THE FSA waited until after the close on Friday to announce a review of the way solvency margins are ...
THE FSA waited until after the close on Friday to announce a review of the way solvency margins are calculated by life companies, a decision which is expected to boost the market this week.
Solvency margin pressure forced many firms into a downward spiral of selling share holdings in order to maintain solvency, only to see the market fall further and be forced into selling again.
The FT says the FSA will now provide waivers to individual companies to maintain their equity holdings as long as there is no detrimental effect to customers.
THAT DECISION may also benefit Standard Life, which The Daily Telegraph says is going to announce another round of bonus cuts.
The paper says the cuts – the third in the past 12 months – could reduce bonuses by up to 50%, and are likely to "damage Gordon Brown's attempts to reassure investors in a speech today."
It points to the first ever "prosperity index" published in its own pages, showing that "many people" are concerned about their economic prospects for the next year.
THE SCOTSMAN says the cuts are more likely to be around 20% for with profits policyholders, following on the 8% and 10% cuts announced a year ago and in September respectively.
And this all comes after the company's announcement two weeks ago that it was upping the exit penalty to 25% after admitting there had been an 18% upswing in the number of policyholders leaving the firm.
"Edinburgh's largest private sector employer has had a terrible start to 2003," the paper says.
THE TIMES says shares were looking likely to soar today – which they have – but poignantly adds a piece on Abbey National, which it says faces losses of £2bn linked to its wholesale banking division.
Abbey wants to sell off the business, but poor stock markets have so far made this impossible.
"GREEDY" AND "stupid" investors have only themselves to blame for the hurt caused by their losses over the past three years, according to comments attributed to Threadneedle Investements' chief executive Simon Davies.
The FT says the outburst comes just as the ISA season goes into high gear ahead of the end of the fiscal year.
Davies says that just as stupid investors went "haring after" tech stocks at the peak of the dot.com bubble, so too they now want to buy a bigger house at the top of the property market.
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Launching later in 2019
£80bn funds under calculation