ALL OPINIONS EXPRESSED ON THIS WEBSITE ARE THOSE OF THE MEMBERS WHO CHOOSE TO CONTRIBUTE. THEY SHOULD NOT TO BE INTERPRETED AS OFFERING SPECIFIC “FINANCIAL, TAX or LEGAL ADVICE”. INVESTORS MUST OBTAIN THEIR OWN INDEPENDENT PROFESSIONAL ADVICE.

THE LATEST PRF PRICE FROM ALICO - CLICK HERE

UPDATE UPDATE UPDATE > 12th February 2010 < UPDATE UPDATE UPDATE

New fund update has been added to the reference library. The PRF has grown 24% when the previous distributions are included, which has demonstrated that our initial guidance on the fund is proving accurate. However, the continued low interest rates still mean that that final value in July 2012 is unlikely to prove any profit over and above the £1 guarantee.

Have you considered the new tax change on April 6th? Ask your adviser for advice - should you 'bed & breakfast' your bond to have [any] gain taxed at 40%, to prevent future gains being taxed at 50%? Do you have a spouse in the basic rate tax band to whom you can assign the bond? The documents for Surrender & Reinvestment are in the reference library.

VERY USEFUL PLANNING WHEEZE: if the bond is assigned to a spouse, and the spouse's income for the year including the chargeable gain is less than the higher rate tax band, then the spouse [and you] will have no tax to pay. [NOTE, the chargeable gain is the profit for the policy divided by the number of complete policy years.]

Having forwarded the members documents to the FSA the process they are following is to investigate the way AIG ran the fund in the first instance. Pending the outcome of that, tied into a specimen complaint, FOS are holding off adjudications. We are not expecting an outcome from the FSA before April.

As we have said before, this will take time. If there are still unresolved distress cases caused by this then please contact us directly as we can provide 'support' and guidance.



OUT OF THE MOUTHS OF BABES AND BANKERS....

The FSA rulebook says:

Rule 14.3.2 specifically stipulates that the risks must be provided

‘in sufficient detail to enable the client to take investment decisions on an informed basis’.

Barclays Bank compliance says:

" A product is not inappropriate or unsuitable simply because an investor does not understand it, particularly in circumstances where the investor has granted a discretionary mandate to the banker in connection with investment decisions. Put bluntly, there is no requirement that the investor should understand matters at all."

We wrote to Marcus Agius, the chairman of Barclays, asking if he agreed with his Barclays Wealth's interpretation. The response came from.......Barclays Wealth.

If you have anything in a similar vein, please let us have a copy. Investor confidentiality is maintained at all times, and we are registered with the Information Commissioner.





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We are always cleaning out the membership list. If you find you have been inadvertently 'banned', please email me. ADVISERS et al: please do not advertise your services in posts: email me your details and we can add them to the list in the reference library. Thanks.

Hobie