Honest Money Now
News Bites
Selective news items, with external links to the full stories and internal links to related pages

FSA warns on VCTs 22/11/05

The FSA have warned against sharp selling practices for Venture Capital Trusts

Press Release


Eurolife defaults on Income Bond 29/01/05

It appears that the capital was secure only to the extent that the same could be said of European Capital Funding Plc (ECFP), the entity backing the bond. ECFP has proved to be without sufficient substance. The bond was managed by Nvesta. We warned you about unrecognised default risk in structured products.

Equity-linked bonds


Treasury report: 'Restoring Confidence in Long-Term Savings' 5/08/04

The Treasury Special Committee reports on "a savings industry that has failed to adapt to the modern world"

Press Release
Full Report


Sykes report on the UK investment system 20/06/04

Yet another report providing "a 'helicopter view' of the UK investment system" and attempting to provide "a long-term agenda for restoring investor confidence" and delivering "a warning to the industry that it faces a stark choice: leadership or suffocation".

Comment by 'Manifest'


Treasury gives in on Stakeholder fees cap 19/06/04

A key feature of the Stakeholder pension was the fees cap of 1% per annum. Now the Treasury has caved in to industry pressure to raise the cap. It is to be raised to 1.5 per cent for the first 10 years, thereafter reverting to 1 per cent.

Do Costs Matter?


Invesco puts up its fees 14/06/04

Four Invesco Perpetual funds have raised their fees from 1.25% to 1.5%.These Invesco funds have recently been high in the performance tables under flavour-of-the-month manager Neil Woodford. Could he have asked for a salary increase?

Star Managers


FSA proposal on soft commissions 7/05/04

The FSA has announced that "the softing and bundling of non-execution goods and services are not in the interests of investors". To eliminate conflicts of interest the scope of such arrangements is to be limited to execution services and investment research . Also, the industry is to be given "space to develop a transparent mechanism for identifying the price of investment research included in commissions". This is three years after the Myners report came to the same conclusion.

Press Release
Costs Unwrapped


Market timing scandal breaks in US 16/09/03
This has revealed, shockingly, the extent to which fund managers in the US (including some big names) have routinely indulged in practices that were certain to damage long-term investors.This story went on for a long time. The full tale, and the links, are in News: Market Timing    


Performance fee regulations to be relaxed 26/05/03

As part of a much wider review the FSA has announced a relaxation of the regulations restricting the use of performance fees by authorised funds. The campaign to allow performance fees as a benefit to investors has been misconceived. Its protagonists fail to understand the role of volatility in generating these fees.

Press Release
Performance Fees


Tighter regulations for use of performance statistics 17/05/03

The FSA has announced new regulations tightening the use of historical performance statistics in advertising. Among a number of improvements, advertisers will have to provide comparative returns for a number of separate one-year periods. This will go some way towards eliminating the games that dress up the homely as beauty queens. These regulations came into force June 1, 2004.

Press Release
Exalting the Ordinary


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