Why you can’t trust your financial adviser: Seven per cent of US FAs have misconduct records March 8, 2016 Financial advice is a mixed bag. Taking it might save an individual money in the long run, and yet some financial advisers push products for their own personal gain (i.e. generous commission payments) rather than the a customer's best interests. Research by economists Mark Egan, Gregor Matvos and Amit Seru paints a sobering picture of the [...]
Why Mario Draghi is in a bind over negative interest rates March 8, 2016 What a difference a few weeks make. Sentiment has improved and fears of imminent recession now appear a touch hasty. But the question of where markets head next still depends on policy-makers’ ability to deliver decisive action. Step forward Mario Draghi, who is expected to tinker with the Eurozone’s financial plumbing this week in the [...]
Shares in Old Mutual soar on speculation over potential break-up March 7, 2016 Shares in Old Mutual soared today on news that the company is “considering all options” after speculation that the group would be broken up into four businesses. The savings and investment firm’s stock closed up 6.9 per cent at 192.1p. Old Mutual said last week that it was pursuing a strategic review, as announced when [...]
Anatomy of a sector: UK finance and professional services support 2.2m jobs, contributing 11 per cent of tax receipts and generating a £72bn trade surplus March 7, 2016 You already knew it, but here's definitive proof: supporting 2.2m jobs and contributing 11 per cent of tax receipts, finance and professional services is one of the most important sectors in the UK, according to new research. A major report by City lobby group TheCityUK shows not only that the sector is a leading employer, accounting for almost [...]
Insuring the whole world’s population would cost just $190 trillion, which we now know thanks to advances in cloud technology March 7, 2016 The cost of insuring 7.3bn people might be less than you think, according to figures out today by Willis Towers Watson. The insurance giant has calculated that it would cost just $190 trillion (£133.5 trillion), or roughly 2.5 times the world's GDP, to provide everybody on the face of the Earth with a $100,000 whole-of-life insurance policy. [...]
Old Mutual could be broken up amid private equity takeover bids March 6, 2016 Old Mutual, the FTSE 100 insurance group, is reviewing options for a breakup following a joint takeover attempt for its wealth management division from private equity firms Cinven and Warburg Pincus. A breakup is one option being considered in a review of Old Mutual’s operations, and an update will be given on Friday along with [...]
Aviva set to report £100m impact from UK floods while Prudential will post another year of earnings growth March 6, 2016 Aviva is set to reveal the UK floods in December put a £100m dent in earnings for 2015 when it reports its annual results on Thursday. The impact of the floods, as well as the recently announced acquisition of RBC Insurance in Canada, is likely to drag operating earnings per share from 49.2p to 47p, [...]
George Osborne scraps pension reforms package including tax relief plans March 5, 2016 Chancellor George Osborne will scrap plans to introduce a package of reforms on pensions including cutting tax relief for higher earners. It was feared that the radical reforms, which would have made pension pot withdrawals tax-free but eliminated relief on contributions, could have triggered a run on savings and backlash from high-earning voters. A product of an [...]
As Jerry Hall and Rupert Murdoch walk down the aisle, we sum up weddings in numbers: from venue costs and gift lists to tax tips for married couples and engagement ring costs March 4, 2016 Love is in the air, especially if you're in London. Media mogul Rupert Murdoch and supermodel Jerry Hall have, according to various reports, tied the knot today at Spencer House. The two seem like a financially-savvy pair so we're sure they'd appreciate knowing these numbers behind weddings: 1. Friends and family thinking about their budget for [...]
Make no mistake: The senior managers regime won’t just affect the top bankers – everyone in the sector should be worried March 4, 2016 Last month banks provided City regulators with individual statements of responsibility for every one of their senior managers, detailing their personal accountabilities. This was in preparation for the Senior Managers Regime, which will be enforced from 7 March. Regulators have made clear that they’re aiming to go after the most senior managers, rather than their [...]