Financial Advisor articles from September 2004

Financial Advisor archives from September 2004

Soaring prices mean more millionaires and more tax.
September 2, 2004... The campaign to change inheritance tax was given impetus by research showing that one in 20 London households is now worth more than AGBP1m. The Centre for Economics and Business Research said that around 425,000 millionaires were living...

HBOS planning to disclose all intermediary payments.(Brief Article)
September 2, 2004... HBoS has announced that it will disclose all payments made to mortgage intermediaries in its Key Facts Illustrations. The group, which has five mortgage brands, said it would make public all those transfers made to intermediaries, including...

NatWest latest bank to quit self-cert.(Brief Article)
September 2, 2004... NatWest has completely pulled out of the self-certification mortgage market. The lender has been notifying intermediaries that they will no longer be happy to take new business relating to self-cert loans, and the last applications it took...

Warning over long-term risk of no-fault settlement.
September 2, 2004... FINANCIAL advice companies offering compensation on a no-fault basis could end up losing out when an adviser changes jobs. That is according to Chris Fitton, financial services lawyer with Pinsents, who said that as the number of claims...

Big no to forcible pension payment.(Brief Article)
September 2, 2004... COMPULSORY pensions have received an overwhelming thumbs down from people who are most at risk of poverty in old age. New research from the Association of British Insurers showed that 4.5m working adults who are most at risk of not having...

Chelsea duo hike for a star cause.(Chelsea Financial Services)(Brief Article)
September 2, 2004... CHELSEA Building Society's intermediary sales centre staff plan to boldly go on a trek for the National Star College. Angela Leech and Tamara Brooks, known as the Chelsea Star Trekkers, are seeking sponsors to help them raise cash for the...

Slow return to savings reported.(Brief Article)
September 2, 2004... CONSUMERS are continuing their slow return to the savings market, according to the Association of British Insurers. Figures released by the ABI showed that new life and pensions business for the first half of 2004 enjoyed an overall rise of...

NEW PRODUCt - Winterthur picks CS funds.(Credit Suisse)(Brief Article)
September 2, 2004... Winterthur Life has added Credit Suisse's multi-manager funds to its tailored selection. The three Credit Suisse funds that will be available through Winterthur's pension and investment bond products from 1 September are the Constellation,...

Clarkson Hill and TMA establish mortgage club.(The Mortgage Alliance)
September 2, 2004... NETWORK Clarkson Hill is setting up its own mortgage club in conjunction with Abbey's The Mortgage Alliance. The network is white-labelling The Mortgage Alliance's mortgage distributor, which will give Clarkson Hill's advisers access to 40...

Policymaker surgeries at Sofa conference.(Brief Article)
September 2, 2004... DROP-in surgeries with the industry's policymakers will be tailored to the needs of delegates at the annual Sofa conference. Update 2004, in association with Financial Adviser, offers members the chance to meet and question representatives...

Submit to Friends Provident online.(Brief Article)
September 2, 2004... ONLINE applications for two Friends Provident products will be possible using Practiv's In-Site Technology. Financial advisers will be able to submit applications for Friends- Provident's select protection and income protection plans...

Building societies show asset growth.
September 2, 2004... BUILDING societies' assets stormed past the AGBP200bn mark in the past 12 months, the strongest rise for seven years. According to KPMG's Building Societies Database, building societies' assets amounted to AGBP224.8bn in the year ended...

Net sales dip as retail funds' appeal fades.
September 2, 2004... IFAS reported falling levels of new money going into retail investment funds, according to sales figures from the IMA. Reduced inflows in stagnant markets and the growing appeal of cash were blamed by the Investment Management Association....

NEW PRODUCt - Nvesta keeps track of three top indices.(Brief Article)
September 2, 2004... Nvesta has launched a new structured product that takes account of three major indices. The product, which is the latest version of its Secure Tracker range, offers 110 per cent of the growth of the FTSE100, S&P 500 and the Nikkei 225. ...

NEW PRODUCt - Standard Life helps you secure capital.(Brief Article)
September 2, 2004... STANDARD Life's Secured Capital Plan will be launched on 6 September. The structured product, which provides 100 per cent capital protection for investors over a specified period, will be offered until 26 October. The deal will be applied...

Government must act to encourage saving.(Brief Article)
September 2, 2004... POLICY makers should stop blaming the industry and advisers for consumers not saving, according to Apcims. Angela Knight, chief executive of the Association of Private Client Investment Managers and Stockbrokers, said policymakers must stop...

Brokers' adverts in breach of OFT rules.(Office of Fair Trading )
September 2, 2004... The Office of Fair Trading has called to heel two brokers over advertising that breached regulations. Both Mortgageland and Assurebrook Financial Services were told to change their advertisements after it was found that they broke the rules...

Benefits review call as A-Day approaches.(Brief Article)
September 2, 2004... WATSON Wyatt is urging advi- sers to review clients' pension benefits amid fears of delays generated by A-Day. The employee benefits consultant said there would be a delay in obtaining details of existing and deferred pension benefits. ...

Riding high thanks to the Derbyshire.(Derbyshire Building Society)(Brief Article)
September 2, 2004... THE WORLD'S best cyclists are heading to the Midlands thanks to Derbyshire Building Society. The building society has joined forces with East Midlands Development Agency and organisers of the Tour of Britain cycle race to be sponsors of...

Financial services bucks negative trend.
September 2, 2004... THE UK's dynamic financial services industry is booming as the rest of the world faces a downturn. The Confederation of British Industry said that, while the rest of the economy was bracing itself for higher interest rates and oil prices,...

Distribution funds get adviser support.(Brief Article)
September 2, 2004... IFAS have shown their support for distribution funds as a core component of an investment portfolio. According to new research from Axa, 35 per cent of IFAs think distribution funds as the most desirable element for investors to have at...

NEW PRODUCT- Reluctant wealthy investors targeted.(intermediary-only investment plan)(Brief Article)
September 2, 2004... PRUDENTIAL is attempting to woo reluctant high net-worth savers with a transparently priced intermediary-only investment plan. The PruFund Investment Plan has been launched with the intention of mopping up what the life insurer claims is...

Rents rise despite a buy-to-let slowdown.
September 2, 2004... Landlords are reporting the fastest-rising rents for three years, despite signs of a slowdown in the buy-to-let market. Even though demand for buy-to-let mortgages seems to be slackening, for those that are in the market rents seem to be...

Student homes pay parents up to 100%.(Brief Article)
September 2, 2004... Parents who bought property for their student children have done well over the past five years, according to Halifax. The bank said that investors who put money into homes for their offspring while they were studying could have made returns...

Mortgages plc joins KFI accuracy debate.
September 2, 2004... Mortgages plc has waded into the row over KFI accuracy by claiming that sourcing systems may fall from favour with brokers. This, according to Peter Beaumont, sales and marketing director with Mortgages plc, could be due to them failing to...

Former LIA boss criticises merger.(Life Insurance Association)
September 2, 2004... A FORMER chief executive of the LIA has attacked proposals to merge with Sofa, predicting a culture clash. Jeff Travis, who was chief executive of the LIA for six years, said the merger would strip LIA members of their independence. Mr...

Raising Standards to use fairer principles.
September 2, 2004... RAISING Standards is to adapt its requirements to stop accredited members falling foul of their own interpretations of FSA principles. John Cox, chief executive of the Pensions Protection Investments Accreditation Board, said while Raising...

Paymentshield sold for millions.(Brief Article)
September 2, 2004... The founders of Paymentshield have become multimillionaires following the sale of their business to management. Richard Riding and Patricia Cottrell, who were joint chairmen, have sold out as they both approach retirement. The deal,...

Active Aim to offer workshops for IFAs.(Independent Financial Advisors)(Brief Article)
September 2, 2004... A property investment specialist with high net-worth and celebrity clients is offering a consultation service to advisers. Active Asset Investment Management Limited said it had decided to run a series of workshops and one-to-one briefings...

IFAs to miss FSA deadlineTep sales to institutions continue.(Financial Services Authority)(Brief Article)
September 2, 2004... TRADED endowments policies are far from dead, despite the departure of two leading providers. That is according to David Arnold, marketing director of Absolute Assigned Policies, who said that while Beale Dobie and Policy Portfolio...

NEW PRODUCt - Flexible option.(Brief Article)
September 2, 2004... Clerical Medical has relaunched its Retirement Options Plan to meet demand for a more flexible and transparent product. The income-drawdown plan will be administered by James Hay and includes a full self-investment option, a simplified...

FSA warning triggers fears of broker panic.(Financial Services Authority)(Brief Article)
September 2, 2004... INSURERS and brokers should not be rushed by the FSA into accepting appointed representatives without conducting full due diligence. Insurance law firm Reynolds Porter Chamberlain said providers and brokers must not be panicked by the FSA's...

Nationwide shows dominance, led by remortgage trade.(Nationwide Anglia Building Society)(Brief Article)
September 2, 2004... THE dominance of Nationwide was underlined in the Building Societies Database report as its assets represented nearly half of the sector. KPMG said that the assets of the country's largest building society amounted to 45 per cent of all...

Two join board of Winterthur.(Brief Article)
September 2, 2004... Winterthur Life's board has been expanded with the appointment of two new members -- David Thompson and Nick Elphick. Sales director Mr Thompson has been with the company since 1999, while Nick Elphick, who joined in 1986, works as...

New director for CFP as Roger Crockford joins pension specialist.(Central Financial Planning)
September 2, 2004... Pensions Midlands-based pensions specialist Central Financial Planning has appointed Roger Crockford as director. Before joining CFP he was a regulated adviser for consulting actuary Hyman Robertson, where he started working six years...

Standard Life is back in Section 32 market.(Brief Article)
September 2, 2004... STANDARD Life has stepped back into the Section 32 pensions market after having to withdraw its previous offering. The Edinburgh-based provider removed its Section 32 product -- which transferred benefits from an employer's scheme to a...

Destini sails to the rescue of Lifeboat.(Destini Financial Services)(Lifeboat Group)
September 2, 2004... DESTINI Financial Services has bought the assets of Lifeboat Group after Tenet pulled out of a rescue deal last month. Destini bought the team and infrastructure of Lifeboat Group including compliance, management, administration, marketing...

Tep sales to institutions continue.(Brief Article)
September 2, 2004... TRADED endowments policies are far from dead, despite the departure of two leading providers. That is according to David Arnold, marketing director of Absolute Assigned Policies, who said that while Beale Dobie and Policy Portfolio...

With profits research gives food for thought.
September 2, 2004... I HAVE always had a soft spot for AKG, the actuarial consultancy. For years it has ploughed its own furrow, taking up issues that many in the life industry would rather not see discussed -- or if they did, not in the dissecting tones adopted by...

Question time for LIA/Sofa.
September 2, 2004... Starting this week and running up to the first week of October, both the LIA and Sofa will be holding a series of members' meetings across the UK to discuss the details of their proposed merger. E-mails I have received on the subject in the...

Cash-for-ethics proposal speaks for itself.(Brief Article)(Column)
September 2, 2004... The debate over whether IFAs ought to operate on the basis of a code of ethics continues. Last week, I received an e-mail from Mark Wilkins, who works for Equity Financial Planning in Cheltenham. Mark tells me that "the idea that all...

FSA under attack for tough stance on levy.(Financial Services Authority)
September 2, 2004... LEADING IFAs have criticised the FSA for its blasA attitude to, andreasons for, this year's hike in the FSCS levy. The FSA had promised a 1.3 per cent reduction in its own fee rate for 2004-05, claiming in its January newsletter that it was...

Read it and weep (again).(Brief Article)
September 2, 2004... PRUDENTIAL has once again raised a few giggles with its unusual customer relations tactics. Just a week after it emerged that Pru had addressed a customer letter to 'Mr Shagslikeadonkey', Insider learns of yet another comical correspondence...

Europeans top final CFA exam results.(Chartered Financial Analyst )(Brief Article)
September 2, 2004... Europeans are steaming ahead with the highest worldwide CFA exam pass rate, says the Chartered Financial Analyst Institute. Candidates from Europe gained a 75 per cent pass rate compared with a worldwide average of 64 per cent, for the...

Who needs the details?(Mortgage Express's market share)(Brief Article)
September 2, 2004... MORTGAGE Express is rather coy about where it stands in the market these days, even though the company would like everyone to think that it is doing really well. When asked about Mortgage Express's market share, Roger Hillier, product...

No medals for Britannia.(Britannia Building Society)(Brief Article)
September 2, 2004... We have seen some shameless Olympic-themed marketing ploys over the past few weeks -- with more than a few from our very own financial services sector. According to the pitiful press releases landing on journos' desks of late, quite a...

Life's little mysteries.(Brief Article)
September 2, 2004... MEANWHILE, the public relations team at fellow building society Chelsea have been employing a different approach to their profile-raising efforts. When an FA reporter recently called to speak to Jeremy Hicks, PR and public affairs...

Places going fast for Expo 2004.(Brief Article)
September 2, 2004... IFAs are being advised to sign up with only four weeks to go until Financial Adviser's Expo hits Harrogate. Places at the event -- at the Yorkshire Event Centre in Harrogate on 30 September -- are being snapped up so organisers are telling...

No option to compulsion.(Brief Article)
September 2, 2004... A STUDY by the Association of British Insurers on pensions compulsion has found that most people would back the introduction of a compulsory pensions system in the UK. A similar study a few weeks ago by the Confederation of British...

Third world US.(Brief Article)
September 2, 2004... THE latest report by the US Census Bureau makes for terrifying reading -- nearly 40m people below the official poverty line, just over 12 per cent of the population, 45m without healthcare, and a median income of just over AGBP24,000. In...

Fun at golf but tired of bad spin.
September 2, 2004... I thought that this week you deserved a little update on some of the subjects that have caught my attention over the past few months. Another week, another broker consultant wanting to "introduce himself and find out more about my business"...

Does Gordon have the Reit stuff?
September 2, 2004... ON 16 July, the Treasury came to the end of the discussion period on a document of significant importance to the property investment industry. The document -- Promoting More Flexible Investment in Property -- reviewed the structures...

Past ratings are no crystal ball.(fund managers, role)
September 2, 2004... USING past performance in isolation when choosing funds is a mistake. Any adviser will tell you that. But up until recently who could blame anyone for being swayed by the numbers? After all, data does not lie and, in the absence of anything...

Calm chief rallies mighty force.(Editorial)
September 2, 2004... Considering he is the chief executive of the UK's fourth-largest mortgage lender, Philip Williamson is a very placid man. Even the mention of Sven Goren Eriksson's alleged affair with Faria Alam fails to rile the devoted Liverpool Football...

FSA's Rottweiler has to change priorities.(Financial Services Authority)(Editorial)
September 2, 2004... JUST when you thought it was safe to send timid independent financial advisers out on the streets alone, the Financial Services Authority in its wisdom has unleashed David Kenmir. I am sure Mr Kenmir is a nice man. He kisses babies, helps...

A tax on death need not worry the living.
September 2, 2004... IN THE words of Benjamin Franklin: "In this world, nothing can be said to be certain, except death and taxes." Unfortunately nothing can be done about the first, but with careful planning taxes, and in particular inheritance tax, can be...

IFAs hot on the commission trail.
September 2, 2004... Product providers have predicted ongoing annual management charges would need to be introduced if IFA trail commission was abolished, forcing consumers to pay more for advice. A number of providers this week forecast a new breed of charges...

Market volatility hits eight-year low.(Brief Article)
September 2, 2004... VOLATILITY is down on 2003 and the economic outlook benign, but analysts say there is still uncertainty about the future. Brewin Dolphin analysts said stocks had settled dramatically following the dotcom boom and bust, but warned trading...

Old Mutual's managed funds attacked by IFA.(Old Mutual PLC)
September 2, 2004... OLD Mutual's Global Dynamic fund of funds and its Dynamic Bond Fund have been lambasted by an adviser. Jason Butler, managing director of Bloomsbury Financial Planning, said the new funds were overpriced and offered little value to the...

B&B's bonds may become uncompetitive.(Bradford & Bingley PLC)(Brief Article)
September 2, 2004... AN ADVISER has described a raft of new bonds by Bradford & Bingley as reasonable but not the most competitive. Patrick Connolly, research and investment manager for John Scott and Partners, said the three bonds looked like acceptable deals,...

Chelsea goes for 'financial difficulties' market.(Chelsea Financial Services)(Brief Article)
September 2, 2004... CHELSEA'S new fixed-rate product for clients with financial difficulties has been welcomed by IFA Marlene Shalton. Ms Shalton, director of Cardiff-based Morgan James & Co, said the 6.39 per cent product, which is fixed for three years, was...

Fixed bond to be popular with low-level investors.(Brief Article)
September 2, 2004... BRITANNIA Building Society's new one-year fixed-rate bond is suited to those with lower levels to invest, said an IFA. The group has launched the bond with a guaranteed return of 5.4 per cent gross. Colin Jackson, director of IFA...

BTL landlords 'unlikely to quit because of rate rise'.(buy-to-let )(Brief Article)
September 2, 2004... AN IFA has predicted that landlords will still be attracted to competitive buy-to-let rates, despite fears that the market is slowing. Paul White, of Belgravia Consultants in London, said he could not accept that most landlords were so...

Mortgage 2000 loan 'is on to a winner'.(Brief Article)
September 2, 2004... FOUR new fixed-rate mortgage products from Mortgage 2000 have won praise from an IFA. Rod Murdison, proprietor of Kent-based Murdison and Browning, said the "clever" products were cashing in on recent speculation that interest rates would...

Adviser is struck off by FSA.(Financial Services Authority)(MA Beattie Assurance)(Brief Article)
September 2, 2004... A COUNTY Londonderry IFA has been struck off for failing to have professional indemnity insurance. MA Beattie Assurance of Magherafelt has had its permission to carry out regulated activities cancelled by the FSA. The regulator struck off...

Consulting the Oracle on how to rise to the challenge of Basel II.(Interview)
September 2, 2004... aFINANCIAL ADVISER: Oracle's recent survey into preparedness for Basel II revealed a woeful lack of skills and resources. What does this mean for the industry? DAVID HANLEY: Any lack of skills or resources means there are a number of...

'Warn clients' of danger of delayed retirement.(Brief Article)
September 2, 2004... THE decision to postpone retirement beyond a pension policy date is a risky investment decision, an IFA has warned. Stuart Bayliss, director of Annuity Direct in London, said the recent discovery that late retirees would face pension...

IFA urges caution over Scot Life online system.(Scottish Life Assurance Co.)
September 2, 2004... IFAS should keep a close check on clients using Scottish Life's online switching function for group pensions, said David Brunning. Mr Brunning, director of Brunning Newman Houghton in East Sussex, urged IFAs to educate their clients on the...

Beware annuities as returns can disappoint.(Brief Article)
September 2, 2004... IFAs should be cautious of rushing out to purchase annuities, despite the recent rises in interest rates, an IFA has warned. Drew Folland, principal of Londonderry-based Drew Folland Financial Management, said advice from the Annuity...

Protection against home value falls after blights.(Brief Article)
September 2, 2004... AN INSURANCE policy has been launched to protect a home's value against unforeseen blights, such as phone masts or noisy neighbours. A number of Lloyd's of London syndicates have underwritten the niche insurance product, which has been...

IFAs wary of untested term assurance offer.
September 2, 2004... A PRODUCT launched to tackle low rates of health cover in the UK has received a lukewarm response from IFAs. Universal Provident Lifeline and Lifeline Plus have developed term life assurance policies to get round the issue of intrusive and...

Female firm is set to expand.(Brief Article)
September 2, 2004... IFA Financial Direction for Women is looking to partner with another IFA after just nine months of business. The Edinburgh-based group, a Sesame member, is run by Eve Callaghan and Julie Clapperton and targets women who need financial...

Aifa urges advisers to get to grips with dismissal law.(Association of Independent Financial Advisers)(Brief Article)
September 2, 2004... IFA firms are being urged to get to grips with new legislation covering the dismissal of employees. The Association of Independent Financial Advisers said firms of all sizes will be affected by the new rules from October, and it plans to...

Poor management costs small Welsh firms millions.(NGM Business Finance research)(Brief Article)
September 2, 2004... SMALL businesses in Wales are losing millions of pounds a year because of ineffective financial management. Research conducted by NGM Business Finance, a commercial business finance company in Wales, found that small businesses in the...

Online guide to promote socially responsible business unveiled.(Small Business Journey)(Brief Article)
September 2, 2004... A GUIDE to help businesses improve profits while promoting socially responsible practice is good for the IFA industry, according to IFA Promotions. David Elms, chief executive of IFA Promotion, this week praised an online initiative...

A level playing field and a healthy workforce.
September 2, 2004... Q I have recently been asked by a concerned female employee to disclose information about the pay structure at the company. How much information am I required by law to disclose to my employees? It is common knowledge that historically men...

Call for low PMI take-up to be addressed.(private medical insurance coverage)(Brief Article)
September 2, 2004... AN IFA has called for the low take-up of private medical cover to be addressed by the industry. Jason King, managing director of Life Policies Direct, responded to Laing & Buisson's Health & Care Cover -- UK Market Sector Report 2004,...

Alarm clock helps busy man fulfil a Destini.(a week in the life of a financial adviser at Destini Bridgman Firth)
September 2, 2004... Monday The alarm chimes me into action at 5.10am. I manage to tumble out of bed and into the shower before sleep reclaims me. My train for Euston leaves Shrewsbury at 6.10am. I am due to meet the rest of the group board at 10.30am in...

A&L to verify its own data.(Alliance and Leicester Commercial Bank PLC)(verification of product data for use on mortgage sourcing systems)(Brief Article)
September 2, 2004... ALLIANCE & Leicester has confirmed that it will employ in-house staff to verify product data for use on mortgage sourcing systems The lender said it could not rule out working with sourcing systems and would check all information submitted...

Vesta Money's packager operation comes 'too late'.(Brief Article)
September 2, 2004... RECENTLY launched packaging operations targeted at mortgage intermediaries are too little, too late, IFA Carl Melvin said. Mr Melvin, managing director of Glasgow-based Millbrae Financial Services, said Vesta Money's packaging operation had...

FOS 'poses major risk for advisers'.(Financial Ombudsman Service)
September 2, 2004... THE Financial Ombudsman Service poses more of a risk to mortgage intermediaries than statutory regulation, a legal expert has warned. A solicitor specialising in financial services has spoken out about his fears for intermediaries, who he...

High-value mortgages soar upwards.(Brief Article)
September 2, 2004... THE past six months have seen a steep rise in the number of high-value mortgages arranged, according to a leading broker. Sally Laker, managing director of Mortgage Intelligence, said she had identified a "noticeable rise" in the number of...

Make friends, influence people.
September 2, 2004... READING through the pages of the trade press at the moment, there seems to be a deluge of letters from brokers complaining about the service they receive from lenders and surveyors. For some brokers it seems lenders are taking far too long...

Proud record in era of change.(Mortgage Code Compliance Board implemented its Fitness and Competence requirements)
September 2, 2004... AS Mortgage Day looms large on the horizon, my thoughts turn to reviewing the legacy of non-statutory regulation under the regime of the Mortgage Code and Mortgage Code Compliance Board. The MCCB has operated in unique circumstances over...