Financial Advisor articles from January 2007

Financial Advisor archives from January 2007

Insurers need to act now, says ex-ABI man.
January 11, 2007... Byline: Former director slams FSA 'hostility'and warns industry to be more inventive Protection A former senior official at the Association of British Insurers has slammed the City regulator for being hostile to the insurance industry....

Zurich highlights IHT opportunities for IFAs.
January 11, 2007... The complexity of inheritance tax planning is providing IFAs with opportunities to add value to customers'experiences, according to Zurich UK. The research into how prepared people in the UK are when it comes to IHT has revealed that...

The impact will all be in the delivery.
January 11, 2007... The Bank of England Monetary Policy Committee remains vigilant about the position on expectations of inflation and how these expectations might affect behaviour in both spending decisions and wage bargaining. One factor here is that while the...

Reality trumps statistics.
January 11, 2007... There are lies, apparently, damn lies and then there are statistics. It is interesting to see, therefore, two reports published looking at the state of the first-time buyer market for the past year and for the 12 months ahead. First of all...

A widening of the horizon.(regulations on mortgage funding)
January 11, 2007... Byline: The Treasury's offshore rule change should lead to cheaper mortgages as a result of more wholesale funding In his address to the Building Societies Association annual lunch on 9 November 2006, Ed Balls, economic secretary to the...

A question of trust.(market research of mortgage sector)
January 11, 2007... Byline: Despite being seen as susceptible to fraud, self-certification is actually a well protected part of the market In the past 20 years, self-certification products have repeatedly proved their worth in the mortgage market and look set...

Bright young things.(Mortgage Advice Bureau report on home buying)
January 11, 2007... Byline: First-time buyers are struggling to get on the property ladder, so lenders are developing mortgages to help Last year, the Mortgage Advice Bureau reported that the number of first-time buyers taking out 100 per cent or higher...

The take-off has started.(equity market)
January 11, 2007... Byline: Advisers risk losing out on business by not offering equity release products The equity release market has seen significant development and increased in size quite dramatically in the past 10 years. This growth is not a passing fad...

'Living loners'set to rule housing market.
January 11, 2007... Byline: Alliance & Leicester finds the industry has to adapt to changing lifestyles Demographics The housing market will be dominated by "Bridget Joneses"in the next 20 years, according to Alliance & Leicester Mortgages, although some...

Lloyds offers low start for borrowers.
January 11, 2007... Lloyds TSB is offering a fixed-rate of 1.99 per cent for a year with its Low Start mortgage. The rate will stay fixed until 29 February 2008, before it moves to a rate of 5.99 per cent until 29 February 2012. After the five-year period,...

Homeowners at threat of payment hike.
January 11, 2007... More than 300,000 homeowners should brace for large hikes in their mortgage payments when their current deals finish, according to Mform. The mortgage comparison website is claiming that mortgage payments could increase by up to AGBP140 a...

Nine Reit conversions create AGBP33bn market.
January 11, 2007... Nine quoted companies converted to real estate investment trust status on 1 January, instantly creating a market worth some AGBP33.4bn. As a result, the FTSE Group has launched an index to help track the market - the FTSE Epra/Nareit UK...

Scot Friendly enjoys boom in business.(Scottish Friendly Assurance)(Brief article)
January 11, 2007... New business at Scottish Friendly reached AGBP7.9m last year, a 27 per cent rise on new business done in 2005. The performance of Scotland's largest mutual life office was in contrast to a general downturn elsewhere in the market. The...

Top flight departures rock finance sector.
January 11, 2007... Two high-profile resignations shook the industry in the last week. Tony Jones resigned as managing director of Pink Home Loans while at St James's Place Mark Lund stepped down as chief executive. The resignation of Mr Jones was said to be...

Lib Dems lead call to scrap CTFs.
January 11, 2007... Byline: As gov't declares 2.5m CTF accounts have been opened, MPs voice fears the scheme will not be properly used Investment A leading opposition MP has called for the child trust fund scheme to be scrapped despite nearly 2.5m CTF...

Heritable joins forces with Ami.(Heritable Bank joins Association of Mortgage Intermediaries.)(Brief article)
January 11, 2007... Heritable Bank has become the latest lender to join the Association of Mortgage Intermediaries. The association now has about 40 fee-paying associate members, a position which provides lenders with a window on the mortgage broker...

Advisers fall behind in technology stakes.(Brief article)
January 11, 2007... Nearly half of intermediaries still do not use laptops, and a further 15 per cent do not use office PCs, research has revealed. Take-up of other technologies has been even slower; just 8 per cent of intermediaries use pocket computers and...

Return of fractional investment looks to eclipse Reits'popularity.
January 11, 2007... Investment Fractionals are hot investments and could eclipse Reits in terms of popularity in the UK, according to a property expert. Fractionals are a type of timeshare that gives part ownership of the deeds of a property. They can...

End of trust loophole spells "tax nightmare", according to Skandia.(Brief article)
January 11, 2007... The government's proposals on tax gifts given to minors through absolute trusts has been labelled a "tax nightmare"by Skandia. The company claimed closing the loophole will effectively create a stealth tax on children. Following last...

IFAs 'bearing brunt'of Treasury's PTA U-turn.
January 11, 2007... Byline: Positive Solutions claims it is advisers not providers who have had to pay Legislation IFAs rather than providers have borne the brunt of the Treasury's U-turn on pensions term assurance, according to national IFA firm...

Gov't to share its info with credit groups.
January 11, 2007... The government plans to share confidential details on all UK citizens with the private sector in the latest development in the war against identity theft, it has been revealed. The break with tradition will be the biggest shift towards a...

Openwork marks eConveyancer year.
January 11, 2007... Mortgages Online conveyancing provider eConveyancer has paid IFAs at Openwork more than AGBP500,000 in referral fees since the two companies began working together last January, according to the network. Electronic conveyancing is...

Responsibility for any flaws 'lie with lender'.
January 11, 2007... Byline: Ami seeks to end disparity between lenders and intermediaries in response Regulation Members of the Association of Mortgage Intermediaries must address the asymmetries between lenders and intermediaries to give accurate advice...

Insolvencies to rise after festive spree.
January 11, 2007... A record number of insolvencies is expected in the first quarter of of this year, as Britons recover from their Christmas overspend. Grant Thornton's personal insolvency practice is expecting 30,000 personal insolvencies in the first three...

Amber opens range up to mutuals.
January 11, 2007... A joint venture of smaller building societies is moving into the specialist lending segment in conjunction with Amber Homeloans. The initiative is being launched with a marketing campaign called Step Inside A Mutual. It means that...

Zurich buys out specialist student insurer Endsleigh.
January 11, 2007... Zurich has bought the remaining shares in the insurance intermediary Endsleigh. The deal includes Endsleigh Financial Independent Tailoring which employs 30 IFAs and will continue to operate independently from Zurich. The company...

HMRC is to clarify contribution rules.(HM Revenue and Customs)
January 11, 2007... Byline: Updated guidance to be released in the next four weeks Pensions The government is set to issue comprehensive guidance on the post A-Day tax rules for employers'contributions after calls for greater clarity. HM Revenue &...

Drop class three NI allocations for wealthy clients, claims L&G.
January 11, 2007... IFAs need no longer advise wealthy clients who do not work to pay a voluntary national insurance contribution, according to an expert. Each year, HM Revenue & Customs writes to millions of non-working people inviting them to pay voluntary...

Banks on top for interest only, Defaqto reports.(Brief article)
January 11, 2007... Banks remained the cheapest interest-only mortgage lenders in 2006, research has revealed. HSBC and Intelligent Finance took the top two places in a ranking of standard variable rate mortgages, or their equivalents, as they did in the 2005...

Crash to 'hit buy-to-let hardest'.
January 11, 2007... Byline: David Miles, chief UK economist of Morgan Stanley, predicts a house price crash will hurt buy-to-let investors first housing The buy-to-let market will be one of the first victims in a house price crash, according to David...

First-timers rush to join property ladder.(Brief article)
January 11, 2007... Mortgages The number of first-time buyers jumped sharply in December, increasing by 11 per cent, according to the latest Mortgages Direct monthly survey. The specialist lender has attributed the results, which are the highest level...

CESR lays out MiFID practicalities.
January 11, 2007... Byline: A consultation paper published by CESR will be followed by an FSA report on how best to implement directive Regulation The Committee of European Securities Regulators has published a consultation paper on the practical aspects...

Swip adds funds to Skandia and Selestia's platforms.
January 11, 2007... Scottish Widows Investment Partnership has launched its funds on the Selestia and Skandia platforms. The core funds are available in a range of tax wrappers provided by Selestia and Skandia and the move brings the number of platform...

Society sector faces five mergers, claims Deloitte.
January 11, 2007... Byline: Company makes claims based on talks with societies and clients in its second sector update Predictions Five building societies are likely to merge in 2007, according to Deloitte's second Building Society Update. The...

Vision of Pan-European banks must be tied to service - report.
January 11, 2007... The Deloitte report has presented a radical vision of the future and urged building societies to learn from consumer-led business models in the US. In the opening report in Deloitte's Building Society Update, the consulting firm predicts...

HMRC and Brown helping fuel Sharia growth.
January 11, 2007... Gordon Brown's stated aim to make Britain a centre for Islamic finances could open up a new market for building societies. Part of Deloitte's Building Society Update - A New Centre For Islamic Finance in Europe - tackles the issues and...

Securitisation sector to grow in spite of the high entry barriers.
January 11, 2007... With investors showing great interest in buying lenders'mortgage books, the securitisation market looks set to rise. According to Deloitte, securitisation will become relevant to several societies but warns that there is no easy route in....

React now, society chiefs told.
January 11, 2007... Senior building society directors should put Basel Pillar 2 European regulation at the top of their agenda for 2007. The Deloitte report described Basel Pillar 2 as "make or break"for financial institutions adding: "Make no mistake. This...

Brokers face accusation of exploiting PPI market failings.
January 11, 2007... Brokers and intermediaries come in for a roasting in Deloitte's Building Society Update. The section of the report entitled the future of Payment Protection Insurance accepts the FSA's criticisms of PPI but places the blame for any flaws...

Defaqto teams up to boost Engage.(Assureweb)
January 11, 2007... Byline: Research group hopes joining forces with Assureweb will help advisers to save valuable time obtaining quotes Development Research specialists Defaqto has joined forces with provider-backed online portal Assureweb to provide...

Synaptic Systems wins Sifa support.(Brief article)
January 11, 2007... IFA technology provider Synaptic Systems has won the seal of approval from Sifa, the support group for IFAs working with law and accountancy. As well as being one of the only IFA technology providers to receive acknowledgement from a trade...

Threesixty opens web service to Bright Grey.
January 11, 2007... Advisers will now be able to access Bright Grey's life products through Threesixty's online protection panel quotation service, due to an agreement between the two companies. The service is available free to IFAs subscribed to the network...

Barclays is set to offer tracking 'at a glance'.
January 11, 2007... Barclays has launched a business-tracking service enabling IFAs to find how a case is progressing online, without having to call helpdesks, log on to extranets or email providers. The new service from data provider Assureweb follows recent...

Our point is we are the only mutual that can challenge high street banks.
January 11, 2007... Financial Adviser: How will the merger with the Portman Building Society affect your role within Nationwide? Stuart Bernau: We will have a new structure within Nationwide and I will be taking control of the member-facing part of the...

The debt hangover.
January 11, 2007... According to even the most conservative assessments, it is estimated that about 30,000 people will declare themselves insolvent in the first three months of the year, after over-indulging in the weeks leading up to Christmas and in the...

Ignore doomsayers.(forecasts for mortgage sector)(Brief article)
January 11, 2007... A belated prosperous New Year to you and heartfelt thanks for your support throughout 2006. Last year was a remarkable one, especially for the mortgage sector, with its continuing stellar performance, and all predictions suggest this year will...

A New Year to stop crises and closures.(Viewpoint essay)
January 11, 2007... It was a quiet New Year's Eve in the Prestridge household. A knees up down the local hostelry - a wonderfully camp and joyous public house - was not for us this year. Instead, while the boys played upstairs on their assortment of X-boxes,...

Living in past performance.(financial markets in 2006)(Column)
January 11, 2007... Wise investment begins at home At a drinks party over Christmas I fell into conversation with an economist who offered his views on IFAs. He has a couple who are close friends but he does not think much of their advice - they just seem to...

A mountain of paper to climb.
January 11, 2007... It will be of no surprise to many that the statutory regulation of financial services has produced quite a lot of paper in the past five years. The cost of providing disclosure, in terms of both time and money, is an area of concern. You...

Forget predictions, concentrate on advice.(financial markets in 2007)(Column)
January 11, 2007... This is my first column of the New Year, but what shall I write this time? I cannot do New Year's resolutions because I did that last year and that would be boring. Although, for the record, I now ride a motorbike and have managed to avoid...

Eat, advise and be very merry.
January 11, 2007... We all know what upstanding members of the community financial advisers are, although even their staid exterior slips a bit after a couple of glasses of rocket fuel masquerading as mulled wine during the festive season. In fact, one end of year...

Norwich Union decides to take the biscuits.
January 11, 2007... You know when the world is starting to take an issue seriously when the financial services sector gets involved. Norwich Union is now asking itself whether money can be made out of the obesity epidemic. While government officials fret...

You can change the laws of physics.
January 11, 2007... Insider wonders about the true extent of the magic of television after catching an HSBC advert on the box over the festive period. A nearly flawless advertisement but it was scuppered at the eleventh hour by the fundamental laws of physics....

Liv Vic fund surges to AGBP13,000.(Brief article)
January 11, 2007... The prize fund in Liverpool Victoria's mimi promotion, run in conjunction with Financial Adviser, has surged to AGBP13,050. The total increases every time an adviser tries out the online demonstration for their protection processing tool....

Getting the house in order.
January 11, 2007... Britain's love affair with property looks set to continue, with people continuing to accumulate record levels of mortgage debt, despite concerns that house pri-ces are at their most over-valued for 15 years. House prices have raced away...

Keeping sharp on the cutting edge.
January 11, 2007... Byline: Embracing technology will ensure IFAs are prepared for any turn Last year, I said the lifetime mortgage market gradually increased during 2005 and I expected this to continue growing in 2006 as more members of the public become...

The long arms of the lawmaker.
January 11, 2007... Byline: The FSA spent the year preparing for MiFID and the principles-based regulation move It was a busy year from a regulatory perspective. In January, the Investment Management Association unveiled a revised Statement of Recommended...

Rolling with the good days.(trends of financial markets)
January 11, 2007... Byline: Markets are continuing to rise and for once the FSA's regulations are approved of. So, can this carry on? Being an IFA over the past year has surprisingly been easier. Being a business owner has not. Markets have climbed even higher...

The markets keep on moving up in the world.
January 11, 2007... Byline: Equity, bond and property markets had a good year Even though markets have made progress in the past year, valuations have continued to contract. Late in the first half of the year, an abrupt change of course by the Bank of Japan...

Backwater is now boiling with changes.
January 11, 2007... Byline: Waves of legislation and consultation are set to disturb the placid area of pensions Pensions have moved from being a sedate backwater to a fast-moving environment over the past few years. The pace of change is accelerating and it...

Challenges are overcome, but fresh tests lie ahead.
January 11, 2007... Byline: The protection industry tackled the FSA's doubts over critical illness cover as it moved into the spotlight Looking back on the issues that were anticipated for last year, it becomes obvious that the protection industry, providers...

Only the foolhardy ignore omens of change to come and fail to prepare.
January 11, 2007... To judge by the FSA's priorities, covered in the speech by Clive Briault, managing director of retail markets for the watchdog, the industry can expect more of the same with regards to regulation this year. The exception is that both retail and...

Shape up to fit in a new niche.
January 11, 2007... Byline: The changing face of the industry means that the ability to change will prove vital It is impossible to review last year and look forward to the next without a tribute to Gordon Brown, whose contribution to the gaiety - if not the...

Protect your future.
January 11, 2007... Byline: When choosing a trust to benefit heirs, the client must be careful not to receive an inheritance tax sting For many years, life companies have made trust wordings available for use with investment bonds. The choice has slightly...

Metlife launch limps into market.(MetLife Insurance Co.)
January 11, 2007... Byline: US life insurer plays downs reports that it missed several launch dates for UK guaranteed retirement offerings Protection The largest US life insurer Metlife has admitted its launch into the UK market has been hampered by...

Baring Russia fund could be 'too volatile', claims Origen.
January 11, 2007... n INVESTMENTS A new Russia fund launched by Baring will be too risky for many mainstream investors, according to Origen. The Baring Russia fund has been converted from the New Russia fund, which was released by Baring in March 1997. ...

mortgages.(Product/service evaluation)
January 11, 2007... Fixed Rate mortgage Saffron building society Type: Fixed-rate mortgage. Description: This new fixed rate mortgage is offered with no extended tie-in at a fixed rate of 5.85 per cent for a loan-to-value of 95 per cent - or 90 per...

Savings.
January 11, 2007... Fixed-rate ISA bonds Nationwide Building Society Type: One, two and three-year fixed-rate Isa bonds. Details: The bonds include one, two and three-year fixed-rate mini-cash Isas. All products pay either 5.3 per cent a year or 5.15...

Selestia raises flexibility.(Brief article)
January 11, 2007... n Selestia has made regular contributions available on its Collective Retirement account. All relevant application forms, including the debit mandate, are available online and the website has been updated to allow IFAs to transact online...

Fidelity confident of Isa rush.
January 11, 2007... n An increase in web traffic will contribute to a record Isa season, according to Fidelity FundsNetwork. The investment platform said thousands more advisers and consumers logging on to check the performance of their existing investments...

L&G extending bond offer.
January 11, 2007... n Legal & General has extended its portfolio bond special offer, which gives clients an extra 1 per cent allocation or 1.5 per cent if investing with Cofunds, to 30 April 2007. The minimum new and additional permitted investment is AGBP5000...

Aifa backs gov't plans to cut red tape burden on industry.
January 11, 2007... Byline: Trade association finds government's plan to cut red tape draws comparison to the FSA simplification process Regulation The Association of IFAs has welcomed plans to slash 25 per cent of government red tape by 2010. Fay...

Workplaces should encourage a healthier lifestyle, says Nice.
January 11, 2007... Health Employers must do more to ensure their workers are fit and healthy, according to a report from the National Institute for Health and Clinical Excellence. It said businesses can help fight obesity by changing policies and...

Employers need to help beat blues.
January 11, 2007... Employers are being urged to take note of what effects post-Christmas financial hangovers and longer-term financial burdens may have on staff. A report from the Chartered Institute of Personnel and Development, entitled Workplace Financial...

NPSS changes raise concerns.
January 11, 2007... Just under a third of small and medium-sized business owners believe national pension savings scheme changes will result in the levelling down of company pension schemes, as companies seek to reduce their contributions in line with the...

L&G guidance to smooth path for employers over age regulations.
January 11, 2007... Legal & General has produced the second special update for IFAs on the implications for group risk benefits following the introduction of age discrimination regulations. The rules came into effect on 1 October and the update builds on the...

Casting for the perfect catch in the talent pool.
January 11, 2007... The financial services sector is certainly an exciting place for everyone concerned. Even though the FTSE is still some way from reaching its all-time high of 6930.2 in December 1999, the sector is taking on staff at the fastest rate for at...

Wheels of fortune keep on spinning.
January 11, 2007... Monday I take the children to school and we park about a quarter of a mile away to walk the final length. This allows my daughter Lauren to go through the routine of shouting and waving to her friends then racing her brother, Thomas, to...

Small firms under fire after mortgage probe.
January 11, 2007... Byline: Small networks and advisers at risk of giving 'unsuitable'advice, says FSA Regulation More than three-quarters of small mortgage networks and advisers visited by the FSA in a wide-ranging investigation did not have robust...

UK worst for state pension, says Aon.
January 11, 2007... The UK has the worst state pension provision in Europe, according to Aon's latest research. Aon Consulting's 2006 European Pension Barometer shows that despite the UK's pensions system coming sixth overall in a table of 25 European...

Massow drops his AGBP13m claim against Zurich.(Ivan Massow, Zurich Ifa Services)(Brief article)
January 11, 2007... Former IFA, entrepreneur and TV star Ivan Massow has dropped his AGBP13m legal claim against Zurich, but is still pursuing a smaller claim for damages. Alongside his much smaller claim - allegedly for some AGBP350,000 - Mr Massow said he...

Stalled careers stifle star staff.
January 11, 2007... Byline: Investors in People finds many quit over lack of progress Development IFA firms run the risk of losing their best performing members of staff because of a lack of promotion opportunities, according to Investors in People. ...

Students'shrewd selections secure lead in ifs competition.(Brief article)
January 11, 2007... A team of student investors made a AGBP3000 profit in one day during a fantasy stock market competition. The team, FTSE 5 Returns, from Ralph Thoresby High School in Leeds, outperformed 7600 other teams of school students from across the...

Enterprise flourishing - NatWest.
January 11, 2007... The entrepreneurial spirit is alive and well in British youth, according to a survey by NatWest. The Student Money Matters survey found that more than half of sixth formers - 60 per cent- and university students - 57 per cent- would...