Watchdog to review 30m insurance company investment and pension policies

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Watchdog to review 30m insurance company investment and pension policies

Savings

City watchdog to review 30m insurance and pension policies
The Financial Conduct Authority (FCA) is to announce a sweeping review of 30 million savings and investment policies sold by insurance companies, in the first in-depth investigation of its kind.
The Times, p. 2

Pensions & Life Assurance

Better deal for millions of savers
The Financial Conduct Authority is expected to say next week that savers locked into rip-off pensions and investments could be given a free exit or moved to better deals. The City watchdog is planning an inquiry into 30million policies sold by insurance companies from the Seventies to the turn of the Millennium. The review, to begin this summer, will include pensions, endowments, investment bonds and life insurance sold by doorstep salesmen who were often spurred on by large commissions. The Association of British Insurers (ABI) said many products that now seem expensive were “the best available at the time”.
The Daily Telegraph, p. 1-2

Pension charge cap ‘may push up fees’
A cap on pension charges could lead to more expensive fees for many savers, one provider claimed yesterday, despite the fact that consumer groups have welcomed price controls.
The Times, p. 14

Mortgages & Residential Property

Bank ‘vigilant’ as Britons go back to costly mortgages
The Bank of England yesterday said that the number of Britons borrowing more than four times their income for a mortgage is now at its highest level since records began in 2005. The amount of mortgages offered to buyers with small deposits has also doubled over the past six months, the Bank’s Financial Policy Committee pointed out.
The Daily Telegraph Business, p. 3
Also appeared in : The Times, p.1-2

Buying a wreck? It may ruin your chance of getting a mortgage
City regulator’s new rules for the mortgage industry demanding borrowers to disclose future borrowing commitments as well as current ones could stop many people from buying run-down properties in order to renovate them. Yet Kevan Watson at the Yorkshire Building Society Group says applicants would not be pursued for a breach of contract where they had committed to something after the application.
The Times Bricks and Mortar, p. 14

Carney ready to clamp down on housing bubble
Stricter lending criteria could be in place as soon as June if a housing bubble emerges, the Bank of England’s financial policy committee (FPC) said yesterday.
City AM London, p. 3

Appointments

Secure Trust Bank
Secure Trust Bank has announced the appointment of Roy Aston as chief technology officer. He previously held senior roles at Beneficial Bank, Citigroup, and Lloyds Banking Group. Aston joins from the Ministry of Justice, where he was interim head of service delivery and operations
City AM London, p. 25

ACPI Investment Managers
The asset management company has hired Daniel Moreno as head of emerging markets (EMs).
City AM London, p. 25

Brown Shipley
Brown Shipley, the private bank, has made three appointments to strengthen its private banking and investment services.
City AM London, p. 25

Canaccord Genuity Wealth Management
Canaccord Genuity Wealth Management has appointed David Esfandi as chief executive for the UK.
City AM London, p. 25

Aldermore hires chairman as float rumours swirl
The challenger bank Aldermore has appointed Glyn Jones, a former chief executive of the private bank Coutts, as its new chairman. The role had been carried out on an interim basis by its non-executive director John Callender.
The Independent, p. 65

Round Up

Changes to bank levy will cost firms £400m per year
Under plans in a consultation out yesterday the bank levy will rise to £2.9bn from its previous target of £2.5bn per year, as the Treasury looks to fix the amount of money it raises from the industry. In 2010 the plan was to tax banks based on the size of their balance sheet, aimed at making them shrink down and rely less on risky funding sources.
City AM London, p. 1

UBS suspends six more traders as forex fixing probe deepens
Swiss bank UBS has suspended another six of its traders across the world, it emerged yesterday, as it investigates allegations of misbehaviour in the foreign exchange markets.
City AM London, p. 5
Also appeared in : Independent i, p.50, International New York Times, p.19, The Independent, p.65

Bank of England plans strict stress tests for lenders amid property price worries
The Bank of England is to devise “stress tests” to see whether Britain’s mortgage lenders could cope with a drop in house prices or a sharp rise in borrowing costs. Its financial policy committee has said that the conditions will be much tougher than those predicted in official forecasts. The Financial Conduct Authority will also introduce tougher home loan underwriting standards from next months.
The Guardian, p. 33
Also appeared in : Financial Times Companies and Markets, p.19

MPs to quiz Osborne on Co-op’s Project Verde bid
MPs are to question Chancellor George Osborne over allegations that undue political pressure was used over the failed sale of 632 Lloyds branches to the Co-op Bank.
The Independent, p. 68

The above articles appeared on 28.03.2014. Reproduced with the kind permission of Kantar Media UK. All rights reserved.

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