Royal Bank of Scotland subsidiary Mentor has had to suspend operations because insurance cover sold on its business advice given failed to make the grade under new general insurance regulations, The Daily Telegraph reports.
Mentor provides advice on employment law, health and safety, and general business advice, but also offers insurance cover on its advice should it land clients in front of employment tribunals.
This puts the company in the same boat as some 40,000 other companies also affected by the new GI rules, The Daily Telegraph says.
The FSA is set on checking how many companies may be trading illegally, the paper adds.
ARGUMENT HAS ERUPTED over whether trustees of department store Allders’ final salary scheme should have told scheme members their pensions would be protected by either the Financial Assistance Scheme or the Pension Protection Fund were the company to go into administration, The Times reports.
Since that has duly happened in the past couple of days, the existence of the letter has drawn criticism because of clauses in both the FAS and PPF legislation that mean it is not certain they will pay out in this or in any other case.
It is estimated the cost of winding up the scheme is £58m if the chain of stores goes into liquidation, with the estimated 3,200 scheme members then put on the same footing as unsecured creditors such as suppliers and shareholders.
Workers are considering legal action against potential pension losses, the Times writes, although lawyers have said such action is unlikely to succeed.
MISYS’ RESULTS showed the company’s Sesame business picked up fewer than expected mortgage intermediaries during the first half of its business year, The Daily Telegraph writes.
The shortfall may be down to the FSA issuing fewer licences, the paper reports the company stating.
Otherwise, Misys as a whole reported things moving in the right direction, with pre-tax profits in line with expectations at £13m, and hopes for stronger sales of medical records computer systems to US hospitals in the second half.
IRONY OF IRONIES could sum up news that US government ‘hawks’ are looking to promote their environmental credentials to reduce the country’s dependence on imported oil, reports The FT
The result could be incentives or subsidies worth more than $12bn over the next four years to encourage car makers to sell more dual-fuel and hybrid cars.
Meanwhile, one of the EU’s top officials, EC energy commissioner Andris Piebalgs has warned energy security is now top of his agenda as the result of rising oil prices and increased competition for energy supplies from developing countries.
Oil futures in the US are selling at $40 per barrel through the rest of the decade, the FT adds.IFAonline
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