Fees 'feeding frenzy' could destroy trust in retirement savings

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Fees ‘feeding frenzy’ could destroy trust in retirement savings

Fees ‘feeding frenzy’ could destroy trust in retirement savings
Unregulated financial advisers are preparing to cream off 20 per cent or more of early pension contributions made on behalf of
millions of low earners, raising serious concerns about the Government’s flagship scheme to nudge people into retirement saving for
the first time. A committee of MPs will defy the insurance industry today and call for the urgent removal of restrictions on the
National Employment Savings Trust, a default pension fund expected to be used by the employers of millions of low earners.
The Times, p. 36-37
Also appeared in : City AM London, p.3, Financial Times, p.4

New role may force councils to quit investing in tobacco
Local government pension funds are reviewing their investments in tobacco companies after being encouraged to do so by leading
health bodies. John Middleton, vice-president of the UK Faculty of Public Health, said that it was “untenable” for local
authorities to be the “champion of improving public health” at the same time as profiting from tobacco. Councils believe that their
fiduciary duty, as interpreted from case law, instructs them to obtain the best financial return for their members, regardless of
ethics. Analysts consider tobacco stocks a good investment, particularly during difficult economic times. Shares in British
American Tobacco have risen by 433 per cent over the past decade. Imperial Tobacco has enjoyed a 188 per cent rise in its shares
over the same period. In comparison, the FTSE 100 has risen by 70 per cent.
The Times, p. 29
Also appeared in : The Times, p.32

Private equity houses losing favour in deals
Institutional investors are looking to bypass private equity firms in future and make more direct investments, amidst growing
concerns over the transparency of information from private equity houses, researchers have found.
City AM London, p. 6

Fund fees ‘not sustainable’
Fund management fees are not “sustainable” and will need to fall significantly, according to long-term analysis of global financial
markets.
This abstract from the Financial Times was produced by Kantar Media
Financial Times FT fm, p. 2

Investors diversify in bid to protect against stock falls
Investors are diversifying out of equities into alternative assets to protect themselves against the possibility of steep falls in
share prices.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18

Ten years to take first step on the ladder
Government backed schemes to help Britons on to the housing ladder have thrown a lifeline to some prospective buyers, but research
shows that the average first-time buyer still needs ten years to save enough for a deposit.
The Times, p. 35

Average London house ‘to cost £500,000 by 2020’
According to leading economists, the price of a typical London home will hit half a million pounds by the end of the decade.
Official figures show the average cost of a home in the North East is just under £100,000, compared with £372,000 in London.
Daily Mail, p. 27

Share Dealing Services
Black box trading triggers rapid rise in share dealing
The speed of buying and selling shares has risen so fast over the last six years that there are now up to 2m trades every second.
The Daily Telegraph Business, p. 5

Obstacles en route to getting hands on BoE money
Small banks in the UK say that their lack of size has hampered their ability to take advantage of the Funding for Lending scheme.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 23
Also appeared in : Financial Times, p.1, Financial Times Companies and Markets, p.23

Top brass at RBS set to be quizzed by politicians
Current and former top executives at the taxpayer-controlled Royal Bank of Scotland are set to be grilled by politicians, less than
a week after the bank was fined £391m for rigging the Libor interest rate.
The Independent, p. 47
Also appeared in : Daily Mail, p.12, Daily Mail, p.61, Daily Mirror, p.18, The Guardian, p.20, Independent i, p.43, The Sun,
p.2, Daily Star, p.2, International Herald Tribune, p.17, Daily Mail, p.17

Thousands of jobs at risk as Barclays cuts costs
Barclays will announce job cuts and shut down a controversial tax unit this week as it faces fresh allegations over a £6 billion
cash call in 2008. Antony Jenkins will preside tomorrow over the bank’s first set of annual results since becoming chief executive.
He is expected to confirm the closure of Barclays’ structured capital markets unit, which made huge profits advising large
companies on how to lower their tax bills.
The Times, p. 29
Also appeared in : Daily Mail, p.12, The Times, p.2, The Independent, p.14, The Daily Telegraph Business, p.1-5, The Guardian,
p.20, The Daily Telegraph Business, p.7, City AM London, p.5, Financial Times Companies and Markets, p.17

Radical new bid to clamp down on scandal in City
The internal risk controls of banks and financial firms are set to be overhauled by a radical new industry code of conduct that
aims to prevent a recurrence of the rogue trading and interest-rate fixing scandals that have gravely damaged the reputation of the
City of London in recent years.
The Independent, p. 47
Also appeared in : The Times, p.34, Daily Express, p.44, The Daily Telegraph Business, p.4, Independent i, p.40

Bank admits error over shares held by Abu Dhabi
Barclays yesterday conceded that it made an error over the reporting of a lifeline investment in the bank that saved it from
seeking a government bailout during the financial crisis of 2008.
The Guardian, p. 20
Also appeared in : Daily Mirror, p.18

UK ‘needs to be more like Germany’ in business
The government risks damaging Britain’s economic recovery unless it lifts immigration restrictions, ditches plans to tighten
capital rules and adopts a more Germanic approach to business, the British Venture Capital Association says.
The Daily Telegraph Business, p. 1

Auditors in line for major new power to challenge bank chiefs
Auditors in banks should have greater power to challenge bosses about excessive risks in any part of the business, as well as about
threats to the institution’s reputation and stability under proposed guidelines published today.
City AM London, p. 5

Libor inquiries set to drag on
A US prosecutor has warned that investigations into Libor-rigging across the global financial system could “very well” drag into
next year.
The Daily Telegraph Business, p. 5

CENTRAL BANK CHIEF IS WORRIED THAT E.C.B. MOVES WON’T SUFFICE
Moves to allow euro zone rescue funds like the European Stability Mechanism to directly recapitalize a member nation’s banks were
promising, but worries remain over whether they will apply retrospectively to country’s like Ireland, the governor of the Irish
central bank said Sunday.
International Herald Tribune, p. 17

Late last month the Bank […]
Late last month, the Bank of Japan agreed to demands from Tokyo to double its inflation target and ease monetary policy.
This abstract from the Financial Times was produced by Kantar Media
Financial Times FT fm, p. 2

Radical Cyprus rescue plan puts uninsured depositors in line of fire
Focus on a radical new option for the financial rescue of Cyprus which would force losses on uninsured depositors in Cypriot banks.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

Italy central bank seeks extra powers to step in
Ignazio Visco, the Bank of Italy’s governor, has called for greater powers of intervention.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 7

Swiss banks alter structure post Wegelin collapse
Pictet and Lombard Odier, Switzerland’s largest independent private banks, have changed their legal structure.
This abstract from the Financial Times was produced by Kantar Media
Financial Times FT fm, p. 18

FSA cuts waiting times for new firms
The FSA is now processing applications for financial firms faster than at any point since early 2011.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 22

Activists size up targets among financial groups
Aggressive activist and hedge fund investors are planning to target financial institutions.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18

Compliance chiefs struggle under avalanche of rules
Compliance bosses at Europe’s largest asset managers are struggling beneath an avalanche of directives from both sides of the
Atlantic, causing regulatory fatigue, according to a survey.
This abstract from the Financial Times was produced by Kantar Media
Financial Times FT fm, p. 19

Gloomy forecasts after City job numbers fall 18 per cent
Recruiter Morgan McKinley has reported that new job vacancies in the City slumped by a further 18 per cent last month compared with
a year ago.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 4

The above articles appeared on 11/02/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.