Money Management articles from May 2006

Money Management archives from May 2006

OFT with their heads.
May 1, 2006... The Office of Fair Trading is investigating the payment protection insurance (PPI) sector in response to concerns over the way in which it is sold. PPI is meant to pay mortgage or credit card interest in the event of the borrower falling ill....

Footy fever.
May 1, 2006... As the football season starts to wind down, the finance industry is turning its attention to the only remaining piece of silverware worth playing for. The Money Management Finance Fives represents the industry's premier football...

Millfield fine fallout.
May 1, 2006... Millfield Partnership has lost an account to provide advice to a 60,000-strong division of the GMB Union after news of the FSA's decision to fine Millfield CEO Paul Tebbutt. Tebbutt was fined AGBP35,000 for giving misleading information...

Exposing with profits.
May 1, 2006... New rules from the FSA will force with profits providers to reveal detailed information, such as actual maturity and surrender values of sample policies. Providers must supply information for sample endowment policies based on a male aged...

Fantasy becoming reality.
May 1, 2006... Once the dust has settled on the Premier League season and the FA Cup and European trophies have been handed out, there will still be one great feast of football to look forward to this summer. Fans all over the world are buzzing with...

No alternatives.
May 1, 2006... IFAs must be wary of advising on alternatively secured pensions (ASPs) after the Government openly stated that it did not want ASPs used for inheritance tax planning, experts have warned. The Budget introduced changes to the tax treatment...

Split cap comeback.
May 1, 2006... The revelation that many investors disgruntled by the compensation offered for split capital losses will go on to make a profit from their investments, has raised again the issue of compensation and its purpose. The average loss per...

Investment 'quick guides' on hold.
May 1, 2006... The FSA has put its reform of the disclosure regime for investment products on ice due to delays to the Markets in Financial Instruments Directive (MiFID) as well as concerns over cost. The regulator had proposed a new package of disclosure...

The final countdown.
May 1, 2006... Standard Life is approaching its demutualisation vote in buoyant mood following a turnaround in performance. An improvement in results since a mediocre 2004 has boosted the insurer in its bid to raise up to AGBP1.2bn from the float. ...

IFA Oscars update.
May 1, 2006... Don't miss the case studies for this year's Financial Planner of the Year Awards, published in the separate supplement accompanying this month's issue of Money Management. The case studies can also be downloaded from our website,...

Plagiarism, or plain common sense?
May 1, 2006... T he new requirement by the FSA that life offices, both closed and open, must provide surrender and maturity values of their with profits endowment and personal pension policies when asked is very welcome indeed. For too long many life...

Blast from the past.
May 1, 2006... In the May 1981 edition of Money Management we reported on a White Paper 'Growing older', which envisioned fixing an age when both sexes could draw their normal state pension. But what should that age be? In the majority UK company pension...

AGBP8.6m boost for ZOPA.
May 1, 2006... Internet lending and borrowing exchange ZOPA has secured AGBP8.6m ($15m) in funding from three private equity firms. The exchange -" at www.zo pa.com/zopaweb/ -" plans to expand its operations to the US after raising backing from Benchmark...

Nuts about Brazil.
May 1, 2006... Threadneedle has thrown its hat into the global emerging markets ring with the launch of this new fund. The offering will be managed by the Julian Thompson-led team that steers Threadneedle's AGBP900m Latin America fund and will have between...

A-Day leads to PTA bonanza.
May 1, 2006... A-Day changes to pensions rules are having an impact on the protection market. Whereas before A-Day, pension term assurance (PTA) premiums were limited to 10% of pension contributions, that limit has been lifted so that it is now possible to...

ETFs with a French twist.
May 1, 2006... Societe Generale Asset Management (SGAM) claims to have launched the first leveraged exchange traded fund (ETF). This actively managed ETF follows the CAC 40, the benchmark for the French stock market Euronext Paris. By leveraging (eg,...

Combing the continent.
May 1, 2006... Invesco Perpetual's Continental European Absolute Return fund is the latest total return fund to hit the investment market shelves. Dominic Wallington, European equities fund manager and Paul Causer, co-head of fixed interest, will manage...

Tech comes in from the cold.
May 1, 2006... Investors who lose money tend to have very good memories and those who lost money after the dotcom bubble burst seem to have the memories of elephants. After a time when it was de rigueur for just about anyone to have investments in TMT...

EXPO draws closer.
May 1, 2006... Tickets for this year's Financial Adviser Expo are selling fast with 1,500 delegates already signed up. The events have become a must for IFAs and providers, offering network opportunities plus access to key seminars hosted by some of the...

High street challenger.
May 1, 2006... HSBC has launched into the equity release arena, marking the beginning of a High Street bank assault on what was once a niche market in the UK. The bank has tied up with specialist provider In Retirement Services (IRS) to run a pilot with...

Office politics.
May 1, 2006... Commercial property fund managers have been fighting off new investment in a bid to cool what is fast becoming an overheated market in the UK. High profile groups such as Scottish Widows, Standard Life and Threadneedle have been forced to turn...

By definition.
May 1, 2006... The Association of British Insurers (ABI) has overhauled critical illness (CI) definitions in a bid to reduce declined claims. But it stopped short of adopting the proposals set out in its initial consultation, choosing instead to future-proof...

Holding the purse strings.
May 1, 2006... The Tenet Group is the UK's third largest IFA network. The firm dubs itself, "UK's largest independently owned IFA", yet four major UK insurers collectively hold over 87% in the company. As none of the insurers are majority shareholders the...

Fossy logic.
May 1, 2006... The answer to whether the procedures of the Financial Ombudsman Service (FOS) are fair and reasonable is likely to depend on whether you are an adviser, a consumer or a regulator. "FOS is an unusual creature. One that I suggest Parliament...

Flying the green flag.
May 1, 2006... The chronic shortage of investment trusts (ITs) with an environmental mandate is being addressed by the launch of the Jupiter Green Century trust. The trust, to be launched in June, will be stewarded by Charlie Thomas, also manager of the...

Blue-sky thinking to replace the Turner failure.
May 1, 2006... Gordon Brown's irritation arose from Turner exceeding his remit, with costly proposals for State pensions. Thank goodness for the hold-up; the Turner proposals will not work. They would deliver a typical replacement rate -" pension income as a...

Budget 2006: IHT and trusts.
May 1, 2006... As is often the case with Budgets, the devil is in the detail. True to form, the inheritance tax (IHT) changes to trusts were not mentioned in the Chancellor's speech or subject to any consultation; we only learnt of the changes after the...

Lead generation.
May 1, 2006... Although specialist third party lead generation services have been around for years, the rise of the internet and the FSA's ban on cold calling appear to have given mortgage lead generation a new lease of life in recent years. However, with...

More than a BRIC facade?
May 1, 2006... The rapid emergence of BRIC funds has removed any doubt that emerging markets are once more in vogue with investors of a certain profile. This year has seen the launch of a handful of BRIC funds -" vehicles that invest in four of the fastest...

Be a part of the World Cup.
May 1, 2006... This summer's World Cup is almost upon us and Money Management, along with its sister publications, will be presenting you with the chance to be a part of the excitement. In conjunction with F&C, we will be running a fantasy football...

Mutually exclusive.
May 1, 2006... Mutual life offices started trading in the UK as long ago as 1706 when the first life assurance undertaking to be incorporated by Royal Charter, the Amicable Society for Perpetual Life Assurance Office, was formed. The Society prospered over...

Regulation bypass.
May 1, 2006... Self-invested personal pension (SIPP) holders who invest in property may find themselves in a regulatory black hole as both property syndicates and SIPPs are currently not covered by the FSA. Explanatory notes released by HM Revenue &...

Indian or Chinese?
May 1, 2006... These days, any discussion about future superpowers tends to have China at its heart. But while we have seen how China's growth has leapt ahead of India -" its only contemporary in terms of population -" can its performance be sustained over...

Taking stock.
May 1, 2006... The directors of Personal Assets Trust (PAT) have decided to increase the liquidity in their fund from 33% to 40%. This cautionary behaviour is something that investors should note, for PAT first began to go liquid in 1997, believing then that...

Emerging markets engine room.
May 1, 2006... Emerging markets have extended their run of strong performance this year, but a sharp drop in March was a reminder of the volatility of the sector. The MSCI Emerging Markets sector had reached an all time high in local currency terms at the end...

Financial Planner of the Year 2006.
May 1, 2006... The closing date for entries is Wednesday 12 July 2006 For each award category there will be one winner and one runner up. All shortlisted entrants will be either winners or runners up. Shortlisted entrants will be required to attend an...

Multi-manager motoring on.
May 1, 2006... The most recent data available from the Investment Management Association (IMA) suggests that multi manager made a breakthrough last year in terms of fund inflows. It revealed that multi manager fund sales trebled in 2005 and accounted for over...

Looking behind the hype.
May 1, 2006... It is the fastest growing investment sector in the UK, but even multi-manager providers believe that a sense of unrealistic expectation lingers around the sector. Both net sales and funds under management almost doubled last year, just as the...

Leaving it to the pros.
May 1, 2006... There has been a lot of talk about how depolarisation is changing the industry, but landscape shifts do not happen overnight. This is an industry already swamped by regulation and change, so it has become another issue to deal with and plan...

Building with BRIC foundations.
May 1, 2006... Unsurprisingly, emerging markets fund managers believe that the sector can look forward to a "stunning" future, according to recent research. That they can be so confident suggests that they may have forgotten the lessons taught by previous...

The A-Day influence.
May 1, 2006... The passing of A-Day could prove to be a landmark event for the fund of funds industry. While reams of useful advice have been published on the numerous changes taking place, the bottom line is that more people -" not just the most wealthy -"...

Platform first.
May 1, 2006... CWC Research is launching a service for IFA firms to help them negotiate the platform migration minefield. The consultancy has developed the proposition in association with comparison service Whichplatform and has signed up London IFA Baigrie...

Dishing out fair treatment.
May 1, 2006... Consistency of experience, the modern phenomenon that has oiled the wheels of global consumer brands, is at the heart of the Treating Customers Fairly (TCF) initiative. The FSA's TCF was always going to present a challenge to a financial...

Insurers braced for GP reports hit.
May 1, 2006... Protection products are set to become more expensive due to substantial increases in the cost of medical reports, Money Management has learnt. A combination of increased fees for the insurance reports and exams that GPs provide on behalf...

Losing trust.
May 1, 2006... Gordon Brown's surprise Budget proposal to change the tax treatment of trusts caused widespread confusion in the industry and the Finance Bill has still not entirely made clear how many people will be affected. The Society of Trusts and...

Rule changes to open market.
May 1, 2006... The Government plans to open up non-occupational pension provision to other types of providers such as asset managers, fund supermarkets and wrap providers from April 2007. The Financial Services and Markets Act (FSMA) will be amended to...

Independence day.
May 1, 2006... IFA groups are marketing themselves as being 'independently owned' despite being nearly 90% owned by product providers, Money Management data reveals. This month's survey of IFA ownership shows that depolarisation has spurred on providers...

The trick of BRIC.
May 1, 2006... Why would an investor opt for a fund investing only in Brazil, Russia, India and China (BRIC) when he can opt for a general emerging markets fund? The argument is that traditional emerging markets funds give you good exposure to the BRIC...

The art of the mix.
May 1, 2006... It is little surprise that product providers have sought to profit by providing a potential solution to the pressures under which advisers find themselves. Ironically, it is a solution to a problem to which they themselves have contributed, as...

Turner-round.
May 1, 2006... State pensions look set to be linked once again to average earnings 25 years after Margaret Thatcher made the unpopular move of tying pensions to prices. The Government made the climb down, signalling a conciliatory approach to Lord...