, following two years of consultation and debate, the European Commission has published the White Paper Enhancing the Single Market...

Loyalty will not be earned with chains.
December 7, 2006... Cofunds now has AGBP10bn under administration and is naturally very grateful to those who have been supporting it. I started using it in the earliest days when the fund management groups which owned it were being territorial and not letting...

Dramatic offering proves a damp squib.
December 7, 2006... At another point in the evening, guests at the party were given black envelopes by the party's organisers and told to hang on to them as they were important. Guests were a little surprised, when they found a piece of paper that said they...

Welcome to the neighbourhood.(retailers cost saving management and customer service)
December 7, 2006... During the post-war period there were shortages of goods of all sorts. Rationing applied into the 1950s. Suppliers controlled the market, demanding prices they wanted. Later there was retail price maintenance to ensure that advantage was not...

Taking the weight off your mind.
December 7, 2006... Byline: The rush to remove defined benefit pensions from company balance sheets is creating a wealth of opportunities The defined benefit pension buy-out market has traditionally existed to serve trustees of schemes being wound-up, allowing...

(Re)building blocks.
December 7, 2006... Byline: Restructuring work offers opportunities for IFAs, so why are many of them still shunning the possibilities? You will have read many times that the market for restructuring corporate benefit arrangements is vibrant. Whether it is...

Brown urged to tip hand on Isas.
December 7, 2006... Byline: Industry bodies call on chancellor to give prior notice if predicted increases to account allowances get go ahead INvestment The pre-Budget report's lack of new announcements on Isas has disappointed the industry, leaving many...

Nerves threatening to smother renaissance.
December 7, 2006... Byline: Early indications of pace and strength in European economies look set to be proved to be a false dawn Earlier this year there were signs of an economic renaissance in the Eurozone - growth got off to a robust start. According to the...

The truth will come out sooner or later.
December 7, 2006... Byline: Non-disclosure problems need to be tackled by both providers and advisers to curb damage to the industry Non-disclosure has always been an issue for the protection industry, but has now become a particularly hot topic. Insurers'...

The next top model.
December 7, 2006... Byline: Wealth and demographic changes are pushing IFAs to find a business model to reach mass affluent clients Financial advisers have historically focused on providing their services to clients in the ABC1 socio economic group. However,...

INvestment.
December 7, 2006... PROPERTY BOND NEWCASTLE BUILDING SOCIETY Type: Guaranteed property bond. Details: The five-year guaranteed property bond is linked to the growth of the Halifax House Price index. It is a five-year structured product, with a...

Scarborough looks to future.
December 7, 2006... n A family-friendly saver account has been launched by Scarborough Building Society as part of an expansion of its family-orientated products. The account, which can be opened from AGBP1, is available to parents or legal guardians of children...

Scot Wids eyeing Costas cash.
December 7, 2006... n A range of flexible Spanish mortgage products aimed at British buyers has been launched by Scottish Widows, branded by LloydsTSB. A re-mortgage range has also been added to appeal to Spanish holiday homeowners and is priced to compete with...

Limit on choice to curb bills.
December 7, 2006... n More people do not take out private medical insurance because the cost of doing so is too great, according to Standard Life. The claim was made as the private health provider announced a lower cost comprehensive cover called guided option....

Failing to check referees is a false economy - Peninsula.
December 7, 2006... Byline: Survey uncovers 76 per cent of IFAs expose clients to danger of theft by dishonest workers by not checking Recruitment The number of IFA businesses who do not check employee references has come as a surprise to business owners...

CBI urges SMEs to invest in tackling internet ignorance.
December 7, 2006... Increasing numbers of small to medium-sized enterprises are becoming more online focused to improve their business success, according to a survey. But businesses admit they have yet to harness the full potential of the internet. The...

Awareness of bank charges key - BBA.
December 7, 2006... Small businesses can benefit by having a more positive attitude to the competitiveness of banking charges, according to a survey from the Forum of Private Business. The survey shows that bank services for small business customers has...

Stamp duty move on ETFs welcomed.
December 7, 2006... The City has welcomed the government's decision to scrap stamp duty imposed on non-resident exchange traded funds. Many experts claim that the current regime is damaging the future of the funds and the wider economy by forcing talented UK...

Greenest homes set to get duty boost.
December 7, 2006... Building societies will need to examine the role greener houses play in the market after the chancellor's move on stamp duty, according to the Building Society Association. The pre-Budget report moved to allow new homes with zero carbon...

ASPs hang in the balance after Treasury's 'U-turn'.
December 7, 2006... Byline: Industry attacks government over shift on taxes for controversial product Pre-Budget Report The government has dealt a fatal blow to alternatively secured pensions in a move that many in the industry expect will decrease...

Credit aims to woo filmmakers to UK.
December 7, 2006... A new set of tax breaks for production companies making films in Britain could benefit venture capital investors. The incentives will mean that production houses spending 25 per cent of a film's budget in the UK will be able to use the...

Key facts shake-up raises fears over Fos reactions.
December 7, 2006... Byline: Consultation over proposals for investment information quick guides reveals quality worries Regulation The City regulator has received concerns from the industry about how the Financial Ombudsman Service would treat complaints...

FSA's regulation of Sipps market could handicap smaller schemes.
December 7, 2006... The FSA's ability to regulate the self-invested personal pension market has been called into question by Sipp administrators. Darrell Manners, director of Kent-based Sipp administrators DA Phillips, said the FSA may not be the best...

HBoS chief lined up for Connells' phone service.
December 7, 2006... HBoS suffered another big exit from the senior management team as Charles Haresnape left to spearhead a telephone-based mortgage broking service. The former managing director of Bank of Scotland Mortgages will join Connells Group in...

Combined IHT and stamp duty revenues soaring, Halifax claims.
December 7, 2006... The combined revenue raised from inheritance tax and stamp duty on residential property reached a record AGBP6.7bn in the last financial year, Halifax has calculated. Stamp duty revenue rose by 175 per cent from AGBP1.2bn in the 2000/2001...

Age law hits baffled pension plans.
December 7, 2006... Byline: Confusion stills reigns as government enforces delayed legislation despite not offering final guidance for schemes Pensions The delayed pensions aspects of the government's age discrimination legislation came into force on 1...

Panel demands clarity as it backs cuts to FSA.
December 7, 2006... Byline: Survey welcomes principles-based regulation, but highlights TCF confusion Regulation The consumer panel representing companies authorised by the FSA has welcomed news that 10 per cent of the FSA workforce will be phased out by...

Be alert to inheritance pitfalls on overseas property - legal expert.(Brief article)
December 7, 2006... property Wills made in the UK may not be adequate to cover overseas property, a leading trust and estate lawyer has warned. Many of the countries popular for second-home buyers have significantly different inheritance laws. ...

IMA leads call to cut fund sales from MiFID remit.
December 7, 2006... Regulation The sale of funds should not be subject to Markets in Financial Instruments Directive calculations and projection requirements, according to the Invest- ment Management Association. The IMA issued its comments on the...

Application fees soaring - mform.(mortgage lenders)(Brief article)
December 7, 2006... Mortgage lenders have increased application fees by 125.6 per cent and exit fees by 91 per cent in the past three years, according to mform.co.uk. Research carried out by the online mortgage search system found that the average application...

First steps on road to change.
December 7, 2006... Byline: Measured welcome to Bill abolishing contracting out, raising retirement age and building a link to earnings Pensions Industry groups broadly welcomed the government's raft of reforms under the Pensions Bill, particularly those...

Industry warns Bill is not a panacea for crisis.
December 7, 2006... The proposals in the Pensions Bill do not go far enough to solve the country's savings needs, according to financial services companies, yet industry groups broadly welcomed the proposals. Many companies stressed that the government had...

Gradual pension age increase will make system "more fair for women and carers" says Hutton.
December 7, 2006... The government's pension legislation proposes to increase the state pension age to 68 through a series of steps. The Bill is intended to make the state pension more generous by linking the basic state pension to earnings, make the system...

FTAdviser Gym pumps Sipps muscle in workout.
December 7, 2006... Advisers now have the chance to get in shape on self-invested personal pensions with the FTAdviser Gym's latest workout. Within two days of launch, more than 200 advisers had already flexed their cerebral muscles by taking the test. ...

FSA rejects claims it is ignoring small firms.
December 7, 2006... Byline: Watchdog claims that no firms fall under its radar in reaction to Tenet claims Regulation Many small IFAs believe they fall below the FSA's radar and that should concern the regulator, according to Keith Richards, a director...

IFA Union seeks official recognition.(Independent Financial Adviser)(Brief article)
December 7, 2006... The IFA Defence Union is attempting to become a recognised trade body, based on professional standards and set funding. Supporters of the union have been lobbying to give it a more significant role, with a group of activists meeting last...

Axa closing in on wrap plans.(Axa UK)(Brief article)
December 7, 2006... Axa's development of its wrap proposition, which will be run as a separate business unit, is close to being finalised. Paul Evans, chief executive officer of Axa Sunlife, who will be responsible for the wrap business, said an announcement...

FSA and Aifa clash over IFA claim.
December 7, 2006... Byline: Watchdog claims trade body chair John Gummer does not fully understand way it operates after speech attack aifa speech The FSA has expressed disappointment with the Association of IFAs following a vitriolic speech by its...

Just Retirement floats.(market share)(Brief article)
December 7, 2006... Just Retirement has successfully floated, raising AGBP87m after just two years in its existence as a life company. The expected market capitalisation of Just Retirement on admission to the Alternative Investment Market was AGBP422m. It...

Failure is not always an option in golf.
December 7, 2006... Insider loves a good tale of drunken mishap. This tale is of the woeful third day of a stag-do bender. When the unfortunate groom to be, otherwise known as Stewart Cunningham, head of brand and marketing communications for Scottish Life,...

Your mother should know about money.(financial advisers to manage their clients' money)(Brief article)
December 7, 2006... Many advisers would like to know how big banks select people to manage their clients' money. Andrew Clark, head of Merrill Lynch Portfolio Managers, goes on good old-fashioned gut instinct. Not content with feeling whether he would trust...

Oxford Capital sees growth with the appliance of science.
December 7, 2006... Investments A technology fund that targets returns of 30 per cent has been launched by venture capital firm Oxford Capital Partners. The Oxford Gateway fund number four is available through intermediaries who can choose to receive...

MORTGAGES.(Fixed rate mortgages)(Adjustable rate mortgages)(Subprime loans)(Product/service evaluation)
December 7, 2006... MORTGAGES FIXED AND VARIABLE RATES EGG Type: A discounted variable rate and two-year fixed-rate mortgages. Details: The discounted variable rate mortgage offers an initial rate of 3.99 per cent for the first 24 months while...

Savings.(savings accounts)(Product/service evaluation)(Brief article)
December 7, 2006... SAVINGS ACCOUNT Stroud & Swindon Type: Over-50s savings account. Details: The Platinum 50 Saver account is open to customers over 50 and offers an introductory incentive of 0.6 per cent guaranteed bonus for the first year the...

Pre-Budget stance on tax relief puts PTA providers in tight spot.
December 7, 2006... Providers are curtailing pensions term assurance sales after a small provision in the government's pre-Budget report threatens to undermine the tax relief provided by the products. Standard Life, Legal & General and Friends Provident have...

End 'meeting mania' - Bibby.(Bibby Financial Services Group)(Brief article)
December 7, 2006... Businesses can boost productivity by cutting out unnecessary and time-consuming meetings, according to Bibby Financial Services. Research has found that meetings with little or no value are costing millions of pounds in lost productivity....

The pen is mightier than a text message.
December 7, 2006... In an age of direct marketing, email shots, and short message service advertising, consumers are more media-savvy and hard to attract than ever before. So when it comes time in your business to look for new clients beyond those you generate by...

Chasing payment need not be taxing.
December 7, 2006... As a busy adviser firm, we seem to spend hours trying to get commission statements from providers, chasing late payments or simply checking the status of ongoing payments. Please can you advise on the technology available that will reduce the...

Dedication and discipline serve well.
December 7, 2006... Monday I drive 15 miles out of Newcastle to Northumberland to see one of our clients, who has sold his company. He has about AGBP1m to invest. We have a lengthy conversation regarding pension benefits, investments and tax planning. The...

ABN Amro swoops on Dayal and Szemere to build on global move.
December 7, 2006... Byline: Suffolk Life senior reshuffle another element of its "secret of success" Suffolk Life has made several senior management changes. Henry Catchpole (pictured), managing director, has become chief executive and Renata Chester, former...

Expert savages gov't pensions White Paper.
December 14, 2006... Byline: Ros Altmann claims provisions are "dangerous" and will make pensions worse Legislation The White Paper on pensions was described as "dangerous" by a former adviser to number 10 following the proposals' presentation to...

Standard Life to tap into Gillies' knowledge.
December 14, 2006... Standard Life has appointed Crawford Gillies, former chairman of the CBI, as a non-executive director. Mr Gillies will join the company on 1 January after 22 years with management consultants Bain & Company. He became Bain & Company's...

Equity release faces broadside from HBoS.(Benny Higgins )(Brief article)
December 14, 2006... The retail chief of HBoS has spoken out against equity release and claimed it will not look at offering the products. Speaking at the Council of Mortgage Lenders' annual dinner, Benny Higgins, implied Britain's biggest mortgage lender...

NU turns its spotlight on non-disclosure.
December 14, 2006... Norwich Union has conducted a study revealing the top five forms of non-disclosure on insurance claim forms. Top of the list is having received treatment including tests for multiple sclerosis, double vision, numbness or giddiness. ...

Prudential aiming to build on bond success.(Brief article)
December 14, 2006... Prudential has held the rates on its with profit Prudence Bond plans at 3.25 per cent for a fifth year. Prudential calculates that if someone invested AGBP30,000 in November 1996 in a PruBond then it would now be worth AGBP55,768 ...

PHP continuing on expansion warpath.
December 14, 2006... Private Health Partnership, part of Skipton Building Society, has acquired the medical insurance portfolio of JSP Medical Insurance Services. The move represents PHP's fourth acquisition in three years, after it bought MLP Insurance...

Euroclear, EMXco merger to cut trading costs in half.
December 14, 2006... Byline: Experts claim that the move will slash unit fund trading overheads as well as increase efficiency Investment A deal between Euroclear and EMXCo could cut the cost of fund trading by as much as 50 per cent, experts have said....