Financial Advisor articles from July 2007

Financial Advisor archives from July 2007

Fraud case man sent to jail for contempt.
July 5, 2007... Byline: Former Ernst & Young Entrepreneur of the Year gets 18 month sentence fraud The businessman at the centre of a major multi-million pound mortgage fraud has been jailed for 18 months for contempt of court. Shahid Luqman,...

Services sector reports strong growth -" CBI.(Brief article)
July 5, 2007... The financial services sector enjoyed a third-quarter of strong growth, as business volumes increased but demand and profitability are set to weaken next quarter, according to the CBI quarterly survey of financial services. The report...

Fee-only 'not the only way'.(Brief article)
July 5, 2007... Fees Cavendish Young, a London-based IFA firm, has taken a stance over the disclosure of fees to clients in a bid to avoid a fee-only route for the financial services industry. Mark Estcourt, managing director of Cavendish Young, said:...

Axa gets market domination fever.
July 5, 2007... Byline: UK market will be at the centre of Axa's five-year master plan for dominance over pension and investment sector plans Axa has drawn up a five-year master plan to dominate the global pensions and investment markets, according to...

Omam reaps the reward from repositioning in Asia.
July 5, 2007... The Old Mutual Asian Select fund is continuing to benefit from good asset allocation and the strong regional economic growth, according to Old Mutual. Suresh Sadasivan, manager of the fund at Old Mutual Asset Managers, moved quickly to...

New European Ace life company gets the FSA nod of approval.
July 5, 2007... A new London-based life assurance company, Ace Europe Life, has been given FSA approval. It will operate under the brand name Ace Life in conjunction with an existing network called Ace European Group which will be rolled-out across 10...

Buy-to-let's growth prospers as demand remains for rented homes.
July 5, 2007... buy-to-let The UK property market experienced considerable change under Blair's leadership with the buy-to-let market showing a 30-fold increase in the last decade, according to ThePropertyInvestmentMarket.com, the online property...

Friends Provident soars ahead of its rivals in policy sales.
July 5, 2007... insurance Friends Provident is the market leader for income protection sales for the third year in a row, according to the Swiss Re Term & Health Watch report. The report provides analysis of new individual life and health protection...

IFA Defence Union takes FSMA fight to the Lords.
July 5, 2007... Byline: Chairman calls on new prime minister to publish documents over finance act Regulation The Financial Services and Markets Act, which gives power to the financial ombudsman to decide disputes, has been described as a "breach of...

ABI is to spell out CI cover definitions.(Association of British Insurers)(critical illness)(Brief article)
July 5, 2007... The ABI has launched a consultation on a new guide to critical illness insurance for consumers. The guide has been produced to help consumers understand better exactly what critical illness insurance does and the definitions of the main...

It's a wrap for IFAs moving forward.
July 5, 2007... Byline: Industry experts say that correct approach to wrap should be on methods and process instead of price and features wraps The industry has responded favourably to the FSA discussion paper on platforms, wraps and fund...

NU removes MVRs on with profit policies.
July 5, 2007... NU removes MVRs on with profit policies investment Norwich Union has removed MVRs from all remaining with profit policies, the UK's largest insurer has announced. The decision has been made following the strong performances in...

UK economy expands faster than expected.
July 5, 2007... The British economy grew at an annual rate of 3 per cent in the first quarter of 2007, according to figures from the Office of National Statistics. The target inflation rate is 2 per cent and GDP grew by 0.7 per cent in the first quarter...

Brown pressed to remove taper relief.
July 5, 2007... Byline: Abolishing taper relief on CGT will adversely affect entrepreneurial spirit of start-up IFAs, claims Neil Johnson taxation Removing taper relief on Capital Gains Tax as a result of the furore over the vast profits made by...

CI moves step closer to principles-based regime.
July 5, 2007... The FSA is proposing a small number of additional rules for critical illness cover, income protection and term assurance. The consultation paper says a differentiated approach to insurance conduct of business regulation is at the heart of...

Chadney Bulgin reaches a new platform with months to spare.
July 5, 2007... Chadney Bulgin, a Hampshire-based advisory firm reached its target of AGBP10m, nine months ahead of schedule after the launch of its new platform. In conjunction with Standard Life, Chadney Bulgin designed the Portfolio of Management...

Offset's popularity is rising: CML.(Council of Mortgage Lenders)
July 5, 2007... Byline: Just under 10 per cent of all new lending last year was offset, research by Council of Mortgage Lenders reveals Mortgages There has been a surge in the number of people opting for an offset mortgage, according to research...

Cathedral gains chartered status.
July 5, 2007... Devon-based Cathedral Financial Management is celebrating achieving chartered financial planner status for their firm. Cathedral has two chartered financial planners and more than 90 per cent of its staff are members of the Chartered...

McFall scoops parliament prize.
July 5, 2007... John McFall, Labour chairman of the Treasury Select Committee, has received the inaugural Citizens Advice Parliamentarian of the year award. The award was presented to him by David Harker, chief executive of Citizens Advice, at the national...

Britain shoots up and is top of the rich list.
July 5, 2007... Byline: World's high net-worth individuals valued at AGBP18.6 trillion -" Wealth Report Wealth The number of millionaires has rocketed by 8.1 per cent in the UK in the last 12 months, well ahead of Europe's growth rate of 6.4 per...

Scot Wid looks to unlock cash.
July 5, 2007... Speculation is rife in Edinburgh that life and pensions group Scottish Widows is considering the sale of a AGBP2bn annuity portfolio in order to free up capital. The move would also take risk out of the Lloyds TSB subsidiary's balance...

House prices accelerate in June -" Nationwide index.
July 5, 2007... House prices are rising at their fastest rate for more than two and a half years, according to the Nationwide House Price index. According to Britain's largest building society, house prices rose 1.1 per cent in June, taking the annual rate...

Calls for clear policy explanations.
July 5, 2007... Byline: Protection insurance is under scrutiny as the FSA proposes that companies give no nonsense explanations of policies insurance The City watchdog is to crack down on rogue high street banks talking people into buying expensive...

Multi-currency mortgages turning from a yen to 'a sterling idea' -" ECU.
July 5, 2007... mortgages Carry trades and multi-currency mortgages have gained impetus in the past few weeks following stabilising global bond yields and weakness in the Japanese currency. According to Cormac Naughten, head of private clients for the...

Resolution AM to make a promise in Glasgow move.(asset management)(Brief article)
July 5, 2007... regions Glasgow's fast-growing financial services sector has been given a further boost after Resolution Asset Management signed a new long-term lease for its headquarters as it ramps up its headcount. Resolution, which has more than...

Panel calls on the FSA to rethink IDD, menu move.
July 5, 2007... Regulation The Financial Services Consumer Panel has questioned the FSA's decision to scrap the costs menu and initial disclosure document. In a letter to the FSA, John Howard, chairman of the Financial Services Consumer Panel, said...

Fears mount over Paternoster losses.
July 5, 2007... Pensions Concerns have been raised as to whether a AGBP24.7m loss made by Paternoster, a fledgling pension fund buyout firm, in its first year to December 2006 has been passed onto its pensionholders. Mark Wood, chief executive of...

Annuity Direct benefits from new Partnership.
July 5, 2007... Byline: Adviser group will improve its service to clients by taking advantage of the skills of its new owners acquisition Partnership Group, parent of Partnership Assurance, the provider of ill-health retirement and care solutions, has...

Interest-only offerings are a risky quick-fix, says My Mortgage Direct.
July 5, 2007... mortgages Advisers are warning borrowers to avoid interest-only deals as a way out of mortgage debt claiming it is a long-term risk for short-term gain, according to My Mortgage Direct, the Surrey-based online mortgage broker. MMD...

Lib Democrats up calls for a resolution to the issue of mounting personal debt.
July 5, 2007... Debts Personal debt has hit a 10-year high with an increasing number of British families spending a greater part of their household income servicing their debts, according to the Liberal Democrats. The proportion of household income...

Lighthouse shines its light on the 'orphaned by adviser' clients.
July 5, 2007... IFA Lighthouse Group has launched an operation to target 100,000 orphan clients and offer them the chance to meet an adviser. The orphan clients, according to Lighthouse, are clients whose adviser may have retired or the client may have been...

Responsibility remains with multi use: Defaqto.
July 5, 2007... Byline: Advisers can outsource time and resources but not responsibilities -" guide fees Employing multi-managers does not eliminate financial advisers' investment responsibilities, according to a Defaqto guide to multi-manager...

Income issues set to be tackled in Iimia talks.
July 5, 2007... How to get income from investments and getting the most out of closed-ended funds are just two of the topics to be discussed by Iimia at a specialist funds of funds roadshow for IFAs in September. Daniel Lockyer, a fund manager for Iimia,...

Lloyds TSB steps up to the 24 Peaks Challenge.
July 5, 2007... A team from Lloyds TSB which is taking part in this year's Lombard 24 Peaks Challenge is now expecting to raise AGBP8000 for charity. Financial Adviser is a media partner at the event which will see Martin Adams and his team from Lloyds...

T Bailey backs cautious managed offerings.(Brief article)
July 5, 2007... T Bailey is claiming that advisers should look carefully at cautious managed funds as an alternative to bonds after the recent slump in US bond yields "set off alarm bells" in the European fixed interest market. New research from T Bailey...

Citigroup bigs up its FoF alternative route.
July 5, 2007... Citigroup Quilter is claiming that it offers a good alternative to single-priced funds of funds through its portfolio of funds system. Charles Hepworth, vice-president of portfolio management for Citigroup Quilter, said: "IFAs have been...

David Halfacre joins JP Morgan's strategic partnerships team.
July 5, 2007... Byline: Wagstaff becomes Gartmore's head of global distribution Gartmore Investment Management Limited has recruited Phil Wagstaff as global head of distribution. Mr Wagstaff will assume responsibility for marketing, client service...

Tiner on song with a Euro vision for rules.
July 5, 2007... Byline: Chief exec calls for the creation of super EU regulator in outgoing speech regulation The creation of a super EU financial regulator has been called for by John Tiner in his last speech as chief executive of the City watchdog....

FSA in calls for opening of UK's listed markets.
July 5, 2007... regulation The UK's listed markets should be made more attractive and made available to a wider range of investment strategies, the FSA said in its listing review. Many of the key modernisation proposals made in the Listing Review...

Assistance scheme costs 'more to run than it has handed out'.
July 5, 2007... The Financial Assistance Scheme spent more on salaries and running costs than it did on paying out on compensation, according to its annual report. The scheme's total expenditure amounted to almost AGBP4m for 56 staff and more than AGBP2m...

The same team that delivered success will continue to do so.
July 5, 2007... FINANCIAL ADVISER: How did the Friends Provident buyout come about and what does it mean for advisers in day-to-day terms? PATRICK GALE: The transaction was recently completed with the support of the FSA so we could announce and complete...

A wasted opportunity.
July 5, 2007... The appointments announced by new Prime Minister Gordon Brown are like the curate's egg. The decision to make Alastair Darling chancellor is a brave, if well choreographed, move. But the same cannot be said about some of the other changes,...

The missing piece.
July 5, 2007... The FSA's distribution review has set in motion another long period of upheaval, which will no doubt lead to further consolidation of the distribution and life sectors. But the most important dimension in all these proposed changes -" the...

Understanding the nature of the beast.
July 5, 2007... W ith the publication of the FSA's distribution review, the sector is now entering another phase of uncertainty, much of which will add to the unjustifiably tarnished name of financial advisers. The review has also told us a number of...

Dispute ends as Woolwich pays out.
July 5, 2007... Byline: A three-week long dispute over mortgage fees has finally been resolved as Woolwich back down on refund dispute A mortgage broker has won a three-week battle with the Woolwich over a AGBP2000 fee the lender said was...

Independence day?
July 5, 2007... A small start Reading the retail distribution review discussion paper you wonder how the present financial advice system has been allowed to endure for so long when it has so little to offer the consumer. The paper highlights all that...

A useful guide.
July 5, 2007... On 22 May, 2007 the FSA published its MiFID Permissions and Notifications Guide. While the guide does not contain any FSA policy proposals or amend any handbook rules it is useful because it explains the nature and extent of changes that MiFID...

Finding ways to express yourself.
July 5, 2007... So, The Times on the Saturday before the release of the infamous discussion paper, reported that the FSA was "about to produce a report likely to recommend sweeping changes to the way that financial advisers are paid". Sadly, it got it...

Another week, another lookalike.
July 5, 2007... Fuelled by spookily similar images recently, Insider has been inundated -" well nearly -" with suggestions. The best one so far has to be Chelsea manager Jose Mourinho who must get mistaken for Roger Whiteoak of Axa Framlington, on a constant...

Climb for a mountain of cash (for charity...).
July 5, 2007... From football professionals to those who actually deserve a mountain of cash. Chris Kelly of Ashley Law, Stamford, is putting himself through the gruelling three peaks challenge for charity alongside 11 friends -" at least they will be when...

It is not such a family affair in Benenden.(Brief article)
July 5, 2007... Seven Investment Management's Justin Urquhart Stewart was overheard offering to donate a pair of his red braces as a raffle prize for the famous Benenden Village Opera in The Park event that was held on 1 July and sponsored by Aegon and...

The Untouchables.
July 5, 2007... Byline: Tax-privileged savings pose a real dilemma for HNW investors when it comes to reducing their IHT bill When you consider the tax-privileged investments available in the UK, in some respects they can take on the appearance of a...

Being brought back down with a bump.
July 5, 2007... Byline: Excessive liquidity is resulting in inflationary pressure which in turn is causing interest rates to rise What follows is a cautionary tale about savings and liquidity gluts. The seeds of the current bond rout were first sown back...

Jump at the chance.
July 5, 2007... Byline: The Association of British Insurers welcomed the RDR, but tries to think ahead to see if it will actually work The FSA's retail distribution review represents the long-awaited start of a public debate. Its proposals provide a...

The road is paved.
July 5, 2007... Byline: The IFP sees the RDR as a huge step forward to future improvements to the financial planning sector Every now and again we go through a period that becomes a catalyst for change in the way that financial advice is structured and...

Skills academy opens the first of many training centre doors.
July 5, 2007... education The first in a series of ambitious national academies designed to encourage young people to enter the financial services industry was launched last week. The National Skills Academy for Financial Services opened its first...

RDR has landed.
July 5, 2007... Byline: The review from the regulator that financial advisers have been waiting for has finally been published After much anticipation, the first draft of proposals on how the regulator plans to tackle the biggest challenges facing retail...

The burden of failing IFA firms.
July 5, 2007... Byline: Sesame's response to the FSA's retail distribution review paper has a few do's and don'ts for the future Promoting the benefits of greater professionalism has been central to the adviser learning programme in recent years, because...

A review that misses its targets.
July 5, 2007... Byline: The FSA's proposals to improve the financial services market are set to fail The FSA has statutory objectives of maintaining market confidence and of promoting public understanding of the financial system. The wholesale changes...

The road less travelled.
July 5, 2007... Byline: Clients have long claimed that brokers switched between different stocks for no reason, suggesting exploitation With financial services distribution once again on the brink of a major development, I am certain there will be a number...

The new McAdviser is not such a happy deal.
July 5, 2007... Byline: Aifa sees a possibility where advice is handed out like fast food One reading of the FSA's 100-odd page discussion paper on the retail distribution review, quickly brings into sharp focus the central questions which must be...

It is time to get a move on with RDR proposals.
July 5, 2007... First there was Sandler, then Turner then Thoreson just to name a few and now look what has turned up -" the retail distribution review. You could take a Machiavellian view of the proposals in the discussion paper. It is well known that the...

USB Global launches US-style 130/30 Equity 'fund invasion'.
July 5, 2007... Investment An investment strategy which has been called "a mix between a hedge fund and a long-only fund" is to be launched for retail investors for the first time in the UK. UBS Global Asset Management is bringing its US 130/30 Equity...

Investments.
July 5, 2007... Bond Abbey Type: Super Bond Description: Abbey has launched a limited edition fixed-rate bond which pays 8.1 per cent annual equivalent rate for one year providing that savers put at least an equal amount into one of Abbey's...

Mortgages.
July 5, 2007... Buy-to-let Britannia building society Type: Three two-year fixed rate mortgage Description: Three two-year fixed rates have been introduced for the buy-to-let sector. For an arrangement fee of AGBP999 and maximum loan-to-value of...

BusinessCare open door.
July 5, 2007... Canada Life Group has announced that all of its clients with a Canada Life Group Income Protection policy will now have access to BusinessCare. This service offers a risk management tool, available online and by telephone, to help businesses...

Suitability letters given the go-ahead from the FSA.
July 5, 2007... The FSA's decision to retain the suitability letter for use by advisers when selling packaged products has been backed by Oxera independent economic research consultancy. However, its use is likely to be simplified later this year by the...

Holloway guarantees IP rates.(Brief article)
July 5, 2007... Holloway Friendly has become the first friendly society to guarantee its income protection rate table, which it hopes will allay uncertainty about premium costs. Holloway's Classic Plus premiums will now only increase in line with the...

em- offers free SPML legals.(Brief article)
July 5, 2007... Mortgage packager em- is offering free legals on all Southern Pacific Mortgages Ltd non-conforming re-mortgages across England and Wales for a limited period. Re-mortgages from the SPML range also benefit from free valuations and no application...

Pruhealth boosts inducements to get IFAs to offer insurance.
July 5, 2007... Byline: Company offers small firms access to support model in drive to get intermediaries to push insurance advice Insurance IFAs who want to broaden their business avenues and explore the medical insurance sector have been offered a...

Family firms 'are alive and kicking'.
July 5, 2007... Consultancy firm Tenon Forum's latest research has revealed that over a third of entrepreneurs has a family member as an official employee and about 13 per cent use relatives as investors. According to new findings from Tenon Forum, nearly...

Gov't surprised by response to 'female entrepreneurs drive'.
July 5, 2007... Enterprising women advisers who are thinking about starting their own advisory firm will now have the support of 1000 established female entrepreneurs from the Women's Enterprise Ambassadors Network. Margaret Hodge, minister for industry...

SMEs offered a 'free evaluation'.
July 5, 2007... Idea To Market, an online feasibility report software service, is offering budding entrepreneurs the opportunity to evaluate their business idea with a free feasibility report. The evaluation report is based on 16 carefully worded questions...

Watch out for the manhole.
July 5, 2007... People are turning to the internet in ever increasing numbers. At the end of 2005, 62 per cent of the population had an internet connection at home and 18 million people used the internet to shop online - and since these figures were released...

Absenteeism in the workplace.
July 5, 2007... I find that absenteeism is a major problem with my workforce. My employees are continually late time and time again, and this is having a detrimental effect on my productivity. What can I do in an attempt to reduce absenteeism? ...

Brown appoints Hain and O'Brien for roles in the DWP.
July 5, 2007... Byline: Cabinet shake-up sees Peter Hain take up role as secretary of state for work and pensions cabinet Gordon Brown's first Cabinet has seen Peter Hain become the new secretary of state for work and pensions, the seventh appointment...

Customers not fully informed about ASP.
July 5, 2007... People are being turned against alternatively secured pensions for the wrong reasons because of a 'simplistic approach', according to Rowanmoor Pensions. Ian Hammond, managing director at Rowanmoor Pensions, the UK's biggest independent...

Joining the mile high city club.
July 5, 2007... Friday I left Lincoln at 8.30am with colleague Phil Meeks to travel to London Heathrow to catch a flight to Denver, Colorado, the mile high city, to arrive at 6.25pm local time, which would be 1.30am on Saturday UK time. A number of...

Commercial's break is over for fund houses.
July 12, 2007... Byline: Prudential and Standard Life are first managers to reprice property offerings investment Huge numbers of investors are moving their money out of commercial property in anticipation of a slump, despite moderately good forecasts...

Standard's Matthews throws hat into the ring for CII position.
July 12, 2007... Trevor Matthews is almost certain to be elected deputy president of the Chartered Insurance Institute, succeeding Lord Hunt who is due to be elected president later this month. It will be decided whether Mr Matthews and Lord Hunt, a former...

Moneyfacts attacks A&L offer.(Alliance & Leicester)(Brief article)
July 12, 2007... Alliance & Leicester's new mortgage and savings deal has come under fire from Moneyfacts. Alliance & Leicester has launched a Mortgage Regular Saver that pays 15 per cent on savings. But the catches mean that few people will qualify for...

FTBs are 'dipping into their savings'.(first-time buyers)(Abbey National PLC)
July 12, 2007... First-time buyers are struggling to raise a deposit because they keep on spending it. This is according to Abbey which said 11.2m first-time buyers admit to dipping in to their deposit savings. According to Abbey's research, one in 10...

Fee is not a magic number.
July 12, 2007... I have strong feelings about fees in general. I am happy to pay a fee if I can see what it is for and if it is good value. What I really object to is being charged a fee for nothing. I still cannot work out why when I book my cinema tickets...

Things to be on the look out for.
July 12, 2007... Byline: It is important to stay ahead and plan for the future, but with all the changes it can be hard to keep up The mortgage and loans market is ever changing; with housing almost never off the news these days, almost every prominent...