Financial Advisor articles from January 2003

Financial Advisor archives from January 2003

IFAs enraged by FSA timing over CP158; IFAS ANGRY at TIGHT deadline after fsa releaseD paper at christmas.(Independent financial advisers)
January 1, 2003... IFAS in Scotland are angry with the FSA for "sneaking" out proposed changes to mortgage regulation over Christmas. The newsletter, which discussed consultation paper 158, was posted to Scottish IFAs on Saturday 21 December and stated there...

F&C to lighten the load on retail funds.(abolishing front-end load)(Brief Article)
January 1, 2003... F&C has made an "unusual move" by abolishing front-end load on three retail funds to woo Isa investors. From 1 January 2003, the F&C Blue fund (3.5 per cent initial charge), the F&C With-Prospects fund (5 per cent) and the F&C Higher...

DBS scraps regional chairmen role.
January 1, 2003... THE DBS network is bracing itself for another round of squabbling after removing the position of regional chairmen. At its December regional chairmens meeting, DBS, part of the Misys super-network, decided it no longer needed the tier. ...

Amicus fights for minimum pension.(Amicus, the manufacturing, science and finance union)(Brief Article)
January 1, 2003... Amicus, the manufacturing, science and finance union, is campaigning for a minimum pension. The union is urging the Labour party to back its call for employers to pay a compulsory minimum contribution. Derek Simpson, joint general secretary for...

Drake and Hills join pension commission.(Brief Article)
January 1, 2003... The governments work and pensions department has named Jeannie Drake and John Hills as the final members of the new pension commission. They will join Adair Turner in reviewing the voluntarist regime for private pensions and long-term savings....

Royal & SunAlliance hires chief executive.(AXA Sun Life)(Brief Article)
January 1, 2003... Andy Haste is to join Royal & SunAlliance as group chief executive. He has resigned from AXA Sun Life where he was chief executive and from the AXA UK board. Mr Haste joined the AXA Group in 1999 and led the repositioning of the AXA Sun Life...

Party season costs businesses GBP66.5m.(Hangovers cause loss of work time)(Brief Article)
January 1, 2003... Christmas parties may have cost business GBP66.5m in time taken off work. Hangovers following the excesses of a Christmas party have led to more than 1m workers taking time off, according to Norwich Union Healthcare. This year the cost is half...

Private pay awards grind to a halt.(Brief Article)
January 1, 2003... Pay awards have stagnated in the private sector, according to the Confederation of British Industry. A survey published by the CBI showed that pay awards have fallen in the private sector and stagnated in the service industries in the three...

Planning not a productivity factor.(Office of the Deputy Prime Minister Committee)(Brief Article)
January 1, 2003... The Office of the Deputy Prime Minister Committee has said planning is not a significant factor in depleted productivity in UK business. The ODPM select committee said that building planning did not explain low levels of productivity in UK...

Digital risk briefing set for this month.(CBI is offering an executive briefing on managing digital risk)(Brief Article)
January 1, 2003... The CBI is offering an executive briefing on managing digital risk in London in January. The seminar, on 27 January, is aimed at raising awareness of digital risk management and IT security. According to the CBI, digital risk is at the top of...

Opra basks in praise from DWP.(Occupational Pensions Regulatory Authority)(Brief Article)
January 1, 2003... There was faint praise for the Occupational Pensions Regulatory Authority in its five-yearly review by the Department of Work and Pensions. The DWP plans to reform Opra in time for new legislation that will create a new regulator with greater...

Pru joins those slashing rates.(Prudential is reducing bonus rates)(Brief Article)
January 1, 2003... Prudential is reducing bonus rates on with profits policies under the Prudential and Scottish Amicable brands because of depressed stock market levels. Terminal bonus rates were reduced with effect from 3 December. The reduction in final bonus...

Treasury reassures public sector.(reassured public sector workers age change for retirement will not affect those who already attained age)(Brief Article)
January 1, 2003... The Treasury has reassured public sector workers that pension rights already earned will be honoured, despite changes to retirement age. The pensions green paper proposed that retirement age be increased from 60 to 65 for public sector workers...

Half of retirees face hardship.(Brief Article)
January 1, 2003... JP Morgan Fleming has found that half of Britons face financial difficulty in retirement. A survey carried out by the company between 1996 and 2002 showed that 54 per cent were forced to manage on an income of less than 40 per cent of their...

B&W launches three mortgages.(Bristol & West Mortgages)(Brief Article)
January 1, 2003... Bristol & West Mortgages has launched three products through The Mortgage Operation. The first has a rate of 3.89 per cent and a 2.06 per cent discount to 31 January 2005. It is available up to 95 per cent LTV and is Mig free. The second has a...

Two-year discount from Britannia.(Britannia Building Society)(Brief Article)
January 1, 2003... Britannia Building Society has launched a two-year discounted mortgage based on a rate of 3.69 per cent. It is available up to 95 per cent LTV. The deposit is 5 per cent and the arrangement fee is GBP295. An early redemption fee of 180 days...

Universal offers base rate tracker.(Universal Building Society)(Brief Article)
January 1, 2003... Universal Building Society has launched two mortgages. The Base Rate Tracker offers a rate of 0.5 per cent below base rate in the first year, 0.5 per cent above BBR in the second, and 0.75 per cent above BBR in the third year. It then reverts...

Mortgages plc extends discounts.(Brief Article)
January 1, 2003... Mortgages plc has extended all discounts to 31 March 2004. Pete Thomson, head of sales for Mortgages plc, said: "The initial pay rate is an important factor for introducers when placing deals. With this extension we are ensuring Mortgages plc...

CIS improves vote transparency.(Co-operative Insurance Society)(Brief Article)
January 1, 2003... Co-operative Insurance Society has put its voting record for all UK investments online and intends to post all voting records on its website in pursuit of greater transparency. The company promised to update them after every vote. Chris Hirst,...

Bond centre launched for IFAs.(Scottish Mutual and Financial Express Prestel)(Brief Article)
January 1, 2003... Scottish Mutual and Financial Express Prestel have launched the Flexible Investment Bond Fund Centre to help intermediaries plan and review clients investments, using fund prices, risk ratings, fund performance and a charting tool. Product...

Account switching saves GBP950m IF.(Intelligent Finance)(Brief Article)
January 1, 2003... Switching current accounts would save investors a total of GBP950m a year, according to Intelligent Finance. The bank claims this is the amount lost because people fail to seek better interest rates. It said 1.5m had already made the switch...

Save for children now, says JPM.(JP Morgan Fleming)(Brief Article)
January 1, 2003... JP Morgan Fleming has warned against waiting for the governments introduction of child trust funds. Plans for the funds were revealed in this years pre-Budget report and offer children an endowment at birth for investment until adulthood. JP...

Tax bonanza for EU firms financing foreign subsidiaries.(Multinational companies)(European Court of Justice)(Brief Article)
January 1, 2003... Multinational companies could reclaim huge tax sums following a ruling in the European Court of Justice, according to business adviser PKF. The ruling would allow companies within the EU to finance their foreign subsidiaries with loans in order...

Bupa welcomes new treatment to widen arteries.(Brief Article)
January 1, 2003... A new treatment to widen arteries is being made available. It employs a drug-releasing stent a tubular structure that acts as a supporting scaffold following the reopening of blocked arteries. It is thought this will greatly reduce the need to...

Mortgages plcs securitisation reaches more than GBP1bn.(Brief Article)
January 1, 2003... Despite continued economic gloom in the financial world, Mortgages plc has demonstrated the strength of the mortgage industry. The sub-prime lender has securitised for the fourth time, bringing the total assets securitised to more than GBP1bn...

Investors should look to Japan as US turbulence continues.(Brief Article)
January 1, 2003... The US markets are to have another turbulent year, according to Richard Burns, manager of Monks Investment Trust. Mr Burns said he favoured Japan as the best-performing market in 2003. "The US will probably end up making little progress as...

Neptune launches fund aimed at European opportunities.(Brief Article)
January 1, 2003... eptune Investment Management has launched a European Opportunities Fund. Fund manager Barry Norris will advise Robin Geffen, chief investment officer and managing director, on the fund, which will follow Neptunes core research and evaluation...

Outsourcing of B&B collapses; lender brings admin in-house as joint venture fails.(Bradford and Bingley)
January 1, 2003... BRADFORD & Bingley is bringing the administration of its mortgage book in-house after the collapse of a two-year outsourcing partnership. The lender, which has been working with Alltel Mortgage Solutions for two years to develop a new...

Mortgage deadline flawed.(compulsory mortgage exams)(Brief Article)
January 1, 2003... A FOUR-MONTH gap in policing makes a mockery of introducing compulsory mortgage exams by the end of last month, Park Row has warned. While brokers should have been qualified to give advice at the end of 2002, the Mortgage Code Compliance...

IFAs guided on divorce law.(Scottish Equitable)(Solicitors for Independent Advice)(Brief Article)
January 1, 2003... SCOTTISH Equitable has teamed up with a law firm to publish a guide to pensions and divorce for IFAs. The insurer and the Solicitors for Independent Advice launched the 44-page book to assist IFAs and lawyers to work together on the...

Government admits to stakeholder error; pensions green paper questions the success of stakeholder.
January 1, 2003... THE government has hinted that stakeholder pensions may have missed their target market because the price structure was too tight. A section of the green paper appeared to question whether stakeholder was a success at all. It said:...

Annuity consultation period dragging on.(Brief Article)
January 1, 2003... More consultation on annuities is the last thing the industry needs, according to pensions expert Dr Ros Altmann. In the pensions green paper the government published proposals for the reform of the annuity market, after the Treasury had...

With profits range shut; lscottish mutual replaces ailing products with smoothed offering.
January 1, 2003... SCOTTISH Mutual has closed its with profits business to new investments. The life assurer is launching an onshore and offshore smoothed managed product to replace the old offering. It will be managed along guidelines set out by Ron Sandler...

IFAs get stuck in heavy FSA 2002 reviews tra?c; The number of fsa and government reviews has left IFAs struggling to do real work.(Independent financial advisers)
January 1, 2003... IFAS were left in a tailspin last year trying to keep up with the number of reviews from the government and the FSA. The FSA gained its full powers on 1 December 2001 and wasted no time issuing pronouncements and edicts. In January,...

Slump dismissed as north chases south; IFAs predict property growth as prices in the North match those of the South-east.(Brief Article)
January 10, 2003... BY Hayley Frain MORTGAGE IFAs have rejected predictions of a property slump as the north catches up with south-east property prices. Sussex-based Technical Data has drawn up two sets of forecasts for 2003, using its computer system to...

The good life for IFAs.(Brief Article)
January 10, 2003... MORTGAGE IFAs anticipate an easier life now Bradford & Bingley has brought the administration of its mortgage book inhouse. The decision to do so after two years follows the end of its two-year outsourcing partnership with Alltel Mortgage...

Savills warns against paying out for a Mig.(Brief Article)
January 10, 2003... MORTGAGE broker Savills Private Finance has warned would-be borrowers to be wary of lenders charging for a mortgage indemnity guarantee. According to Savills, with a Mig, the borrower pays a premium to provide the lender with insurance if...

Extra News.(Brief Article)
January 10, 2003... Exclusive offers funds through B&W Exclusive Connections has launched two mortgages in association with Bristol & West. Both are mortgage indemnity guarantee free with no extended tie-ins and are available for purchase or remortgage. The...

The boom of 2002 was not all plain sailing; More homebuying has led to higher costs and diminishing affordability a trend likely to continue in 2003.
January 10, 2003... Barry Naisbitt WHEN I was thinking about a theme for the housing market in 2002, my first thought was to ignore the overall economic picture. It seemed a reasonable summary because the press seems to have been full of gloomy economic...

House prices set to slow down; First-time buyers who are increasing experiencing difficulties in getting on the ladder, are set to restrain market demand.
January 10, 2003... MARTIN ELLIS AT THE close of 2002, acres of newsprint were dedicated to predictions of house price growth. Recent forecasts suggest house price growth will slow to 9 per cent in 2003 with a narrowing in the north-south divide as prices...

The threat of negative equity; As customers borrow more and more against their homes, the prospect of negative equity could be back to haunt us.
January 10, 2003... Peter Mounty YOU do not have to be a weatherman to see the storm clouds gathering on the horizon. With property prices high, many new buyers are borrowing a bigger proportion of their homes value, while low mortgage rates are tempting...

Hard times ahead for investors; The good news is there is no bad news for homeowners in Gordon Browns pre-Budget statement or is there?
January 10, 2003... Graeme Hartop GORDON Browns pre-Budget statement may have been good news for children, the elderly and low-income families, but for the rest of us, the content of his most recent speech signalled more difficult times ahead. For...

All packed up and ready to go? The proposed sellers pack is designed to make sure you have all the facts to hand before a sale is agreed.
January 10, 2003... Jeff Rooker THE home buying and selling process in England and Wales gives consumers a raw deal and has done for many years. It is among the slowest in Europe and is fraught with delays and failure. Nearly 30 per cent of transactions...

Securing your financial future; In todays climate, lenders should sell the right mortgage to create a good client relationship and instil confidence.
January 10, 2003... David Macmillan THERE was a time when mortgages were uniform. You were in your first steady job and once that lender was convinced you were financially responsible, it gave you a one-size-fits-all mortgage. Then, 25 years later, you...

Best-Buys.(Brief Article)
January 10, 2003... This month there is one page 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 secon-time buyer fixed and discount rates...

FSA asks consumers to send in adverts.(Brief Article)
January 10, 2003... THE FSA is inviting consumers to help clamp down on misleading financial advertisements by sending in offending examples. In the run-up to the Isa season, the FSA will be paying particularly close attention to adverts for investment...

Hargreaves funds to be sold by Investec; Deal puts Investec managers in charge of 10 Hargreaves Lansdown funds.
January 10, 2003... By Samuel Dunn IFA Hargreaves Lansdown has hived off its fund management arm to investment group Investec. The deal, struck for an undisclosed sum, leaves the intermediary with its clients and the South African asset manager in charge...

Artemis investors to vote on mergers.(Brief Article)
January 10, 2003... ARTEMIS unit-holders vote this month on several key fund mergers, following the companys merger with ABN Amro. The boutique fund manager this week sent voting cards to all investors affected. If the fund mergers are approved, the new funds...

Sirius to hold a series of roadshows.(Brief Article)
January 10, 2003... Sirius Financial Systems, a technology provider, is holding a series of roadshows on depolarisation, connectivity, the 1 per cent world and mergers and acquisitions. These will be on 29 January, in Gatwick; 30 January, in London; 19 February,...

Jersey investigates split-capital funds.(Brief Article)
January 10, 2003... The Jersey Financial Services Commission has appointed accountant RSM Robson Rhodes and a senior barrister to help in its review of split-capital closed-ended funds based on the island. The commission is preparing a report on the role and...

Andy Milburn leaves R&SA after 14 years.(Royal & SunAlliance)(Brief Article)
January 10, 2003... Pensions pundit Andy Milburn has left Royal & SunAlliance after 14 years in its pensions team. Mr Milburn, 33, has been made redundant from the insurer which closed to new pensions business in September. During his time with R&SA Mr Milburn...

Howard Boyd to lead green team.(Jupiter Asset Management)(Brief Article)
January 10, 2003... Emma Howard Boyd has joined Jupiter Asset Management to become the new head of the companys green department. She will take on the overall responsibility for the management and future development of Jupiters socially responsible investment...

Moving On.(Gartmore has named Gary Clarke as a senior investment manager)
January 10, 2003... Gartmore has named Gary Clarke as a senior investment manager in its European equities team. Mr Clarke previously worked for Rothschilds where he was appointed in 2001 to help turn round the performance of its European equity funds. Mr Clarkes...

Hornbrook gets seat on the board.(Richard Hornbrook)
January 10, 2003... Chelsea Building Society has appointed Richard Hornbrook as an executive director. His appointment precedes the retirement of Stephen Doole, director and senior general manager, in March. Mr Doole has worked for Chelsea for nearly 30...

Moving On.(Beckett Financial Services has appointed Angie Bryant and Geoff Wilson as directors)
January 10, 2003... Beckett Financial Services has appointed Angie Bryant and Geoff Wilson as directors. Ms Bryant has been with the company for five years, as a compliance officer for the past three years. She previously worked for Imperial Alliance. Mr Wilson...

Positive recruits R J Temple IFAs; Two RJ Temple IFAs have jumped ship to Positive Solutions.(Bob Symons and Peter White)
January 10, 2003... By James Mawson POSITIVE Solutions has recruited two IFAs from RJ Temple and is looking for further rapid growth this year. Bob Symons, of Hove, East Sussex, and Peter White, of Gillingham, Kent, were among the "reasonably-high...

MPs to focus on housing.(Brief Article)
January 10, 2003... THE government has bowed to pressure from the industry to take responsibility for regulating home reversion schemes. While normal equity release products are set to come under the FSAs umbrella when regulation of the mortgage market is...

HS clients enjoy rosy future.(Brief Article)
January 10, 2003... WENTWORTH Rose is to provide financial advice to the pension clients of HS Administrative Services, specialist third-party pension administrators. Until December 2002, only a limited financial advice service had been provided by HSs...

IFA Promotion a big hit with its members.(Brief Article)
January 10, 2003... More than 90 per cent of member IFAs were satisfied with IFA Promotions efforts to lift the industry, according to an independent survey. More than two-thirds (68 per cent) said IFA Promotion membership provided excellent value for money....

Hedge funds close as markets struggle; Nearly 20 per cent of hedge funds closed down during 2002, says report.
January 10, 2003... By Sam Dunn NEARLY one in five hedge funds closed last year as investor confidence wobbled, according to new research. A report from consultant and fund index provider Tremont Advisers found that close to 400 funds closed last year....

Bankhall bosses set to launch own firm.(Brief Article)
January 10, 2003... Ex-Bankhall directors Ross McArthur and David Brattesani will launch Threesixty, a support service for IFAs and intermediaries early this year. Mr McArthur said that intermediaries wanted a bespoke range of services to suit their...

Treasurys Sandler response in weeks; Results expected in the next month on simplified product specifications.
January 10, 2003... BY James Mawson The Treasury is expected announce results from its review of the Sandler "simplified product specifications" in the next month. The recommendations follow the FSAs discussion paper last week on regulating the sale of...

Fund managers to step off the 2002 merry-go-round in 2003; The turbulent markets in 2002 are likely to cause managers to experience a dull but perhaps welcome year.
January 10, 2003... By Sam Dunn FUND managers said they would have to settle for a dull 12 months in 2003. After a torrid year of turbulent markets and corporate treachery, many investment houses are hoping for clear direction and calm waters to restore...

Advisers peer in anguish at 2003.
January 10, 2003... AFTER so many changes last year it would not be surprising if many IFAs looked ahead to 2003 in anguish. There are many international and offshore changes expected this year to keep people on their toes. The government is expected to...

Rates will rise, say Liverpool Victoria.
January 10, 2003... LIVERPOOL Victoria, the UKs largest Friendly Society, said most IFAs believed interest rates would rise by the end of 2003. Liverpool Victorias research found that 58 per cent of IFAs thought that by the end of 2003 the Bank of England base...

The pensions market gets off to slow start.
January 10, 2003... THE year ahead is set to present a slow start for the pensions market, according to experts. Stewart Ritchie, pensions development director for Scottish Equitable, said 2003 would reveal which reforms are to be taken seriously. He...

Housing set to fall in the year ahead.
January 10, 2003... THE housing market looks set for a gradual slowdown this year according to the majority of forecasts. While 2002 ended with some warnings that prices could fall by as much as 30 per cent in 2003, many experts still predicted a gradual...

Mixed reaction to TDW protected investment; Cliquet structure means investors could miss out on full effect of big market gains.
January 10, 2003... By Gabriela Pomeroy TD Waterhouse this week launched its debut product for the UK IFA market. The global broker is writing to every IFA in the country to spread the news of its Protected Investment Product (Pip). TDW is also piloting...

Axa cuts bonuses on some policies.(Brief Article)
January 10, 2003... Axa Sun Life has cut bonuses on with profits policies. The insurer reduced terminal bonuses and increased market value reductions for Axa Sun Life with profits bonds and Sun Life Assurance Society With Profits Bonds. The terminal...

Warning to parents to start saving.(Brief Article)
January 10, 2003... JP Morgan Fleming is warning parents not to wait for government benefits before starting to save for their childrens future. The investment manager has produced a guide to childrens savings ahead of consultation on the proposed Child Trust...

Ommanney takes over the top job at the LIA.(Brief Article)
January 10, 2003... The LIA has appointed Mark Ommanney as chief executive to replace Jeff Travis Mr Omanney spent 25 years working at Sun Life Financial of Canada before working as chief executive of IBNet, the Aim-listed internet security company. He takes...

Training for practice managers.(Brief Article)
January 10, 2003... Fee Based Advice, a national association of IFAs, is launching a series of courses aimed at developing the skills of practice managers. They will be led by experienced IFA Ken Moore who is a director of the Fee Based Foundation, FBAs...

Ipswich loans leap by a third.(Brief Article)
January 10, 2003... IPSWICH Building Societys mortgage lending leapt by more than one third during last year. Net lending by the society over the period rose to GBP36.9m from GBP17.6m in 2001, with 65 per cent of new lending through mortgage intermediaries....

Britannic throws doubt on bonuses.(Brief Article)
January 10, 2003... BRITANNIC Assurance has threatened to defer the 2002 annual bonus to policyholders after its worst annual equity market performance since 1974. The news follows a profits warning at the beginning of the week after group shares plummeted by...

Inora launches guaranteed funds; NEW PRODUCT: protected offshore funds.(Brief Article)
January 10, 2003... Inora Life will launch two capital-guaranteed offshore funds on 13 January. The Accumulator Growth fund series two of the Offshore Generation Bond will offer a 100 per cent capital guarantee plus a minimum additional return over 5 1/2...

Product choice denied by FSA.
January 10, 2003... By Jason Corcoran THE FSA has set out three options for lighter-touch regulation on the sale of a suite of new stakeholder-style products. The move follows recommendations in the Sandler Review on long-term savings for the introduction...

Britannia targets low earners; NEW PRODUCT: equity bond.(Brief Article)
January 10, 2003... BRITANNIA Building Society has launched a five-year guaranteed capital equity bond accessible to low earners. The bond, which will mature in March 2008, aims to pay a yearly return of 6.16 per cent. This equates to a potential 35 per...

Top industry figures honoured.(Brief Article)
January 10, 2003... A NUMBER of figures in the financial services industry have been recognised in the New Year honours list. Michael Foot, managing director of the FSAs deposit takers and market directorates division, received a CBE for his services to...

Zurich joins the move to replace ailing with pro?ts; Life office to launch protected profits fund in bid to ease fears of stock market volatility.
January 10, 2003... By Simoney Girard ZURICH has become the latest life office to launch an alternative to its with profits fund. The Protected Profits Fund, to be launched on 1 February, will allow investors to keep up to 80 per cent of their assets in...

Tenet takes on IFA plus 100 advisers.(Brief Article)
January 10, 2003... TENET group has taken on 100 IFAs with its purchase of Capital Planning UK. The deal, for an undisclosed sum, also provides Tenet with an IFA firm to allow practice buy-outs of Tenets retiring network members or other client service...

Isa alterations help retain tax relief.(Brief Article)
January 10, 2003... CHANGES made to Isa regulations by the Inland Revenue will help more investors avoid losing tax relief. The Pep and Isa Managers Association, which has lobbied for these moves, welcomed the changes. They allow the Inland Revenue to repair...

Sterling offers multi-manager vehicle; NEW PRODUCT: unit trust.(Brief Article)
January 10, 2003... STERLING Isa Managers will launch its investment account multi-manager fund unit trust on 13 January. Investors can stay in cash securities initially, moving into the market as it recovers. They will initially be invested in the...

Legal action over Oracle set to start.(Brief Article)
January 10, 2003... The lawsuit over the collapsed GBP250m Oracle fund, which had been domiciled in the Bahamas, is expected to commence next week. The administrators, Ernst & Young, and shareholders which include HSBC and UBS are currently trying to gain...

IFA SimplyBiz to run seminars across UK.(Brief Article)
January 10, 2003... After launching in December, IFA service provider SimplyBiz is running a series of seminars across the country. The seminars start in Huddersfield on 9 January, then go to London, Bristol, Cambridge, Warwick, Newcastle and Glasgow. Matt...