Ofgem plans larger payouts for those hit by winter power cuts April 1, 2014 OFGEM yesterday called on network operators to double the compensation payouts for customers affected by power cuts during the Christmas storms. The energy regulator has proposed doubling payments to £70 during severe weather and wants to increase the cap for payments from £216 to £700. Around one million customers had their power cut off during [...]
Royal London boss welcomes the Budget’s pension reforms April 1, 2014 THE CHIEF executive of Royal London yesterday welcomed controversial changes to pensions in the Budget, as the insurer unveiled a 72 per cent rise in profits. Last month chancellor George Osborne pledged to abolish compulsory annuities, meaning that from 2015, people can withdraw as much of their nest egg as they like, subject to marginal [...]
Rathbones buys £2.8bn private client managers April 1, 2014 RATHBONE Brothers bolstered its private banking business yesterday after spending around £57m on two acquisitions, increasing its assets under management by £2.8bn. The upmarket wealth manager has agreed to buy rival fund manager Jupiter’s private client and charity investment management business for £43.1m, assuming all of its assets are moved over. It has also snapped [...]
Scrap minimum wage for more jobs, UK told April 1, 2014 SCRAPPING the minimum wage (NMW) for apprentices and under-18s could help cut youth unemployment and boost growth, the Institute of Economic Affairs said today. Countries without a minimum wage like Germany have far lower youth unemployment rates, the IEA argues, while Britain’s has soared since it was introduced in 1999. The think-tank’s recommendation contrasts starkly with [...]
City investment boss promises to keep more work in Britain April 1, 2014 GOVERNMENT action to promote business and investment in the UK will be co-ordinated more closely by an agency set up yesterday, headed by insurance boss Sue Langley. The Financial Services Office, part of UK Trade and Investment, aims to encourage firms to keep jobs in the UK instead of off-shoring roles. Langley also hopes to make [...]
Banks’ fines undermine capital April 1, 2014 THE BANKING sector could be weaker than it claims, because banks face growing conduct and legal bills, top regulator Andrew Bailey warned yesterday. Bailey runs the Bank of England’s prudential regulation authority (PRA) which has focused on pushing banks to increase their capital buffers and improve their leverage positions. In the wake of its study of the market [...]
Bank of England warns markets may not be ready for rate hike April 1, 2014 THE BANK of England’s financial policy committee (FPC) is concerned that parts of the financial sector could be unprepared for eventual interest rate hikes, according to minutes of a meeting released yesterday. During March’s meeting, the committee concluded that there is a risk that financial markets may be brushing off the potential for higher interest [...]
IMI’s new chief paid £590,000 April 1, 2014 The new chief executive of FTSE 100 engineering firm IMI was paid £590,000 in 2013, despite not taking up the role until the beginning of this year. Mark Selway, who joined IMI’s board on 1 October 2013 to ensure a smooth transition for when he started his new role on 1 January 2014, received a [...]
Pimco returns trail vast majority April 1, 2014 The Pimco Total Return Fund, the world’s largest bond fund run by Pimco co-founder Bill Gross, trailed 95 per cent of its peers in March, increasing the risk that more money could flee the firm’s flagship fund in the wake of a management shake-up. According to data from Morningstar, the $236.4bn (£142.1bn) Pimco Total Return [...]
Contamination claim hits Glaxo April 1, 2014 The US Food and Drug Administration found earlier this month that an ingredient manufactured at a GlaxoSmithKline (GSK) plant in Ireland was contaminated and said the company did not take sufficient action to resolve the problems. GSK said the ingredient was paroxetine, used to make its antidepressant drugs Paxil and Seroxat. The company said it [...]
