Insurers at risk over watchdog annuity probe


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Insurers at risk over watchdog annuity probe

Insurers at risk over watchdog annuity probe
Insurers Standard Life and Resolution are most at risk from a regulatory probe into whether retirees who buy annuities get a fair deal, analysts said yesterday. Resolution and Standard Life sell annuities mainly to their own pension customers, and therefore potentially have the most to lose from the probe, analysts said.
City AM London, p. 3

Customers have no incentive to punish mis-selling banks
Banks are embroiled in another “mis-selling” scandal, but we can be sure that customer behaviour won’t be affected, claims City AM. Few people will switch bank as a result. The item claims pensions misselling arose directly from the government retrospectively changing privately-agreed employment contracts, which required employees to join their company pension schemes.
City AM London, p. 17

Shadow banks fill infrastructure debt void
According to Standard & Poor’s pension funds and insurance groups are filling the void left by banks in the rapidly changing infrastructure debt market, raising hopes that this kind of financing can spur a global economic recovery.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 30

FSA to investigate pension annuities
The Financial Services Authority has launched an investigation into the £11bn a-year pension annuity market that may prompt action against insurers who are found to be offering noncompetitive rates.
The Guardian, p. 30

Retirees ‘losing out’ on annuity payments
According to the National Association of Pension Funds, annuity customers are being short-changed by up to £1 billion a year because they do not shop around on entering their retirement.
The Times, p. 37

The average price of […]
According to Nationwide’s latest house price index, the average price of a home in Britain fell by 0. 5 per cent last month to £162,245.
The Times, p. 43
Also appeared in : The Daily Telegraph Business, p.5

US lenders are squeezed as mortgage profits hit
The recent bonanza profits for big US banks from mortgages are being squeezed, raising doubts about the earnings of Wells Fargo, Bank of America and the other large lenders.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 16

FLS helps house prices rise 0.5% in January
The Bank of England’s pump-priming of the mortgage market fueled some cheer for homeowners yesterday as Nationwide said average prices rose 0.5 per cent in January.
Independent i, p. 48

Homes are not where the heart is for Santander
Santander UK, one of Britain’s biggest mortgage lenders has drastically cut back lending to home buyers, its annual results revealed yesterday.
The Times, p. 43

Santander sees UK growth but bad Spanish loans dent profits
Santander claimed it has now moved beyond the Spanish housing crash, setting it up for solid growth in the coming years.
City AM London, p. 3

Santander squeezed
It has emerged that the performance of Santander UK suffered again in the fourth quarter of the year, as profit margins were squeezed by the low interest rate environment and an expectation that rates would have started to rise by now.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 17

Banks braced for huge new wave of compensation claims
It is believed that thousands of small businesses that were mis-sold interest rate hedging products may run out of time to make a claim unless they make rapid contact with their bank.
The Times, p. 37
Also appeared in : City AM London, p.1, Financial Times, p.1, Independent i, p.48, The Daily Telegraph Business, p.1, The Daily Telegraph Business, p.5, The Guardian, p.28, The Independent, p.51

Deutsche in the red as reforms cut into profits
Deutsche Bank made a heavy loss in the final quarter of 2012 as it struggled to shore up its balance sheet and increased provisions against a possible Libor fine, the bank said yesterday.
City AM London, p. 3
Also appeared in : Financial Times Companies and Markets, p.17, Independent i, p.50, International Herald Tribune, p.18, The Daily Telegraph Business, p.8, International Herald Tribune, p.1

Santander misses expectations
Santander yesterday reported profits more than €200m (£171m) short of analysts’ forecasts of €2.48bn for the fourth quarter.
The Daily Telegraph Business, p. 5
Also appeared in : Independent i, p.50

Watchdog fears chaotic bank risk modelling
Banks set aside such different amounts of capital against the same assets that investors cannot be certain how safe the institutions are and the authorities may have to step in to set standards, a top group of regulators warned yesterday. The ratio of market risk weighted assets to total trading assets came in at 80 per cent for UniCredit and 10 per cent for BNP Paribas, an enormous variation.
City AM London, p. 2

Morgan Stanley boss doubles pay
Morgan Stanley has revealed that chief executive James Gorman will receive a base salary of $1.5m (£946,000) in 2013, nearly double the $800,000 he received last year.
City AM London, p. 2
Also appeared in : Financial Times Companies and Markets, p.16

Lawson slams ‘stars’
Lord Lawson the former Tory chancellor has called on George Osborne to nationalise Royal Bank of Scotland, in an attack on banking’s bonus culture and its overrated “star” traders.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

Barclays ‘in Qatari loan investigation’
Barclays was last night said to be under investigation over allegations that it lent Qatar money to invest in itself during the financial crisis, so avoiding a government bail-out.
The Daily Telegraph Business, p. 3
Also appeared in : Financial Times, p.1

Supervisor takes tough line
Stefan Ingves, the head of the Basel Committee on Banking Supervision has stressed his determination to stamp out inconsistencies in the way banks’ financial strength is measured around the world.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 7

Banking & finance
Insurers face losing up to £500 million a year after the Financial Services Authority launched an investigation into failings in the fast-growing £11 billion a-year annuities market.
The Times, p. 40
Also appeared in : International Herald Tribune, p.17

Cyprus savers protest at feared bank bailout losses
Yesterday hundreds of Cypriots protested outside the Bank of Cyprus headquarters after the finance minister warned that local investors could suffer substantial losses under the terms of a €17.5bn international bailout due to be finalised in March.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 8

RBS ‘should be fully nationalised’
Royal Bank of Scotland should be fully nationalised, Lord Lawson claimed yesterday.
The Daily Telegraph Business, p. 5

Provisions weigh on Santander
Banco Santander, the largest bank in the euro zone by market value, reported an increase in fourth-quarter net profit on Thursday even as it continued to set aside billions of euros to cover loan losses in its home market.
International Herald Tribune, p. 16

The PPI’good guys’
Payment Protection Insurance complaints continue to swamp the in tray of the Financial Ombudsman, which is still taking on 8,000 to 10,000 new cases each week.
The Daily Telegraph Business, p. 4

MEANWHILE, the Ombudsman received 371 […]
The Ombudsman received 371 complaints about the four Friends Life subsidiary companies of financial services group Friends Provident over the first six months of 2012, of which 267 related to life and pensions policies.
The Daily Telegraph Business, p. 4

‘Give us a bigger and bolder lender’
The British Chambers of Commerce is working with Labour to create a blueprint for a “British Investment Bank” amid fears that the Coalition’s own state bank is being blighted by political wrangling over its role and structure.
The Daily Telegraph Business, p. 8

Investec on the rise
Investec performed strongly in the nine months to December 31 but its British banking division suffered from the slowdown in investment activity in London and adverse currency moves.
The Times, p. 37

Banks’ PPI evidence ‘factually untrue’
A parliamentary inquiry into the payment protection insurance scandal heard evidence from banks that was “factually untrue” and “implausible”, Natalie Ceeney, the head of the Financial Ombudsman Service claimed yesterday.
The Times, p. 40

The above articles appeared on 01/02/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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