Hi chaps/chapesses, my names Ryan, I’m a recruiter in Financial Services, Ive been in this industry, for my sins, about a decade now, and Ive never seen a period of time, like the last 3 months, with such impact amongst, not only the Banking sector, but Life Offices & IFAs. So what’s been happening in the last few weeks, to bring us up to date with this week!
October has brought the “real cold wind” of this downturn, Northern Rock stepped back into the limelight (as if they were ever away), they were attacked by Credit & Housing Charities, for jumping on people who are narrowly into arrears, and taking legal action to repossess without discussing options, basically 0.56% of their whole mortgage book has been re-claimed….. well they do have creditors to pay!
Norwich Union announced that 119 SSAS customers lost their shirts with that stranged named Icelandic Bank-Kaupthings (dodgy spelling), its like a ripple effect with these 6 Icelandic Banks, not only has it affected direct investors, but LEAs, Life Offices, other Banks, and even Governments have been affected, I think these 119 are the tip of the Iceberg, and it may take months to unravel exactly where the story ends…..
Money Marketing reported one of the Industry gurus, Peter Hargreaves of Hargreaves Landsdown, stated that the downturn could off been limited if rates had been kept more prudently, and lending criteria had been stricter, in the past! I think he should have been in charge of things at the start!
Despite Mr Brown, Darling et el with their 37 Billion Pound stick of dynamite to blast through the damn of the Credit Crunch, unemployment reached the highest level in 17 years, earlier this month, with it being projected to 2.1/2.2 million by the end of 2008, bring on Christmas eh!
Week before last, Sterling fell to 5 year low against the $, to $1.62, triggered by Mr Brown and Mr King announcement that we are infact slipping into recession, & analysts have suggested a trade-off between shoring up Sterling against stimulation of the mortgage market, I know which one, 1,000’s of re-mortgage customers would choose!
Chris Smallwood, MD of 2 Plan Wealth Management, says the FSA should have stricter controls of IFAs, Clients that move between companies and Networks in Financial Services, according to Money Marketing.com, he’s reported of saying that client’s needs should come first in these situations, not commissions, renewals etc…
Matrix Data Solutions have some great ideas, an online site for IFAs to register on, for clients to search through, and get details on their services, and where theyre based etc…, and they even have related company site that’s more of a social network for IFAs, you guys have to stick together, check out the site, if you’ve not already. www.mylocaladviser.co.uk & the social network is IFA Life – www.ifalife.com.
So whats happened last week to bring us up to date to the beginning of November…. Competent Adviser has re-launched an upgraded compliance website to aid firms assess the competencies of staff & support compliance & developments going forward. A huge issue, as firms need to make sure their flawless especially in this day and age, when business levels have fallen.
House Prices fell by 14.6% in Oct 08, as apposed to Oct 07, basically the average house price is £158,872, which according to Chief Economist at Nationwide Building Society, Fionnuala Earley, is still £30,000 more than 5 years ago, and Nationwide have stated that sellers are reluctant to sell at a loss so stay out of the market, which keeps market volumes low, but with the UK Economy going into “recession”, the Govt is more likely to reduce Interest Rates which may stimulate the mortgage market going forward! Fingers crossed!
Standard Life UK revealed that volumes have fallen in their Life and Pension sales by around 14%, from 07. Furthermore, assets under management have fallen by 14% in the first 9 months of this year, a challenging time ahead for Standard Life, but join the cue!
I wish I was the recruiter for this piece of Business, James Hay revealed that Shaun Sandiford left them, apparently to go to Ascentric (a WRAP rival of theirs), he was their Head of Key Accounts at James Hay. The Ascentric move has not been 100% confirmed yet, as hes probably awaiting start dates, who knows, I just hope they gave him a good leaving bash!
London Scottish Bank has announced that with effect of June 09, they will be sold, mainly because they were 12 million short of their Regulatory Capital Levels, and have debts of £238 Million…. Further details await….and in contrast, Lloyds TSB have announced their Super-Bank Executive Committee with Victor Blank at its head, assuming the shareholders pass the merger! Oligopoly, here we come…
Finnally, the FSA last Thursday, released a Consultation Paper for 09/10 to ensure firms/IFAs etc that are either newly created organisations, or those who are trying to extend their permissions to sell certain f/s products or to provide new services, that these don’t pay large fees in their 2nd yr, or large levies……IFA firms are having a bad time already, they don’t need to be kicked while theyre down!
In summary, guys, Life Offices, Banks such as Standard Life & London Scottish are seeing volumes fall and stormy times ahead, more and more brokers are being fined by the FSA week in week out, as desperation sets in, and everyone is praying for reduced Interest Rates and a light at the end of the tunnel in 2009. I just feel that IFAs need to use every medium, every service at their disposal to insulate themselves from the dark times ahead….More news next week!