The Financial Services Authority (FSA) says it has identified “widespread failings” in the wealth management industry, following a review. For example, in its scrutiny of 16 wealth management firms, the FSA found: An absence of basic know-your-customer (KYC) information; Out-of-date KYC information; Inadequate risk-profiling; Some firms not implementing MiFID client classification requirements; Lack of recorded [...]
The number of savings accounts on offer in the UK has risen to an all time high, according to research from financial website, Moneyfacts.co.uk. There are currently 2,385 accounts available to personal, business and offshore savers, the highest number since Moneyfacts’ records began in 1988, when there were only 203 products on the market. Today’s [...]
With the Bank of England base rate remaining at an historic low for more than two years, Lloyds TSB has been taking a look at past trends for base rates since 1997, and has established the following: Looking at changes over the last fourteen years, reductions in the base rate have ranged from 0.25% to [...]
The seventh annual Scottish Widows UK Pensions Report 2011 has discovered that almost half (49%) of people who could and should be saving are simply not putting aside enough for retirement. Levels of saving have remained flat over the last five years, and have, perhaps surprisingly, been unaffected by the credit crunch. The Scottish Widows [...]
Hundreds of thousands of UK residents with offshore savings accounts can expect unwelcome communications from HM Revenue & Customs (HMRC). HRMC renewed its efforts to recover unpaid taxes from those with offshore accounts last year, alongside international measures to curb tax evasion. According to reports, it currently has details of around half a million people [...]
In its latest quarterly consultation paper, the Financial Services Authority (FSA) is proposing that where firms use terms such as “guaranteed”, “protected” or “secure” to describe financial products, the product information should include explanations of what these terms mean for the consumer. According to the regulator, the UK’s financial services industry has developed a “growing [...]
The Financial Ombudsman Service (FOS) handled over a million front-line enquiries and complaints from consumers in the 2010/11 financial year. According to the watchdog’s annual report, around one in five enquiries required the involvement of the ombudsman, resulting in a record 206,121 new cases, with the figure up 26% on the previous year. Over 50% [...]
The second annual Scottish Widows Priorities of Life Index has reported that Britons are burying their heads in the sand when it comes to saving, with 17 million adults (35%) neglecting their finances. Of those who are neglecting their finances, 21% attributed this to being too indebted, 32% to insufficient income and 25% to simply [...]
National Savings & Investments (NS&I) is reintroducing inflation-linked bonds, the BBC has reported. The Government-backed provider, which guarantees 100% of deposits, will allow individuals to invest up to £15,000 tax free in a five-year bond, with a rate 0.5% above the Retail Prices Index (RPI) measure of inflation. NS&I withdrew its previous index-linked bond issue [...]
This year’s ISA season has claimed a nine-year record, according to the Investment Management Association, with net sales of £956 million between 1st March and 5th April 2011. Equity funds remained the top choice for retail investors, having done so over the last five months. According to the Association’s director of markets, Jane Lowe, the [...]
Inflationary expectations have reached a 29-month high, according to BDO LLP’s Business Trends report. However, the accountancy firm is predicting that the Bank of England will continue to keep interest rates on hold, for fear of derailing the UK’s fragile economic recovery. In what can only be bad news for savers, BDO’s Inflation Index rose [...]
A new study from the Institute for Public Policy Research (ippr) questions the effectiveness of ISAs as a means of saving for low-to-middle-income families. According to the think-tank, the median family income in 2008/09 was around £26,000 but families at this level find it hard to save, other than for short-term events. The report argues [...]
Nationwide Building Society has announced the launch of a new limited-edition three year fixed rate cash ISA, paying an annual interest rate of 4.2% AER. The new ISA is only available to those who already have a savings relationship with Nationwide and comes as part of the building society’s ongoing commitment to reward loyal customers [...]
This week has seen the launch of The Money Advice Service which offers free telephone, face-to-face and online advice to consumers who want to better manage their finances. Set up by the Government, the scheme replaces the Consumer Financial Education Body and is paid for by a levy on the financial services industry, raised through [...]
Some relief for savers, as Moneyfacts.co.uk reports that rates on short-term fixed-rate bonds have hit their highest level in over a year. Having fallen to an all-time low of 2.52% in August, the average rate on a one-year bond has hit 2.85%, the highest level seen since March 2010. Meanwhile, rates on two-year bonds are [...]
The Government has announced that Junior ISAs should be available from the autumn. Plans for the new tax-free children’s savings accounts were announced last year, alongside the withdrawal of Child Trust Funds (CTF), and HM Treasury has set out their key features as follows: All UK resident children who do not have a CTF will [...]
Independent private client investment manager Brewin Dolphin has welcomed the new draft regulations relating to the proposed Junior ISA. The new scheme will eventually replace Child Trust Funds (CTFs), and is set to come into force during the Autumn. At its instigation, the Junior ISA will be available to all children under 18 who do [...]
Two-thirds of people who hold a cash ISA that came with a “teaser” interest rate are likely to be losing out by failing to switch, once the introductory interest rate runs out. According to research from Consumer Focus, many of the best-buy cash ISAs offer introductory bonuses alongside relatively high interest rates that plummet after [...]
A group of sixteen Hong Kong banks have agreed to reimburse investors who were sold mini-bonds linked to Lehman Brothers. Over 30,000 retail customers could receive up to 96.5% of the value of their notes, once final details of the scheme are agreed with the collapsed investment bank’s administrators, PricewaterhouseCoopers. The value of the bonds [...]
