Financial Advisor articles from June 2009

Financial Advisor archives from June 2009

Beware of tax on income-producing trusts - Standard.(Brief article)
June 4, 2009... Byline: Joy Dunbar More than 100,000 people could pay a higher tax bill if they do not sort out their income-producing trust, Standard Life has warned. Julie Hutchinson, head of estate planning of Standard Life, said the Budget had...

Future of Lloyds' IFA brands in question.
June 11, 2009... Byline: Joy Dunbar The long-term future of intermediary mortgage brands that have survived Lloyds Banking Group's rationalisation is far from certain, warned the Society of Mortgage Professionals. Lloyds announced on Tuesday that...

Investment in education still holds true.
June 11, 2009... Byline: Robert Reid Letter to the Editor The CII annual skills survey correctly highlighted that ongoing investment in education was essential, for current as well as new employees. Simon Mansell of IFA Temple Bar suggested that...

Sale and rent-back regulation to balance the scales.
June 11, 2009... Byline: David Pawsey Regulation of the sale and rent-back sector will create a "level playing field" and give consumers more protection, according to equity release providers and IFAs. Last week, the Treasury announced secondary...

Profile: Richard Sear.
June 11, 2009... Byline: David Burrows Richard Sear, chief executive of National Friendly, talks to David Burrows about how the firm's rebranding came to be and how well-placed are all mutuals to do well in the current environment Overseeing a total...

Tory gov't would simplify tax regime.
June 11, 2009... Byline: Joy Dunbar An office for tax simplification will be created if the Conservative Party becomes the next government, according to George Osborne MP, shadow chancellor. Speaking at the Association of British Insurers' biennial...

Brothers admit killing Barclays' chief.
June 11, 2009... Byline: Gemma Westacott Two brothers have pleaded guilty to the manslaughter of Frank McGarahan, chief operating officer of Barclays Wealth, after he tried to break up a fight during a night out in Norwich. Mr McGarahan, 45, of Much...

Pada is 'less of a threat' to corporate schemes.(Personal Accounts Delivery Authority)(Brief article)
June 11, 2009... Byline: Emma Ann Hughes The Personal Accounts Delivery Authority is becoming less ambitious about the numbers that will opt to save for retirement in the scheme, according to Aegon. Speaking at a media roundtable on Tuesday morning,...

Men who cheated Aviva are jailed.
June 11, 2009... Byline: Sharon Flaherty Three men who were behind a chain of false bank accounts used to cheat five Aviva directors out of hundreds of thousands of pounds have been jailed at Southwark Crown Court. Last week Gideon Komolafe, aged 36,...

Stick to what you know.
June 11, 2009... Byline: Hal Austin In a timely report, the Association of British Insurers has warned the government and City regulator that any regulatory changes to remedy the problems in the banking sector must not inhibit competitiveness and product...

Another raw deal.
June 11, 2009... Byline: Hal Austin- The decision by work and pensions secretary James Purnell to walk out of the Cabinet, whatever his personal or political reasons, has dealt another blow to the development of a coherent long-term pensions strategy. ...

TCF is a load of wishy-washy nonsense.
June 11, 2009... Byline: Robert Fenton When is the FSA going to realise that the TCF scheme is a lot of rubbish? This debacle has done little for the consumer and has cost an absolute fortune to implement for the FSA and advisory firms alike. Small...

IFA career path should include volunteering - Reid.
June 11, 2009... Byline: Joy Dunbar Volunteering should be part of an advisers' career development plan, Robert Reid, former president of the Personal Finance Society, told those gathered at an event to mark the continuation of Moneyplan. The Moneyplan...

The FSA isn't profit-driven, is it?
June 11, 2009... Byline: John Hamp What rationale is there for a government-sponsored regulator, presumably one that is almost akin to a national charity (on behalf of consumer protection), to pay any bonuses at all? Surely the FSA is not...

FSA fines jump 514 per cent in a year.
June 11, 2009... Byline: Emma Ann Hughes The value of fines handed down by the FSA in the last year to 31 March jumped 514 per cent to a record GBP27.3m, according to Reynolds Porter Chamberlain. According to the City law firm, 2008 to 2009 saw the FSA...

Keydata goes into administration.
June 11, 2009... Byline: Emma Ann Hughes Keydata Investment Services Ltd was placed into administration on Monday afternoon after the FSA ruled it was insolvent. A source close to the company, who wished to remain anonymous, said the FSA took this...

Hornbuckle Mitchell 'rejecting offers daily'.
June 11, 2009... Byline: Emma Ann Hughes Bosses at Sipp and Ssas administrator Hornbuckle Mitchell are receiving daily approaches about whether they would be willing to sell the firm, according to managing director David White. Mr White said rarely...

Yorkshire connects with L&G system.
June 11, 2009... Byline: Emma Ann Hughes Yorkshire Building Society is the first high street banking partner to go live with Legal & General's new online point-of-sale business system OLP Connect. The system will give advisers at Yorkshire Building...

Revolving door at DWP will affect us all - IFAs.
June 11, 2009... Byline: Joy Dunbar Greater leadership consistency at the department for work and pensions is vital as its decisions affect large sectors of the electorate, according to Keith Thomson, director of investment services for Dundee-based IFA...

Hoodwinked by vested interests.
June 11, 2009... Byline: Phil Melville Letter of the Week; Letter to the Editor Kevin O'Donnell's opinion article, Time to Address the Elephant in the Room (FA, 4 June), raises a couple of interesting issues. His analogy of a GP and patient could...

Pillar and post.
June 11, 2009... Byline: Simon Lovegrove Two weeks ago, the European Commission published an important communication that set out the framework for the future of European financial supervision. As announced in the communication of 4 March, the...

Bright Grey ups cover limits.(Brief article)
June 11, 2009... Byline: Emma Ann Hughes Bright Grey has increased its cover limits and including the services of HCML, a rehabilitation case management company, with its income protection. Once it is decided that a claimant would benefit from the...

Impossible is nothing.
June 11, 2009... Byline: Peter McGahan I was interested in a debate regarding the use of paper against technology and back office systems, showing that apparently 15 per cent of advisers use just the basic back office software, arguing that paper in filing...

Lack of long-stop 'breaches human rights'.
June 11, 2009... Byline: Joy Dunbar The FSA's refusal to bring in a 15-year long stop is in breach of the Human Rights Act 1998, according to legal opinion sought by IFA firm Temple Bar. The regulator and Financial Ombudsman Service have acted in...

IMA gives collective investment schemes thumbs up.
June 11, 2009... Byline: David Pawsey The collective investment schemes regime has proven broadly robust during the market turmoil of the last year, according to the Investment Management Association. Last week the IMA published a report into how the...

A new government must stop the rot.
June 11, 2009... Byline: Jeff Prestridge As major firms are closing down their final salary pension schemes, it is clear long-term savings are in a parlous state in the UK and the issue must be addressed urgently What a terrible month it is turning out...

Act like banks and be treated like them, societies told.
June 11, 2009... Byline: Joy Dunbar If building societies have similar business models to banks then they must operate under the same set of rules, researchers Towergroup have stated in response to an FSA consultation paper. Last week the regulator...

'Ill advised' CGT changes are hurting protection.
June 11, 2009... Byline: Joy Dunbar The recession coupled with changes to capital gains tax last year are continuing to have an impact on long-term insurance business, according to the Association of British Insurers. The ABI's provisional figures show...

FSA should offer advisers RDR leeway.
June 11, 2009... Byline: David Pawsey Sesame has urged the FSA to consider a scheme that would significantly reduce the numbers of advisers forced out of the industry as a result of the retail distribution review. Under the current retail distribution...

Charcol takes axe to advisers' salaries.
June 11, 2009... Byline: David Pawsey Mortgage intermediary John Charcol has announced changes to its remuneration structure that has seen its advisers' basic salary slashed. Under the new structure its brokers will be able to earn enhanced...

Skandia's Frank Blighe passes away after illness.
June 11, 2009... Byline: Emma Ann Hughes Frank Blighe, head of UK marketing of Skandia Investment Group, passed away recently after a short illness aged 51. Born in Southampton, Mr Blighe went to Oxford University before joining Save & Prosper in 1980....

Professional indemnity insurers fear transfer risk.
June 11, 2009... Byline: Joy Dunbar Professional indemnity insurers are asking new questions about pension transfer advice because of concerns the FSA has raised about this area, according to IFA Informed Choice. Martin Bamford, joint managing director...

FSCS to help Echelon customers.
June 11, 2009... Byline: Joy Dunbar Hundreds of customers of Glasgow-based Echelon Wealth Management could be in line for compensation after the Financial Services Compensation Scheme declared the firm in default. Up to 900 people could have claims...

Ashmore launches sterling class for emerging funds.
June 11, 2009... Byline: David Pawsey Ashmore Investment Management Limited has announced the launch of sterling share classes for its two existing Societe d'Investissement A Capital Variable funds in Luxembourg. Both funds now have institutional and...

Majority of IFAs back flexible annuities, says Lincoln.
June 11, 2009... Byline: Joy Dunbar Three quarters of IFAs believe that flexible annuities offer a valid alternative to traditional annuities and income drawdown, according to Lincoln Financial Group. Lincoln's IFA study comes after The Hartford...

Thames River gets Quantum's Absolute Income fund.
June 11, 2009... Byline: David Pawsey Thames River Capital has announced it has acquired Quantum Asset Management's UK Absolute Income fund. The transfer was announced on 2 June with Joel Amsellem, fund manager of the Absolute Income fund, also making...

Fidelity hosts preparation workshops.
June 11, 2009... Byline: David Pawsey Fidelity and FundsNetwork have announced a series of nationwide "Precovery" workshops. The sessions will take place at 27 venues around the UK from Aberdeen to Exeter, taking in areas such as Norwich, Newcastle and...

Do not confuse insurance with banking, says ABI.
June 11, 2009... Byline: David Pawsey Regulatory responses to the banking crisis could have unintended consequences, the Association of British Insurers has warned. In a report entitled Restoring Market Confidence, the ABI said any changes should...

Simplification of IFAs must be a priority: Aifa.
June 11, 2009... Byline: Emma Ann Hughes The government and regulator need to understand consumers just want someone who will listen to them and explain what they need, according to the Association of IFAs. Speaking at Aifa's 10th birthday...

Imla expects FTB summer pick-up.
June 11, 2009... Byline: David Pawsey More first-time buyers and home movers are expected to enter the market this summer, according to the Intermediary Mortgage Lenders Association. Imla's survey of mortgage intermediaries revealed they had seen more...

Advisers increasingly promote equity release.
June 11, 2009... Byline: Tamsin Brown Advisers are playing an increasingly important role in introducing customers to the equity release market, according to provider Hodge Lifetime. In its quarterly customer questionnaire, Hodge Lifetime found...

Advisers fearful of regulatory aftermath.
June 11, 2009... Byline: Tamsin Brown Most advisers fear they could face regulatory problems justifying their asset allocation advice after the tumble on equity markets and want more support from providers, according to MetLife Europe. The retirement...

Investors still go for corporate bonds.
June 11, 2009... Byline: Tamsin Brown Bond funds remained top of the sales charts in April on investment platform Cofunds, marking their seventh consecutive month of domination. The same three funds hogged the top three spots as last month, with M&G...

Widows adds to pensions range.(Brief article)
June 11, 2009... Byline: Gail Moss Scottish Widows has added two multi-manager funds to its guided pension fund range. Scottish Widows Multi-Manager Diversity fund and Scottish Widows Multi-Manager Select Boutiques fund are intended to offer...

Stimulus good news for Asian outlook: Fidelity.(Fidelity International Ltd.)(Brief article)
June 11, 2009... Byline: Tamsin Brown The vast sum of money to be pumped into the development of Asia's infrastructure is good news for the outlook for the region's equity markets, according to Fidelity International. Asian governments announced an...

Hedge funds still valuable: Collins Stewart.
June 11, 2009... Byline: Tamsin Brown The fund of hedge funds model is not broken and the key to investing in such vehicles is picking the right one, according to Collins Stewart Fund Management. Last year more than 450 hedge funds closed down and...

To London and back.
June 11, 2009... Byline: Tony Slimmings Tony Slimmings, managing director and IFA of Northumberland-based Tony Slimmings Limited has a full load by fitting in as many client meetings as he can in a day's work, where he either drives or flies to Monday...

Hope for the best, plan for the worst.
June 11, 2009... Byline: Roger Edwards Taking out family income benefit can be the difference between financial survival or ruin It is that time of year again when most people's thoughts turn to summer holidays and with it an opportunity to escape the...

Must have done something right.(Personal Finance Society)(Organization overview)
June 11, 2009... Byline: Fay Goddard The PFS demonstrates what the professional body is doing for its members and why anyone should join I was surprised to read on the front page of 21 May's Financial Adviser a heading saying that the PFS was suffering...

Atlantis promotes Korean investments.
June 11, 2009... Byline: Tamsin Brown Atlantis Investment Management hopes improved corporate earning results will keep the Korean stock market's rally on track. Kyueun Jeong, fund adviser to the Atlantis Korean Smaller Companies fund, said the Korea...

Hexam Emerging Europe fund move pays off.(Stuart Richards)(Ignis International)(Brief article)
June 11, 2009... Byline: Tamsin Brown A bias towards Russian stocks and an underweight position in central Europe helped drive Ignis International Hexam Emerging Europe fund to the top of its sector this year, according to manager Stuart Richards. Mr...

Pensioner buy-out prices on the rise.
June 11, 2009... Byline: Tamsin Brown The levels of pension buy-out deals being struck has dropped amid evidence of increasing prices, according to a report from Pension Capital Strategies. In its latest buy-out market watch report, the pension...

Surge in demand for mortgage arrears advice - CAB.(Citizens Advice Bureaux)(Brief article)(Statistical data)
June 11, 2009... Byline: Emma Ann Hughes Citizens Advice Bureaux (CAB) in England and Wales have reported a surge in demand for debt, employment and benefits related advice in the last year as the credit crunch hit consumers. From April 2008 to March...

Rensburg Sheppards posts GBP30.5m profit.(Financial report)
June 11, 2009... Byline: Emma Ann Hughes Rensburg Sheppards has just announced pre-tax profits of GBP30.5m for the year ended 31 March 2009. The group, which had GBP10.01bn funds under management at 31 March 2009 and a regional network of 11 dedicated...

Aberdeen's private equity team completes MBO.
June 11, 2009... Byline: Emma Ann Hughes Aberdeen Asset Management's private equity team have led a management buy-out to create new independent private equity business Maven Capital Partners. Bill Nixon, current head of investment at Aberdeen Asset...

HMRC tax bill cause of Keydata's downfall.
June 11, 2009... Byline: Emma Ann Hughes A large tax bill from HM Revenue & Customs was what prompted the Financial Services Authority (FSA) to request Keydata Investment Services was placed into administration, according to a source. The bill, thought...

Keydata placed into administration.
June 11, 2009... Byline: Emma Ann Hughes Keydata Investment Services Ltd has been placed into administration on the grounds it is insolvent. Following an application to the Royal Courts of Justice by the Financial Services Authority (FSA), Dan...

Thoresen assures Aegon will remain dominant in 'at retirement'.(chief executive Otto Thoresen)(Brief article)
June 11, 2009... Byline: Emma Ann Hughes Aegon UK plans to focus on customer retention, broadening its share of customer retirement assets and continued unit cost reduction, according to Otto Thoresen. Speaking at a media roundtable this morning (9...

Skandia enables Selestia investors to make own fund switches.
June 11, 2009... Byline: Emma Ann Hughes Skandia is giving consumers registered on the Selestia platform the same access enjoyed by investors with its Multi-funds proposition. Consumers registered with Multi-funds are able to make their own fund...

Lloyds shareholders approve capital restructuring.
June 11, 2009... Byline: David Pawsey Shareholders of Lloyds Banking Group have voted in favour of replacing government-held preference shares with ordinary shares. During today's (5 June) annual general meeting held in Glasgow all 14 resolutions were...

Schroders unveils managed multi-currency fund.
June 11, 2009... Byline: Joy Dunbar Schroders has launched its first managed global currency fund. The Schroder ISF Global Managed Currency is an actively managed, multi-currency, money market fund aiming to protect and increase global purchasing...

Newton predicts the advocates of change.
June 11, 2009... Byline: Joy Dunbar Investors, advisers and regulators are going to advocate far greater transparency in investments in the future, according to Newton Investment Management. A paper produced by Newton entitled All Change, said asset...

Aviva plans reattribution payoffs.(Brief article)
June 11, 2009... Byline: Joy Dunbar About 1m policyholders invested in Aviva's with profits funds have been sent letters asking them to vote on the proposed reattribution of the inherited estates. Policyholders can accept or decline a payment in return...

Women divorcees worst hit by recession.
June 11, 2009... Byline: Joy Dunbar Female divorcees aged over 60 are losing out financially due to the recession, according to Safe Home Income Plans. Women are the worst affected financially by pensioner divorce, losing more than GBP18,200 in...

Clients fail to prepare for retirement: IFAs.
June 11, 2009... Byline: Joy Dunbar Financial advisers are not convinced their clients' retirement planning is on course, according to a Prudential poll. The survey found two-fifths of advisers said that they were either not that confident or not at...

Abbey mortgage switch charge under fire.
June 11, 2009... Byline: Joy Dunbar Abbey has been criticised for charging clients who opt to switch mortgage deal after they have submitted an application form. Donald MacKay, a mortgage adviser with Lanarkshire-based Mortgage Information Centre, said...

F&C mandate to be more flexible.
June 11, 2009... Byline: Joy Dunbar The flexibility of the mandate of the F&C Multi-Manager Distribution fund will be broadened from August to allow more alternative investments to be included. Since the fund was launched in February 2004 it has had an...

Split caps due for a comeback, say experts.
June 11, 2009... Byline: Tamsin Brown Budget changes and low interest rates have put the spotlight back on the benefits of investing in split capital investment trusts, according to some experts. Investment trust companies are split into different...

Mystery Shopper: Northampton.(Iimia)(Cave & Sons Limited)(O'Connor & Company Insurances Ltd)
June 11, 2009... Byline: Dominic Welling Northampton The shopper, whose girlfriend is pregnant, is currently working but is worried about the possibility of being made redundant with no protection. He wants to find out what type of protection would be...

Advisers still run on paper.
June 11, 2009... Byline: Dominic Welling Fifteen per cent of advisers still only use paper to store and manage their client data despite the increasing regulatory pressures and the impending requirements of the retail distribution review. According to...

Pensions infrastructure disadvantages UK firms.
June 11, 2009... Byline: Dominic Welling UK businesses are at a severe competitive disadvantage in Europe thanks to weaknesses in the private and state pension systems, according to a report from Aon Consulting. Aon's European Business Leaders Survey...

Gold standard.
June 11, 2009... Byline: Alastair Mundy While the hunt for income continues, investors are still wondering whether the market rally is the real thing The volatility of markets experienced over the past months gave many of those desperate to call the...

AMI urges for mortgage sector consultation.
June 11, 2009... Byline: Dominic Welling The Association of Mortgage Intermediaries has called on the intermediary community to contribute to a consultation paper on the future of mortgage regulation. The association plans to submit the paper to the...

Co-op gets three-year tracker.
June 11, 2009... Byline: Dominic Welling Product Review Mortgage Co-operative Bank Type: Three-year tracker mortgage Description: Co-operative Bank has launched a three-year tracker mortgage at a rate of 2.39 per cent. Conditions:...

Aviva's Defined Returns fund.
June 11, 2009... Byline: Dominic Welling Product Review Structured Product Aviva Type: Defined Returns fund Description: Aviva Investors has launched its Defined Returns fund offering investors potential defined returns of 8 per cent....

Leeds fixed rate.
June 11, 2009... Byline: Dominic Welling Product Review Mortgage Leeds Building Society Type: Two-year fixed-rate mortgage. Description: Leeds Building Society has launched a two-year fixed rate mortgage at 3.40 per cent. Conditions:...

Mortgageforce sees consumer attitude shift to long term.
June 11, 2009... Byline: Dominic Welling Borrowers are taking advantage of lenders' low interest rates before they start to rise again and are fixing their mortgages for longer terms than usual, according to Mortgageforce. The national mortgage broker...

IMA proposes absolute return timeframe.(Investment Management Association)(Brief article)
June 11, 2009... Byline: David Pawsey Absolute return funds will have to deliver set returns within a certain timeframe to qualify for the sector, according to the Investment Management Association. Following a review of the IMA Absolute Return sector,...

Two tier charging would not adversely impact personal accounts.(Aegon UK)(Brief article)
June 11, 2009... Byline: David Pawsey Fears that people may opt out of personal accounts due to a two tier charging structure are unfounded, according to Aegon. Research conducted by the provider has revealed that when considering whether to opt out of...

Advisers account for third of equity release referrals.
June 11, 2009... Byline: Tamsin Brown Advisers are playing an increasingly important role in introducing customers to the equity release market, according to provider Hodge Lifetime. In its quarterly customer questionnaire, Hodge Lifetime found...

Financial strength rules the roost for IFAs - survey.
June 18, 2009... Byline: Tamsin Brown More than two-thirds of IFAs put financial strength as the most important factor when choosing a provider, according to a survey by Axa Winterthur. It comes after a drop in confidence in parts of the financial...

Systemic risk still threatens insurance sector: Sharma.
June 18, 2009... Byline: Hal Austin A senior manager at the City regulator has raised doubts about the systemic threat posed by a major event impacting on the insurance industry. Paul Sharma, director of wholesale prudential policy of the FSA, told a...

King of public relations.
June 18, 2009... Byline: Nicolas Mamier A rebranding process can go unnoticed if not marketed properly Santander's announcement that it is rebranding its UK assets marked a significant turning point for UK retail banking brands. As the reputation...

The perfect storm: the aftermath.
June 18, 2009... Byline: Paul Feeney Equity income funds and global strategic bonds offer a way to earn income as the crisis unfolds As I travel around the market, the cry for income from the streets is deafening. Is it surprising? No. We have...