Aviva became the talk of the City yesterday after it emerged that its £2.2million-a-year chief executive was involved in an office love triangle.
According to the Daily Mail, Married father of four Andrew Moss, 51, admitted to a relationship with Deirdre Galvin, 45, a junior member of staff he had seconded to work directly for him.
To complicate matters further, Miss Galvin is married to Aviva's head of human resources for Europe, Andrew Moffat, but has reverted to her maiden name since the affair.
In turmoil over what the City has dubbed 'the Aviva triangle', the company - formerly Norwich Union - was forced to issue an extraordinary and embarrassing statement yesterday defending Mr Moss's reputation. Full story...
Tax overpayments totalling £250m have been made by 1.5 million pensioners since 2002-3 according to a report by the National Audit Office (NAO), the BBC reports.
On average the overpayment works out at £171 per person.
The error is being blamed on discrepancies between tax authority records and tax deducted by employers and pension providers.
The NAO also found 500,000 pensioners had underpaid tax by an average of £207 each - it is calling on HM Revenue and Customs to provide a more coherent service.
"We are determined to reduce over and underpayments," it said.
"During the last few months we have significantly upgraded our computer systems to improve accuracy and deliver a better service to older taxpayers," it added.
Pensioners could also be worse off because they fail to claim additional age-related tax allowances which would boost their income by up to 4%.
The NAO estimated 3.2 million pensioners did not claim the additional allowances. Some might not claim them because they did not have sufficient income to pay tax, while others did not realise they were entitled to them. Full story...
THE EURO HIT a new year high against the dollar on Friday, taking out options barriers at $1.5050, Reuters reports.
The dollar was up on a trade-weighted basis having gained against the yen, which was under selling pressure after less than favourable U.S-Japanese yield spread moves and a series of domestic factors.
Japan's banking minister said the country must have a second extra budget worth around 10 trillion yen, adding to expectations of an increase in government debt. Full story...
BANKS WHICH have made large profits due to unusual market conditions over the past year will be forced to feed much of the money into building up capital, and not paying bonuses to staff, reports the Times.
The FSA yesterday said it would take a firm stance on capital allocation in upcoming meetings with banks to discuss their remuneration policies.
The body is putting pressure on banks to up their capital ahead of new rules from the Basle Committee on Banking Supervision next year, which will demand dramatically higher capital ratios across the industry.
Though, FSA chairman Lord Turner said the City regulator would "exercise significant caution" with banks whose commitments to lend to individuals and businesses could be jeopardised by having to build up capital too quickly. Full story...
Outlook for income
Chris St John to take over £3bn UK Select Opps