Financial Advisor articles from November 2007

Financial Advisor archives from November 2007

Some Sipps create a 'mirage', says expert.
November 1, 2007... Byline: Life companies use personal pensions to disguise loss of pension business Self-invested personal pensions are being used by some life companies as a 'mirage' or 'window dressing' to defend providers' pension business, according to...

Pubs group raises AGBP30m and calls time on offer.
November 1, 2007... The offer for British Country Inns Four has now closed, having raised nearly AGBP7.25m, Smith & Williamson Investment Management's Tax Efficient Solutions announced. This brings the total amount raised by Smith & Williamson TES for the...

The interviewee turns interviewer.(Viewpoint essay)
November 1, 2007... Monday I am at work by 8.30am. The first half hour of the day is always spent catching up with my personal assistant, Becky. We agree what needs to be done and then I am on the phone making calls to clients. It is a combination of...

Advisers pushed to sell fast track.
November 1, 2007... Byline: Speedy mortgage approval systems encouraged - report Lenders have refuted reports that mortgage advisers are being encouraged to put their clients into fast track mortgages to save time and money. There have been rumours that...

The battle over scrapping Hips.
November 1, 2007... Mike Ockenden, director general of the Association of Home Information Pack Providers is continuing his ongoing battle with the Conservative Party, which has sworn to scrap home information packs if they get elected. The latest skirmish...

First-time buyers benefit from a market slowdown.
November 1, 2007... First-time buyers are starting to benefit from the beginning of a cooling in the market, according to SmartNewHomes.com. Its monthly price index showed the average price of a new home fell 0.9 per cent in September, with prices dropping for...

Lender retaliates against concerns over its funding.
November 1, 2007... Byline: Reports claim Paragon may close to business but its boss John Heron refutes suggestions Paragon Mortgages boss John Heron came out fighting after reports suggested the buy-to-let lender may have to close its doors to new business...

Calls for stamp duty limit to be brought up-to-date.
November 1, 2007... The government should raise the stamp duty threshold to AGBP200,000, said the Stroud & Swindon building society. The duty has risen five times faster than salaries in the past decade, leaving the threshold out of touch with reality, said...

Assetz chief slams proposals to punish BTL investors through tax.(Stuart Law )(Brief article)
November 1, 2007... Assetz chief executive Stuart Law has slammed calls for buy-to-let investors to be penalised through the tax system. Responding to a recommendation from Paul Diggory, president of the Chartered Institute of Housing, Law accused him of being...

Mortgage applications slump.
November 1, 2007... High borrowing costs and nervous mortgage lenders have led to a dip in the number of mortgages being applied for and granted, according to the British Bankers' Association. In September 2007 there were 160,879 mortgages approved - 12.1 per...

E-welcome pack for A&L intermediaries.(service introduction by Alliance & Leicester PLC)(Brief article)
November 1, 2007... Alliance & Leicester has bumped up its advisers introductory pack in a bid to increase the amount of business it gets through the intermediary channel. Jill Butterwood, intermediary project manager for Alliance & Leicester, said:...

Pricing regime for autumn.
November 1, 2007... Byline: HBoS' abandonment of setting annual market-share targets marks the start of a new phase in mortgage pricing Earlier in October a momentous event in the mortgage market did not receive the coverage I thought it would. Andy...

Building society's purchase of assets defies sub-prime woes.
November 1, 2007... Specialist lender edeus has sold a book of assets to Stroud & Swindon Building Society in a move which will come as a relief to the beleaguered sub-prime market. The decision follows its problems in the wake of the credit crunch and will...

Hitting doubles in times ahead.
November 1, 2007... Byline: Although house price developments are mixed it is predicted house price inflation will double in the future The housing market has remained remarkably resilient in the face of rising interest rates so far this year, though...

Easing into 2008.
November 1, 2007... It is a paradox of the current economic situation that, while annual GDP growth data is showing an acceleration of above trend growth, analysts are busy revising down their forecasts for 2008. Last week, the first estimate of third-quarter GDP...

Credit crunch pinch extends its reach.
November 1, 2007... It seems the credit crunch is having ongoing, wider effects. A report from analysts at an investment bank have suggested that it may have its own funding problems coming up shortly. Daniel Stewart warned that Paragon may have to sell on loan...

Fast-track to nowhere.
November 1, 2007... It is surprising to hear that lenders are trying to persuade advisers to get their clients onto fast-track mortgages. In this current climate of rising house prices and lack of affordability, with more and more people stretching themselves to...

Running low on confidence.
November 1, 2007... Stand corrected No less a body than the International Monetary Fund has become the latest organisation to predict a UK house price "correction" and I am not about to disagree. The main question now is how painful the correction will be....

Lessons from falling rocks.(growth and management of building societies)
November 1, 2007... Byline: Time is right for lenders to restate the benefits of mutuality over plc status If the 1970s and 1980s were the 'Golden Age' of the building society movement, and the 1990s the decade of its decline, how, I wonder, will the...

Getting ready to go digital.
November 1, 2007... In recent times, the focus in the property market has been on home information packs, with many industry watchers keeping an eye on when the packs are likely to be rolled out. But while the packs have attracted much criticism and heated...

Talk of doom and gloom.
November 1, 2007... Byline: Under the current market conditions, investors are advised not to keep all their loans in the same basket It has been a crazy autumn and I am not just talking about the Rugby World Cup. It seems like only yesterday the Bank of...

The personal touch.(Swansea Building Societies services and management)
November 1, 2007... Byline: The Swansea Building Society is run with a difference, it is local and customer's receive personal service Drop into the Swansea Building Society and the chances are you will find its chief executive behind the counter. Alun...

Rein in predator landlords: IFA backs campaign call.
November 1, 2007... Byline: Home & Capital supports calls for regulation of sale-and-leaseback firms A top equity release IFA has backed calls for a crack down on sale-and-leaseback companies. Nigel Hare-Scott, sales director of Home & Capital, said:...

Nationwide bid to trace owners of forgotten funds.
November 1, 2007... Nationwide Building Society has entered the debate over unclaimed assets, pledging to help reunite its customers with their cash. It will trace members with whom it has lost contact and own the AGBP42m in dormant accounts at the building...

Borrowers fail interest rate test - survey.
November 1, 2007... Mortgage borrowers are clueless when it comes to understanding the financial impact of rising interest rates, warned CreditExpert.co.uk. The online credit report monitoring service owned by Experian asked borrowers what effect a 0.5 per...

L&G launch short-term fixed-rate deal through Platform.
November 1, 2007... Legal and General Mortgage Club has launched an exclusive prime, two-year, fixed-rate loan. It is the latest product offered through its ongoing funding deal with Platform, the intermediary lender of Britannia Building Society. Martyn...

Integrity supremo is appointed at the CFA.
November 1, 2007... Charles Cronin has been appointed head of financial market integrity at the CFA Institute, the global membership association that administers chartered financial analysts. The London-based role covers Europe, the Middle East and Africa at...

Investec confident that retail boss Aird can restructure UK business.
November 1, 2007... Investec Asset Management's David Aird has been handed a wider remit as he tries to to restructure its UK business. He is managing director for the company's retail business and will now lead its institutional and retail businesses in the...

More mergers expected: Defaqto.
November 1, 2007... Byline: Smaller providers fear that strategic alliances will leave the market dominated by a handful of super-groups The pensions sector is set for further consolidation that may leave the market dominated by super-groups, according to data...

Fears raised over sale and rent back.
November 1, 2007... Sale-and-rent back schemes could 'sting' the equity release market, according to David Cooper of Just Retirement. Such agreements enable homeowners to sell their property at a discount to a company, they then rent it back and are not...

Stamp on stamp duty 'anomaly'.
November 1, 2007... An online petition demanding that stamp duty is applied more fairly has been launched by online mortgage broker Charcol.co.uk. The website thinks the system significantly distorts the market around the threshold levels, but adds it would be...

Royal London eyes changes as it tries to buy stake in Fundsdirect.
November 1, 2007... Royal London Group has moved to acquire shares in Investment Funds Direct Group, the life and pensions provider announced. Investment Funds Direct Group is the holding company of Fundsdirect and the Ascentric Wrap service to IFAs....

PPF levy hike piles more pressure on solvent schemes.
November 1, 2007... The Pension Protection Fund has revealed that its deficits for the financial year ended 31 March are greater than those recorded in the previous financial year, according to its annual report published last week. The fund has increased...

Men increase their lead in savings race.
November 1, 2007... The gender savings gap is growing as too few women save for retirement and do not invest enough in equities when they do, according to a report published by Scottish Widows. The gender pension gap has seen the amount of money saved by men...

Aviva figures beat expectations thanks to the overseas markets.
November 1, 2007... Aviva, the UK's second largest life assurer, has posted third-quarter sales figures that are ahead of expectations and show worldwide life and pension sales in the nine months to 30 September up 21 per cent to AGBP22.9bn, compared with...

Children's Mutual backs government initiatives on CTF.
November 1, 2007... Government initiatives to increase the number of parents who take an interest in child trust funds are a significant step for the nation's savings culture, according to Children's Mutual. Last week's announcement by Kitty Ussher, the...

Retirement income tool 'will increase efficiency'.
November 1, 2007... A new retirement income planning tool from Winterthur will enable advisers to use their time more efficiently because, it says, they will be able to compare annuity purchase and income withdrawal strategies. The life and pensions company...

Free recruitment service offered to members of IFA support group.
November 1, 2007... UK financial adviser support group, Tenet has launched a free recruitment service for advisers. It is available to members of Tenet's M&E and interdependence networks and usually costs AGBP5000 a placement, but will be provided to members...

Paragon remains 'buoyant' despite its share price drop.
November 1, 2007... Shares in the leading specialist buy-to-let mortgage lender Paragon have almost halved in the last month in the wake of the global credit crisis, but the sector is still buoyant despite the damage, experts said. The lender, which relies...

Norwich Union to pilot rapid fund launch for pension investments.
November 1, 2007... Norwich Union is piloting a rapid fund launch to introduce an additional 38 new investment funds for new and existing pension customers. The launch programme, introduced on 29 October, proposes to increase the frequency that Norwich Union...

IFA Consortium grows with Alpha to Omega.
November 1, 2007... Byline: IFA network Alpha to Omega brings IFA Consortium adviser numbers to 600 IFA Consortium, the combined force of Falcon Group Plc, pi financial and Financial Services Advice & Support, has added Alpha to Omega to its group, it has...

IMA wants changes to covered bonds.
November 1, 2007... The Investment Management Association is calling for changes to proposals for regulation of covered bonds, claiming the timetable for implementing the legislation is unworkable. Covered bonds are corporate bonds which are usually issued by...

Ethical investing does not diminish returns says report.
November 1, 2007... Byline: Responsible investing rarely damages profitability of investors' portfolios - UN-Mercer report Investing ethically does not adversely affect performance, a key study into the performance of ethical investing has concluded. ...

Good advice costs money - but stick to the experts, says Which?
November 1, 2007... Financial advice may not be cheap but it is a must-have, according to Which? magazine. The product advice and campaigning group has claimed that though best-buy tables can be used to research basic products, such as cash Isas, for more...

Standard Life berated over offer.
November 1, 2007... Byline: A life assurance and pensions giant is criticised over statements it has made in its attempt to buy Resolution Standard Life has come under fire from all directions for its approach for Resolution, with the Takeover Panel...

People saving for retirement fail to take advantage of rewards on offer, says Skandia.
November 1, 2007... Over cautious investors are seriously limiting the opportunity to grow their retirement income, according to new research by Skandia. The provider has described as "worrying", its research that revealed that 74 per cent of people prefer to...

FSA newsletter focuses on 'less savvy' right-to-buy loan market.
November 1, 2007... The FSA is reminding mortgage advisers that they are not allowed to cold call. The regulator's latest newsletter focuses on the right-to buy market, reminding advisers that people who want to exercise this right are often less financially...

Friends Provident reports new business up 13%.(Brief article)
November 1, 2007... Life and pensions provider Friends Provident has announced a 13 per cent increase in UK new business - to AGBP3.42bn - in the first nine months of the year. Despite the overall rise, the FTSE100 company produced a mixed bag of results,...

Bonds a safe haven for investors seeking to diversify, say managers.
November 1, 2007... Fidelity is calling on investors to review their bond allocations in the wake of the credit crunch. Ian Spreadsbury, a portfolio manager at Fidelity International, said he expected volatility to decrease and it was time to use bonds as a...

Tales of pioneering.
November 1, 2007... Byline: This year's Sales Awards had a special storyteller to entertain the industry More than 230 people attended Financial Adviser's prestigious Sales Awards at the Brewery last week. The event now in its 12th year is to recognise...

Property prices in Scotland are most affordable.
November 1, 2007... House prices in Scotland are showing no sign of becoming caught up in the nervousness being experienced further south, according to the latest Quarterly Scottish House Price Index from Bank of Scotland. Annual house price inflation north of...

Managers in big teams hinder performance.
November 1, 2007... Managers in larger teams who manage too many vehicles with too little individual discretion are more likely to under perform, Jim Hunter, founder and owner of Teamsight, has claimed. A study of 54 UK fund managers from 27 companies...

Paradigm gives members access to new mortgage lenders' panel.(Brief article)
November 1, 2007... Paradigm Mortgage Services has been appointed by Mortgage Next Packaging to its panel. The deal will give Paradigm's members access to a list comprising more than 15 lenders. It will allow financial advisers access to a mortgage enquiry...

Guarantees 'too great' a price to pay for stability.
November 1, 2007... Byline: Savings accounts track Bank of England's base rate but pay investors up to 2 per cent less Many guaranteed savings account rates are leaving customers out of pocket by consistently offering poor returns, Investec Private Bank has...

US-based Edward Jones opens UK branches in Norfolk, Edinburgh.
November 1, 2007... US-headquartered wealth manager Edward Jones has continued its UK expansion with the opening of two branches. One is in Holt, Norfolk, and will be headed by financial adviser and stockbroker Alan Cook. Mr Cook, who believes in...

Axa's Budget Day gains support within industry.
November 1, 2007... Finance and business heavyweights have backed Axa's "social experiment" aimed at improving the nation's finances, it was announced at a roundtable discussion on Monday. The network's national initiative, My Budget Day, encourages UK adult...

Online guide shows advisers how they can donate clients' money efficiently to charity.
November 1, 2007... A partnership between the government, charity and Deloitte has published a tax guide to explain to wealth managers how best to give efficiently to the arts. Charity Arts & Business has led the launch of the online guide in response to the...

Cofunds enlists IntellifFlo in its bid to improve IFAs' efficiency.(Brief article)
November 1, 2007... Investment platform Cofunds is introducing a single registration document for IFAs to help them save time. The platform provider is working with IT experts IntellifFlo to enable advisers to use a single registration document for all of its...

IFAs slam vague will trust terms by government.
November 1, 2007... Advisers have criticised calls for IFAs to tear up clients' will trusts following changes to the transferability of the nil-rate band announced in the Pre-Budget report. The vast majority of IFAs are still likely to need to conduct a major...

Townsley elected to take reins at the AFS.
November 1, 2007... Andrew Townsley has been elected president of the Association of Friendly Societies and will take to the helm for a year. Members of the association voted for Mr Townsley, who is the chief executive of Sheffield Mutual Friendly Society, and...

Providers to assist advisers in expanding knowledge on equity.
November 1, 2007... Advisers who want to extend their knowledge of the equity release market are now looking to providers for assistance, according to research from forums. According to feedback from advisers at the nationwide equity release forums...

Lord Hunt shifts RDR debate focus.(Lord 'David' Hunt of Chartered Insurance Institute on retail distribution review)
November 1, 2007... Byline: Lord 'David' Hunt tells the Personal Finance Society that the RDR debate has been side-tracked by commission The retail distribution review is being side-tracked by the debate over commission, according to Lord Hunt of Wirral. ...

Ernst warns of danger to IFAs by RDR changes.
November 1, 2007... The retail distribution review and changes to capital adequacy may result in IFAs retiring or going out of business, according to Shaun Crawford from Ernst & Young. Mr Crawford, head of insurance services, told IFAs at the Personal...

Aegon worries over RDR's focus on individual advice.
November 1, 2007... Questions about the kind of support that the Personal Finance Society and the Chartered Insurance Institute can give to IFAs, were asked by the head of industry development for Aegon. Peter Williams, highlighted the problems within the...

Advisers put under the microscope post RDR.
November 1, 2007... Byline: Challenging times face advisers following the retail distribution review: poll The adviser community is under intense scrutiny as it grapples with the evolving advisory environment under RDR proposals, according to the chief...

Housing hiccup will not last long.
November 1, 2007... The fall in the value of the average UK house and a slowdown in the annual rate of house-price growth reflects uncertainty in the UK property market, according to the latest Assetz house price index. The index highlighted a decrease in the...

Skilton touches down with first prize in fantasy rugby.
November 1, 2007... Congratulations to Paul Skilton from DC Financial Ltd who was the lucky winner of the F&C Fantasy World Cup Rugby competition. Mr Skilton made the shrewd call of packing his fantasy team full of Springboks and with South Africa lifting the...

Symponia talks pre-funded care solutions with Lincoln.
November 1, 2007... IFA Symponia, a long-term care fees planning group, is in exclusive talks with Lincoln Financial Group about the provision of pre-funded solutions for elderly care financial planning needs. Janet Davies, joint founder and managing director...

HSBC launches primary school savings initiative.
November 1, 2007... The first national financial initiative designed to improve personal finance capability in schools has been launched by HSBC and Pfeg, the two groups announced. HSBC and the Personal Finance Education Group, the UK financial education...

Britain feels the pinch of rising interest rates.
November 1, 2007... Byline: A survey reveals that British consumers are tightening their budgets The series of increases in interest rates over the last 12 months are beginning to bite as British families cut back on borrowing, according to the latest...

Roaring success for Rowanmoor.
November 1, 2007... Rowanmoor Pensions has marked its first anniversary with a AGBP1m increase in turnover. The UK's largest independent Small Self Administered Scheme provider announced turnover now stands at AGBP11m. Since its launch in September 2006 -...

FRM Credit Alpha in new shares offering.
November 1, 2007... Byline: Investment company issues new shares after its strong performance FRM Credit Alpha, a closed-ended hedge fund of funds investment company is expanding its share base with an offering. Guernsey-registered FRM Credit Alpha, whose...

Insight fund of funds range available to retail investors.
November 1, 2007... Insight Investment is launching its Absolute Insight fund of funds range to retail investors, the group has announced. The move comes as Insight, part of the HBoS Group, revealed that it had launched daily pricing for the range of funds,...

Thames funds wrapped into Nucleus platform.
November 1, 2007... Thames River Capital has added its multi-manager fund range to Nucleus' wrap platform. The funds are now available on most major third-party platforms, as the company seeks to broaden IFA accessibility. Thames River appointed Sarah...

T. Bailey to look after Wise Investment funds.
November 1, 2007... Multi-manager specialist T. Bailey has received an improved AA rating from Old Broad Street Research for its flagship Growth fund. The Nottingham-based asset manager launched the fund, which previously had an A rating, in 1999. It has...

Singh to succeed Mumenthaler as chief risk officer for Swiss Re.
November 1, 2007... Byline: West Brom appoints Egerton as senior products manager West Brom for Intermediaries, the specialist lending subsidiary of the West Brom Building Society, has appointed Andrew Egerton (pictured) as senior product manager for...

Eq Life policyholders to face even more delays.
November 1, 2007... Byline: After an 8-year wait, Ombudsman tells claimants to 'hold on a little longer' Members of Equitable Life awaiting a ruling over their right to compensation were dealt a disappointing blow this week when the Parliamentary Ombudsman...

Appetite grows for adviser firms.
November 1, 2007... Byline: More big names in financial services wave their cheque books as IFA industry is identified as a growth market Consolidation of the IFA industry is gathering momentum with a series of acquisitions in an industry identified as a...

MiFID's gains outweigh the costs - FSA.
November 1, 2007... The Markets in Financial Instruments Directive becomes law throughout Europe today and will cost about AGBP1bn to implement, according to FSA figures. Ongoing costs are likely to be an extra AGBP100m a year, however, AGBP200m of extra...

Applegarth quits Persimmon to concentrate on Northern Rock.
November 1, 2007... Adam Applegarth has quit as non-executive director of house-builder Persimmon to focus entirely on helping crisis-stricken Northern Rock. The move comes after Alastair Darling, the chancellor, told a committee of MPs investigating the...

Christine Foyster.(Interview)
November 1, 2007... FINANCIAL ADVISER: Tell us a bit more about how the wealth management arena has evolved over the last few years? CHRISTINE FOYSTER: The remit of wealth management for Friends Provident specifically has broadened considerably during the last...

Society's forum achieves its goal.
November 1, 2007... Call me a nerd, but it has long been my ambition to visit the grounds of all 92 premiership and football league clubs. I have got close on many occasions, only to be thwarted by the decision of some smart-Alec chairman to sell his club's ground...

A question of bias.(influence of commision on the services of financial advisers)
November 1, 2007... In this issue, Martin Walker (page 60) poses the question: can anyone seriously argue that commission-only advisers do not suffer from product bias? The simple answer is yes. What is undeniable is that a commission-driven business is in serious...

Reason to raise limits.
November 1, 2007... It is always a good sign of civic well-being when voluntary bodies such as friendly societies are thriving. However, even these well-meaning bodies need government support ever so often. The AGBP25 a month tax-exempt limit on savings is a...