Financial Advisor articles from January 2009

Financial Advisor archives from January 2009

Aifa to push FSA for long-stop rethink.
January 8, 2009... Byline: David Pawsey Trade body has 'compelling' evidence to back a cut-off point for complaints There is compelling evidence backing the introduction of a 15-year long-stop for complaints which could force the FSA to rethink its...

A word of caution.
January 8, 2009... Byline: Financial Adviser I am writing to express my concern with your misquotation of our chief executive, Mr. Ben Blackett-Ord, who is quoted in your article entitled "Bovill raises concerns about scheme sales" (FA, 27 November 2008)....

Tenet creates Paragon offshore company.
January 8, 2009... Byline: Joy Dunbar A professional indemnity insurance company has been launched by Tenet, amid fears providers will increase their rates in the current conditions. Paragon Insurance Company, which is domiciled in Guernsey, will ensure...

11% of Heritable Bank's mortgage book in arrears.
January 8, 2009... Byline: Catherine Couch Heritable Bank's administrators revealed the lender had inherent problems before the collapse of the Icelandic banks pushed it into administration as one in 10 residential mortgages were in arrears. According...

Arrests made in potential BTL fraud case.
January 8, 2009... Byline: David Pawsey Police have made several arrests as part of an investigation into a suspected multi-million pound fraud involving one of Britain's biggest buy-to-let schemes. Just before Christmas, it was reported that Morris...

Heart of Africa fund to remain suspended.
January 8, 2009... Byline: James Redgrave New Star has no timetable in mind for reopening its Heart of Africa fund, after new FSA rules allowed it to remain suspended indefinitely. The asset management company suspended the GBP29m fund on 7 December,...

Pru survey highlights down-beat adviser feeling.
January 8, 2009... Byline: Joy Dunbar and James Redgrave Advisers do not expect economic recovery during 2009, according to research by Prudential. The insurer also found more than two-thirds of advisers were uncertain about business and revenue growth...

Friends' CEO refuses to rule out takeover in '09.
January 8, 2009... Byline: Joy Dunbar Trevor Matthews says only the brave could dare predict the future of Friends Friends Provident has refused to rule out a potential takeover in the coming year. As the New Year began, Trevor Matthews, chief...

Rock shareholders plan protest ahead of hearing.
January 8, 2009... Byline: James Redgrave Disgruntled Northern Rock shareholders plan to tour London on a hired bus this month drumming up support for their legal action for compensation against the government. The event is set for the day before the...

Bravura finds solution to JP Morgan UK consolidation.(J.P. Morgan Alternative Asset Management Inc.)(Bravura Financial Services Inc.)(Brief article)
January 8, 2009... Byline: Catherine Couch JP Morgan Asset Management has completed the consolidation of all of its UK asset management lines onto a single platform, a move bosses said would create significant cost savings. The move was made with...

Ignis to outsource Japan desk.
January 8, 2009... Byline: Joy Dunbar Ignis Asset Management is to outsource its Japan equities desk citing the need to establish consistent returns in the sector, the asset manager said. Natasha Chetwynd, Japanese equities head, and Samuel Thawley,...

Invesco fund gets top scores in FundsNetwork popularity.
January 8, 2009... Byline: Joy Dunbar Invesco Perpetual High Income was the best selling fund sold through Fidelity FundsNetwork in 2008, the platform announced. David Dalton-Brown, head of Fidelity FundsNetwork, said most investors ran for cover in...

Portavista to feature MetLife retirement option.(Metropolitan Life Insurance Co.)
January 8, 2009... Byline: Emma Ann Hughes MetLife's Retirement Portfolio has opened to new business on Bankhall's Portavista platform in a deal that makes it the only unit-linked guarantee product available on the distributor's platform. Advisers...

Suisse deal leaves Aberdeen staff in lurch.
January 8, 2009... Byline: David Pawsey Aberdeen Asset Management was unable to give any commitment to the future of staff following the acquisition of part of Credit Suisse's Global Investors business. Last week, Aberdeen announced it had reached an...

Homeowners batten down hatches for 2009.
January 8, 2009... Byline: Hal Austin Leader II In the mad search for the next retail business to go into administration, most of us missed the release of Bank of England figures which speak directly to the growing financial literacy of Britons. ...

Britons fail to rate protection insurance highly - poll.
January 8, 2009... Byline: David Pawsey Only a third of British consumers would consider cutting back their monthly expenditure to fund protection insurance as the credit crunch rolls onto a new year, according to Zurich. Research conducted by the...

Lifting Isa limit is key to raising UK savings - ABI.
January 8, 2009... Byline: David Pawsey The Isa limit needs to be increased to GBP10,800 a year as soon as possible, according to the Association of British Insurers. With more than 13m working people not saving enough for their retirement - according...

Gov't delays Equitable Life pay-outs.
January 8, 2009... Byline: David Pawsey Equitable Life has hit out at the lack of a government response to regulatory failures that contributed to substantial losses for the insurer's policyholders. In a 2800-page report that took four years to compile...

Nucleus ditches continental venture.
January 8, 2009... Byline: Emma Ann Hughes The plug has been pulled on running the first Pan-European group of regulated intermediaries as a network, with bosses blaming the financial crisis and increased regulatory costs. Vincent Derudder, secretary...

Threesixty urges IFAs to raise RDR concerns.
January 8, 2009... Byline: Emma Ann Hughes IFAs must step-up their opposition to the retail distribution review's proposal to extend the expenditure-based capital adequacy requirement to small IFAs and force them to hold GBP20,000, according to Threesixty....

McFall falls down on adviser qualifications.
January 8, 2009... Byline: Mr Katz Letter to the Editor The redoubtable MP John McFall has been at it again. Good at soundbites, weak on logic. So QCA level four is not high enough - yet too complicated for sales advisers - now there's a thought (or does...

When lenders behave badly.(Brief article)
January 8, 2009... Byline: Hal Austin Leader I Something is seriously wrong with the retail financial sector when a mortgage borrower, who has met all the conditions of the loan, including repayments, can still have his home repossessed by the lender...

Confidence in IFAs reigns supreme, finds survey.(Institute of Financial Accountants)(Brief article)
January 8, 2009... Byline: Emma Ann Hughes Nine out of 10 IFAs polled by Sesame believe the positive long-term relationships they have with their clients will be unaffected by the negative fall-out from the credit crunch. When asked to what extent...

Rics: House prices to fall a further 10%.
January 8, 2009... Byline: Catherine Couch House prices are set to fall a further 10 per cent in 2009 but sales are set to increase by just as much, according to the Royal Institution of Chartered Surveyors. In its latest housing market forecast Rics...

Pink backs mortgage indemnity guarantees.
January 8, 2009... Byline: David Pawsey Pink Home Loans is calling for the government to consider sponsoring mortgage indemnity guarantees to encourage lenders to offer higher loan-to-value products. A mortgage indemnity guarantee is insurance that...

Corporate bond yields are looking up, says Henderson.
January 8, 2009... Byline: Catherine Couch Multi-managers are likely to switch their propositions to incorporate more investment grade corporate bonds this year, according to Henderson Global Investors. Bill McQuaker, head of multi-manager and head of...

When opportunity comes knocking.
January 8, 2009... Byline: Tim Sargisson As depression sets in and the number of asset classes shrink, investors will flee to quality advice Expect 2009 to be a year of opportunity for the IFA sector in the UK, and by IFA I mean the whole of market,...

When pension funds head south.
January 8, 2009... Byline: Andrew Clare Two forecasts of a low-growth decade for Britain paint a beak picture for defined benefit schemes Financial markets are currently pricing in a quite dire outlook for the UK economy, so we thought we would start the...

F&C review could see 100 jobs cut.
January 8, 2009... Byline: David Pawsey Up to 100 jobs could be at risk following an announcement by F&C that it was looking to reduce its annual costs by a further GBP15m. In a statement to the City on 17 December the asset manager said it aimed to...

FSA fines two private investors for market abuse.
January 8, 2009... Byline: David Pawsey Two private investors have been fined by the FSA for market abuse after they acted on inside trading information. Stewart McKegg, born on 24 September 1954, and Brian Valentine Taylor, born on 12 February 1950,...

FSA proposes scrutiny of approved person regime.
January 8, 2009... Byline: David Pawsey Directors of high impact firms will face increased scrutiny in the coming year as the FSA proposes a shake up of the approved person regime. In a consultation paper published at the end of last year the City...

Follow the lead to return unclaimed assets - Norwich.
January 8, 2009... Byline: David Pawsey Norwich Union is calling on the financial services industry to follow its lead and return unclaimed assets to customers. Since the provider's announcement in 2007 of its intention to return GBP40m to 40,000...

FSCP tells FSA to get its house in order.
January 8, 2009... Byline: David Pawsey Consumer rights are in danger of being eroded by an FSA discussion paper, according to an independent body set up by the regulator. During the Christmas holidays, the FSA published a paper aiming to explore the...

Insurers ask for clarification over DWP proposals.
January 8, 2009... Byline: David Pawsey Further consultation by the department of work and pensions must eradicate any ambiguity for employers about age discrimination and flexible retirement, according to Standard Life and Aegon. In December the DWP...

Mystery Shopper: Swindon.
January 8, 2009... Byline: Girlie Garduce Swindon is the destination this week as our mystery shopper explores the market's appetite for mortgages in the New Year. This week our mystery shopper is enquiring about mortgages. She is looking to become a...

A&L comes to the rescue.(Alliance & Leicester PLC)(Brief article)
January 8, 2009... Byline: Melanie Tringham Insider Where did all the Christmas presents go? Each year, Financial Adviser is inundated with presents to oil the wheels of the festive season - as every hack knows, the copy flows more easily after a...

Get out there and spend, spend, spend.(Consumer spending)(Survey)(Brief article)
January 8, 2009... Byline: Melanie Tringham Insider It seems like all those attempts by the retailers to get us to part with our money at Christmas is falling on deaf ears. According to Abbey, people are choosing the cheaper brands over the more...

Picking at the bones of indebted clients.
January 8, 2009... Byline: Melanie Tringham Insider We have all been told to adapt to the rapidly changing economic circumstances, but turning oneself into a vulture seems a step too far. One company, called Open Door Debt Solutions, is suggesting...

Counting the cost of IHT avoidance.
January 8, 2009... Byline: Mr Chris Dineen Letter to the Editor I cannot believe that at a time when the economy is in recession and unemployment is due to rise to 2m-plus that a few, obviously very wealthy, individuals want to raise the issue of...

New Star's folly is hurting retail investors.
January 8, 2009... Byline: Mr Valentine Letter to the Editor Without wishing to add to the woes of New Star and its people at this very difficult time, I do think that some of the decisions taken in the run-up to the suspension of the International...

One foot in the grave.(Letter to the editor)
January 8, 2009... Byline: Mr Dave Harris Letter to the Editor; Letter of the Week Two things in the last couple of weeks have made me come over all Victor Meldrew. First, amongst other things, I advised some new clients last week to top up their...

Waters to give keynote speech at ABI conference.(Conference news)
January 8, 2009... Byline: Catherine Couch Advisers can hear the industry's thoughts on the next steps in implementing the retail distribution review at a Association of British Insurers event held on 16 January. Dan Waters, director of retail policy and...

Cashflow woes see Prestbury hit with wind-up order.
January 8, 2009... Byline: Catherine Couch Prestbury Financial Limited has been presented with a petition to wind up the company after it was unable to pay clawback commissions. In a statement released to the London Stock Exchange just before Christmas,...

Lending figures down 51% since last year.(Brief article)
January 8, 2009... Byline: Catherine Couch Gross mortgage lending has more than halved in the last year, according to the Council of Mortgage Lenders. The CML's statistics showed gross mortgage lending reached an estimated GBP14.6bn in November, a 22 per...

CII looks away from down under.
January 8, 2009... Byline: David Pawsey The CII's relationship with the Australian and New Zealand Institute of Insurance and Finance has been "tainted" after merger plans fell through at the last minute, the organisation has claimed. Members of the...

Tricks of the trade.(Customer relations)
January 8, 2009... Byline: Ian Thorneycroft When you cannot afford to lose clients, you need to make sure that you are doing everything you can to convince them to stay on with your service I often fondly remember the good old days when all we needed to...

Let's make this interesting...
January 8, 2009... Byline: Peter Done The morale of your employees is considered critical towards achieving the best results out of your workforce, leaving employers looking for more ways to keep the staff happy without spending too much money Q: I run...

Money's too tight to mention.
January 8, 2009... Byline: Mike Morrison The sale of company-owned property to a pension fund could provide much-needed capital at a time when borrowing costs the earth There is no doubt that we are going through difficult economic times at the moment...

Gone fishing.
January 8, 2009... Byline: Philip Ryley Regulation column Just when you thought it was safe to get back into the water, cruising the regulatory ocean is another scary big fish. Yes, another pensions transfer scare is upon us. This one is about the...

Going after the wrong people.(Investment management)
January 8, 2009... Byline: Peter McGahan Is the RDR really going to make much difference? Questions: Where do most people buy an insurance/investment product from? Where are you most likely to complain about the advice you receive? Where are you most...

Looking beyond the mortgage sector's annus horribilis.
January 8, 2009... Byline: Jonathan Cornell Lenders will be glad to say goodbye to 2008, but continued uncertainty remains for the New Year I seriously doubt that many of us will look back on 2008 with many happy professional memories. It was an annus...

The great big cover-up.
January 8, 2009... Byline: Nick Kirwan When times are tough people turn to protection, which is why the insurance industry has high hopes 2009 will see a pick-up in sales In these times of economic uncertainty, with redundancies on the rise and many...

FSA is looking to get tough.
January 8, 2009... Byline: Jonathan Davies With depression set to cast as a dark shadow over 2009 expect the FSA to step-up its vigilance 2009 is likely to be dominated by the continuing fall-out of the credit crunch and economic crisis and the...

Base rate drop on the cards for January.
January 8, 2009... Byline: David Pawsey A bigger base rate reduction could be on the cards as last month's 100 basis point cut to 2 per cent satisfied a "minimum requirement," according to the Bank of England. In a unanimous decision, which saw all nine...

Getting ripped off.
January 8, 2009... Byline: Anthony Riem With conditions ripe for committing fraud, victims of financial deception are having to consider whether they have any legal remedies available to combat an unforeseen turn of fate The news that Bernard Madoff, a...

This time, it's for sure.
January 8, 2009... Byline: Tim Collyer Another attempt to see through the uncertainty of the months to come Forecasting anything in this industry is dangerous and can result in a large serving of humble pie. This time last year, investment markets...

If you could do it all over again...
January 8, 2009... Byline: Rebecca Seabrook With the fog still clouding the short-term effects of the crisis, things might be a little clearer for the longer term 2008 has been an exceptional and turbulent year, the credit crunch and slowing economic...

Mis-selling of PPI needs collective redress, says Fos.
January 8, 2009... Byline: David Pawsey Complaints made to the Financial Ombudsman Service have been buoyed by media campaigns about specific issues such as mortgage payment protection insurance, Fos revealed. Prior to Christmas, the Fos reported a...

Countdown to ABI conference on the RDR.(Association of British Insurers)(Retail Distribution Review)(Conference news)
January 8, 2009... Byline: Emma Ann Hughes There is now just two weeks to go until the Association of British Insurers' (ABI) conference on the Retail Distribution Review (RDR), held in association with Financial Adviser. The event, entitled 'Building a...

Credit Suisse takes stake in Aberdeen Asset Mgt.
January 8, 2009... Byline: Emma Ann Hughes Credit Suisse is set to take a 25 per cent stake in Aberdeen Asset Management, it has been confirmed. In a statement issued late last night, Aberdeen Asset Management confirmed it had reached an agreement with...

Equitable hits out a "cruel" government for failure to apologise.
January 8, 2009... Byline: Emma Ann Hughes Equitable Life bosses have hit out at the "cruel" government for failing to apologise to policyholders this year as was originally promised. In an open letter, sent to Financial Adviser, Vanni Treves, chairman...

Two mortgage brokers banned by FSA for compliance failings.
January 8, 2009... Byline: David Pawsey Two mortgage brokers have been banned by the Financial Services Authority (FSA) for compliance failures today (Tuesday 23 December). Andrew David Bowden, trading as Scott Jarrett Bowden and Partners (SJB), of...

A&L unveils new fixed rate and tracker mortgages.
January 8, 2009... Byline: David Pawsey Alliance & Leicester (A&L) is launching a number of new fixed rate and tracker mortgage products tomorrow (Tuesday 23 December.) Highlights of the new range include a two-year fixed rate product available for a 2...

Prestbury hit with winding up petition.(Prestbury Financial Limited)(Brief article)
January 8, 2009... Byline: Catherine Couch Prestbury Financial Limited (PFL) has been presented with a petition to wind up the company after it was unable to pay clawback commissions. In a statement released to the London Stock Exchange this morning (18...

NU follows commission rate drop trend.
January 8, 2009... Byline: David Pawsey Norwich Union has announced it is to reduce the single premium and transfer commission available on its Your Pension Select and stakeholder scheme. From 26 January, the provider will reduce the amount of...

Standard injects a further GBP1.75m in 2plan.
January 8, 2009... Byline: Catherine Couch Standard Life has injected a further GBP1.75m of funding into national IFA 2plan Wealth Management. The Edinburgh-based provider took a 15 per cent stake in 2Plan in 2007, including an initial GBP4m investment...

IMA welcomes gov't tax status certainty on UK funds.
January 8, 2009... Byline: Catherine Couch The government's proposals for fund tax reform will make UK funds more appealing, according to the Investment Management Association. HM Treasury has announced three sets of proposals on fund tax reform and a...

Islamic Bank of Britain targets intermediaries.
January 8, 2009... Byline: Catherine Couch The Islamic Bank of Britain has launched a dedicated website targeted at mortgage advisers and IFAs. The website provides advisers with a resource enabling them to re-sell the Islamic Bank of Britain's range of...

Investments unaffected by IMA sector split - T Bailey.
January 8, 2009... Byline: Catherine Couch Multi-managers are unlikely to change their propositions as a result of the Investment Management Association's splitting of the UK Equity Income sector according to Elliot Farley, senior analyst for T Bailey. ...

Bond yields to rival UK equities in 2009, says Maia.
January 8, 2009... Byline: Catherine Couch Retail investors seeking an income in 2009 will not be spoilt for choice, according to Simon Munghall, partner for specialist multi-manager boutique Maia Capital. Mr Mungall said UK equities, the traditionally...

Banks to be proactive: BBA.
January 8, 2009... Byline: Girlie Garduce Banks have offered to help small businesses during the economic downturn, but warned they would not support companies that felt were economically unsustainable. Banks have offered to help small businesses during...

Financial advice spreads its wings.(CherryFind)(Brief article)
January 8, 2009... Byline: Girlie Garduce Financial advice made easier for deaf and hard of hearing individuals Consumers who are deaf or hard of hearing are now able to access an online searchable database for financial, mortgage and insurance advice....

Cazenove to seek defensive stocks in 2009.(Cazenove Capital Management)(Brief article)
January 8, 2009... Byline: David Pawsey Cazenove Capital Management will steer clear of commodities as the economy shrinks further in the coming year. Robin McDonald, co-head of Cazenove's multi-manager, said he would be focusing on defensives in 2009....

FSB calls on banks to stop Scrooge-like tactics.
January 8, 2009... Byline: Girlie Garduce Survey finds that SMEs are suffering under banks' harsh lending conditions, says FSB Despite the government's bailout of the banks, the nation's top lenders are reluctant to extend credit to small businesses on...

Voluntary code will not reverse 'late payment culture'.
January 8, 2009... Byline: Girlie Garduce Graydon UK says government's industrywide code is "highly unlikely" to help SMEs' cashflows The launch of a voluntary code to encourage speedy payment of bills between businesses is not the remedy to speed-up...

Meteor unveils FTSE 100-linked kick-out plan.
January 8, 2009... Byline: Girlie Garduce Growth plan offers a potential 14 per cent return in year one of six-year plan, says Meteor AM Meteor Asset Management will kick-start the new year by launching a six-year and 14-day kick-out growth plan linked...

"Private medical insurance is too expensive, has not provided value for money and premiums consistently increase way above inflation".
January 8, 2009... Byline: Girlie Garduce Andy Dean, founder and chief executive of HealthFund, speaks to Girlie Garduce about how he is going about alleviating the complexities of private medical insurance and what it is like being the new kid on the block...

Aifa to pursue Fos funding restructure.
January 15, 2009... Byline: Catherine Couch A reduction in the Financial Ombudsman bill for IFAs was on the cards as Financial Adviser went to press, but the Association of IFAs revealed it will still demand an overhaul of the way the service is funded. ...

Reluctant fundamentalists.
January 15, 2009... Byline: Andy Milburn A fundamental belief in the product is key to selling protection insurance during a downturn House prices are falling, mortgage sales are in decline and as a result there is a seemingly obvious fall in the number...

Keeping our noses clean.
January 15, 2009... Byline: Bryce Sanders As part of their day-to-day duties advisers must be prepared to take any number of calls - all the while balancing the offer of sound advice with not making comments that may be misconstrued later Queen Elizabeth...

IMA welcomes Ucits IV directive.
January 15, 2009... Byline: Joy Dunbar The European parliament has passed the Ucits IV directive which lays down common requirements for the organisation and management of funds. The Investment Management Association welcomed the move, which defines a...

Court told Rock shares compensation is 'derisory'.
January 15, 2009... Byline: Roger Pearson It is disproportionate that all Northern Rock's profit should be enjoyed by the government and none by the shareholders, the high court was told on Tuesday morning. The comments came as shareholders in...

PFS membership up 4.4% in 2008.
January 15, 2009... Byline: Emma Ann Hughes The Personal Finance Society's membership continued to grow last year despite the downturn in the economic climate, the professional body reported. At the end of 2008 the society had a membership of almost...

KPMG still waiting for Edeus' debts proof.
January 15, 2009... Byline: David Pawsey Edeus' administrator is still waiting for proof of debts from creditors three months after being assigned to sort out the lenders' affairs. A statement of affairs published by KPMG revealed Edeus had debts...