Financial Advisor articles from October 2007

Financial Advisor archives from October 2007

Life partners emerge after sector shake up.(Association of British Insurers patnershipwith Investment Management Association)
October 4, 2007... Byline: ABI and IMA form working party after radical overhaul of fund classification Two of the most powerful trade associations in financial services will form a working party following the introduction of the first new classification for...

Openwork on target to meet.
October 4, 2007... Openwork has increased mortgage sales across its 40-strong lender panel, the company has reported. Total mortgage origination from the financial services distribution network year-to-date has increased by more than 20 per cent and the...

Market has 'to alter in wake' of Close call.
October 4, 2007... Byline: Restructuring is now an inevitability, claim commentators The market will suffer a fundamental restructuring, according to industry commentators following Lehman Brothers' withdrawal from the sub-prime market and repricing by names...

Fixed dominant mortgage type: Abbey.
October 4, 2007... Most homeowners would choose a fixed rate mortgage over a tracker if they had to remortgage tomorrow, according to a recent Abbey survey. Nearly four out of five - 79 per cent - homeowners said they would choose a fixed rate product....

Household wealth twice as much as 10 years ago.
October 4, 2007... Household wealth has more than doubled over the past decade, according to Halifax Financial Services. Research carried out by the financial services arm of the HBoS group showed the total value of assets held by all households in the UK...

Dubai or not Dubai, that is question for John Charcol.
October 4, 2007... Byline: London-based broker rolls out Dubai deal to end what it terms 'historic struggle' to get mortgages John Charcol has launched a mortgage for UK investors in the Dubai property market. The mortgage will be advanced by the...

Consumers feel pressured to buy PPI - Capital Blue study.(payment protection insurance)(Brief article)
October 4, 2007... More than 30 per cent of consumers felt pressured to buy insurance in association with mortgages, according to research from Capital Blue, a market research company. As many as 11 per cent felt under pressure to take out payment protection...

Buy-to-let remains resilient as the market starts to turn - Paragon.(Brief article)
October 4, 2007... Buy-to-let remains strong even while the main housing market is showing signs of weakness, according to specialist lender Paragon. Rental yields are stable, overall returns are steady and landlords are adding to their portfolios. The...

Watchdog reports a lack of clarity in PPI.
October 4, 2007... Byline: Industry continues to see PPI as 'an easy sale with big commissions' - FSA Many companies are still failing to treat customers fairly when selling payment protection insurance, an FSA consumer panel has concluded. Although the...

You can only run so long on empty.
October 4, 2007... Byline: There is a danger that the current credit crunch may turn into a distribution crunch among UK lenders Do not cry in your soup. This is not another of those articles about what is happening in the US, where banks have been falling...

Attacked from all sides at once.
October 4, 2007... Looking back, August turned out to be far from a quiet holiday month. Led by worries about rising defaults in the US sub-prime mortgage sector, financial markets suffered a period of severe volatility. Equity markets saw sharp daily...

Sailing close to the wind.
October 4, 2007... The recent news that Close Brothers has suspended its mortgage subsidiary should be a wake-up call to all those other lenders who had flirted with, or indeed married investment banks. Just a couple of years ago several sub-prime lenders...

Don't panic, you stupid boy...(Northern Rock PLC)
October 4, 2007... ... or just stay silent, Darling BBC newsreader Huw Edwards made an unfortunate slip of the tongue early on during the Northern Rock crisis when he referred to the company as "Northern Wreck." Perhaps it was no slip of the tongue, after...

How to play a service game.
October 4, 2007... Byline: Ways to improve custmer service The first week in October is National Customer Service Week. Seven days designed to promote the importance and value of serving customers well. It is a week during which staff in participating...

Care in the community.
October 4, 2007... Byline: The Marsden Building Society is a great example of a financial institution being about the local community In an age of demutualised building societies when personal customers are publicly battling financial institutions over...

Re-drawing all the battle lines.
October 4, 2007... Byline: The fight for advisers is not just about finding best rates but seeking a lender willing to take on sub-prime The money markets are in turmoil, and some say that the housing market is on the edge of a chasm. Which means only one...

Advisers are turning to survival plans - society.
October 4, 2007... Byline: Brokers bracing for a downturn, claims Society of Mortgage Professionals Mortgage brokers and packagers are making contingency plans to help them cope with a possible market downturn. Richard Fox, director of the Society of...

Average family tag does 'not apply to most'.(Brief article)
October 4, 2007... The British stereotype of mum, dad and 2.4 children is fast disappearing, according to Birmingham Midshires, which could have an impact on how advisers consider treating customers asking for mortgages. According to research by the mortgage...

IMLA backs Bank's steps to tackle the credit crunch.
October 4, 2007... The Intermediary Mortgage Lenders Association has welcomed the Bank of England's involvement in offering additional funds to ease the credit crunch in the UK. Last month, the Bank offered AGBP10bn-worth of three-month loans at a penal rate...

L&G abolishes key policy requirement in an industry first.(Legal and General Group PLC)(Brief article)
October 4, 2007... Legal & General is to abolish the requirement to notify any change of health or circumstances before a customer's policy starts, according to the provider. Until now, Legal & General has followed industry practice, known as ongoing duty of...

Osborne vows to lift the IHT threshold to AGBP1m under Tory rule.
October 4, 2007... The Tory party plans to tax workers in the UK that are domiciled offshore to the tune of AGBP25,000 in move the Treasury estimates will affect 26,000 people. In his speech to the Conservative Party Conference in Blackpool, shadow...

GB Group gives IntelliFlo easier client ID checks.(IntelliFlo joins patrnership with GB Group )(Brief article)
October 4, 2007... IntelliFlo has sealed an alliance with technology specialist GB Group to help advisers work more efficiently, the financial services back-office system provider announced. The provider hopes to transform customer ID verification from a...

Norwich Union joins PMS panel.(IFA Financial Adviser provides services to insurance firm)(Brief article)
October 4, 2007... IFAs will be offered specialist rates through the Premier Mortgage Services panel that Norwich Union announced it has joined. Norwich Union, the life and pensions provider, has joined the PMS panel, the UK mortgage club for intermediaries...

Bosses enjoy 16% rise in pay - KPMG.
October 4, 2007... Byline: KPMG's survey reveals executives benefited from a 16% payrise, a very sharp increase from last year's 9% Some of the UK's managerial elite are earning more than 100 times what they pay many of their workers, following an inflation...

Greenspan says US recession is likely.
October 4, 2007... There is about a 50-50 risk of recession in the US as the sub-prime debacle unwinds, according to the former chairman of the US Federal Reserve, Alan Greenspan. Speaking recently on Radio 4's Today programme, he added the economic climate...

IMA gives new property paper nod of approval.
October 4, 2007... Pensions, charities and self-invested pensions, Isas and child trust fund investors should not pay tax on Property Authorised Investment Funds, the Investment Management Association says. The association said that it welcomed the discussion...

Watchdog growls at with profit providers.
October 4, 2007... Byline: FSA sends letter out to chief executives warning over information errors Companies are not devoting enough attention to running off closed with profits funds, and management should take prompt action to address any shortcomings,...

Aifa takes on Brussels muscles.
October 4, 2007... European legislation is increasingly influencing the IFA market and more policy decisions are being made from Brussels, according to the director general of the Association of IFAs. Chris Cummings said Europe is now one of the biggest...

Bupa alters its group inc protection plan.
October 4, 2007... Bupa has amended its group income protection product so that individuals can receive a maximum benefit of 75 per cent of their income, regardless of any state incapacity benefit entitlement and in anticipation of future welfare reform changes....

DWP publishes consultation paper over age discrimination.
October 4, 2007... The department of work and pensions has issued a consultation paper covering age discrimination and the impact on flexible retirement with the aim of offering further exemptions to employers. It suggests that employers and trustees are...

Tough times await us, says CBI.(growth of financial services)
October 4, 2007... Byline: Financial service sector's anticipated 'cooling off' period has not materialised, signalling difficult months ahead The financial services sector expects a tougher quarter ahead, according to the latest Confederation of British...

France proposes tax relief law for expats.
October 4, 2007... New tax measures in France would give primary UK property investors tax relief by introducing it on 20 per cent of the interest paid on mortgages up to AGBP5110 a year. As French President Nicolas Sarkozy introduces the new tax measures,...

Focus rolls out front-end Sipp tool for intermediary market.
October 4, 2007... Focus Solutions is launching a front-end intermediary tool for the sale of Sipp products, in response to increased demand from providers, the company said. The firm is offering a single point of sale solution to support the sale of...

Household wealth has more than doubled in past decade - Halifax.
October 4, 2007... The total value of wealth held by all households in the UK has risen by 127 per cent over the past 10 years, according to new research from Halifax Financial Services. Net household wealth - after the deduction for outstanding debt...

Mott's Income fund to open to wider range as result of FundZone deal.
October 4, 2007... Standard Life has added the PSigma Income fund to its FundZone platform. The AGBP230m PSigma Income fund, managed by Bill Mott, was launched on 5 April, having raised AGBP108m during the launch period. Mr Mott is one of the best known...

'Crunch won't bite', says society as lending falls.
October 4, 2007... Byline: Building society reports robust criteria will help it retain first half increase Britannia Building Society has reported an 8 per cent increase in profits for the first six months of the year to AGBP81.7m. However, it has...

Can Life rolls out Dimension plan.
October 4, 2007... Canada Life International is launching the first of a range accounts which will offer advisers and clients access to more funds with flexible commission and charging options. According to the global financial services group, the Dimension...

Commission clarity calls are 'rising'.
October 4, 2007... Byline: Scottish Life reports an increasing interest in transparent remuneration formats and flexible commission plans Scottish Life, the pensions specialist arm of the Royal London Group, has reported a growing demand from IFAs and their...

Alternative routes for pensions rise.
October 4, 2007... People increasingly are opting to control their pensions through alternative investments and self-invested personal pensions at the expense of personal and stakeholder pensions, according to The Pensions Report 2007. The report found that...

New Star 'cautious' in spite of first half rise.(New Star Asset Management Ltd.)(Financial report)(Brief article)
October 4, 2007... New Star Asset Management reported that operating earnings went up 58 per cent to AGBP48.1m in the first six months of this year. In the same period last year profits were AGBP30.5m. The unaudited interim results for the six months to...

Eq Life picks Pru in sell off deal.
October 4, 2007... Equitable Life, once Britain's most contentious mutual, has moved to offload its AGBP1.7bn with profits annuities to Prudential in a transfer said to be the first of its kind. Pru succeeded in bidding for the fund transfer which, if given...

Doubts linger over client confidence.
October 4, 2007... While Equitable Life's board will be hoping the proposed deal with Prudential will mark the opening lines of the final chapter in the mutual's tumultuous history, ramifications for the financial services industry and consumer confidence remain....

Move to draw a veil over a testing period which saw Eq Life tumble.
October 4, 2007... The first half of this decade was a tricky time for many financial services firms but possibly none more than Equitable Life, the World's oldest mutual insurer and now a "dirty word" in financial services. Throughout 2000 and into 2001,...

Now focus turns to the remaining policyholders.
October 4, 2007... It appears hard to see why the Prudential with profits annuity transfer from Equitable Life would not receive member ascent and wrap up by the end of the year. What is less clear and perhaps more intriguing is what will become of the...

New Mental Health Act to aid law.
October 4, 2007... Byline: New Mental Capacity Act grants new lasting powers for those who are unable to look after their own finances New lasting powers of attorney under the Mental Capacity Act came into effect on 1 October that are aimed to assist...

Staff look set to quit financial services sector north of border.
October 4, 2007... A third of Edinburgh's financial services workers are actively seeking new jobs - but not necessarily for higher wages, according to research. A study by recruitment firm Robert Half Finance said that four in five of those wanting to move...

Just Retirement announces plan to offer multi-tied advice service.
October 4, 2007... Just Retirement, the UK specialist retirement provider, has launched a new multi-tied advisory service. Just Retirement Solutions will offer clients advice on releasing equity from their property. Areas that will be covered are advice on...

Cockburn Lucas signs book deal with fellow East Midlands firm.(Cockburn Lucas IFC Ltd. and Fiscal Engineers Limited.)(Brief article)
October 4, 2007... Cockburn Lucas IFC is to take on to its books some clients from Fiscal Engineers Limited for an undisclosed fee, the two East Midlands wealth management companies announced. The clients who are to move have about AGBP2.5m in assets under...

BTL could be next to go - experts.(Moneyfacts.com)
October 4, 2007... Byline: Moneyfacts claims that the action of several buy-to-let lenders is reminiscent of those taken by sub-prime firms The affects of the credit crunch have now reached the buy-to-let sector, with lenders increasing fees and pulling...

Spiers denies ending ties with BestInvest.(opinions of John Spiers)(Brief article)
October 4, 2007... John Spiers, former chief executive of BestInvest, has told Financial Adviser that he is still "very much part" of the company he founded. In July, private equity group 3i bought the IFA group and Mr Spiers stepped down as chief executive...

Ifap speaks out over Which? move to brand multi-tied 'independent'.
October 4, 2007... IFA Promotion has "grave" concerns about the impact of proposals for tied advisers to call themselves independent, after results from Which? showed that the majority of tied advisers failed to pass all the benchmarks for giving good advice. ...

Final range is re-styled in Barclays adviser drive.
October 4, 2007... The adviser-centred revamp of Barclays' capital protected investment range has concluded with the enhanced re-styling of its Defined Returns Plan, the bank said. The move follows Barclays' success in raising more than AGBP100m in the last...

Rock ripples market, but prices stabilise.
October 4, 2007... Byline: Market recovers after bank saga, but underlying movement is downwards UK house prices showed signs of stabilising after a short period of uncertainty following the Northern Rock saga, according to two reports released last week ...

Proact reacts to feedback from clients by rebranding.
October 4, 2007... Proact, the West Midlands-based IFA group, announced it is rebranding its team of 50 advisers, as a result of feedback from IFAs and clients. Commenting on the key issues that were raised from adviser and client research, Simon Williams,...

Bank's data supports our market outlook, claims Hometrack.
October 4, 2007... The latest mortgage data from the Bank of England supports Hometrack's outlook on the UK property market, the UK housing intelligence business reported. Gary Styles, strategy, risk and economics director for Hometrack, said that data from...

Over-60s in the dark on equity value.(Norwich Union PLC)(Brief article)
October 4, 2007... Homeowners over the age of 60 now have more than AGBP841bn tied up in bricks and mortar, yet only 6 per cent would consider selling their property, research has revealed. In what equity release provider Norwich Union described as...

Mortgages Plc continues to pull sub-prime buy-to-let products.
October 4, 2007... Mortgages Plc has suspended its entire heavy and unlimited adverse products to prevent the business from becoming "isolated" in the adverse credit market, according to the lender. This move is a direct result of fallout from the Northern...

New business levels boost A'deen assets.(Aberdeen Asset Management PLC)(Brief article)
October 4, 2007... Aberdeen Asset Management has seen assets under management rise 13.2 per cent in six months, reporting a total of AGBP91bn at the end of August. The company attributed this primarily to new business inflows which it said had continued at a...

Nearly one in 10 rely on property 'for pension'.
October 4, 2007... Byline: Some 7% of adults banking on property for retirement, claims Baring Some 3.2m people, or 7 per cent of UK adults, are relying on property investments to fund their retirement, according to Baring Asset Management. Baring said...

Cavanagh's growth starts in Cardiff.
October 4, 2007... IFA Cavanagh Group has opened a new office in Cardiff as part of plans to expand across the UK. With the opening of the new office, the Aim-listed group now has 11 offices nationwide. A staff of 160 manages assets of more than AGBP1bn. ...

Things hot up in Rugby comp as the quarter finals near.
October 4, 2007... So the group phase has been completed and the minnows of international rugby - including Wales and Ireland - depart the scene for the knock out stages - and now it is Quarter final weekend in the 2007 Rugby World Cup. There are two real...

Mazars recruits across the board.
October 4, 2007... Mazars Financial Planning, the financial planning subsidiary of international accountants Mazars LLP, has begun its 2007 graduate training programme. Five graduates are undertaking four-year training contracts. MFP recruits 2:1 graduates...

Missing returns results in FSA action.
October 4, 2007... Byline: The City watchdog issues final notices to two consultancy firms for their repeated failure to submit documents The FSA has taken enforcement action against two consultancy firms for failing to submit Retail Mediation Activities...

Interest on overdrafts cut for A&L customers.(Alliance & Leicester PLC)(Brief article)
October 4, 2007... Alliance & Leicester current account customers will not be charged overdraft interest from 22 October, the firm has announced. Instead a set of daily fees for overdrafts will replace interest payments. Customers will pay 50p a day for an...

AMI slams BBC show on sub-prime mis-selling.
October 4, 2007... Byline: Cummings highlights FSA report clearing industry of widescale mis-selling Trade bodies representing mortgage lenders and intermediaries have hit back at claims of alleged mis-selling in the industry. Defending mortgage brokers...

Auto valuations go global with Plum.
October 4, 2007... Plum Software, which supplies software to IFAs, has announced it is extending its automatic valuation system to global services. The firm's clients are now being offered access to instant valuations for Clerical Medical International...

Landlords tackle borrowing costs.(reports of portfolio management)(Brief article)
October 4, 2007... Residential landlords have reduced the gearing on their portfolios in order to tackle increased interest rates and high borrowing costs, research from buy-to-let lender Paragon has revealed. According to the report, UK residential landlords...

Axa examines finance psychology.
October 4, 2007... Byline: The insurance giant invests in research on what motivates clients to organise their finances Axa Life is launching research into behavioural finance that it will be inputting into Otto Thoresen's review of the feasibility of...

BBA issues a guide on how to manage others' money.
October 4, 2007... The British Bankers' Association has produced a new guide to help people in England and Wales who manage finances for people who lack mental capacity. The downloadable document advises on new measures that come into force on 1 October...

Stonehage aids the wealthy to donate money.
October 4, 2007... Private-wealth adviser Stonehage has launched a philanthropic advisory service for wealthy individuals who like to invest in charitable works. The service, called Stonehage Philanthropy Services, will work with wealthy client families to...

Morrell to head HSBC global property fund.
October 4, 2007... Byline: International bank launches a fund to focus on long-term capital growth HSBC is launching a fund of property funds which it claims will be among the first of its kind available to UK investors. The Open Global Property fund...

Skipton strikes again with PFC deal.
October 4, 2007... Byline: Acquisition of Reading-based IFA firm Parnell Fisher Child takes the building society's number of subsidiaries to 19 Skipton, the UK's sixth largest building society, has made further inroads into the financial advice arena by...

Thomas White Int'l to run 10% of AGBP1.5 Witan investment trust.
October 4, 2007... Witan investment trust announced Thomas White International will be the third global manager to run its multi-manager portfolio, after its latest strategic review. Chicago-based Thomas White International will run 10 per cent of the...

Fidelity boosts ability to research with analyst.
October 4, 2007... Fidelity has bolstered its multi-manager research ability with the appointment of a new fixed income portfolio analyst. The company announced that Eugene Philalithis will join in mid-October. The announcement comes after senior fund analyst...

Gartmore team turns to UK banks and insurers.
October 4, 2007... The UK asset management fund equities team at Gartmore is turning to the UK banks and insurers as an investment opportunity, according to the fund manager. Sacha Sadan, manager of Gartmore UK Growth fund, said: "Gartmore has no exposure to...

Hallas promoted to area manager of GMAC-RFC's northern team.
October 4, 2007... Byline: MacPherson to head Scottish Life's individual business Scottish Life has appointed Keith MacPherson as head of individual business. Mr MacPherson will take on the responsibility for individual pensions and develop this area through...

Everitt on the move to Transport for London.
October 4, 2007... Byline: FSA's director of retail themes to become head of marketing for TfL The FSA director of retail themes and sector leader for consumers, Vernon Everitt, is the latest senior manager at the City watchdog to be head-hunted for a...

Shell UK takes a holiday from contributions.
October 4, 2007... Shell UK has announced that it is taking a contribution holiday from its AGBP12.1bn pension fund. The company said that the latest actuarial valuation showed the scheme to be heavily in surplus. A notice to members posted on the company...

A paper defining professionalism from the CII.
October 4, 2007... The CII has published a position paper defining what professionalism in financial services means, following the FSA's retail distribution review. The paper: 'A Professional Body for Retail Financial Services?', is the first of a series...

Singing the praises of financial advice.(Viewpoint essay)
October 4, 2007... Sometimes, I get quite excited about the future of quality independent financial advice in this country. Truly, honestly I do. OK, such optimistic vibes only happen once in a blue moon, usually when I am standing on one leg having just...

The weakest link.
October 4, 2007... One of the sideshows of the Northern Rock catastrophe is the dispute over the theory and practice of financial services regulation. Despite the certainty with which we talk about the regulatory regime, the discipline itself is less than two...

A facelift to Treasure.
October 4, 2007... The crisis at Northern Rock has given the Treasury an opportunity to radically overhaul the financial regulatory system, making it more dynamic and appropriate going forward. One of the first changes should be removing the consumer remit...

Wrap war working up as banks and life offices join fray - 7IM.
October 4, 2007... Banks and other big financial institutions are gearing up to compete with life offices in the provision of wrap platforms, the Institute of Financial Planning Manchester annual conference was told this week. Tom Sheridan, chief executive...

Heading for the rocks.
October 4, 2007... Cut your losses There are times when I could weep for savers stuck in with profits funds. Has so much ever been promised to so many with so little delivered? Those saddled with Standard Life must be wondering what on earth has...