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Go Liquid for a Child Friendly Plan

2007-10-11 00:00:00.0

Cambridge Index 28 April 2008

2008-04-28 00:00:00.0

Investment Management Market View December 2007

2008-07-08 00:00:00.0

Investment Management Market View June 2007

2008-07-08 00:00:00.0

Investment Management Market View June 2008

2008-07-08 00:00:00.0

NW Brown Group Accounts 2008

2008-07-23 00:00:00.0

Policy Matters Summer Issue

2008-08-22 00:00:00.0

Answering Searching Investment Management Questions

2008-09-12 00:00:00.0

Investment Management Market View September 2008

2008-10-01 00:00:00.0

Investment Management Market View December 2008

2009-01-06 00:00:00.0

What it is to be a Director seminars

2009-02-05 00:00:00.0

Structure and Regulation of Banking Industry

2009-04-08 00:00:00.0

Response to the Budget

2009-04-29 00:00:00.0

Investment Management Market View March 2009

2009-05-07 00:00:00.0

NW Brown Newsletter

2009-06-08 00:00:00.0

NW Brown team walks 300km for Papworth Trust

2009-06-10 00:00:00.0

The Client Unveiled

2009-06-12 00:00:00.0

Investment Management Market View June 2009

2009-06-23 00:00:00.0

NW Brown Group Accounts 2009

2009-07-20 00:00:00.0

Investment Management Market View September 2009

2009-09-21 00:00:00.0

Newsletter - Summer 2010

2010-07-01 00:00:00.0

Wealth Management Article - October 2010

2010-10-18 00:00:00.0

ALM October News 2010

2010-10-21 00:00:00.0

Childcare Vouchers - Tax changes effective from April 2011

2010-11-11 00:00:00.0

October 2012 - Workplace Pension Reforms

2010-12-02 00:00:00.0

i phone App

2010-12-31 00:00:00.0

Freedom Insurance Secures the Specialist Medical Insurance Service as Part of AXA's Contract with TUI Travel UK & Ireland

2011-08-09 00:00:00.0

Download our Group Newsletter

2011-11-23 00:00:00.0

NW Brown Group Newsletter Spring 2012

NW Brown Group Newsletter Winter 2011

NW Brown Group Newsletter Summer 2011

NW Brown Group Newsletter Spring 2011

Download our Group Newsletter

2011-11-23 00:00:00.0

NW Brown Group Newsletter Spring 2012

NW Brown Group Newsletter Winter 2011

NW Brown Group Newsletter Summer 2011

NW Brown Group Newsletter Spring 2011

Download our Group Newsletter

2011-11-23 00:00:00.0

NW Brown Group Newsletter Spring 2012

NW Brown Group Newsletter Winter 2011

NW Brown Group Newsletter Summer 2011

NW Brown Group Newsletter Spring 2011

All Change on Pensions

2011-02-28 00:00:00.0

Contibutions

From 6th April 2011 the maximum annual contribution will be a fully relievable £50,000 (equivalent value 16 x increase in pension entitlement for defined benefit scheme members). There will be a retrospective 3 year carry forward of unused allowances which gives an opportunity for previously restricted 'high earners' to catch up. For those whose pension scheme's 'input period' ends after 6th April 2011 the £50,000 limit will apply (a nasty potential trap).

Lifetime allowance (maximum tax effective fund)

This is to be reduced from £1.8m to £1.5m from 6th April 2012. Existing protections will apply and a new 'fixed protection' will be available for £1.8m, provided that contributions (and relevant benefit accrual for members or defined benefit schemes) cease after 5th April 2012.

Removal of compulsory drawing of pension by age 75

This is the most far reaching announcement and may affect strategic planning. The major changes, effective from 6th April, are:

i) Removal of compulsory drawing of pension benefits by age 75 - however, 75 will still be a watershed for death benefits and the latest date for testing against lifetime allowance

ii) Annuity purchase available as before but major changes to the drawdown regime:

a) Removal of distinction between pre and post age 75 drawdown

b) Choice of two types of drawdown 'Capped' - similar to current pre-75 system but lower maximum drawing and more frequent reviews. 'Flexible' - unlimited withdrawals subject to a minimum guaranteed pension income of £20,000pa

iii) Substantial changes to treatment on death:

a) On death prior to age 75, the fund will still be paid tax free to nominated beneficiaries if it is not in drawdown.

b) On death in drawdown prior to age 75 the fund can still be paid to nominated beneficiaries but the tax charge increases from 35% to 55%

c) On death in drawdown post age 75 the fund can now be paid to any nominated beneficiary, subject to the 55% tax charge - a vast improvement on the current effective tax rate of 82%

d) Death payments to charity will remain tax free

If you have any queries on these matters please contact Jonathon Goodfellow on 01223 720 319 or Michael Malkiewicz on 01223 720 301

Investment Trusts

2011-02-28 00:00:00.0

For new reader, an investment trust is simply a company, quoted on the stock market, and with a limited number of shares in issue. The business of the company is to manage a portfolio of investments on behalf of its shareholders with the aim of meeting an agreed investment objective. This can be to generate income, capital gain or a mix of both. Whatever the chosen mandate, investment trusts offer a useful and cost efficient way for investors to gain exposure to specific areas such as smaller companies or overseas markets. As such, they are useful to all investors but of particular benefit to those with smaller portfolios who require a greater spread of risk than can be achieved through holding individual shares.

The investment trust market is small by comparison with the market for unit trusts and OEICS, although both carry out a similar function for their investors. The number of investment trusts is less than 500 whereas there are many thousands of unit trusts and OEICS. Why then have investment trusts lacked in popularity? It certainly isn't due ro relatively poor performance. A recent study by brokers Winterflood revealed that, with the exception of Japan, investment trusts had outperformed unit trusts and OEICS in every category over a 10 year period.

The lack of popularity isn't due to higher charges either. In fact the average cost of management for an investment trust is comfortably below that charged by a typical unit trust. One possible reason is the basis on which some independent financial advisers have been remunerated. Traditionally, IFAs have had the option of being paid indirectly for their advice. That is to say, the money they receive has been paid as a commission based on the value of the investment made with the product provider.

The industry as a whole has been moving towards fees for several years, and we have always offered our clients the choice of how we are remunerated, so these reforms will have little practical impact on us. This is perhaps the most far reaching to affect the industry in many years and will create a level playing field, increasing the choice of investments advisers can recommend to their clients.

If you would like more information about investment trusts or the changes being brough about by RDR, please contact Oliver Phillips on 01223 720 317 or email oliver.phillips@nwbrown.co.uk

Employment Law Protection Insurance 'v' Employment Legal Expenses

2011-02-28 00:00:00.0

Protection against the costs of defending such an action can be provided by a legal expenses policy but do these policies provide adequate protection?

Traditionally businesses have had to jump through a plethora of hoops to successfully prosecute a claim and often find the insurer trying to thwart them at every turn rather than provide real assistance at the time it is most needed.

The natural consequence of this is a certain scepticism towards this area of insurance, both by businesses and insurance brokers alike. The last thing a broker wants is to offer a policy to clients which is ineffective at the time they need it most!

A small number of insurers have recognised this failing in the market and have produced an employment law policy which works like any other insurance contract. A claim can be made at the point at which a loss is incurred, i.e. when an employment dispute cannot be resolved; they:

a) allow you to manage your own employment matters as you see fit

b)allow you to make a claim if a dispute cannot be resolved

c) will pay the resulting legal costs

As well as the above, payments of resultant awards will also be covered up to the chosen policy limit, which is something a legal expenses only policy will never do.

They do not insist on prior referral to a helpline in order for a claim to be accepted but do provide extremely useful website services as part of their policy offering which includes helplines answered by fully trained lawyers.

The policies do work and because they are unlikely to fall foul of the usual bureaucratic reporting requirements they are an extremely important business management tool.

If you have any queries or would like to discuss the provision of an employment law policy please contact Martin Hennell on 01223 720 211 or email martin.hennell@nwbrown.co.uk

Alison Powell looks at the prospects for stockmarkets in the light of recent events

2011-05-03 00:00:00.0

The damage caused by the earthquake in Japan is a recent example of this, and the unrest sweeping the Middle East is yet another. Readers with long memories will recall that there have been plenty of other shocks within our lifetime (the assassination of John F Kennedy, the destruction of the World Trade Centre, the 1973 oil crisis, the UN ultimatum to Saddam Hussain to leave Kuwait among others). On each occasion, Japan included, the initial panic stock market response and irrational sell off led to a quick, but not necessarily full, recovery once emotion ceded ground to more sober and logical judgement. The question this time is the same as always; how much effect will these events have on economic prospects. However, the question is perhaps more pressing this time, as the world is already struggling with a fragile economic recovery.

It is clear that global economic growth forecasts will be revised down as a result of the disruption to local industry in Japan and to supply chains globally, particularly for electronic and automotive components. However, Japan accounts for only 9% of global GDP, down from 18% in 1994 according to analysts*. Its stock market has shrunk even further in terms of its global equity value: down from near 50% at its peak to 7.6% currently. Global growth is seen as much more likely to be negatively affected by the upheavals in the Middle East, which have already led to major increases in the oil price. The Middle East accounts for almost one third of global oil supply with Saudi Arabia and Iran as the leading producers and exporters, followed by Kuwait, United Arab Emirates and Iraq. Optimists point to the fact that prices are still below their all-time July 2008 high of $146 and that there is spare capacity all along the chain from production to shipping and refining to cope with any short term supply disruptions. There is, nevertheless, plenty to be concerned about as the direction of oil prices is important for two reasons: first it underpins prices, generally with a six to nine month time lag, (i.e. if it goes up it is inflationary); second, it weighs down on real incomes as input costs go up for manufacture and distribution. This acts like an extra tax on consumption and hits consumer spending worldwide. In other words, protracted upward movement in the oil price will trigger both higher inflation and lower growth.

Turning to the outlook for different asset classes, the recent upward move in interest rates in Europe, and the probability that rates in the UK will follow, dictates our cautious attitude towards fixed income investments. Yields on government bonds have largely anticipated growth and inflationary expectations and do not offer a compelling investment opportunity at these levels. Inflation has picked up but with real or inflation-adjusted interest rates low or negative, returns on cash remain unattractive even if rates begin to rise.

The other principal asset class to consider is equities. Looking back over the last quarter, equity markets rallied in the New Year but had stalled by mid-February and were looking for an excuse to correct. They were given ample cause by the series of unforeseen events, in Japan and the Middle East, which added to the existing growing unease about the prospects for growth this year. Although around 10% of global GDP will be affected by Japan, as we have shown, its impact will be limited in Developed Markets, and has already been discounted by stock markets which have bounced back from initial loss. This resilience has been underpinned by the efforts of central banks around the world to keep liquidity flowing within the financial system. The price of oil will indeed affect companies’ input costs, but valuations remain low, suggesting the market is pricing in downgrades. Investors may be nervous in the short term although we are still confident in the prospects of the companies we follow and will use any setbacks to reinforce our positions in those well managed, cash rich, enterprises with good exposure to fast growing overseas markets which have long been our favourites. They remain both the most likely candidates to withstand any further market shocks and to exploit the undoubted long term growth opportunities out there.

*Source = Citicorp

If you would like to know more about our approach to investing, please contact Alison on 01223 720257 or alison.powell@nwbrown.co.uk

Chief Executive describes ambitions for Norwich operation

2010-12-03 00:00:00.0

Building Regional Banking in East Anglia

2009-05-02 00:00:00.0

Nigel Brown, eponymous founder of NW Brown Group, has recently received a great deal of interest in the proposals to create a new Regional Bank. After much news coverage on Wednesday, 4 February, the interest has deepened and many business men and women in Cambridge are eagerly awaiting more information.

Marcus Johnson, Chief Executive of NW Brown and fellow Angel of GEIF has been approached by a number of people to ask if Nigel’s former company and colleagues will be backing this latest venture. ‘Nigel is a wise analyst of the financial world, as well as a great Cambridge figure, and we are always supportive of his projects. We are just one of the local entities who would both welcome and support him in continuing on his mission to build a better Cambridge. We see these plans as having potential to help local firms and to make our clients better off. We will be very disappointed if nothing comes of this, we have to agree with Nigel that the large commercial banks lost their way some time ago and it is time for a return to traditional banking virtues.’

NW Brown Group will endeavour to direct interested parties to where they can locate more information as soon as it is available.

Financial Planning Changes Name

2011-02-28 00:00:00.0

NW Brown Financial Services Ltd is an existing company authorised and regulated by the Financial Services Authority to provide investments, pensions, financial planning, mortgages and employee benefit services. Clients will find that it makes no difference to the services provided or their relationship with their adviser

The Rosie Hospital Campaign

2011-02-25 00:00:00.0

The Rosie is an established name throughout the East of England, having provided specialist services for over 25 years, offering women and babies in the region first-class maternity, neonatal and gynaecological services.

The hospital now needs to undergo a major expansion to cope with the population increases in the area; to allow our outstanding medical teams to continure to develop ground-breaking new treatments, and to provide the hightest quality care to women and babies in the East of England. New facilities will include and Imaging Centre for women and children, expanded Neonatal Intensice and Special Care Baby Unit, Parent and Family Accommodation, Fetal Medicine and Day Assessment Unit and a 10-room midwife-led Birth Centre. The site was officially handed over to the contractors in November 2010, and work is underway, with a planned finish date of spring 2012.

In order to make the vision of a new Rosie a reality, a £30 million build is underway to extend the current facility. Cambridge University Hospitals NHS Foundation Trust has commited to funding £23 million of this but we need to raise the remaining £7 million from charitable sources in order to make the Rosie a world-class facility.

We're delighted to say that since fundraising began a year ago, we have raised almost half of the £7 million we require and we'd like to thank everyone who has made a commitment to the Rosie Campaign. Now we need to ask for your help...

Earlier this month the Rosie Hospital Campaign was officially launched to the general public with the help of the Cambridge News. Lots of staff, patients, former patients and the general public are already getting involved innand planning fundraising activities, which include dying hair 'Rosie Pink', pancake flipping contests and karaoke nights amongst other things! Staff at the Rosie are undertaking the Three Peaks Challenge in July to raise funds for the Campaign. Local businesses are also getting involved:

The Rosie Campaign is Mills & Reeve's Charity of the Year, and staff are collecting sponsorship for the Rosie to encourage them to keep their New Year's resolutions!

How can you help?

We are looking for major partners who can make significant gifts to the Campaign in return for donor recognition on site and regional marketing if required. If you'd like to explore these opportunities further, please contact Amy Smith on 01223 256 625 or amy.smith1@addenbrookes.nhs.uk

You can make a gift to the Rosie through the new campaign website www.therosiecampaign.org.uk or by contacting the ACT office via 01223 217 757.

We are also planning numerous activities that the general public can take part in. For example, the Rosie is one of the main beneficiaries of the Sawston Fun Run in May, and we need as many people as possible to run for the Rosie! Perhaps you could organise your own fundraising event to raise funds, or could name the Rosie as your company's Charity of the Year? Please see the Campaign website for other news and activities.

Security & Awareness Advice for Employees Who Travel on Business

2011-09-02 00:00:00.0

Adhering to the 'duty of care' principle requires Employers to take steps to assess, manage and avoid reasonably foreseeable risks to its employees when travelling on Business. Investing time and resources in risk management strategies can help Employers protect not only its employees safety and wellbeing but also the Employer against claims of negligence or breach of its statutory duties.

For many of our Commercial Clients we recommend Business Travel insurance with Chartis, one of the UK's leading Personal Accident and Business Travel insurance providers. For all their policyholders, Chartis now provide an e-learning security and situation awareness program that helps employers comply with their duty of care to employees who travel on business. Called Travel Angel it provides practical advice about personal security, preperation and arrival, travel health risks, getting around, street crime and robbery, terrorism and unrest. This important protection for employers comes at no extra cost and telephone support is available during working hours.

The program is fully interactive, provides an audit trail and allows policyholders to benchmark employees' awareness levels. The core episode and six modules can be completed individually or together (they take around 45 minutes in total) and are accessible at work, home or whilst travelling.

Access to the Chartis Travel Angel means employees are prepared for their trip before they leave and are aware of risks and how to mitigate them.

How to access Travel Angel?

Travel Angel can be accessed by any Chartis Business Travel policyholder through the Chartis website page www.mylifeline.co.uk, Clicking on the Travel Angel link will take users to the Travel Angel page where there is a direct link through to the client login page. To login the employee enters their employer's Travel Insurance 10 digit policy number.

The Euro in Crisis

2011-11-11 00:00:00.0

As the fate of the Euro hangs in the balance, Marcus Johnson, CEO, NW Brown Group Ltd, puts forward his views on the crisis and suggests a way forwards.

The creation of a single European currency was intended to make trade easier, and allow organisations within the Euro Zone to operate across borders in a way they had previously been unable to do. To begin with, all seemed well, but the 2007/8 financial crisis exposed the cracks in the system.

The Euro Stability Pact was designed to deal with the need for a common policy by committing each government to running a deficit of less than 3% of GDP, and do having a maximum borrowing of 60% of GDP. All went well until in 2003/4 it became apparent that both Germany and France, the main authors of the Pact, were going to break the 3% limit. Fatefully, and possibly fatally, they decided not to follow the enforcement procedure of the Stability Pact and to ignore the deficits created by their overspending. In theory the Pact limits remained, but from that point on governments were no longer subject to an enforced limit.

At the time of the creation of the Euro it had seemed somewhat miraculous that Italy had managed to meet the criteria, and when Greece joined there was similar astonishment. What we now know is that the way they pretended to cut their deficits was in many cases short term fixes which left longer term problems for future years. So, for instance, very creative swaps of future revenues for current income were counted as reducing the deficit and one off tax acceleration and Public Private Partnerships played a large part in massaging Greek numbers downwards in the critical pre-accession year.

Standards of government accounting can be dubious, and the figures produced by the applicant governments were not subject to rigorous audit and so, like most governments most of the time, the Greek Government lied about the numbers. This was not a problem until the banking crisis of 2007/8 brought government debt levels sharply into focus as the banks (who had been expanding their exposure to governments as the counter part of the governments' expanding deficits) required massive government bailouts and questions began to be asked (particularly with reference to Ireland and Iceland) as to whether the governments themselves could afford the bailouts.

Once questions were asked, the extent of the previous deception became apparent. Governments now faced lower tax revenues as economies shrank at the same time as the spotlight focused on their deficits. Then in 2010 the new Greek government believed it was inheriting a deficit of 3.5% and rapidly recalculated to discover it was over 10%. To remove such a deficit in the short term is close to impossible. To finance borrowing of 160% of GDP is also demanding and the fact that Greece is a member of the Euro area makes these problems to some extent the problem of other members as well.

So what is the situation? Download the full article.

Labour announce axe on Child Care Tax Relief and the Public fight back

2009-10-02 00:00:00.0

At the 2009 Labour Party Conference in Brighton the Prime Minister, Gordon Brown, announced the party would phase out tax relief for Childcare Vouchers by 2011.

While this is only a policy Labour will undertake if they are still in power in 2011, the public has reacted immediately to show their concern and in some cases outrage.

An offocial Downing Street Petition has been set up for employers, parents and interested parties to indicate their displeasure of what will strip young families of over £1,000 in annual support. To sign the petition please click here.

NW Brown, as a Childcare Vouchers provider, is disgusted by the moves to take away an important incentive to encourage skilled and talented parents back into the work force. Sarah Gleadell, who runs the Childcare Voucher Service at NW Brown, said "the Labour party's decision is a disgrace. Parents who are reacting negatively now have every right to feel that way and I hope they will make their feelings known direct to Downing Street through the petition."

For more information on Childcare Vouchers please contact Sarah Gleadell on 01223 720 250 or email sarah.gleadell@nwbrown.co.uk

A Financial Control Board for Greece

2011-08-02 00:00:00.0

At the Annual Dinner of the East Anglia Branch of the Chartered Institute for Securities and Investments, held at Refectory at Norwich Cathedral, Thursday 28th July.

Marcus Johnson, President of the East Anglia Branch, touched upon the Greek crisis in his post-dinner speech. Referring to a recent visit to Greece, he indicated that there were still those in the country who did not realise the extent of the crisis, and indeed believed that strikes and civil disorder would help resolve the situation. While this may well be a normal human resistance to misfortune, the real shock was that many other European governments are also pretending there isn't a problem.

There is only one means of resolving this situation, and that is a strict programme of budgetary control. Take away the cheque book and forbid any expenditure outside specific plans. This is not a new original idea, just an acknowledgement that until all debts are repaid and external, independent scrutiniser must sign off on all payments made by the Greek Government. The sticking point is that the European leaders know this is the solution, but fear to implement it in Greece in case their own populations, in turn, imposed it on them.

He pointed out that the Greek situation is almost an exact parallel to the 1975 New York City financial crisis. At the time, Federal Government accused the city of relying on deceptive accounting, borrowing excessively, and refusing to plan ahead. It took the appointment of Felix Rohatyn to the NY City Emergency Financial Control Board, to transform the city into a solvent, prudent, and well financed organisation.

If you would like to download a copy of the full speech please click here

Finchingfield Guildhall

2011-08-02 00:00:00.0

Built in the late 15th century, the building has been at the heart of the community in this most pretty of North Essex villages. At different times the hall has been in use as a school, almshouses, a museum and a library. Sadly, in recent decades this grade one listed building has fallen into a state of disrepair, made worse by unsympathetic renovations carried out in the 1950's which have put the old timber frame under severe stress. With the aid of significant grants from English Heritage and the Heritage Lottery Find, as well as numerous public and corporate donations, work will start later this year.

With any such project it is important to have the right type of insurance cover in place. NW Brown Insurance Brokers has a well deserved reputation for advising on complex situations and was pleased to arrange suitable cover on behalf of the Trustees.

For more information please contact Martin Hennel on 01223 720 211 or email martin.hennell@nwbrown.co.uk

Julian Lloyd Webber Thanks NW Brown for its Sponsorship of Sell-out Concert

2011-11-04 00:00:00.0

Juilan Lloyd Webber, world famous cellist and recently appointed Artist-in-Residence at the Corn Exchange, was there to join in the celebrations and made a special point of thanking MarcusJohnson, CEO of NW Brown Co Ltd., sponsors of the concert.

Mr Lloyd Webber said: "It's thrilling to see a full house enjoying this opening concert and giving it such a warm reception. And it's wonderful to see a local business, NW Brown Ltd., supporting the concert too. This is a perfect example of a local business contributing to its community and working in partnership with the City Council for the benefit of everyone".

Marcus Johnson added: "From the beginning of NW Brown & Co Ltd., its founder Nigel Brown and his successors have always been enthusiastic supporters of classical music in Cambridge. We are delighted to have played a part in the success of this opening concert in what looks set to be an extraordinary season".

Stepping out in support

2009-04-30 00:00:00.0

Six members of NW Brown have begun preparing their feet for just over 30 miles of hard yards when they join 19 other teams in the 50km for £50k challenge on 6 June this year.

The challenge is in support of the Papworth Trust and each team will cover the 50km/31m distance between Elveden and Burrough Green following the Icknield Way on foot, with each individual completing the full distance clocking up a total of 300km for the teams efforts.

The team has signed up to fundraising £2,500 for the event and NW Brown Group has pledged to add £1,000 when they reach the £2,000 mark.

A Justgiving page has been set up for anyone wanting to support the NWBrown Six - just visit http://www.justgiving.com/nwbrown. For more information you can contact info@nwbrown.co.uk or visit the Papworth Trust website.

Professional Indemnity Insurance - Contracting Hints and Tips

2011-09-02 00:00:00.0

Smaller businesses can often feel pressured into signing customers' contracts or terms and conditions without feeling able to challenge or even review specific clauses.

With this in mind Hiscox, a leading Professional Indemnity Insurer has worked closely with the law firm DLA Piper to produce a plain language, contracting supplement, entitled "Contracting Hints and Tips."

The guide:

defines key contracting terms such as "indemnity", "contract variation", and "warranty"
explains the potential risks associated with components and stages of contracting
offers troubleshooting advice for customers in case of a dispute or breach of contract
spells out the rights and protections contracts offer signatories

These features make this guide a great reference tool. Please take full advantage of this resource. Click here to download The Contracting Hints and Tips Guide.

NW Brown Sponsors Classical Music in Cambridge

2011-09-02 00:00:00.0

The Royal Philharmonic Orchestra, conducted by Gavin Sutherland will play pieces by Tchaikovsky, Grieg and Beethoven.

The soloist for the evening is the talented young pianist Alexandra Dariescu who will perform Grieg's Piano Concerto.

"This is an excellent series and I am delighted to see that businesses are supporting it. It is vital that we too as attendees continue to enjoy it. I was able to attend some of the concerts last year which were superb so I am very much looking forward to this next series. I hope to see you there."

Dr Nigel Brown OBE

Orchestral Series Patron

Tickets are available from The Cambridge Corn Exchange

http://www.cornex.co.uk/ccm/navigation/booking-and-contact-information/

Equality - the European Court of Justice Speaks

2011-08-02 00:00:00.0

This will have a direct effect on the annuity market, in which it is currently common place for men to be offered higher levels of pension income because they are likely to die at a younger age. Whilst this may technically be true, it has been decided that this is essentially a form of discrimination.

This Eu directive means that annuity providers will be forced to equalise rates and offer purchasers the same level of income, based on the size of their pension pot, but not on their gender. The new ruling states that this change must be implemented by 21st December 2012, although providers will be able to choose how they bring in the change. Some have already started to gradually build this in to their rates, whilst others will choose to wait for as long as they can before making the change. Inevitably, some companies will want to make their rates as attractive to male clients for as long as they can, whilst some will want to improve their female rates as soon as they can. This may mean that in the interim retirees could get the best of both worlds by shopping around, but ultimately the equalisation process is likely to balance out a lower level than the mathematical average of the two current rates.

One area that is unaffected by this ruling is occupational pension schemes, which are currently exempt, but this too could change in future reviews, either by a further EU ruling or as a voluntary act from the UK Government.

Of Course, it is not just annuities which will be affected by the ruling. This extends to all forms of insurance, such as car, travel and health insurance. Again, we may see a gradual or sudden change in rates, but one way or another we will all be treated the same. These changes may mean that the days are numbered for companies that specialise in insurance for a particular sex. Could we be seeing "Shiela and Shane's Wheels" in the near future?

If you would like further information please contact Shaun Braybrook on 01603 692 734 or email shaun.braybrook@nwbrown.co.uk

Work Based Pension Reforms

2011-08-02 00:00:00.0

To redress this, 2008 UK pension law, which becomes effective between October 2012 and October 2014 will introduce major changes to the way all employers and employees save for their retirement.

The date upon which an employer must comply with this legislation is know as "staging date". There are 42 staging dates, based upon the number of employees that are in the PAYE scheme. The Government watchdog, The Pensions Regulator, will contact employers between 18 months and 3 months of their staging date www.tpr.gov.uk/staging. Fauilure to comply with these new duties will lead to an initial fine of £400 and up to £10,000 a day for persistent non-compliance.

The required minimum pension contributions are calculated on a band of gross earnings (between lower and upper earnings threshold) and increased on set dates.

Dates	Contributions	Employer	Employee	Tax Relief
Oct 2012 - Sept 2016	2%	1%	0.8%	0.2%
Oct 2016 - Sept 2017	5%	2%	2.4%	0.6%
Oct 2017 - onwards	8%	3%	4%	1%

In addition to the cost of the pension contributions, the Department of Work and Pensions estimates that the additonal administrative cost to employers of complying with these new duties is £444 million in year one and ongoing annual costs of £127 millions.

What will employers need to do?

Assess their workforce and provide them with certain information.
Identify jobholders who must be automatically enrolled, ie those aged between 22 and state retirement age, who have UK earnings above the minimum earnings threshold. This will include all wokers on services contracts eg agency workers and consultants.
Identify qualifying earnings, ie salary, overtime, commission, bonuses, sick pay, maternity/paternity/adoption pay.
Choose a pension scheme and default pension fund that can be used for automatic enrolment. This can be an existing scheme, providing it can meet the qualifying conditions, a new scheme or the Government established National Employment Savings Trust www.nestpensions.org.uk
Register their scheme with The Pensions Regulator www.tpr.gov.uk/pensions-reform and confirm the number of employees that have been/will be automatically enrolled.
Maintain regular pension contributions.
Process opt in or joining requests, which can have a 3 month waiting period.
Process any opt out notices within one month of opt in/joining request and refund employee contributions.
Every 3 years, automatically re-enrol any employees who had previously opted out.
Keep accurate records for a minimum of 6 years.
Provide all workers with written information about the changes and how they are affected.
Review payroll software and make any required changes.

If you would like further information please contact Sara Biggs on 01223 720 245 or sara.biggs@nwbrown.co.uk

NW Brown Exhibiting At Largest B2B Exhibition In Norfolk

2011-09-01 00:00:00.0

We are delighted to announce that we will be exhibiting at B2B Autumn 2011.

The event, run by the Norfolk Chamber of Commerce is now in its thirteenth year and established as the county's largest business event.

B2B has an average daily attendance of 500 and has 90 exhibiting companies spread over two floors. This makes the show a must-attend for companies in the region looking for solutions and opportunities for their business and a chance to network.

What makes B2B so special is that it's designed to meet the diverse needs and interests of Norfolk businesses. To help visitors plan their time at the show, and find exactly what they need, B2B is divided into seven themed business zones.

B2B is free to attend and we would be delighted if you would come along and see us in the Advice and Financial Zone.

For additional information go to http://www.b2b11.co.uk

20/20 Cricket

2011-07-10 00:00:00.0

We have high hopes for the event as we enjoyed such great success last year - champions Swardeston went on to win the National Cup too!

Matched take place through to July at Horsford Cricket Club, Manor Park near Norwich. The format will be the same as last year: guests will be able to follow the match from the comfort of our hospitality marquee, where they can tuck in to a hog roast and enjoy drinks from the bar.

Banks reimburse those who lost out in Madoff scandal

2009-01-30 00:00:00.0

Marcus Johnson, Chief Executive of NW Brown, will watch with interest to see how far the ripples, caused by the National Bank of Kuwait $50m client reimbursement, will reach and if this trend-setting will achieve its potenital positive outcome or if a less palatable result will occur.

For more information please visit the story at FT.com*

*This link will take you away from the NW Brown website. We have no responsibility for the views and opinions expressed on other websites.

Tomato pill 'beats heart disease'

2009-06-02 00:00:00.0

NW Brown Insurance Brokers client, Cambridge Theranostics Ltd, may have made a natural supplement made from tomatoes that, when taken daily, can stave off heart disease and strokes.

Please see the article on BBC news pages here.

*This link will take you away from the NW Brown website. We are not responsibility for the views and opinions expressed on other websites.

NW Brown Mortgage Brokers Top Mystery Shopper List

Cara McLean — 2008-02-08 00:00:00.0

NW Brown sponsors businesswomans challenge

Cara McLean — 2008-08-12 00:00:00.0

At the end of August Cambridge businesswoman, Jenny Kartupelis, is swimming 4.5 kilometres across the Hellespont in Turkey to raise money for water supply projects in Africa. These projects are run by Christian Aid, which has an arrangement whereby, providing a substantial sum is raised by a person or organisation, the EU will match every £1 with £3 EU funding. This means Jenny’s efforts could make a significant impression on the communities aided by the charity.

Jenny has been busy fundraising, first approaching friends and family before extending her request to corporate contacts. She has also been training hard: ‘I wanted to make sure I had a sporting chance of getting across the water in the permitted time. Having now achieved that several times practising in the sea, I feel more confident!’

NW Brown Group, a leading Investment and Financial Services provider, is pleased to become the primary sponsor for Jenny in her demanding challenge. NW Brown Insurance Brokers, a subsidiary of the Group, is adding to the financial sponsorship by providing Jenny’s medical cover up to £5million. Chief Executive, Marcus Johnson, was delighted to confirm the Groups sponsorship saying ‘We support many charities and good causes as a firm and are delighted that Jenny chose to approach us first to sponsor her swim challenge.’

For more information and to make a donation please see the challenge and charity summary on Jenny’s web page:
www.justgiving.com/jennykartupelis

Nines Put NW Brown’s Client First

Cara McLean — 2009-07-27 00:00:00.0

It was only a month ago that NW Brown Group Ltd’s Chairman, Dr David Parnell, formally named the newest craft in the Cambridge ’99 Rowing Club’s fleet, purchased as part of a five year sponsorship deal between the club and the Group - one of East Anglia’s premier Financial Advisory companies. Already the Club’s men’s first crew have succeeded in putting their new boat, ‘The Client’, first after a week of strong racing at the Town Bumps at the end of July. The crew took first position on the river, bumping City of Cambridge and Cantabrigian Boat Club to take the headship by Thursday night.

The week of racing was the second time the new Stampfli 8+, which is named in honour of NW Brown’s motto of ‘putting the client first’, has been used in a race since it was purchased in January of this year. In both competitions the crew has attained or surpassed their standards of success.

The men’s headship at the Bumping Races was last held by Cambridge ‘99s in 1997. The desire to continue the achievements of 2009 into 2010 is shared by the club’s racing crews and by NW Brown. In supporting the club’s efforts on the water, NW Brown has played a part in supporting one of Cambridge's most successful community sports clubs.

NW Brown’s Marketing Manager, Cara McLean, commented, ‘it is rewarding to be associated with a club that can pull together crews who focus on delivering such a high standard ‘on the day’. Like NW Brown, we can see that Cambridge ‘99s will look to the future and keep striving to put The Client first. The Group congratulates the headship crew on their week of success.’

The Stroke and Club Captain, Chris Owen, and six seat, Gavin Smith, with the winners plate and pots.

The crew race home at the Head of the River:

Partnership promises strength and security

Cara McLean — 2009-09-09 00:00:00.0

KT Financial Services Ltd, a Norwich-based independent financial adviser, has announced that NW Brown Group Limited, a Cambridge based financial services company, will shortly acquire a majority shareholding in the company.

The business will continue to be headquartered in Norwich and operate from its offices in Unthank Road. The board will be strengthened by the appointment of new directors, including Brian Carter, previously head of Financial Planning, and Robert Raywood, the CIO of NW Brown & Company, a subsidiary of the Group.

NW Brown will enhance the local offering of KTFS, one of Norwich’s premier independent financial services companies. The current team in Norwich, headed by Andy Mulligan, Debbie Evans, Mark Ring and Neil Davies welcome their new colleagues and look forward to further developing their business base across Norfolk and within Norwich.

The new partnership enables the Norwich firm to continue to develop its competitive edge in a field where markets are pushing companies to evolve or die.

The company offers investment management and advice to individuals, trusts and charities and also a wide range of pension and benefit advice to employers and employees. This partnership offers KTFS clients more secure, client-focussed and competitive advice allowing people from across the area real choice when it comes to Independent Financial Advice in an industry that, in recent years, has had more than its fair share of ups and downs.

Andy Mulligan, who has been based in Norwich for over 20 years, said ‘My team looks forward to being a part of the wider NW Brown Group. We have a secure local base and strongly believe there are many clients who prefer to deal with decision makers they can see and meet rather than sales offices of national firms. Norwich is very fortunate to have several independent financial services firms and we intend to be one of the strongest and best.’

Brian Carter, who will be based in Norwich said ‘Norwich is an important and growing market for all financial services and our much strengthened activities here will allow all our clients improved depth and breadth of coverage.’

Since 1974, NW Brown Group Limited has provided bespoke financial services covering Investment Management, Financial Planning, Corporate Benefits, Insurance and Mortgage Broking. The Board are pleased to be expanding their base as an East Anglian business with companies in Cambridge and Norwich.

For more information on NW Brown please visit www.nwbrown.co.uk. For more information on KTFS please visit www.ktfinancial.co.uk.

Our Mr Brown Brings New Bank to Cambridge

Cara McLean — 2010-02-04 00:00:00.0

NW Brown Group's founder and former chairman, Nigel Brown OBE, has this week confirmed his efforts and those of a dedicated, forward thinking team of local professionals have paid off in the form of the start of The Cambridge Commercial Lending Company.

While news that Nigel has successfully gathered together the £50million starting balance and the Company is in the final stages of acquiring FSA approval will cause many local entrepreneurs and businessmen to heave a sigh of relief he admits that that for him and the new Company's management team now is when 'the fun really does start'.

As well as being chaired by Nigel, The Cambridge Commercial Lending Company's Board boasts an exciting line-up of prominent local and/or financial professionals including Director of St John's Innovation Centre, David Gill; the current Bursar of Trinity Hall (and former banker), Paul ffolkes-Davis; and Peregrine Banbury, who joins as Chief Executive. Peregrine is a former Head of Private Banking for Coutts.

NW Brown Group wishes Nigel the very best with this endeavour. The Group has wholeheartedly supported Nigel's efforts to bring back a business focussed on the traditional values of good old fashioned banking and we will be watching closely as the Cambridge Commercial Lending Company takes its first steps into the business world.

As soon as there is more information on how to contact The Cambridge Commercial Lending Company we will publish it here.

Success for sponsored Colts

Cara McLean — 2010-04-29 00:00:00.0

Shelford Rugby Club's Colts team, sponsored by NW Brown Group, have won the Eastern Counties Cup - a first for the clubs youth division.

Chief Executive of NW Brown, Marcus Johnson, said of the win 'it has been very rewarding to see the team we have been sponsoring going from strength to strength and this win clearly reflects the hard work of the players, coaches and support personnel.'

A full match report is available at the clubs website: http://www.shelfordrugby.co.uk/content/view/646/2/

What happened to the ash?

Cara McLean — 2010-04-30 00:00:00.0

The ash cloud that disrupted flights into and out of Europe for a week appears to have faded rapidly into the recesses of our minds as journalists turn their attention to the election campaign trail.

For some travellers though, the story will linger for quite some time. While many are only now able to return home and others face even longer delays, the repercussions for people who have had to pay to subsist for many days after the intended end of their holidays or for staff on business trips, or for elaborate return journey’s over land, often through credit cards and overdrafts the cost may well affect their day to day lives for months and even years to come.

Insurers are taking very different stances over whether to pay out on claims that are technically not covered by what used to be termed an ‘act of God’. NW Brown Insurance Brokers have been pleased to receive communications from various insurers, like Chartis and Hiscox, indicating that they will pay claims on certain types of policies that result from cancelled flights due to the volcanic ash.

Chartis has decided to pay travel claims under its Lifeline Plus and RapidQuote policies and has said ‘In normal circumstances, travel claims made for cancellation, curtailment, disruption, replacement and delay are excluded if an insured person fails to check-in according to their itinerary, or because their aircraft, ship or train is withdrawn from service on the orders or recommendation of transport or similar authorities (exclusions 9 a) and 9 b), Section B4 of Lifeline Plus and RapidQuote policies). On this occasion Chartis is setting aside these exclusions for claims caused by volcanic ash that cannot be recovered elsewhere.

‘These extensions to cover apply to all claims from business travellers on trips booked prior to 14th April 2010 and insured under Lifeline Plus and RapidQuote policies purchased before that date.’

Steve Langan, Managing Director, Hiscox UK has written to commercial brokers and said, with regards clients who have a valid travel policy, that Hiscox ‘will consider all reasonable extra travel and accommodation expenses for clients to return home. … Claims as a result of the volcanic ash cloud are not usually covered by the Hiscox travel insurance policy; however we acknowledge that these are unusual circumstances. Therefore, on this occasion, Hiscox has taken the decision to cover the above costs.’

There is some small upside for those fortunate enough to have cover with insurers who are taking a flexible stance and considering the cases presented to them.

For more information contact NW Brown Insurance Brokers:
Personal Lines:   private.insurance@nwbrown.co.uk
Commercial Lines:    commercial.insurance@nwbrown.co.uk
Claims:   claims@nwbrown.co.uk

2 Year Sponsorship Kicked Off at Counties Cup Final

Cara McLean — 2008-02-08 00:00:00.0

The Under 17’s made it to the final of the Eastern Counties Cup for only the second time in the team’s history and was playing against a very strong North Walsham in a home match in near freezing, extremely windy conditions.

Chief Executive, Marcus Johnson attended the launch match and said ‘The team played extremely well given the conditions and it was great to see the new kit being turned out for the first time at such an important match for the club.’

Colin Astin, President of Shelford Rugby Club, commented ‘It was always going to be a tough challenge but the high standard of rugby played was appreciated by the large crowd of spectators and supporters that had turned out to watch despite the unpredictable weather.’

NW Brown Group are to sponsor the Shelford under 17’s team for the next two seasons and look forward to supporting the team on a regular basis.

For more information on NW Brown Group see www.nwbrown.co.uk. For more information on Shelford Rugby Club see www.shelfordrugby.co.uk

The UK Mortgage Market

Legal & General Mortgage Club — 2008-05-12 00:00:00.0

Syndicate Investment Report

Marcus Johnson — 2007-09-10 00:00:00.0

NW Brown Group publishes Annual Accounts

Marcus Johnson — 2007-10-09 00:00:00.0

The Investment Return of Lloyds Syndicates

Marcus Johnson — 2007-10-11 00:00:00.0

Chief Executive says Nationalise Northern Rock

Marcus Johnson — 2008-01-17 00:00:00.0

Investment Report for the ALM, February 2010

Marcus Johnson — 2010-03-05 00:00:00.0

FSA Should Stay, says President

Marcus Johnson — 2009-07-24 00:00:00.0

At the annual dinner of the Securities and Investment Institute in Queens College last night, the Regional President, Marcus Johnson, called for a wide debate on future regulation, but said the FSA should continue to be in charge of everything except the banks.

Mr Johnson began by saying recovery in financial markets was well underway, that the worst point was last October and much progress had been made since then. It was the duty of the Institute and its members to see that the regulatory system was improved and structural reform was made where required. He had publicly called for the break-up of the major banks and for the transfer of all bank regulation to the Bank of England and he continued to believe this was essential.

However Mr Johnson was concerned that the debate about future regulation should be conducted by those who had real experience, real clients and had invested time and effort in educating the current regulators. The worst outcome would be for the FSA to become a political football. Reform was good, debate was good, but if politicians could keep out of it a better result was likely.

The FSA should remain, stability in regulation should be the aim and to start again would be a retrograde step. The FSA was not perfect, it was too prescriptive, the rule books were ridiculously long and detailed, but starting again with a new set of regulations would create even more problems. It was up to members of the Institute to make their views known and he hoped that they would do so.

At the same dinner George Littlejohn, a directors of the Institute, announced that a Royal Charter would shortly be awarded to what would become the Chartered Institute of Securities and Investment.

"Investment returns for Lloyd's Names surprisingly good in 2010" says NW Brown Chief Executive

Marcus Johnson, Chief Executive — 2011-03-03 00:00:00.0

As a rule of thumb your average syndicate may have earned you about 3% on the assets invested, and some will have earned up to 6%, with a few doing even better on individual currencies. The published results of Hiscox this year - a 3.6% return - will probably be close to normal for syndicate portfolios. The very high (and possibly some very low) results are much more likely to be in corporate only syndicates.

Why, despite the dire warnings, has the prospect of low or negative returns not come to pass? As Sherlock Holmes might have put it, the most significant event was the dog that did not bark - or rather the interest rates which did not rise. The short term risk to the return you achieve on your Lloyd's portfolio of investments comes from the risk of capital losses when the prevailing rate of interest rises. In any real sense to a continuing name, this is not a risk at all - only an accounting consequence of the periodicity of accounts, Clearly, for all insurers, higher interest rates are much better for investment returns than low interest rates, because we are sitting on the insured's money, and (normally) not repaying him an amount which is determined by what we earn on it. But the process of interest rates moving higher means that bond prices move lower. Unexpectedly, for some, interest did not generally rise in 2010, so bond prices did not move lower. Thus a very basic, cautious syndicate asset portfolio would have earned around 2% or 3% on assets invested, by buying and holding bonds. Several of the syndicates you are on are likely to have done exactly this.

Those who achieved the higher return, which you will probably have reported to you on the majority of your invested funds, did it in several ways. Basically 2010 was a year when taking risks in investment markets paid off almost everywhere, and certainly everywhere Lloyd's was likely to go. The most obvious way was to hold longer bonds. If you held the 1-3 yr benchmark used by Meridian, your sterling return was 3%, whereas if you held the 3-5 yr benchmark, the return was 6.4%. Similar results occurred for US$ (2.83% and 5.83%). But there were also great returns to be made in equities (UK 14%, US 15%), where traditionally only a small handful of syndicates have invested, in property (UK 13.55%), where it is very exceptional for syndicates to invest, and in higher risk bonds. It is in this last category that you are likely to have made any unexpectedly good returns last year and there are three ways this might have happened.

You will have to wait for syndicate reports to see how and where such returns have been achieved, and all too often the managing agent will not tell you even then but, if you earned much more than 3%, it is either because you were invested in longer maturities, as above, or that you took credit risk or invested in emerging markets. All of these are potentially risky strategies, which paid off in 2010. They paid off because interest rates did not rise, credit margins tightened and emerging markets boomed. So a portfolio of sterling BBB (lower rated investment grade) bonds did very well for those prepared to take even higher credit risk (UK 21%, US 14%), as did emerging market bonds (12%). So, in summary, almost any investment risk (even gold and commodities) paid off in 2010, so only a decision to take risk was really required to get those higher rates,

For many Names, the comforting thought that the managing agent took little risk will fully compensate for a return of 3% or lower. And all the factors which led to an expectation of low returns in 2010 apply with at least as much force in 2011. Any syndicate which earned above 6% in 2010 is probably taking a risk which could lead to negative returns in 2011, if the investment strategy is maintained throughout that year. It would be a matter of some surprise if investment earnings in 2011 were equal to those of 2010. The trend is likely to be downwards and the move towards more conservative investment policies engendered by Solvency ll is also likely to push prospective returns lower. So the advice is to enjoy these returns whilst ye may. You may not see them again until the year after interest rates have risen to more normal levels.

The level of interest rates is what will decide your investment return in 2011. And figure 1 below shows how, throughout 2010, they remained at historically very low levels.

Also shown in Figure 1 is the dollar/sterling exchange rate. This is an important influence on the returns most Names receive on their (mainly dollar) underwriting business. What was for several years a disappointment as sterling rose against the dollar and dollar profits were sold for less than the amounts shown in the accounts has, for the last two years, been a pleasant extra for sterling based Names. This year, the exchange rate has every chance of being a bit of a disappointment and, until the dollars are actually sold, Names remain on risk.

Fraud Advice from Maurice Smith, Financial Intel Officer, F.I.U

Maurice Smith — 2007-10-11 00:00:00.0

Top Technologist Joins NW Brown Group Board

NW Brown Group — 2007-10-11 00:00:00.0

NW Brown Group Annouces Disposal of Early Stage Activity

NW Brown Group — 2007-11-20 00:00:00.0

NW Brown Group Account 2006

NW Brown Group Ltd — 2007-10-11 00:00:00.0

Childcare Vouchers

Peter Banyard — 2008-01-16 00:00:00.0

Policy Matters - Employment Law Protection

Richard Rampley — 2007-10-11 00:00:00.0

Employment Law Protection

When it comes to Employment Legislation, companies must navigate an increasingly complex minefield of rules and regulations. Every business whether public, private, partnership, or not-for-profit, should have a risk management strategy and this strategy must take into account the potential for the business to become involved in what can be costly employment disputes.

Employers in this country must be aware not only of legislation evolved in the UK but also the effect of European Directives relating to the rights of employees.

Whilst larger companies may have a dedicated personnel department, the ever increasing duties owed by employers to employees, regardless of size or type of employer, has meant that all businesses are having to commit additional resources in this area.

For the smaller employer, responsibility often falls upon the shoulders of one or two individuals who may have to carry out a number of other equally important tasks. Such individuals may use their best endeavours to ensure things are done properly but they will often need professional guidance when they are faced with an employment or health and safety problem.

Employment disputes are becoming more frequent and more costly providing one of the fastest growing areas of corporate liability. In the UK the Employment Relations Act 1999 has considerably extended the rights of the employee against his or her employer. The publicity surrounding the implementation of the Act has increased employees’ awareness of their rights and the expectations they have of their employers.

Examples of other UK statutes that impose duties upon Employers include:

Equal Pay Act 1970
Sex Discrimination Act 1975
Human Rights Act 1998
Working Time Regulations 1998
Part Time Workers Regulations 2000
Race Relations Act 1976
Disability Discrimination Act 1995
Employment Equality (Age) Regulations 2006

A potential employee who has been for an interview, but not employed, can bring an action against your business for sex or race discrimination or discrimination on the grounds of disability. The Employment Relations Act 1999 increased the limit on awards made by employment tribunals from £12,000 to over £50,000 for claims by employees for unfair dismissal but for sex, race or disability discrimination claims there is no limit to the amount of compensation that an Employment Tribunal can award which could run to tens or even hundreds of thousands of pounds.

The Health and Safety Executive, the Equal Opportunities Commission and the Commission for Racial Equality are official bodies who can launch investigations into businesses for any number of reasons. Businesses suddenly caught up in such investigations will often have to pay dearly for expert guidance and representation.

Editors Insurance Comment

Protection against the costs of defending an employment action can be provided by a legal expenses insurance policy but “are such policies worth having?”

Traditionally, businesses have had to jump through a plethora of hoops to successfully prosecute a claim and often find the insurer trying to thwart them at every turn rather than provide real assistance at the time it is most needed. The natural consequence of this is a certain scepticism towards this area of insurance, both by businesses and insurance brokers. The last thing a broker wants is to offer a policy to clients which is ineffective at the time they need it most!

A couple of insurers have recognised this failing in the market and have produced an employment law policy which works like any other insurance contract; a claim can be made at the point at which a loss is incurred, i.e. when an employment dispute cannot beresolved; they:-

allow you to manage your own employment matters as you see fit
allow you to make a claim if a dispute cannot be resolved
will pay the resulting legal costs and awards

They do not insist on prior referral to a helpline in order for a claim to be accepted but do provide extremely useful website services as part of their policy offering, which includes helplines manned by fully trained lawyers.

The policies really do work and because they cannot fall foul of bureaucratic reporting requirements they are an extremely important business management tool.

For more information on the topic covered by this article please contact Richard Rampley via email or phone 01223 720 322.

Riot Advice

Richard Rampley — 2011-08-11 00:00:00.0

Liaison with your local police authority to gather the most up to date intelligence.
You should carry out an audit of your security to ensure that premises are adequately protected. Particular attention should be paid to the ground floor and basement level, but not forgetting windows, emergency escape doors and roof-lights accessible from external fire escape staircases, scaffolding and roofs of adjoining buildings.
Remember to brief your staff - aim to minimise opportunities for confrontation by discouraging doorstep cigarette breaks, avoid lunching out and instruct them to walk away from provocation.
Review your contingency plan to ensure you are prepared in the event of building damage, e.g. for emergency repairs, boarding-up, cleaning-up operations, etc.
A lot of damage has been done by arson, to help prevent this you should make sure that all exteriors of buildings are cleared of combustibles and waste materials to which the public may have access.
Be particularly aware of any unusual or suspicious activity and ensure you maintain tight control over any entrances or exits to your property.

If you are unlucky enough to have been affected by these events we are here to help you. The majority of our policies will provide protection against any loss or damage caused by riot. Please follow the guidelines below.

Report any damage to the police at once as there is a limit for notification under the Riot Act 1886, obtain a crime reference number and inform them that you intend to make a claim against them for the cost of any loss or damage under the Act.

The normal notification under the Riot Act is 14 days but for the recent Riots the Government has agreed to extend the notification period to 42 days.

The Act places a responsibility on the Police Authority for any damage caused by riot. The Act defines Riot as "when 12 or more people have gathered to use or threaten violence for a common purpose". It may be that police authorities will not accept that the damage you report is as a result of "riot", however, it is important you make the intention to claim under the Act clear at the time you notify the police of any damage, from there on your insurer will take on any recovery action on your behalf.

It is likely that insurers will wish to subrogate the loss, so any claims to insurers should be made as early as possible to enable them to meet this timescale.

Having reported the matter to the police, please contact us on 01223 720416 immediately.

Quinn Insurance in Administration

Richard Rampley — 2010-04-08 00:00:00.0

Ireland’s most controversial insurer, Quinn Insurance has been placed into administration by the Irish regulator and is now closed to business in the UK. The reasons cited point to poor solvency ratios and unexplained “matters” that have “very recently come to light”.

NW Brown Insurance Brokers have never supported Quinn and our decision not to do so has unfortunately proved to be a correct one. We only use insurers with a strong financial rating and only recommend the strongest markets for our clients. This case has all too clearly proven why Brokers must be extremely cautious over which insurers they deal with – particularly when times are tough as so often that is when these situations come to light.

Further information:
Quinn Insurance was established in 1996 and will continue to trade as a going concern, but "The administrators say the company will no longer be taking on new business in the UK and will also not be renewing any existing policies in the UK with immediate effect”.

In the interests of the policyholders, the administrators will now run the general insurance side of the business as a going concern.

The current crisis for Quinn was caused by its acting as a guarantor to other Quinn companies to the tune of €448m, and in the process leaving itself (on paper at least) in the red. In October 2008, the Financial Regulator fined Quinn Insurance €3.4m when it discovered that it had lent other Quinn Group companies €288m without its knowledge.

What do you do?
If you are a Quinn customer the following advice may help:

Check the status of your policy with Quinn immediately
If you are a sub contractor and you use a Quinn policy as evidence of insurance you should check that the policy is still acceptable to the principal contractor
If you pay your premiums through a finance provider, do not cancel the agreement without contacting the finance provider as your finance agreement may be separate to the insurance policy and cancelling one may not cancel the other.

If you need to re-insure now to satisfy any contractual obligations or you are due for renewal soon, we are able to quote. Please contact commercial.insurance@nwborwn.co.uk or call 01223 720 322

Corporate Chartered Status - Recognising Professional Excellence

Richard Rampley — 2011-05-06 00:00:00.0

NW Brown Insurance Brokers Limited is delighted to announce that we have been awarded the prestigious corporate 'Chartered Insurance Broker' title by The Chartered Insurance Institute (CII).

Chartered status is an exclusive title only awarded to firms which meet rigorous criteria relating to professionalism and competence. All Chartered Insurance Brokers commit to the CII’s Code of Ethics & Conduct reinforcing the highest standards of professional practice in their business dealings.

Phil Thorpe FCII, Managing Director, who also holds the individual Chartered Insurance Broker title, says, “securing corporate Chartered Insurance Broker status is a public declaration that the advice given by our firm is of the highest quality. We have always prided ourselves on being thoroughly professional and to receive recognition in this way is very satisfying. This will show our customers our commitment to the highest levels of service.”

Chartered Status is the industry’s gold standard for firms of insurance brokers and a symbol of trust for insurance. It confirms that we have satisfied rigorous qualification criteria in terms of having highly-qualified staff who subscribe to the membership conditions of the CII. We adhere to the CII's continuing professional development requirements thus ensuring our staff keep their knowledge and skills up-to-date through professional qualifications and adherence to an
industry standard Code of Ethics and Conduct. You can view the Code at www.cii.co.uk/code.

When you use a Chartered firm you are dealing with proven professionals. The CII is empowered by the Privy Council to award Chartered status, and the award is only made in deserving cases. The Chartered title is the benchmark of professional excellence and integrity giving us parity with other professionals, such as accountants and solicitors.

We are currently the only Insurance Brokers in Cambridge to hold this status and at the time of the award less than 100 firms across the UK hold the title, indicating that this is a highly exclusive award reserved for the leading firms of the insurance broking industry.

With over 93,000 members in more than 150 countries, the CII is the world’s largest professional body dedicated to the insurance, savings and financial services sector.

If you wish to know more about how using a Chartered firm can ensure you get the best possible advice, service and support, please do not hesitate to contact us.

R Rampley
06/05/2011

Policy Matters - Unlimited Liability

Richard Rampley — 2007-10-11 00:00:00.0

The financial rewards associated with being appointed to an executive or non executive position bring additional personal liabilities.

In an ever more litigious society, Directors and Officers are being held accountable for actual or alleged wrongful acts, errors or omissions, including negligent advice, misrepresentation or improper disclosure.

UK statutory offences and recent European Law impose greater liabilities on directors and officers, with such legislation increasing the likelihood of legal action against them. Unlike a company’s liability, which could be limited, the liability of anyone occupying a position of responsibility within a company might well be unlimited and uninsured directors and officers could face the possibility of personal bankruptcy.

The courts regard the company itself and directors of a company as separate entities. That is why, in order to protect the personal assets of individuals and to cover the costs of their defence, Directors and Officers Insurance should be bought.

Directors cannot rely upon indemnities provided by the company as generally speaking such indemnities are void as they are incompatible with s.310 of the Companies Act 1985.

In a recent case, 14 directors of a private limited company were banned following the company’s insolvency and subsequent Department of Trade and Industry investigation.

Although only two directors ran the business on a day-to-day basis, all were found to be responsible for the books not being up to the necessary standards and for a lack of working capital. Considerable defence costs were incurred to defend the action against the directors.

The legal environment for directors and officers in the UK is increasingly hostile, with shareholders more willing to bring actions for breach of duties and regulatory bodies and government also looking to hold directors personally responsible for their actions.

The duties of a director are well established in statutes, regulations and case law which can be broken down into two main areas.

The duty of care and skill is a common law duty requiring directors to act with the care an ordinary person would take in the same circumstances on their own behalf and with the skill expected from someone with his/her ‘particular knowledge and experience’.

Fiduciary duty. A Director must act honestly, in good faith and in the best interests of the company and just ensure that he/she does not have any conflict of interest.

If a director is perceived to have failed in any of their duties, then a claim could come from any number of stakeholders, including creditors, shareholders, regulatory bodies, employees, auditors, liquidators, customers and suppliers.

The Companies Act has over 250 civil and criminal offences with which directors can be charged and other new legislation — including corporate manslaughter proposes increased sanctions against directors in the event of any wrongdoing. Actions against directors by the DTI have increased by more than 50% in the last four years and the budget for the Office of Fair Trading is expected to rise by over 60% in the next three years.

For Directors and Officers, also read Trustees and Governors and remember that non-executive roles probably carry a greater exposure by virtue of not having a day-to-day hands-on involvement in the business.

Not to mention the Company Law Reform Bill currently being debated in the House of Lords which requires Boards to consider the effects of their decisions on Employees, customers, the environment and local communities, as well as document the process.

The message has to be that — if you have not already done so — contact us to arrange for a directors and officers quotation as a matter of urgency. For Private Companies, protection is also available for the business itself.

For more information on the topic covered by this article please contact Richard Rampley via email or phone 01223 720 322.

Policy Matters - Commercial Legal Expenses Insurance

Richard Rampley — 2007-10-11 00:00:00.0

We have already said, in the previous articles, that businesses have to operate in an increasingly complex environment and in recent years there has been a relentless rise in the volume of business legislation from both the UK and Europe.

There is also an increasing public awareness of legal rights and a new willingness to take legal action against companies. This means legal disputes can occur without warning, which costs your company both time and money.

This continual increase in the amount of business legislation makes it difficult for any business to keep up with the changes. A company should protect its legal rights as the current cost of taking legal action can cause serious financial problems and sometimes force a company out of business. Even a straightforward Employment Tribunal or tax enquiry can cost thousands of pounds.

Small to medium sized enterprises are unlikely to have the in-house resources to deal with these and are consequentially most at risk. A Commercial Legal Expenses insurance policy protects against the cost of potential commercial legal disputes and includes the legal advice and representation which businesses need to minimise their exposure to these risks.

A Commercial Legal Expenses policy will enable you to pursue or defend your legal rights in many business situations including employment disputes, contract disputes, tax enquiries, property protection and debt recovery.

The risk of a claim from an employee, ex-employee or even potential employee is the driving force behind many companies’ need for commercial legal expenses insurance. Legislation like the Employment Act 2000 introduced new rights for part-time workers, parental and maternity leave. The Working Time Regulations and National Minimum Wage Act have also increased employee rights.

All this requires employers to check and in many cases amend their policies and procedures to remain within the law and to keep up to date often requires the help of a lawyer.

This is where the benefits of legal protection policies kick in. Standard cover includes Employment Law, Tax Protection cover, Legal Defence and Property Disputes with extensions like Contract Dispute and Debt Recovery being available.

In the early days, commercial legal insurance concentrated on stepping in to finance claims when they occurred.

Now, as the market develops, insurers are increasingly offering risk management tools to reduce the likelihood of their policyholders becoming involved in a dispute. These may take the form of business advice services, providing detailed guidelines on matters of employment, tax and debt recovery.

By providing legal advice through a telephone helpline service, insurers enable the policyholder to obtain up-to-date information on the law and how it affects their individual circumstances.

The lawyers providing this explain what action a policyholder can or should take under the law to pursue their case or to comply with requirements under new legislation.

Editors Insurance Comment

The usual approach taken by businesses towards litigation protection is through a ‘comprehensive’ Legal Expenses insurance policy which embraces not only employment protection but also aspects such as Tax, Property and Contract disputes.

Protection levels tend to be lower under this type of contract and the policy warranties and management requirements are much more onerous than under the aforementioned Directors & Officers or Employment Law Protection policies. They do however offer what is often a much more affordable alternative form of cover.

With these types of insurance policies there are often huge differences in cover offered by insurers. Many exclude disputes involving the small claims fast track system. But others provide costs incurred in presenting such a claim.

Whatever policy you choose you should be prepared to work within the contract warranties and conditions as failure to do so could leave you feeling disappointed at the time of a claim.

For more information on the topic covered by this article please contact Richard Rampley via email or phone 01223 720 322.

What happens when I crash my car?

Shaun Lenton — 2008-02-07 00:00:00.0

Hopefully over a reasonably short period of time your poor crushed luxury sports car turns into something looking more like a sports car should. However, when you pick up your good as new Lamborghini, has your ‘insurance company approved’ body shop carried out the repairs to the manufacturer’s exacting standards? Several recent cases have highlighted potential problems leading to invalidation of the vehicle’s warranty. In most circumstances policy holders have the choice of where their vehicle is repaired. In practice, your insurer’s helpline will point you in the direction of the nearest approved garage which is highly unlikely to be the manufacturer’s local main dealer. The repair work may be as good, but how much is your car now worth with an invalidated warranty? Our advice? Exercise your choice.

Holiday Adventures

Shaun Lenton — 2008-02-07 00:00:00.0

If you are an avid viewer of consumer programs you will be aware of some major issues within the travel insurance market. Certain purveyors of this type of insurance work in an unregulated environment. This has lead to poor advice and customers not being covered by their policies when attempting to make a claim.

The majority of these issues are caused by not advising the insurer of pre-existing medical conditions, either for the travellers themselves or close relatives whose health may affect a decision to travel. If the condition flairs up whilst on holiday, or there is a relapse causing cancellation, you may not be covered if the insurer was not provided with full details.

When setting off on your holidays the thing furthest from your mind is the adequacy of your travel insurance. Before you buy travel insurance from anyone else speak to our resident expert, Julie Fordham on 01223 720 246.

Who would be a director?

Shaun Lenton — 2008-02-07 00:00:00.0

It’s hard to keep pace with the ever increasing burdens and responsibilities being placed on company directors in recent years, either legislative or changes in popular expectations.

The most recent, and far reaching, piece of legislation is the Companies Act 2006 which introduces major changes to director’s duties and shareholders rights. In particular, echoing the popular concern of the moment, the act raises the ‘environmental risks bar’ which, in essence, requires:-

directors to promote ‘enlightened shareholder value’, one important factor in that directors must consider the impact of the company’s operations on the community and the environment; a clear audit trail must be established to justify business decisions taken – quoted companies must carry out “forward looking reporting” including specific reference to the impact the company’s business will have on the environment.
the act has also made it much easier, and likely, for shareholder derivative actions to be brought and opens the door for public interest groups to invest in a company with the sole purpose of bringing an action. It also increases cross-border liabilities and the likelihood of derivative actions which are much easier to bring abroad, particularly in the US.

A New Venture

Shaun Lenton — 2008-02-07 00:00:00.0

NW Brown Insurance Brokers now provides a bespoke buildings and contents insurance solution for JSM landlords. The unique market leading policy offers excellent levels of cover with exceptional value.

The arrangement also extends to JSM tenants who can now purchase a policy specifically tailored to their requirements and obligations under their tenancy agreement.

For further details see the JSM website:

www.jsmproperty.com

Madoff Investment Losses Insurance Claims So Far...

The Insurance Insider — 2009-01-26 00:00:00.0

Inspired Change

2012-02-21 00:00:00.0

Organised by Inspire Change Ltd, the day was kindly sponsored by the NW Brown Group Ltd and involved 146 students who were given the chance to work on a real business challenge.

The day was the third in a series of seven events in the 2011/12 school-year, which aim to bring local business people into schools. Business professionals were able to mentor the students, using their expertise - while working to raise the profile of the tourism, leisure and hospitality sector in the region.

Not only was this an amazing opportunity for the students, the school also benefited because extra-curricular activity enables expanded learning in different areas.

The previous week, Inspired Change ran a day at City Academy Norwich, Principal of the academy, Mr Dave Brunton, said: "It's amazing, isn't it? In the winning team of 4 today there were 3 students with Special Education Needs. They were the best out of 150 students, winning prizes for not only the best overall concept, but also the best marketing ideas."

The business mentors were able to develop their own skills and experience by working with young people. One of the mentors said: "I am right outside my comfort zone today, this is serious CPD (Continuing Professional Development)".

BBC Voices have been filming each event, creating a compilation that will be sent to the Children's Film Festival. Children from the schools will be part of the film crew at each venue.

NW Brown Group Ltd sponsorship enables Inspired Change to provide the winning team with a trophy and gift vouchers and to inspire more children - that's why it's important.

Appointment of Alan Kefford as Chairman

2012-02-29 00:00:00.0

Alan is well known locally because of his work as Chapter Steward for the Cathedral, as Chairman of Anglian Archives Ltd, and as a former senior partner of Howes Percival, the national law firm founded and headquartered in Norwich.

Appointment of Trina Yates as an Investment Manager

2012-02-29 00:00:00.0

Trina has been in the investment industry for 28 years and has held senior positions at firms in the City of London. She holds a BA in International Politics from the University of Exeter and an MSc in European Studies from the London School of Economics.

Lessons from Christchurch

2012-03-19 00:00:00.0

Following a visit to Christchurch, Marcus Johnson, a long time underwriting member of Lloyd's and Chief Executive of Financial and Insurance Advisers, NW Brown, reflects on its problems and lessons reinsurers might learn.

In this article he suggests that reinsurers need to exercise better controls over major claims in developed economies due to a systematic tendency for government action to inflate economic losses which then become reinsurance losses through the back door. His example is Christchurch but exactly the same problem is evident with the Fukushima event where exclusion zones and consequential losses have been inflated far beyond all reasonable levels by a zero tolerance approach to risk rather than an economic one.

Summary
Stephen Fry has been quoted as saying, 'Health and Safety are the two most dangerous words in the English language', and the aftermath of the Christchurch earthquake is a mournful illustration of the truth of his words.

In summary, the dreadful devastation of the 'Act of God' has cost much in terms of loss of life and property, but this loss is dwarfed by the terrible delays, confusion and extra expense caused by the consequential manmade losses. Confusion causes cost and the extra resource devoted to resolving the conflicting views of several well-meaning, well qualified and well-staffed agencies, all of whom have the best intentions, will have cost more in terms of cash and lives than the original event. Delay in returning Christchurch to the vibrant functioning business hub it should be is not an 'Act of God', it is a result of man's devotion to the flawed false 'God of Health and Safety'.

Below I give a very brief description of the physical losses, then describe how those two fatal words, 'Health and Safety', have effectively stymied our response to the losses, explain why, although we cannot say who the victims are, the loss of revenue to government alone has almost certainly cost more lives than the earthquake ever did and then, lastly, ask what reinsurance industry should learn from the Canterbury experience.

The Events are really bad
On September 4th 2010, as its residents lay sleeping and its streets were empty, the city of Christchurch and the surrounding area of Canterbury felt the effect of a 7.1 magnitude quake nearly 7 miles beneath the surface at Darfield, 25 miles outside the city centre. This was the first major quake since the Canterbury Pilgrims arrived in December 1850 to found the perfect colony designed in the common rooms of Christchurch, Oxford. It was huge and disruptive - nearly 160,000 claims for damage, a cost of nearly $7 billion for the insurance industry, but no one died. The city and the whole country were shocked and appalled, everyone knew that Wellington and Auckland could expect huge and deadly quakes but Canterbury, with its green parks and idyllic rural scenery somehow was thought exempt from the volcanic and tremor led activity typical of much of New Zealand. The whole country sits right on the Pacific Rim of Fire where tectonic plates collide.

There followed major aftershocks every month, (including Boxing Day), through to 22nd February when the deadly series of at least three day time major quakes, which were much shallower, (less than 4 miles), and right in the city suburbs led to 182 deaths, to most of the city centre being evacuated and closed, and to another 160,000 claims.

More aftershocks have occurred every month, with June 13th and December 23rd standing out as particularly severe. We have all seen pictures of the Cathedral in ruins but it is the extent and depth of the damage which is hard to communicate. About 190,000 houses needed repair (Christchurch has a population of 400,000). There were 18,000 Portaloos installed at the peak - many of them for several houses to share. Sewage, electricity and water systems all failed in parts and some services which are less obvious as well. Mobile phones were inoperable for hours as everyone tried to use a system which had itself suffered some damage. The hospitals suffered damage to most of their wards, (7,500 out of 11,000 beds in rooms needing repair), and found their generators were insufficient to cope. Canterbury University lost 2 out of 84 buildings, so escaped lightly, but it still made 24 staff redundant, spent $26 million on temporary accommodation and reckons it has a $346 million loss because it will have 19,000 fewer students over an eight year recovery period. About 28,000 people are thought to have moved out entirely. Perhaps less seriously, the vast majority of pubs and restaurants were in the central area and are still closed.

And then Health and Safety makes it all so much worse
The human story is dreadful in terms of lives disrupted, businesses destroyed and psychological damage in terms of a loss of confidence, an increase in doubt and uncertainty - a devaluation of the quality of life. But although all of these are clearly awful, sad and a cause of sympathy from the rest of the world, the way in which the city and country has reacted should be a lesson to all of us because the enormity of the human fault is greater than any fault of geology.

Why is the whole of the centre of the city shut? Why is virtually no-one demolishing buildings or building replacements? Not because of real and imminent danger, not because of lack of resources, but because humans have put up physical and legal barriers. It is not rubble that prevents access or stops the bulldozers and dynamiters, it is pieces of paper. It is not a failure to devote people to organising the recovery - there are 2,300 surveyors at work, nor is it an absence of government. It is 'Health and Safety' and too much government. No-one will be surprised that government is involved in organising, and everyone would expect to see the Police, the Civil Defence and even the Army involved in the emergency and in planning for the future events. Perhaps less obvious, would be the Earthquake Commission, (EQC), the Earthquake Recovery Minister, (EQRM), the Canterbury Earthquake Recovery Authority, (CERA), all of whom are involved, as of course is a very active Mayor, Bob Parker, and a City Council with which he is at loggerheads much of the time. The one thing they can all outbid each other on is putting 'Health and Safety' first because after 182 people died who would not?

Well, the answer is any rational being who looks at the facts. About 30,000 people will die in New Zealand this year and very few from earthquakes. About 400 will die from road accidents, about the same as have died from earthquakes in a hundred years, (about 500). The fundamental problem is that there is no spokesman for the person who is going to be killed next week, there are no votes to be won by preventing a death from drug abuse, there are no votes to be won by preventing suicides, and yet more than 500 New Zealanders will die because of self harm this year. Similarly 12,000 will die from heart disease or other circulatory disorders and many of these deaths are preventable.

What stands in the way is a lack of resources, and yet the Canterbury repairs will cost about $20 billion, and if an advocate existed who was interested in minimising the economic cost of reconstruction, it would have been done for half the cost. New Zealand's GDP over $130 billion and the affected area probably accounts for about 10% of this. Each year the city is out of action costs billions of dollars. But there is no effective advocate for minimising expenditure. The local insurers are bust, (AMI bailed out by the government, then sold), or deeply into the world, (mainly European), re-insurers, (claims around $2 billion from each of the IAG Suncorp and the government owned EQC), so have little real interest in minimising the costs.

The reinsurers are in London, Zurich and Munich and do not work together. There is no politician, party or union which will stand up and say, "If we spend money on preventing possible future deaths in Christchurch, (at an expected cost of $1 billion for saving one death per year), we will not be spending it on road improvement, (perhaps $1 million per death saved per year), education of our children to live healthier lifestyles, (perhaps $50,000 per quality adjusted year of life), our acute health care, ($1m per death postponed per year).

So, 'Health and Safety' could be said to cost hundreds of lives every year and to mean many children will grow up to lead unhealthy and unhappy lives. The evidence is obvious - the loss to the economy of closing the entire central business district is measured in low billions of dollars per annum - this translates directly into an immediate cost to the government in revenues. The excessive costs of reconstruction lead directly to higher premiums for all New Zealand households, a few hundred dollars at most per household, but again a direct cost in the spending power of each household and therefore in the GST, (Goods & Services Tax), they pay. Government expenditure on education welfare and health are all tightly constrained and in an easier fiscal environment would certainly be higher. But no-one stands up for the babies not yet born who would receive better pre-natal care, or can measure the resultant improvement in their lives and eventually their deaths.

This is the dreadful truth - our over reaction to the earthquake costs more in lives and misery for future generations than the event itself.

What should Re-insurers (and Retro-Cessionaries) learn?
What we should take to heart as a community are three things. Firstly, it could happen here and we should plan for a major emergency which renders much of Central London uninhabitable. It is very unlikely - pollution, terrorism and disease are all very low probability, (perhaps 1 in 10 million), and so not worth spending too much time on, even if we believed the recovery cost might be £20 billion. But the planning has a value for a range of lesser events and can also lead to improved day to day methods of working. Above all, the exercise of our rational faculties is easier before the event. Shock and horror are not conductive to a well thought out properly prioritised planed response in a crisis. We have not had a magnitude 7 earthquake since 1508 in the British Isles, but chemical and biological pollution are a frequent and predictable consequence of a modern industrial economy. It could happen here!

Secondly, in the event of a major emergency we should be clear who is in control. Preferably they should be unelected and clearly unrepresentative of any interest groups - the old Civil Defence organisation comes to mind. Whoever is selected should replace in their entirety all the local and have a direct line of command for all government services in the region, including for the duration of the emergency army, all utilities and all local government employees and sub contractors. The command line must be clear and his power unambiguous. The obvious answer is probably the Lord Mayor advised by a triumvirate of the Chief Constable, a senior army officer and the Chief Executive of a local council. The powers of the Crown and all power delegated to government departments and local authorities would rest in the Lord Mayor for the duration of the emergency. He would become the local dictator. The third element, which is the one tragically missing in New Zealand, is the Public Advocate who speaks for those not directly affected and for future generations. He should have a remit to look at costs and benefits and to make observations about the justification of any possible recovery plans. He should not have any power to decide anything, but a right and duty to observe, to counsel and to warn all concerned in the recovery effort of the consequences of their decisions on the country at large. He should quantify risks, look at possible alternatives and ultimately, if needed, publish his views. Ultimately his task would be to try to minimise economic cost and to suggest whatever would get the economy functioning again.

The sort of nonsense decisions which have gone on in Christchurch which do not stand up to elementary analysis of this sort is that the use of dynamite to demolish unsafe buildings has effectively been banned. This on its own has probably delayed re-opening the Central Business District by six months, and yet the chances of death or causing severe damage to other buildings are miniscule.

The message of Christchurch is that in any severe event, business interruption and consequential loss can be made an order of magnitude worse by failures of government. If we can learn this lesson we may one day be very grateful. Winston Churchill misquoted George Santayana in saying, "Those who fail to learn from history are doomed to repeat it".

What should we as Re-Insurers (and Retro-Cessionaries) Do?
1. Recognise Problem is Ours

Why is the economic loss a problem for re-insurers rather than just the insured loss? Simply because whenever a business (or an individual) has a loss they nowadays look for who is going to pay. The insurer is clearly the first line of defence, but suppose for instance you own a hotel and your business interruption insurance runs out after a year and your hotel costs $1m a week to finance and is empty for two years, what are you going to do? Well you could start looking for other people to pay your losses than your business interruption clause on your property insurance. For instance, if your foundations were the problem, what about the professionals who advised you? Your construction engineer, your surveyor or your architect may all be in your firing line, and behind those lie the insurers and re-insurers. So in this claim, if the building is re-occupied within a year, the claim probably stops at the property insurer, who is rather less likely to try to get recovery from other parties. If, because of delays in gaining access, permissions to enter or consent to planned restoration, the economic loss is increased almost certainly the insured (and re-insured) loss also increased, almost certainly at the cost of the reinsurers.

2. In Unity is Strength

Can we do anything to control economic losses as an industry? The answer is unambiguously yes. Firstly, we have direct control via policy wordings in some cases, but we clearly have indirect control via relationships with insurers who, in the case of catastrophe are likely to welcome any help, not only in controlling and minimising the claim, but also in helping organise a co-ordinated response. In a case such as Christchurch the EQC has co-ordinated almost all domestic repairs via contracts with a single contractor (Fletcher Construction) who have a very well organised programme using a series of specialist teams to complete the outstanding work in a logical and efficient manner. If the same approach were to be used for commercial insurances, the overall cost would be a lot lower, but of course the individual insurers are all in competition - both to service customers and to purchase services for re-construction. Claims inflation and delay is the result, much of it paid for by re-insurers. And yet these re-insurers are the obvious people to control the re-construction process because they are paying for it. They have motive, means and opportunity. The motive is to save billions, the means is to mandate either directly via wordings or indirectly via claims departments that in a catastrophe all claims are handled via a common office established by all involved re-insurers which will be responsible for commissioning surveys, tenders and reconstruction on behalf of all insurers involved, and be prepared if there are any insurers who are not re-insured to undertake this for them on an agency bases.

3. Establish a budget for claims minimisation

The primary aim of the office established will clearly be to get the claims assessed and settled as soon as possible but we need to recognise that it is not enough just to do the job. We need to be seen to do the job and to this end there is a crying need for information and for a sensible voice to be heard in favour of loss minimisation and welfare maximisation. So for any major catastrophe the re-insurance industry must be prepared for a PR budget and for engaging in the political debate on the side of those whose policies will keep down the cost of reconstruction. The argument for cost minimisation and for the fastest possible restoration of normal business is just not heard, and yet it is vital for re-insurers that it is. A few million dollars spend on establishing a press office and an information databank for local press would yield huge return. It should be a natural response to any catastrophe.

There is a tendency, entirely reasonable in most cases, for re-insurers to approach a claim from a policy wording standpoint, "is this claim covered in the wording?", "Has my re-insured paid out in accord with original terms?". Is it encompassed in the policy he has bought? I am putting forward the view that in any major loss the reinsurer should start from the top by modelling the whole claim and its control and development through to final payment and look for ways of controlling it. If we as an industry can help control the economic loss we will thereby reduce our claims cost.

Download our Group Newsletter

2012-04-19 00:00:00.0

NW Brown Group Newsletter Spring 2012

Star Shine Stroll - 19th May 2012

2012-04-26 00:00:00.0

The stroll is a fun 10 mile circular walk around Cambridge starting at 7pm from Shelford Rugby Club. Originally a ladies only event, men are also now able to take part. Fancy dress is encouraged - possibly the best pyjama party in town!

The Arthur Rank Hospice Charity is charged with raising over £1.3 million this year and heavily relies on the support of the local community to ensure patients and their loved ones continue to receive the best level of vital life enhancing care and support free of charge.

For further details go to www.starshinestroll.co.uk

Charity Skydive

2012-05-16 00:00:00.0

Their chosen charities are Alzheimer's Research UK, The Big C and Each. Carly and her colleagues will be grateful of any pledges through http://uk.virginmoneygiving.com/team/nwbrown

Thanks to the generosity of our employer, NW Brown Insurance Brokers Ltd, all of the costs of making the jump have been covered so any donations you make will go in full to our chosen charities. Any donation you care to make, no matter how small, will be hugely appreciated.

The Retail Distribution Review - Triumph of form over substance

2012-06-11 00:00:00.0

After the Wall Street crash Congress introduced a major piece of legislation to control the banking industry. The Glass Steagall Act was 33 pages long and for the next 60 years it worked really well. Everyone understood it, the courts interpreted it and almost every first year economics student could have told you what it said. Indeed some of them had probably read it. Short, to the point and effective it controlled the entire US Banking Industry and its relationship with its customers by dividing Investment Banking from Retail Banking.

Contrast this with the hundreds of pages of rules, and the thousands of pages of interpretation, which appear to be necessary to regulate the sale of a life policy to an ordinary UK resident and you may begin to get some perspective on the extraordinary detail which, completely unnecessarily, has become the norm for 21^st Century regulation in the UK. This is not because of Europe, not because there are huge problems (although there are some) and not in any way because the consumer of Financial Services will benefit (they definitely will not) but because lawyers have taken over the regulation of the activity of major areas of the economy including dominating the drafting of laws within parliament and regulatory bodies established by legislation In this particular case the FSA has evolved from the simple early legislation (The Prevention of Fraud Acts) originally written at the same time as Glass Steagall to the point where regulations today are written by lawyers for other lawyers to interpret. The whole process of regulation has become a game of lawyer versus lawyer and it is inconceivable today that any major financial institution will not have a legal department with qualified lawyers interpreting the laws and regulations laid down by parliament and
regulators. Yet strangely enough the miss-selling (Payment Protection Plan, 100% mortgages, Pensions etc) is greater than before we had the FSA and financial stability (banking crisis generally, Northern Rock, Icelandic Banks et al) worse. Why? Because lawyers writing rules that only lawyers can understand is a recipe for disaster. And disaster we have assuredly had.

The latest example, RDR, on the face of it is admirable in its intention. The road to hell is paved with good intentions. So is the road from Canary Wharf where our financial regulators sit. They want to do good. They mean to do good. They just do not have a clue as to the damage they do, and would really be sad if they knew the results of their current endeavours. Institutionally they believe that problems are solved by ever more detailed rules which proscribe the behaviour of which they disapprove. Curiously this tendency has been recognised by the FSA and its Chief Executive and an official return to principles based regulation was briefly espoused. The actual results of their endeavours have been to make a rule book so fiendishly complicated that even those who devise it forget what they intended and the actual results are so far divorced from the original problems that the net effect is almost without exception just another layer of
expense and the removal of access to any financial advice for a growing part of the population.

RDR and the Financial Adviser

The Financial Services Authority, almost as its dying act, (it splits into two new regulators this year) has under the innocuous title RDR (Retail Distribution Review) introduced a series of changes to the financial services industry which will profoundly affect every Financial Adviser and their clients. The changes enter into full effect on 1^st January 2013, but everyone must be fully prepared for them well ahead of this date. The changes will drive many Financial Advisers out of business.

The most obvious changes which affect every adviser are that the rules forbid commissions from insurance companies to advisers and that every adviser needs to achieve a particular level of professionalism. These two most prominent reforms will have no effect on most relationships (most revenue has been fee based for some time and many front line employees already hold level 4 or above qualifications) but there is a more fundamental change which is perhaps harder to explain. It is that the FSA wants a firm to be able to justify “Independence” in a much more robust and broad fashion than ever before. It necessitates two changes in the way in which advisers relate to clients.

The first affects many organisations. For instance NW Brown Group today comprises four regulated companies, each specialising in individual areas. Insurance broking has been regulated differently from Investment Management, which in turn has been historically very separate to Financial Advice. With the RDR requirements that a firm offering independent financial advice must be able to advise on everything from Pensions to Investment Trusts to Life Policies within one firm we need to change our structure. The route we have chosen is to amalgamate the company providing advice on packaged products today (NW Brown Financial Services Ltd) with that which does most of our Pensions business, the SIPP and ISA business plus all direct investments (Investment Trusts, Ordinary Shares etc.), NW Brown and Company Ltd.

The second is that we have to be very clear as to which client is buying what service from us and therefore we will look afresh at all our relationships client by client to ensure that we are offering clients the service they wish for. Because, under the new organisation, we can offer the whole breadth of services, we will take the opportunity of giving Financial Planning clients whose main relationship with us concerns investments to enter into an “Investment Management Agreement” whereby they give us limited discretion to manage their investments within an agreed remit. We will also, within the new structure, be able to settle and control transactions in any market more effectively for all of these clients as the combined firm will have ‘client money’ permissions only given to firms which meet higher capital requirements. The note below describes the various ways in which advisers might act for you in general terms and describes how “Advising” differs from “Managing”.

Note on Possible Relationships

There are four categories into which financial services performed in the UK by those authorised under the Financial Services and Markets Act may fall:

1) Advising

Where it is appropriate for you to receive advice the adviser will attempt to find out from you all the relevant information you are prepared to provide and requires before considering, in the light of your financial and family/ work etc. circumstances, whether they are able to give you advice which will potentially improve your future circumstances. This advice might cover a very wide set of possible outcomes, including potentially introducing you to specialist accounting, tax, trust or other professionals. In many of these cases the adviser will be able to advise that the services of another person (either within or outside the same group) may be suitable. If within the same group they will refer you to them without any recommendation or suggestion that they are the best provider. So, for instance, if within NW Brown we decided your assets were under-insured we would introduce you to a relevant NW Brown Insurance Broker who could talk to you about your problem but we would not recommend NW Brown Insurance Brokers Ltd as it is part of the same group. Any decisions to use them would have to be yours alone, and if you wanted we would provide names of other insurance brokers you could talk to. The regulatory burden surrounding advice is much greater and the adviser must show he tried to get all relevant information, and that his advice was appropriate given the circumstances. He will record why he decided to make the recommendations he made and why he expected you to be better off as a result. He will always charge a fee for advice, and he will, at the point he decides it is appropriate for him to act for you on an advisory basis, agree with you the terms on which he will act. Given the detail required the fee for a full examination of your financial circumstances is unlikely to be less than £1,000; before RDR many advisers would provide an initial session free in the expectation that the commission they would collect on sales to those who bought a product from them would pay for those who did not proceed.

2) Managing

Where it is appropriate you may wish to ask a firm to manage your investments for you. In this case the manager will take the decisions to buy and sell which he believes will reflect your desires and circumstances. He will regularly report to you and consult you on any major changes, and ask you to tell him if your circumstances change, but broadly speaking you will have delegated all day to day decisions to him. The regulatory burden here is similar to that in 1) Advising above as far as you are concerned but as far as the regulator is concerned the manager must have systems and controls internally to ensure that he is doing what he ought to under your agreement, that he is buying and selling and holding investments properly and for good reason and that his accounting and settlements systems are effective and regularly checked. This is a much more stringent control system for the simple reason that he is making day to day decisions on your investments and carrying them out on your behalf.

3) Execution Only

Here the adviser carries out business on your instruction. The regulatory burden here is that he acted in a professional way and chose an efficient way to execute your instruction. He can and should inform you of any relevant technical information and if he disagrees with your instruction he should give you his opinion as to the course you are proposing but he must be clear he is not advising. He will record this. This may seem like the easy and cheap way for most people to get what they want, and for those not prepared or able to pay for advice it is really all that is left. Ironically it is those who have the most financial knowledge who are probably most able and willing to pay for such services so the effect of the regulator making access to financial advice so much more difficult and expensive is likely to be that anyone with median income or below no longer gets any advice at all.

4) Other Non Regulated Services

Normally in association with providing 1) to 3) above, firms will offer Custody/Collection/Trustee or other associated services. Generally these lie outside direct regulation by the FSA. If you solely use these services they will be subject to individual agreement with you on agreed terms. There are some services we at NW Brown offer in regard to Mortgages and Child Care Vouchers which lie outside the scope of the FSA and there are also certain larger clients to whom the RDR does not apply because they are not defined as “Retail”.

Conclusion

The FSA pays lip service to cost benefit studies but has yet to come close to estimating either costs or benefits realistically. Most supposed cost benefit studies in fact have few if any numbers in them for the benefits, usually because it is fairly obvious that there are none. The idea of evidence based policy making has not penetrated Canary Wharf, and indeed the regulatory industry as a whole cannot afford to consider the consequences of their actions in any rigorous manner as it is patently the case that not only are there are no proportionate gains in consumer protection from the millions of words and billions of pounds spent, there is much evidence that consumers are paying through the nose for on average worse returns on their money than usual in the decades before the Financial Services Act was introduced in 1986.

Listed Living Prize Draw Winner

2012-06-19 00:00:00.0

Congratulations to Mr David Daynes who enquired about our services and was automatically entered into our free draw. A case of fine wine is heading off to Norfolk!

To be entered into the next free prize draw, please enquire about listed building insurance.

More details of our listed building insurance service can be found on our Listed Buildings page

NW Brown Summer Reception

2012-07-16 00:00:00.0

Marcus Johnson (Chief Executive) and Alan Kefford (Chairman) with Robin Pellew, Chairman of Cambridge Past, Present & Future

Insurance Brokers Jump for Charity

2012-07-18 00:00:00.0

Elizabeth Blower, Carly Nineham and Julie Fletcher of NW Brown Insurance Brokers have raised over £2,000 for charity.

Benefitting from the event were the East Anglian Children's Hospice (EACH), Alzheimer's Research UK and The Big C.

The NW Brown Group paid for the jumps so all money raised will be split equally between the 3 charities. In addition to meeting the cost of the jumps, the NW Brown Group has also made a donation to each of the charities, bringing the total raised to over £1,800. Carly Nineham commented "Doing the jump was a fantastic experience and we're grateful to NW Brown for ensuring that every penny we have raised goes straight to the charities".

Cambridge International Piano Series - West Road Concert Hall

2012-09-17 00:00:00.0

We are always delighted to support both established and up and coming musicians and the West Road Concert Hall provides the perfect venue for showcasing their talent.

For more information please download the Cambridge International Piano Series flyer here.

Gransden Show

2012-10-01 00:00:00.0

The show was well attended and we were delighted to see so many of our clients taking the time to stop by and chat with us. We also received a good number of enquiries from visitors wishing to know more about the range of services we offer, and much enjoyed being a part of a traditional local event. We are already looking forward to returning next year!

Gransden Show

2012-10-01 00:00:00.0

The Greek Tragedy

2012-10-03 00:00:00.0

Greece is disproportionately important to Europe and to the Euro because it is small enough to be experimented with. What is actually a huge question as to whether any of the large economies of Italy, France and Spain can co-exist within a common currency with Germany cannot safely be asked by either side – but they can discuss the problems of Ireland, Portugal or Greece because ultimately their fate, although important to their inhabitants, can economically be a matter of indifference to the rest of Europe.

To put the matter in its proper context, think of the Greek economy as being the same size as a good growth year in Germany. There are about 11m Greeks and the GDP is about $300bn. When the rest of the EU talks about how much the debt must be cut by, or how much the government must sell off by way of assets, the debate is much wider than just Greece – and if, as grows more likely, Greece is cut adrift from the Euro it will be as a dreadful warning to others that there are no easy answers.

The reason we seem to be heading for a New Drachma is that the Greek people are strongly resisting the disciplines necessary to cure the underlying problem – which is the government spends too much, employs too many and gets too little out of both. Populism of the left panders to this failure of popular will by claiming it is possible both to carry on spending and to remain within the Euro. It could just as well be of the right, either extreme can and do claim panaceas exist very easily; the problem only comes if the voters believe them and in Greece too many do. As a consequence every agreed stage of the recovery programme has been implemented late or not at all. Banks and bond holders have suffered huge reductions in the value of their debt, voted for ‘voluntary’ reductions in the amounts outstanding, and international institutions have provided massive loans. Somehow in the Greek parliament this is turned into Greece being a victim – rather than the poor lenders or the taxpayers in the rest of Europe being victims. With riots outside it is difficult for sense to be debated inside parliament even by those who know where the truth lies.

The consequences of the inability to focus on and cure the real problems is inexorably leading to a loss of authority of government, a flight of capital, and a situation where it gets harder and harder for businesses to function. Even in areas where Greece has superb advantages – such as tourism and shipping - the unreliability of public services from electricity to airports makes life very hard. There is an inevitability to Greek tragedy – and this one can probably be taken all the way back to the Colonels and the removal of the Monarchy, and it is hard to see how the final tragic act – that of the introduction of the New Drachma – can be avoided.

So on Drachma Day a three day bank holiday will be declared – probably starting on Friday and finishing the following Wednesday. The ports and borders will be closed by the Greek and neighbouring armies, the Navy will patrol the shore to destroy smuggling boats and the air force will deliver about €2,000 per head of the new currency (which will have taken De La Rue about 3 months to produce) to every town and city bank branch in the country. Exchange control regulations will make it an offence, punishable by confiscation, for Greeks to hold any euros for a period of some weeks after D Day. Foreign visitors will be limited to taking out or bringing in €1,000 in cash and any surplus will have to be deposited in New Drachma. The official exchange rate will be 1 New Drachma per euro and the Central Bank of Greece and all Greek banks licenced by it will convert all balances and loans in euro accounts held in Greek branches into New Drachma on D-day. There will be a period of one month for all cash notes and coins to be exchanged, after that it will be a criminal offence for any Greek citizen to possess euros on Greek soil without proof of their having been acquired in a legitimate manner. The Central Bank will for a period intervene in the currency market to prevent the value of the New Drachma rising above 1 euro but will not support it if it falls.

There have been suggestions that instead of printing New Drachma an endorsement or stamp could be applied to existing euro notes but unless every issuing bank agreed it seems unlikely that this would work – similarly suggestions that the banknotes issued by the Greek central bank should become New Drachma seems unlikely to work. It would also be completely unenforceable to try to confiscate external assets of Greek residents (although this was done in the UK that was under war-time conditions and even then was probably not 100% enforceable). All the Greek government can try to control is Greeks in Greece at the time of the split, and that will be hard enough given the land borders and sea channels which abound with possible routes to remove cases full of cash. It will be a military operation, possibly with the declaration of martial law, and given recent history civil commotion and substantial resistance must be anticipated.

Results

So what happens after the dawn of the New Drachma on D-day? There is an assumption that the New Drachma will fall very fast to a discount of about 30% to the euro so as to price Greeks back into world markets. Markets are funny things and nothing should be taken for granted but as the problem is caused by unsustainable levels of spending and income it seems likely that a sharp depreciation to a level where assets, income and exports all become much cheaper is inevitable. A further default on external borrowings is possible – but the possible contagion is probably containable by concerted international action to recapitalise the French, Cypriot and other European banks who would find their assets have depleted by the loss of nearly all the remaining value of their Greek lending. Greece would again be excluded from international markets and Greek government property abroad would be subject to freezing and confiscation. Greek airlines would probably be grounded by lack of credit and travel abroad for ordinary Greeks would become very different for at least a short period. Continued membership of the EU would be extremely difficult for a prolonged period – but eventually an accommodation would be reached with creditors and trading partners. If all international links were broken the consequences would be so catastrophic that some form of settlement would be reached even if extremists were in power in Athens. Eventually, no doubt, the tourists would return to the beaches and islands, the industrialists would exploit their new found competitiveness and a few years of faster than average growth would return unemployment and living standards to European levels. But this might take 5 years.

Conclusion

Greek tragedy is predictable – and the chorus normally tells everyone the truth but is ignored. The fact is that the euro is not the problem for the Greek nation – the tensions of today are symptoms of the underlying problem but all the actors are pretending not to know what the problem is. The government spends too much and collects too little in tax. New Drachma or not it must cut spending and increase taxes.

What Harold Wilson, the UK Prime Minister in 1967, did under similar circumstances was to carefully explain that the cuts in benefits, the reduction in subsidies and the pay freezes he imposed were the fault of the “Gnomes of Zurich”. This immortal phrase was of course complete nonsense – firstly Swiss bankers, and indeed those in the City of London who then, as now, were the best analysts of government policies are no more vertically challenged than the rest of us. Secondly, like Cassandra, free markets have a disturbing tendency towards telling the truth and a government whose bond is unsalable is one whose words are worthless. But what Harold Wilson really meant, and what the Greek Government should take deeply to heart, is that financial discipline and the economic reality that in the long term a government can only spend what it can raise by taxes is much easier to impose on your population if you can blame some abstract international body or bodies over which you have no control. The Greek people do not want to hear that it is their problem, and that they cannot have state jobs for their cousins and pensions for everyone – but if you tell them that Frankfurt, Paris, London – or even Gnomes in Zurich are the reason for fiscal rectitude they are much more likely to bear the pain and vote for you again. A New Drachma identifies the problem totally with the government of Greece, and civil disorder followed by a military coup are the most likely consequences.

There is no Euro crisis, just governments who pay too many too much. The Euro is the best solution for Greece or Spain or Portugal that they could possibly hope for. Like Ireland they can find a cure tomorrow and blame it on the necessity to stay in the Euro. Gnomes in Zurich, although perhaps more picturesque than Dealing Desks in Docklands, are nowadays better replaced by the Bundesbank and the IMF, but all are much better scapegoats than your own spending ministries and inefficient tax systems. The Euro is also the solution to the endemic problem of governmental overspending which lies behind the current crisis. All that is required is a simple credible and comprehensible fiscal rule. This is that if a government has a deficit of 4% in its spending this year then the salary of every state employee, the rate of every state pension, the amount of every benefit of subsidy must fall by 4% the following year. This rule is so clear and unambiguous that voters, politicians and civil servants will all know the consequences of their failure to keep their expenditure within their means will have direct personal consequences for them next year. Strangely enough, with such a rule deficits would disappear. At the 39^th Olympiad in 622 BC Athens suddenly became entirely crime free when Draco decided the time had come to impose rules of conduct with easily understood penalties for transgressors. With the 30^th of the modern series so recently on our screens perhaps the Greek Government should rip up plans for a New Drachma and decide the Euro is not the problem, but the solution – and it is from Athens and the 39^th Olympics they should take their lead. Tough firm rules with draconian penalties if they are flouted are the only cure, and the sooner the better. A New Drachma may be just round the corner but it will be no solution.

To view this issue of the Cambridge Business please click on the link below.

Cambridge Business September/October 2012 Issue 19

Art and Antiques Appreciation Evening held 27th September 2012

2012-10-15 00:00:00.0

From left to right, Clive Welch, antiques expert and valuer, Claudia Lambert, Julie Fletcher of NW Brown and Claudia's husband, Crispin Lambert of Lambert Bardsley Reeve.

Naked Wines Sales Director, Josh Lincoln with his Norwich based team.

Local business Naked Wines supplied an excellent selection of wines and staff were on hand to offer expert help with a light touch. As well as a cold buffet, a range of cakes baked by NW Brown staff were offered for sale in aid of the Macmillan Cancer Care Charity’s “Big Coffee Morning” Guests responded with their customary generosity and a useful amount was raised for the Charity.

Mary and David Colman, pictured with Sheila Kefford

Guidance on antiques was provided by Clive Welch, a fourth generation valuer and auctioneer with over 30 years experience. Clive examined and commented on a number of objects brought along by guests, discoursing in a highly knowledgeable and entertaining manner. Many clients went away richer in knowledge, if not always in pocket!

Barney & Katrina Philips look on as some of their items are subjected to expert appraisal.

Winter Hints & Tips Guide

2012-11-07 00:00:00.0

Follow the link below for some practical advice for some of the most common issues.

Winter Hints & Tips Guide

Burst or frozen pipes - the facts. An infographic by Home insurance specialists Ecclesiastical

Charity Donations

2012-11-21 00:00:00.0

Two members of NW Brown, Carly Nineham and Lizzie Blower, hand over cash and cheques to Beccy Turner of EACH.

The weather on the day of the jump was inclement, with an unfavourable combination of low cloud and gusting wind preventing any jumping until late in the afternoon. Our 3 employees, Lizzie Blower, Julie Fletcher and Carly Nineham, finally got to jump from the very last flight of the day. Thanks to an intensive campaign in the weeks before the jump the team were able to raise over £2,000 in sponsorship monies, which has been handed over to the chosen charities.

NW Brown & Co Director, Oliver Phillips, ran in the London Marathon this year and nominated The East Anglian Children’s Hospice (EACH) as his chosen charity. Despite not having run in a marathon before, Olly’s training paid off and he completed the course in a creditable time, raising over £2,000 for EACH.

Buying Insurance Online

2012-11-29 00:00:00.0

Insurance Broker offices had a 'shop front' for the policyholder to visit the office. A member of staff would provide a quote, confirm cover with a letter, and take the payment over the counter. Documentation would usually follow within the next month.

The emergence of direct providers and aggregators advertising financial savings from the late 1980's in call centres and late 1990's online (particularly with motor insurance) changed the way people bought insurance. General insurance products are now bought more often over the telephone or online although those with more complex requirements will always need to speak to a broker.

Brokers adapted in various ways, some leaving the motor insurance market altogether, or by offering niche products that required a more bespoke service,

There can be pitfalls in buying online when price is the main factor. Clients can often miss out because they may not understand the differences in cover for that cost saving. It may work out more expensive in the end. You need to make sure that you understand the covers you are buying, and more important - the ones you are opting not to purchase. In addition, if you don't read the small print carefully, you may be paying a higher excess than expected.

NW Brown Insurance Brokers are innovative at providing insurance products for the needs of our clients including tenants, landlords and listed building insurance.

Our Tenant's Insurance policy offers very flexible options for the specific needs of assured shorthold tenants who can buy a basic insurance package that covers them if they accidentally damage their landlord's contents, fixtures and fittings, This can help protect a tenant's hard earned deposit. The policy has a low excess of £100 for each and every claim. The tenant can add their own contents to the policy, including bicycles, laptops, freezer contents and specify items on their policy. The website makes it easy for tenants to buy cover to suit their own specific requirements. Premiums are very competitive!

We regularly conduct research to ensure that we remain competitive for the cover we provide. A recent review looking at competitors' tenants insurance showed that whilst customers could purchase for their own contents, they were unable to buy cover to protect them if they damaged their landlord's contents, fixtures and fittings from most providers, even with an offline request by telephone to check.

We launched our tenants insurance website in 2011 which is proving to be very popular. We work with Managing Agents who introduce their tenants to us by directing them to our website at https://tenantinsurance.nwbrown.co.uk/GetAQuote/ .

It is simple and easy to use, offering flexible cover from as little as £60.00*. The tenant logs on, selects their agent, chooses the cover to suit them and buys the cover online.

Tenants with increased pressures on their time can log on for a quote anytime with 24/7 access, documents arrive in an instant electronically, and their agent receives confirmation that they have cover in place for the Accidental Damage to Landlords Contents, Fixtures and Fittings.

In 2012 we started using QR (Quick Response) codes on all our leaflets to help direct Smartphone users to our website. With most people now owning a Smartphone and the number continuing to grow, QR codes have the potential to make a huge impact on buying habits in the future. At present approximately 10% of the visitors to our website use a mobile or tablet device.

Technology does not replace people, but it enables our experts to be accessible when you need them.

The Base Package provides £3,000 Accidental Damage to Landlords Contents, Fixtures and Fittings and £2M Personal Liability cover for £60.00. £100 excess & other terms and conditions apply.*

Additional cover can be purchased at additional cost.

*Correct at November 2012

If you would like to know more about our tenant's insurance please call 01223 720350 or visit https://tenantinsurance.nwbrown.co.uk/ContactUs/

Download our Group Newsletter

2012-12-10 00:00:00.0

NW Brown Group Newsletter Winter 2012

Goodbye Pensions, Hello IPSA

2013-01-04 00:00:00.0

Pensions existed for centuries for two main reasons – firstly, to get rid of faithful retainers who were past their sell by date (at any age) and, secondly, as a mark of gratitude for past service to the King, the church or the landed gentry.

The State traditionally also used pensions to buy off those who it removed from power in a non-fatal way or to reward meritorious service, but these were all one-off negotiated settlements, except for Naval and Army officers where it was contractual and intended to keep those concerned from offering their services to other nations.

In more recent times in almost all developed economies the State has become involved both as a provider and a regulator. Universal pensions for old age started, as with much other social insurance, with Bismarck who in 1899 established a pension scheme giving a retirement income from age 70, and this was also enacted in the British Isles in 1908. These benefits were means tested and intended to act as a ‘safety net’ to stop starvation rather than provide for comfort. In this role of acting to compulsorily transfer income from the young and employed to the old at a basic level the State does much the same today in the UK as it did in 1908 – but the level of the State Pension has risen and the age at which it can be claimed has fallen, and it is no longer means tested.

It is as a regulator of the private sector that the role of the State has expanded beyond anything ever envisaged and beyond anything which has any economic justification. Governments are right to have a safety net for the poorest in society but this is not age dependent. They are probably right to encourage individuals to save and invest when they are well paid and in employment to provide for any circumstances where they are neither. Again this is not age dependent. The government does both these things, and at all ages, but confuses the whole issue by putting in totally artificial distinctions (which would be illegal in the private sector) purely based on age.

It is time the government rid of age related discrimination with all benefits and savings rules. Effectively this means abolish the whole concept of pensions. In the private sector their intervention firstly to tax then to limit how much could be saved, both annually and in total, have come on top of detailed investment limits and a structure of control and reporting which makes the whole system more costly than any possible benefit.

Once upon a time the government had a simple view which said if you built up a fund tax free it did not matter as, one way or another, they would tax you when you received it as income, spent it or passed it on to your heirs.

Unfortunately, the consequence was so many saved so much that the pensions funds proved an irresistible target for the Chancellor of the Exchequer who, in the biggest secret theft of all time, took tens of billions of pounds out of everyone’s pensions schemes by the simple expedient of changing the Corporation Tax system from ‘imputation’ to ‘classical’ over a 6 year period starting in 1993. Such innocent words hid the change from a system where any earnings on ordinary shares were untaxed in Pension Funds to one where tax was paid. Because it was such an obscure change, and its impact took years to be felt, Mr Lamont, who first restricted the reclaims of pension funds, and all his successors had found a tax made in heaven.

Two things have followed – successive chancellors have vied to see how much more they can restrict reliefs previously given, and pensioners are collecting much lower pensions than they might have expected.

This is why we now have strict limits on contributions (to fall to £40,000 per annum in 2014/15), and on total sums invested of £1.25m. There are confiscatory taxes on surpluses when returned to companies or distributed.

Alongside this are fiendishly complicated rules on providers of all sorts, on companies to force them to contribute, and on what you can do with your money if you manage to save in this way.

So the time has come to forget pensions as a universal government sponsored, guaranteed and regulated form of income you collect at a specified age. Let us instead build upon another government initiative which arose from the completely non-political Meade Commission (1978) and a follow up from Mirrlees (2010) both of which point to towards the virtues of not taxing savings. (Or, the same thing put another way - only taxing spending). The academic case for neutrality in the tax system is unarguably good (and unchallenged) and the ISA is the (half hearted) response to this push for removing the incentive to spend rather than save.

If the chancellor were to announce an Integrated Pensions and Savings Account with exactly the same rules as ISAs, but limited in size to the sums of the current pension and ISA allowances (about £50,000 per annum) then he would at a stroke reduce the compliance costs of the private sector and the enforcement costs of the public sector very considerably – and to everyone’s benefit. He should allow all current pensions to be transferred into the new IPSA with no limits on either the maximum or on withdrawals, and should announce that all public sector pensions would be phased out with no more accrual of benefits to anyone – not even MPs or civil servants. Basically everyone would be encouraged to save at any age – but no-one compelled to or forced to stop on the basis of age alone. An upwards adjustment in pay for all public servants would be necessary for them to be able to fund their IPSA out of post-tax income – and one result of the reform would be that there would again be a level playing field between public and private sector jobs. It would take a brave chancellor to take on the life companies, his civil servants and his colleagues with index-linked non-contributory schemes all at one time – but perhaps we have one?

Any rational government would now call it a day – and just distinguish between tax free savings (IPSAs) and taxable. If pensions did not exist no-one would invent a form of state-sponsored saving with a 20,000 page rule book requiring 100,000 people to administer it. At worst the current system gives an illusion that most individuals will be able to retire on a satisfactory pension. At best it is an exceedingly over complex system which confuses almost everyone as to what they should expect. Goodbye pensions, hello integrated pensions and savings accounts.

You can view this article in Cambridge Business Magazine here.

How we can really prosper in 2013

2013-01-17 00:00:00.0

including the view that health and safety probably kills more people than it saves, that the government devotes almost as much effort to stopping the banks working as it does to saying they are not working properly, and that limited liability should not be given away with cornflakes.

I expect Cambridge to continue to be a boom city, certainly compared to the rest of the UK. Our academic, medical and technological world leaders continue to attract the best brains in the world.

The Autonomy effect, as several of those who made fortunes from their inspiration and perspiration try to reinvest in new companies, has at least a couple of years to run.

We have several problems which hold us back and my top 10 wish list mainly involves central and local government reducing controls and getting out of the way of enterprise:

1. Immigration: In a free market we would be bringing in the top students, researchers and technologists. The controls which stop this happening hold back all sorts of developments and push them elsewhere. This more than any other factor threatens the future of Cambridge, as it does the UK generally.

2. Drugs policy: The pages of the Cambridge News are too frequently giving evidence of the consequences of the populist policies pursued by far too many of our politicians at the expense of all of us.

From the PM downwards all those who have researched the problem know that the current policy fills the prisons, enriches criminals and encourages crime. Drug addicts need help, not punishment. Supply, regulate and control and take the violence out of Cambridge streets and car parks.

3. Tax: We have a tax system which penalises success and rewards failure. It is inevitable that it should do so at the personal level as no civilized modern society will let those who through ignorance or improvidence fail to provide for themselves, starve or die through exposure.

But by doing it at the corporate level by taxing profits to subsidise loss makers and uneconomic enterprises, the government destroys incentives to the detriment of may Cambridge enterprises, but worse, it leaves trading those who can compete only because of the subsidies and tax breaks they receive.

4. Banks: Even Cambridge needs banks to be able to finance trade and expansion. The government devotes almost as much effort to stopping the banks working as it does words to saying they are not working properly.

On the right hand it taxes them, fines them and asks them to have ridiculously high levels of capital. On the left hand it offers subsidies to lend to people it chooses, criticises for failing to lend more and tries to get them to expand into geographically and economically unattractive areas.

The only appropriate role for government here is as a regulator of size and solvency, and today it fails to do either well.

5. Industrial policy: If the government left enterprise and business to the private sector the Cambridge effect would spread much further and faster.

The government will never have an industrial policy which works, it is self contradictory and wastefully employs far too many sensible, useful people who could be doing real jobs.

The existence of grants and free or subsidised financing diverts effort into seeking subsidies rather than profits, to all our detriment.

6. Local government: We have too many tiers, too much detailed regulation of building, planning and development.

A Cambridge unitary authority which zoned areas for development and then left the developers free to do entirely what they wanted within those areas would enable better and more efficient use of land than the current confused and confusing detailed control structure.

7. ‘Elf and Safety probably kills more people by diverting resource from enterprise than it ever saved from injury.

There is a fundamental problem that no-one ever looks at the costs of new regulations fully or has regard to the fact that resources devoted to unnecessary form- filling are actually reducing the amount we spend on education, health care and other public services which really do save lives.

8. Limited Liability: Should be a privilege to be earned and not just given away free with cornflakes.

Company directors who preside over more than one company that legally steals from its creditors via bankruptcy should never again be allowed to be shareholders or directors of limited liability companies.

Protecting enterprises from competition is no role for government, but those who repeatedly take out artificial profits and then let their companies go bust are not businessmen, they are con artists and the government encourages them by allowing limited liability to anyone who registers at Companies House.

9. Competition: The government should have a competition policy which is objective and predictable. Any business with a market share above 5% in any industry should face a progressive monopoly tax.

The disadvantages to the rest of society of their monopoly power would thus be offset and their competitors would gain an advantage. A corporation tax of 2% on turnover which increased by 2% for every 1% increase in market share above 5% would be all that was required. And such a tax system would be very beneficial to new and smaller companies in Cambridge.

10. Infrastructure spending: Cambridge needs better rail links and better public transport but the majority of journeys will be private however much these improve.

At the moment cycling in Cambridge is widespread in spite of council policies rather than because of them. Road humps and traffic lights rarely accommodate cyclists.

The council encourages nimbyism with parking restrictions and road closures which impede its citizens more than visitors. All local councilors know we will have road pricing one day and Cambridge will not move better until we get it and the resources it will release for improvements.

To view the article on Cambridge News please go to http://www.cambridge-news.co.uk/Business/Business-News/How-we-can-really-prosper-in-2013-09012013.htm

Trina joins the board of NW Brown & Company Ltd

2013-02-05 00:00:00.0

She has been in the business 30 years and held senior roles at firms in the City of London as a fund manager and client director.

To read more about Trina please go to Trina's biography.

Finding the Perfect Tenant – “Trust but Verify”

2013-02-18 00:00:00.0

Recent research undertaken by the NLA (National Landlord Association) found that over 50% of landlords have experienced rent arrears in the last 12 months. Whilst there can be a variety of reasons why a tenant may have problems paying the rent, there are other factors that make a bad tenant such as landlords having their property damaged and anti-social behaviour etc.

Too many landlords are failing to make simple checks on tenants before handing over the keys to their rental properties. As a family business with a large portfolio of properties, we mainly target the DSS market and below are a few quick steps on finding a good tenant:

Where do you advertise your property?

It is worth placing an advertisement in the local press as a local advert is likely to attract those in the vicinity rather than further afield.

Go and visit the tenant at their property!

As landlords we always try to visit the prospective tenant at their current address, that way you can always get a picture of the state of their current property. When you initially speak with the tenant mention you want to meet with them at their current address and if they say no, or rush you off the phone, you can tell something could be wrong. What are they hiding? Visiting the tenant at their existing address can be the best reference you get.

Always think cautiously!

When tenants are in a hurry to move in or offer rent up front to secure the property without allowing time for the correct background checks to take place, it’s important to exercise caution. Approximately one in 20 tenants processed has one or more CCJ’s at an undisclosed address.

If your prospective tenant is stalling…

Most tenants are happy to co-operate if they have nothing to hide, holding up the process of moving into their rental property is unusual if everything is above board.

Some tenants do not appreciate being checked!

A recent case uncovered that the employment details of a prospective tenant were false. This tenant could have potentially slipped through the net because the referenced contact name was an employee of the company concerned doing a friend a favour. The application might have been successful if it were not for the fact that the prospective tenant couldn’t provide back statements showing salary payments.

Also as landlords we’ve heard the tenant say “I have been living out of the Country for 2 years” or “I have been living with parents” when in fact they may have left their previous property unannounced, in a mess and not paid the last months rent or indeed many previous months for that matter.

One company that combats this is www.tenantshistory.co.uk. The UK’s first tenant rated website that will give you address history of the tenant, contract dates, a rating from the previous landlord and their contact details should you wish to get a reference direct.

You could quite easily end up in a situation of not knowing who your tenant actually is!

Trust your instincts!

You may not want to be best friends, but still, any friction you feel up front could be an indication of things to come later down the line.

We suggest you do all credit checks you need but, as stated earlier, meeting the tenant in their current environment (if you can) is one of the most important checks and it’s is free of charge of course!

Furthermore ask for a home owning guarantor, it can be better than any amount of deposit you take or insurance you will ever buy.

Tracking a tenant’s exact history!

As mentioned above Tenants History Ltd (www.tenantshistory.co.uk) was set up 18 months ago and is a totally NO COST service to help landlords and letting agents identify troublesome tenants, whilst highlighting the good.

This unique “Rate a Tenant” website is being run from their London office by Mr Steven Hanbury, as an additional branch to his family's buy-to-let business, S&S Hanbury Properties Ltd. Mr Hanbury said his involvement in the rental business was behind the idea of offering a service that benefits landlords, letting agents and tenants.

Mr Hanbury added “Letting agents and landlords joining the scheme will simply be able to upload their tenants onto the Tenants History website and then “rate” the tenant when they have left the property. This in turn creates a footprint enabling landlords and letting agents the opportunity to view a tenants current and previous address history, dates of tenancies and a “rating” from previous landlords/agents. Also you can have access to contact the current or previous landlord/agent, should you wish to get a reference direct. Also our service doesn’t cost a penny, what have you got to lose?

It is useful to bear in mind that the history of a tenant creates more security for a landlord/agent when the tenant knows that their behaviour will be recorded and circulated.

Tenants History fully complies with the Data Protection Act 1998 and the I.C.O (Information Commissioners Office).

Please see our Terms and Conditions for more information on Data Protection.

Go to www.tenantshistory.co.uk

Article by Steven Hanbury, Director of Tenants History Ltd.

At NW Brown, you get more than just a Landlord’s insurance policy. You will receive exceptional insurance cover at the right price and will be in safe hands with our high standard of customer service - awarded 'Chartered Status' by the Chartered Insurance Institute.

We provide tenants with a policy that covers their liability for accidental damage to landlord’s fixtures and fittings.

Our dedicated claims team based in Cambridge is on hand to ensure claims are handled smoothly and efficiently with delegated authority to settle most claims in-house.

Also, if you are looking to invest and need a buy-to-let mortgage, we can help you there too.

Why Referenda are a bad idea

2013-02-22 00:00:00.0

It may not seem like an obvious question to pose but just occasionally the actions of our political leaders do lead me to ask exactly who won the civil war. Was it parliament – who had the organisation and the strong views, or was it the King who had popular support, emotion and divine right on his side. Conventionally we pretend that Parliament won and that representative democracy is the result. Those who did not believe we had gone far enough had round two in 1776 and split the nation into a Republic on one side of the Atlantic and a Kingdom on the other – but both maintained the principle of representative government.

It was this principle that the civil war (and indeed the American Revolution) were fought on. Sometimes expressed as ‘no taxation without representation’ and interpreted in slightly different ways on each side of the Atlantic, but for nearly 400 years the intellectual case for representative government has been unchallenged. Perhaps it is the long period of democracy which makes us so careless today but we should make no mistake – referenda are the antithesis of representative government and they threaten the foundations of our society.

The reason they do so is that there is a profound difference between majoritarianism, where the view of the majority is imposed on the minority, and representative democracy, where we select from amongst us individuals to sit in parliament (or Congress) to deliberate on matters of state and decide, in the full knowledge of the background and possible consequences (we hope), what the best course of action is. Not the most popular, not even that which was in their manifesto, but that which seems right at the time. As Churchill pointed out, this is a terrible way of governing ourselves – but every other way tried by mankind is worse.

In particular referenda are the weapons of choice for demagogues, despots and dictators. There are several ways in which this can be illustrated, but the underlying reasons are that if you choose the question carefully and select the right electorate at the right time you can probably get the result you want. Perhaps the best practitioner of the loaded question in recent times was Charles de Gaulle who used referenda to impose his vision of effective government on France. Wonderfully successfully – partly because if the French got the answer wrong he would first ask them again, pointing out that he was all that stood between them and chaos (“après moi, le deluge”). You could argue that in one sense De Gaulle was actually the embodiment of representative democracy – it was just he was the sole representative. But the same power was used by Hitler to take total control, and even occasionally by Stalin to give a veneer of democracy to his totalitarian regime.

The reason majoritarianism, or rule by popular prejudice, is always dangerous is perhaps best summed up in Dietrich Bonhoeffer‘s words “then they came for me and there was no one left to speak for me.” We are all minorities and a demagogue can always find a majority who will oppress a minority. All too often with a referendum he can define the terms and conditions so that a minority decides the fate of the majority.

A small minority of Scots are likely to decide on Scotland’s independence – as they did on devolution in both Wales and Scotland. It is perhaps worth noting that part of De Gaulle’s legacy is that half a million French in London get to vote – but not a single one of the millions of Scots outside Scotland will be given a voice. But the reason that the referendum is so useful as a tool for dictators is that not only is the electorate probably fixed but the question can be altered to give a positive message and deliver the desired result. The Scottish referendum will ask “do you agree that Scotland should be an independent country? “. This has been carefully chosen to contain a positive message. Independence is a positive word and no-one has ever proposed that Scotland should not be a separate country with its own legal and religious establishment under its own (but shared with several other counties) monarch. If the question were “Do you agree we should break up the United Kingdom, stop having British passports and replace the Queen by Gordon Brown or another old politician? “ the message would be rather less positive even though the net effect is identical.

Even in Cambridge you can see the corrosive effects of referenda at work – millions of pounds is being taken from city businesses as a result of a recent local referendum. Look at just how outrageous this result is: 33% of those eligible voted – of these 60% were in favour – so about one in five ‘businesses’ impose their will on the rest. If you look at prominent supporters you will find the majority will not even pay full rates or are taxpayer supported. If we assume that these again were 60% of those who voted in favour and on average they pay 50% of full rates then less than 10% of those who will pay for nearly £1m of administrators to organise others spending £2m to improve the city centre over the next 5 years in order to increase our pride and make us more welcoming as a City. A small minority were able to impose their will ‘democratically’ on those who will pay 90% of the cost. Such is the power of referenda!

It is perhaps divisive to point out that for most of this country’s history you would have found a majority in favour of witches being killed in horrific ways (as our transatlantic cousins were prone to do particularly in areas where “town meetings” had real power ). We would still have hanging, immigrants and other minorities of all kinds might have been persecuted and, of course, we would have banned imports from abroad. It is this last prejudice in favour of protectionism which will be exploited if we have a plebiscite on European Union, probably to the detriment of all of us and our fellow Europeans.

It is clear that Monet and Adenaur were doing ridiculously unpopular things when immediately after the second world war they started to try to reconcile the French and German peoples who had been at the middle of three cataclysmic wars within living memory. The popular vote will always be in favour of war; jingoism and nationalist fervour are easy to stoke up, difficult to quell. But the beauty of representative government is that by and large our representatives have managed to look beyond tomorrow when making decisions whether to remove restrictions on homosexuality or reducing tariffs on imports. Whilst most of us are quite cynical, and with reason, as to the judgement and motives of many of our political leaders we should all reflect long and hard before we put decision making directly in the hands of a population which has at best no competence or experience on most questions of economics or international relations and at worst is prone to wild emotional swings and subject to irrational prejudices which if allowed full rein would impoverish us all and lead us backwards to the instabilities of the last century. The only referendum we should favour is one to ban referenda forever from our country.

Investment Returns in 2012 and Prospects for 2013

2013-02-26 00:00:00.0

So the advice is to “enjoy these returns whilst ye may, you may not see them again for a little while”. It is therefore with more than a little surprise that I report below an increase in the return on Lloyd's syndicate funds in 2012. I am surprised, not only by the fact that they have risen, but also by the fact that, for a number of syndicates, they not only performed better than last year, but better than the average of the previous 3 years.

This is surprising because one year US dollar LIBOR rates, as shown in Figure 1 overleaf, have fluctuated around the 1% level, so any return well above that number requires explanation. The average return looks as if it will again be closer to 2% than 1%, across the market, which is a really good result if syndicates continue to have low duration, very high quality assets in their portfolios. Of course, syndicates which achieved 2% returns, by definition were not holding risk free one year government bonds, and the 25% of syndicates which exceeded a 3% average return were definitely invested in a somewhat more exciting manner. Either credit risk or duration (term) risk would have given higher returns in 2012 and those at the top end of the scale are likely to have had both. At the bottom, there are some portfolios with very low returns for the year in dollars. It is interesting just how widely investment performance now diverges between the top and bottom of the scale. Looking at Tables 1 and 2, the difference between the 10th and 90th percentile has widened in both currencies – the differences between the top and bottom this year were 6.2% in sterling and 3.6% in dollars. Last year, the differences were 4.2% and 3.1% respectively.

On average, the difference between the 10th and 90th percentile over the five years up to 2011 was 1.6% in sterling and 2.7% in dollars. This probably reflects a widening difference in policies and portfolios rather than more volatile markets. Syndicates all used to be invested in the same sort of securities, with similar risk profiles. They are now much less likely to buy the boring safe stuff their predecessors liked, much more likely to have delegated investment decision making to a committee and much more open to the guiles of various smooth talking advisers than ever before. In the year 2012, medium term bonds, equities and high yield bonds all gave double figure returns. It was a good year to take risk.

The problem for Names (and other capital providers) is that the syndicate accounts have become steadily more opaque when it comes to investment risk. There is no reason to believe that all managing agents have the capability to assess the investment risks which are being taken. Solvency II has made the assessment of risk by managing agent boards of directors both invisible and incomprehensible, so it seems highly likely that at some point soon we will see investment losses hitting the results of some syndicates.

By and large, 2012 was not a year when many investment managers could get it very wrong. Property was positive, government bonds were strong and taking bets on inferior credits or ‘high yield’ debt generally made lots of money. What we may discover to our cost in the near future is that even US and UK government bonds can lose you a lot of money when interest rates rise. Losses in excess of 20% or 30% on long government bonds, and even more on issuers with a high credit risk, are likely if real interest rates return to normal levels. That said, the proportion of such assets in Names’ syndicate portfolios is likely to be very low.

The prospects, therefore, are at best for low and falling returns on money invested for syndicates, and at worst you should brace yourself for the fact that, if a few syndicates managed to lose money in the relatively benign conditions of 2011, many more will lose a lot more when rates begin to rise again. The remarkable stability of short term rates at near record lows cannot continue for ever and those who ignore that fact are likely to get hurt. The long term average rate of real interest on both UK and US government debt is between 2% and 3%. If inflation is expected to be 2%, that means that rates will return to between 4% and 5% at some point. It will be good news for fixed income investors after that has happened but the process of getting there will be painful.

This article was featured in the Association of Lloyd's Members News, Issue No 1 February 2013.

GB Badminton silver medallist Gail Emms in Norwich to present latest SportsAid award to Norwich canoeist

2013-03-05 00:00:00.0

Gail won a silver medal in the Athens Olympics in the mixed doubles with partner Nathan Robertson. Since retiring from competitive sport, she has become a motivational speaker and has also appeared on a number of TV and radio shows including a Question of Sport, The Weakest Link, Ready, Steady, Cook and most recently on Saturday’s edition of Radio 5 Live’s Fighting Talk.

Gail will be presenting a SportsAid financial award to Lucy Lee-Smith, a 15 year old canoeist fromNorwich. Lucy is a member of the Norwich Canoe Club and is currently ranked British no 4 in the U16s 1000m sprint K1 category. In August she came 3rd in the K1 & K2 categories at the U16 National Championships.

SportsAid Norfolk runs a programme of lunches to raise funds for selected young Norfolk sportspeople who have the potential to go on to national and international competition, to help with their equipment and travel expenses that they normally have to rely on their parents for. Last year the lunches raised nearly £3,000. The lunches are sponsored by Norwich-based businesses oneonone communications, Howes Percival LLP, Davis Langdon, Lovewell Blake and Handelsbanken. They have been joined by new sponsor, financial advice firm NW Brown. The lunches raise money by holding auctions and raffles at the events in addition to the sponsors’ support.

Rob Davies, managing director of co-sponsor oneonone communications said: “The primary role of these lunches is to raise funds forNorfolk’s most talented sporting youngsters but they are always lively events that offer a fantastic platform for entertaining clients and networking. We are fortunate to always get high calibre speakers that you won’t get at other events of this type. Raising money that will directly helpNorfolk’s best young athletes is very rewarding and I would encourage otherNorwichbusinesses to come along and take a table and see for themselves what worthy events these are.”

Previous SportsAid lunches have attracted a host of acclaimed guest speakers such as Team GB hockey bronze medallist Chloe Rogers, Olympic silver medallist runner Jamie Baulch, Olympic Silver medallist rower Dr Alison Mowbray, GB javelin thrower Goldie Sayers, Olympic silver medallist swimmer Nick Gillingham MBE, Paralympic 800m gold medallist Danny Crates, Olympic 400m bronze medallist ex-England cricketers Chris Cowdrey and David Steele, ex-footballers Duncan McKenzie and Tony Cottee, Olympic gold medallist rower and Radio 5 Live rowing correspondent Martin Cross, GB long jumper and bobsleigher Jenny Pacey who is better known as Enigma from Gladiators and Norwich-based Observer columnist and author Will Buckley.

Any business wishing to take a table at the event should get in touch with Rob Davies on 07709 366310.

We are the approved insurance broker for the British Canoe Union. Our policies cover paddlers throughout the UK and Northern Ireland, and we can also provide cover for trips within Europe

For more information or a quote to insure your canoe or kayak, simply go to our canoe insurance page or call us on 01223 720 350.

Spring 2013 Market Review

2013-04-17 00:00:00.0

Spring 2013 Market Review

Download our Group Newsletter

2013-05-14 00:00:00.0

NW Brown Group Newsletter Spring 2013

Race Success for NW Brown Sponsored Driver

2013-04-16 00:00:00.0

Kane mastered the difficult conditions at Donnington Park to bring his Mini home in first place. Congratulations also to brother Damon Astin who was 7th in the Se7en class. For more details of the Mini7 racing club please visit their website http://www.mini7.co.uk/index.html. In car race footage can be found by following these links. http://youtu.be/FWiAzVUlr-A & http://youtu.be/5AjOEj7OEDc

For Kane & Damon it is back to the day job running their busy Cambridge letting agent Saint Andrews Bureau http://www.sab.co.uk/ . Good luck for the next round at Rockingham Raceway on 11^th & 12^th of May.

IHT - The Voluntary Tax

2013-05-07 00:00:00.0

By the time the modern system was introduced in 1894, the number of duties and taxes had multiplied to 5: a legacy duty, a succession duty, a probate duty, the accounts duty (an anti-avoidance tax on gifts) and a Temporary Estate duty. Since that time the basic principles of a progressive tax triggered by death have been unchanged, but successive Chancellors have continued to take steps to reduce avoidance by taxing gifts and tinkered with the tax status of various business assets.

One constant feature for well over a hundred years is the activity of tax advisers, and even many of the ways which they recommend to keep your hard-earned wealth away from the Chancellor.

The most obvious way of avoiding the burden is to leave the country and generally tax havens will neither tax your capital nor your income, but the process of leaving is fraught with potential pitfalls and tax authorities have no love of those who try to escape their clutches in this way! The next most obvious way is to give away what you can children and charities are often mentioned in this context (sometimes even by people other than children or those who work for charities) and as long as you stay alive long enough or do it in affordable dollops (out of ordinary income) you can give away everything you own. The problem is that you will then be dependent on children or charities yourself as a result. Past generosity does not guarantee future good treatment. Ask King Lear. The same effect can, of course, be achieved in terms of tax minimisation by spending the money on fast cars, fast living and slow horses and you will still end up dependent on children and charity. If you manage to spend it all you do not need a will, but for most people drawing up a will and considering what their spouse and other dependants will inherit is the first and extremely important step. Even if you plan to leave the country or give it all away you should have a will as the grim reaper may call before you have done this.

A somewhat more pedestrian approach to planning is to establish trusts to own various assets, and again this approach has been employed for generations. Unfortunately the Chancellor now takes a large share regularly and the net effect of much of the tax planning of recent decades has just been to give him a clearly defined pool of assets in which to fish. But trusts may even now have a place in planning, particularly for the care of the mentally or physically disabled. Just remember, the one certainty is that you will pay fees for putting trusts together, for running them and possibly then even more for taking them apart one day.

Today’s real bargains from the Chancellor are to be found in some very generous reliefs for business assets of various descriptions. So, added to the traditional home of farms and forests are various enterprises of which one chancellor or another has approved. Any serious business (but not financial, investment or property) attracts relief if it is in a private company. In addition a portfolio of stocks listed on the Alternative Investment Market (AIM) counts as a business asset with 100% relief. Portfolios of AIM shares can be constructed easily and as long as they are put together 2 years prior to death are 100% exempt.

For as long as it lasts it seems likely that putting substantial assets to work in a company which qualifies for Business Property Relief could be a sensible course and anyone whose estate is likely to be counted in millions should consider whether a trading company would be a good way to conduct their affairs.

With Corporation Tax at 20% the tax filter on profits is no longer as confiscatory as it became when the imputation tax system was abandoned. Anyone with a possibility of channelling assets into an enterprise of this sort should definitely consider how to do so and possibly give away a share of the company to heirs at the same time. The business should carry out a trade but trades such as development of property (not just holding it), insurance (via Lloyd’s) and trading in almost any non-financial goods will qualify. The principals do not themselves have to be active in the trade and quite often there are agents who are expert in a field who will carry out the business on their behalf.

There are lots of schemes designed specifically to avoid IHT, many involving bonds, often offshore, trusts and insurance. The main consideration with these is that they are an obvious target for the Chancellor. A secondary consideration is that whenever tax saving comes into the design of an investment product there are expenses. Clearly, as Chief Executive of a financial services firm, I like to see lots of fees going to advisers but in some cases the certainty of a high level of fees should be given rather more weight and the uncertain future gain rather less weight in the decision process.

My conclusion, after years of considering all sorts of alternatives for all sorts of clients, is that it is wise to consider giving away what you can easily afford at an early stage, and only when you have done this should you think about other ways of minimising taxes. The traditional period for gifts to become wholly exempt is 7 years but among other ideas for taxing gifts the possibility of taxing accumulated lifetime gifts in the hands of the recipient has waxed and waned so even if you knew exactly when you had an appointment with your Maker it is probably better to make any gifts at the earliest possible date. But keep enough for a nursing home in your declining years; you and your heirs will both feel better if you can look after yourself. If you have an income which exceeds your expenditure then giving away the surplus is simple and lies outside the lifetime gifts regime.

As far as elaborate schemes are concerned I observe that many either do not work or come at such an expense that one might question their efficiency. Exile may be effective but having seen many of those who move to sunnier climes return because they did not want to die abroad, missed grandchildren or wanted to have the NHS around them it might be as well to be absolutely certain that you really want to leave permanently before going too far down this route. The outstanding bargains in the tax saving arena are the business property reliefs and it is certainly worth considering how to maximise both the range of different ways you can achieve such classification for your assets and also how you can maximise the amounts in such ventures. Even AIM portfolios today can give a diversification and an asset base which was unavailable when the relief first came in because of the breadth and number of companies now listed on AIM.

Finally there are two very important points which are as true now as they were when the first estate duties were designed (the Romans certainly had them, but they probably go back at least to Hammurabi). The first is that it is a very easy tax to collect because death is difficult for the most avid tax avoider to hide. Secondly, it is the most painless tax to collect because the victims are not in a position to object, or really care too much. So death duties will not go away.

DO NOT

GIVE AWAY TOO MUCH

BUY TOO COMPLEX BONDS & SCHEMES

CREATE ARTIFICAL BUSINESS

OR BUY LEISURE FARMS

OR WALKERS’ WOODS

(ALL MAY BE DISQUALIFIED)

USE PRETEND CHARITIES

TAKE EXCESSIVE AIM POSITIONS

FAIL TO KEEP YOUR WILL UPDATED

IGNORE THE FACT YOU ARE MORTAL

OMIT TO BUY LIFE COVER IF YOU NEED IT

GIVE AWAY ASSETS

(PARTICULARLY FIXED ONES)

MAXIMISE BUSINESS ASSETS

GIVE TO CHARITY

CONSIDER AIM PORTFOLIOS

USE FORESTS OR FARMS

(HOPEFULLY PROFIT MAKING)

MAXIMISE SPOUSE RELIEF

GO ABROAD

(BUT ONLY IF YOU ARE SURE)

USE TRUSTS ONLY IF ADVISED TO

How employers can attract the best job seekers

2013-04-29 00:00:00.0

What our clients often find is that an attractive benefits package tends to bring in a better class of candidate as only those who are interested in the long term and stable employment place a great priority on pensions, continued income in sickness, life insurance and the other benefits found in a good package. The result of offering these is often disproportionate to the cost if it means better employees who stay with you longer. Today everyone tends to be focused on pensions because of the current reforms. Job seekers will often find a big difference in flexibility, contribution rates, and clarity of offering depending on how well structured and explained the new schemes are. Explaining the new rules to both employers and employees takes up much of Tracy's time, but doing this helps both the potential employer become more attractive and the employee to appreciate the value of the benefits package.

If you would like to discuss employee benefits, please contact Tracy Beadnell, Corporate Financial Adviser at NW Brown & Company Ltd on 01603 692755 or at tracy.beadnell@nwbrown.co.uk

Kane Triumphs Again

2013-05-14 00:00:00.0

In very challenging conditions Kane fought off all comers to maintain his 100% record in this year's championship. The next races are at Silverstone on 8th/9th June. For more information visit the Mini7 website http://www.mini7.co.uk/index.html

Flood Risk - The Implications for Investors

2013-05-15 00:00:00.0

Statistics from the Met Office show that we have had four out of the five wettest years on record since 2000, with only 1954 being the exception, and overall rainfall is increasing.

When the worst happens you will expect your insurer to cover your losses and get you back to normal as soon as possible. In 2102 policyholders claimed £1.19bn for flood and storm damage with the average claim being £18,200. Insurers paid out even more in 2007 with losses tipping £3bn with 185,000 claims made. This cost is likely to rise in future years of heavy rainfall, and looking at the trends over the past 50 years (table above) rainfall is on the increase. Source - Insurance Times 18-24 April 2013

Rainfall is not the only factor. More homes continue to be built on floodplains putting not only the new homes at risk of flooding, but neighbouring communities too that had previously been protected by these natural defences. Hard landscaping has improved the look of our homes, however concrete drives, block paving, even new roads have all prevented the ground from absorbing rainfall. It has to go somewhere, and runs off the surface increasing the impact to neighbouring land.

Homes near the sea are also affected, such as the flooding in Boscastle in Cornwall in 2004 with costs reported at £50M. A £6M scheme to reduce flood risk to Lincolnshire has just begun, 60 years after the East Coast Floods of 1953. http://www.thisislincolnshire.co.uk/Thousands-homes-protected-6-million-coastal-flood/story-18881855-detail/story.html#axzz2StrONe7Q

Statistics

12% of England’s total land area is floodplain, accounting for 8% of all properties**
Development of the floodplain between 2001 and 2011 was 12% compared with 7% outside the floodplain.**
** www.parliament.uk/briefing-papers/SN04100.pdf

We need to consider the impact of building on floodplains. Developing a small area of floodplain may not be considered as a major impact on flooding. You may think that your neighbour paving over their previously grassed front garden would have minimal impact but the accumulative affect cannot be ignored.

Insurance

Property and business owners will buy insurance cover to protect them. It is important to ensure that you buy the right cover to meet your individual needs. You should also be aware of the terms and conditions applied to your policy, including definitions of flood and the excesses that apply. This year the way insurers provide cover for flood may change.

What is a flood (in insurance terms)?

The Financial Ombudsman states ‘that a flood does not have to be a sudden and violent event’ and that ‘flooding can happen where water enters (or builds up in) a property slowly and steadily’ It does ‘not necessarily have to be caused by the forces of nature…water escaping from something inside a property could be the cause of a flood just as a river bursting its banks can.’ The Ombudsman’s main concern is the ‘fact that water has built up and caused damage’. Damage caused in this way is normally known as a peril ‘escape of water’. The Ombudsman states that they ‘think this definition of a flood is in line with consumers’ expectations’.

It is important to note, that insurers do not always define ‘flood’ within their policy wordings. Many simply state that they cover ‘loss or damage by flood’. It would also be important to consider the meaning of a 'change in water table' to flood claims, could it potentially exclude cover for all floods?

Case study – Oxford Floods 2012

There is a claim that has recently been declined following the floods in Oxford in November 2012. The insurer declined the claims due to the exclusion in their policy wording - due to a 'change in the water table'. The owner of the property has now begun to repair the damage estimated to be more than £50,000 himself.

The insurer's opinion is that the damage was not caused by the flooding but by ‘gradual seepage’ through the tanking over a period of time as the surrounding water levels fluctuate. Having sought expert advice from both the architect and builder, they believe this is not the case and the tanking is 'up to the job'. The Loss Adjuster also made this comment based upon the original specification for the works.

A similar claim for flooding at the property was made in 2007 and paid in full. It appears that the drains were unable to cope with the pressure of excessive quantities of water. There is much photographic evidence in the Oxford press during November and December 2012 including this report http://www.oxfordtimes.co.uk/news/10073937.FLOODS__Neighbours_trapped_as_busy_road_is_engulfed/, which states the situation was much worse in 2012 than in 2007.

We believe that this claim should be upheld, and based on the evidence we have it fits the Financial Ombudsman's view on the definition of a flood.

Rohan Investments v Cunningham (1998)

Rohan Investments v Cunningham (1998) was upheld by the Court of Appeal, although initially declined because the insurers’ opinion was that it was not a flood. Water entered the property following 0.5 inches of rain following a blockage in the roof drainage causing 3 to 4 inches of water flooding within the premises. The cause of the water entering the premises may have been a blockage, however this did not prevent the ingress from being a flood. Lord Justice Auld said "flooding may or may not result from such weather extremes [as storms and tempests]" adding that "it is the water that enters and damages the property that is important, not the area or depth of flooding outside that counts".

http://www.financial-ombudsman.org.uk/publications/technical_notes/flooding.html

June 30th 2013 - Statement of Principles

In 2008 an agreement between the ABI (Association of British Insurers) and the government was put in place known as the Statement of Principles. It is due to expire on June 30th 2013.

It currently enables home owners, property owners and small businesses to buy insurance with flood cover at affordable premiums, with a condition that the Environment Agency would ensure preventative flood measures are provided. Unfortunately due to lack of government funding this has not happened.

As we go to press the ABI and the government are in talks over a proposal for a new scheme that will continue to provide affordable insurance to those at high risk. Homes and businesses built after January 1st 2009 are not protected by this current agreement.

What happens if a new agreement is not reached?

If a new agreement is not negotiated, insurers would have several options available to them. Decisions on providing cover will probably go to the open market with some insurers declining to cover high risk areas, with other insurers offering cover but applying terms that may include a high excess. Some may exclude flood cover altogether. Insurers may also require other measures, such as risk improvements including flood defences or resilient reinstatement after a claim.

Financial Impact

If a property owner accepts a large excess for flood (or indeed any other cover) they need to consider the impact this may have on them should an incident occur. Whilst they may perceive the risk to be low, in a year of high rainfall the financial impact could hurt. It is worth understanding that an insurer will have data that supports a decision on applying terms, such as previous claims, flood defence information, etc., and therefore the policyholder should understand the risk.

A competitor’s landlords insurance was shown to us by a client considering moving at renewal. The premium was very competitive for a home in a flood area, however the terms included a flood excess of £4,000. Would a policyholder have this amount in savings should a flood occur? The insured may also find themselves a victim of more than one incident and should also factor that into considering the affordability of accepting a high excess.

Whilst we are in recession it is understandable for policyholders to wish to purchase cover at as low a premium as possible, but they must ensure they read the terms and conditions and ensure that they can easily afford the impact of the excess.

Mortgages and property prices

Lenders will normally provide finance on a property on condition that insurance covers risks including flood, storm and escape of water damage for the property. Some homes may not be suitable for a mortgage if flood insurance is unavailable, or if the terms are too onerous. This has an added impact on an investor wishing to sell. If insurance is not readily available it restricts the ability to find a buyer perhaps depending on cash buyers, probably affecting the sale price.

Landlords renting out their properties will need insurance cover, since most tenancy agreements require cover to be in place as part of the due diligence of the letting or managing agent. All costs, including insurance premiums have an effect on rental yields. Combine potential lower yields with an impact on capital growth in a property, impact on investors could be damaging.

Solution

Hopefully a solution will be agreed upon before the June 30th deadline, and flood cover will continue to be widely available at affordable premiums. The ABI has proposed a levy of around £8 per home on an insurance policy to create a £150m a year flood fund to cover those at high risk. They also need the government to provide additional funding such as an overdraft facility to assist in cases of severe and extreme flooding however at present the government is reported to being reluctant to do this.

Providing insurance cover is only part of the picture. Investment in flood defences and risk management is required. Whilst we are living in lean times, prevention is important not only for financial reasons but also to prevent the devastating impact on those experiencing floods. Scotland’s example of flood management might be worth looking at.

Scotland - a demonstration of good practice?

Scotland had its highest rainfall in 2011 since 1910, however no major floods have been recorded. Winter rainfall increased between 1961 and 2004 by over 50% in the West of Scotland.

The only areas in Scotland suffering serious flood damage since 1994 are Moray and the Borders. Scotland's management of flood has involved Flood Liaison and Advice Groups (FLAGs) that work with insurers and other key stakeholders including property developers, landowners, water authorities and land use planners to manage flood risk. This has proved invaluable in stopping floodplain development, providing Scottish planning authorities with advice and forming best practice.

The only area that refused to establish a FLAG was Moray. Development continued in the flood plain, and now many residents are finding difficulty obtaining flood insurance due to the serious flood issues in the area.

Scottish legislation also ensures resilient reinstatement after a flood or storm, including risk improvements and preventative measures such as putting electrical sockets higher up the wall, and the fitting of plasterboards horizontally rather than vertically.

Those of us thinking we will always be safe from floods should be aware that as rainfall increases and the floodplain is developed this may not always be the case.

Written by Debbie McIntyre Cert CII

NW Brown Insurance Brokers Ltd

http://www.nwbrown.co.uk/insurance/

The CISI welcomes NW Brown as the 100th Corporate Supporter

2013-05-15 00:00:00.0

This means that the firm has agreed to endorse the CISI Code of Conduct, link staff career progress to relevant Institute qualifications where appropriate and support staff to take CISI exams and engage in CPD.

Based in Cambridge and Norwich, NW Brown is particularly known throughout East Anglia as a discretionary portfolio manager, but also offers a comprehensive financial and retirement-planning service, along with advice to companies on employee benefits.

Corporate Supporters are offered exclusive analysis of employee performance and progression in CISI exams, from benchmark level to higher, more complex qualifications. In addition, they are able to use enhanced tools to log the CPD of staff who are CISI members.

NW Brown Chief Executive, Marcus Johnson, Chartered FCSI, said that the benefit to the firm of becoming a Corporate Supporter was both "immediate and substantial".

"The CISI system allows our compliance officer to keep a much better track of the professional development of all our staff, and saves huge amounts of time for highly qualified investment managers in recording their progress," he added.

To read the full article please visit http://www.cisi.org/bookmark/genericform.aspx?form=29848780&url=87071247

Price Bailey closes Financial Planning

2013-05-17 00:00:00.0

“I deeply sympathise with the situation of professional firms offering Financial Planning post RDR. The Price Bailey decision to restrict themselves to ultra high net worth individuals is completely understandable.

We have made no secret of the fact that reducing consumer choice and making financial advice more expensive for those who can afford it is not in the public’s best interest.

When we took the decision to ensure all our staff achieved the necessary qualifications and went through the considerable changes required both to our internal organisation and to our regulated businesses to continue to be able to offer independent advice within the new framework, we knew that not all our competitors would be able to do the same. We take no pleasure in seeing such well established names who have offered independent and expert advice for years withdrawing from the market.

We have welcomed several new advisers who wished to continue to offer independent advice over the period since RDR was announced. We continue to meet experienced and well qualified advisers who may wish to join us in the future."

The Price Bailey announcement can be seen at:

http://www.ftadviser.com/2013/05/13/ifa-industry/advisory-companies/price-bailey-shrinks-advice-team-after-bellpenny-deal-EHC8SH9VP5S6tGLv9mofrO/article.html

Aston Martin Event 08 May 2013

2013-05-17 00:00:00.0

Guests had exclusive access to the Aston Martin showroom to browse amongst the luxury cars and take a test drive in a Fomula1 Car Simulator.

Marcus Johnson of NW Brown opened the event by welcoming all of our guests. Tim Glanville-Smith, Aston Martin franchise manager, talked about the Aston Martin Garage in Harston. Gary Sorrell talked about the Aston Martin brand and upcoming celebrations for their centenary year. Joanne Sewell of Penhaligons’ in Cambridge spoke about the luxury perfume brand and her favourite fragrance, Bluebell, which transports her back to her childhood & walking in the bluebell woods.

The Cambridge charity benefiting from our support is EACH – East Anglian Childrens Hospice. Debbie Fairhurst talked about the services EACH offers to children and parents and the importance of raising awareness and funds for this local charity.

Raffle prizes included use of an Aston Martin for day, a complimentary fragrance experience at Penhaligons’, a case of fine wines, and £250 of vouchers from Marks & Spencer.

The raffle raised £550.00 which will be presented to EACH at the Aston Martin Garage – Harston later today.