Worker compensation insurance rating bureau news.

A key Japanese minister has resigned after admitting he failed to pay into the national pension scheme.

Yasuo Fukuda, chief cabinet secretary, was a close adviser to Prime Minister Junichiro Koizumi and was also seen as a possible successor.

He is one of seven ministers to have admitted skipping payments, though two others said they would not resign.

The scandal comes as Japan’s Government struggles to maintain public confidence in national pensions.

The national scheme is under threat because, while there are increasing numbers of pensioners, many Japanese fear paying into a pension will not afford them full benefits when they retire because there are relatively fewer young people to contribute.

The BBC’s correspondent in Tokyo, Jonathan Head, says the fact that so many politicians have not kept up their contributions will make it all the more difficult for the government to push through the reforms necessary to keep the pension scheme afloat.

YASUO FUKUDA Son of former Prime Minister Takeo Fukuda Longest serving chief cabinet secretary - appointed in Oct 2000 Earned reputation as slick public relations expert

The resignation of Mr Fukuda is also a major personal loss to Mr Koizumi.

He has been the government’s chief spokesman, and a key ally and adviser to the prime minister, for the past three years.

“I am ashamed of myself for having undermined the trust of the nation as a result of the non-payment of pension premiums,” Mr Fukuda told a press conference.

“I would like to apologise for having intensified distrust in politics due to an inept response on my part as the cabinet’s spokesman,” he said.

Mr Fukuda admitted last week that he failed to make payments for a total of 37 months, from February 1990 to September 1992 and from August to December of 1995.

He said that the payments failure was not deliberate, but that he stopped payments when he changed jobs, thinking he was covered under a different scheme.

“The system was very complicated, and I regret my misunderstanding of it meant that I didn’t make the payments,” he said.

Widespread scandal

Other ministers who have said they also skipped payments include Finance Minister Sadakazu Tanigaki and Financial Services Minister Heizo Takenaka.

Mr Tanigaki said he had no plans to resign, while Mr Takenaka said Mr Koizumi had asked him to stay on, according to Reuters news agency.

Mr Koizumi’s administration is not alone in the scandal. The leader of the main opposition Democratic Party of Japan, Naoto Kan, has also admitted failing to pay contributions in the 1990s when he was health and welfare minister.

Mr Koizumi himself has said he has kept up to date with the mandatory payments.

Most Japanese employees have their contributions deducted automatically from their salaries, but politicians, students and the newly unemployed must make the payments themselves.

Either deliberately, or by accident, about 40% of the 18 million self-employed people and students aged 20 or older did not pay the obligatory premiums for the National Pension System in fiscal 2002, according to the social insurance agency.

It is not clear how far the scandal will affect the ruling Liberal Democratic Party’s coalition in Upper House elections next month.

Not enough seats are being contested to threaten the government’s majority, but a poor showing could nevertheless be damaging for Mr Koizumi.

Whatever the election result, the scandal is likely to hinder the government’s plan to reform the pension scheme.

The bills call for raising premiums every year to 2017, while reducing benefits.

Originaly from Source

Former Manchester City player Ray Ranson says he has made an offer to buy the Premiership club.

Ranson, who is a former City full-back, has yet to receive a response from the club’s board and is currently considering making a further proposal.

Multi-millionaire Ranson, 46, is said to have made a 90m offer for the club.

City, whose chairman John Wardle is thought keen to sell, have issued a statement to the Stock Exchange saying they are in talks with possible buyers.

Ranson issued a statement to the Stock Exchange which also revealed he is yet to receive a positive response and is currently considering making a further proposal.

The statement read: “Ray Ranson can confirm that he is interested in buying the club and has, over the past couple of months, made indicative proposals to the club concerning a possible offer.

“Ray is yet to receive a positive response from the board to these indicative proposals and is currently considering making a further proposal to the board of the club.

“Ray recognises that the club is heavily indebted and his business plan is not dependent on leveraging the club further.

“Together, Ray and his partners have developed an operational plan for the club that is aimed at taking the club forward to the next level of its development, both on and off the field.”

Ranson’s approach for the club is backed by a UK-based financial partner. The identity of this financial partner has already been disclosed to the board.

City manager Stuart Pearce last week indicated a deal was getting closer for the club.

606: DEBATE I like the idea of an ex-player being involved, just hope it’s not going to be another Franny Lee EW

But his statement triggered a movement of shares that did not go down well with the Stock Market, forming the basis for City’s statement this morning.

As they are currently in an Offer Period, a City spokesman will now be required to read out a short statement to the media prior to every press conference, ensuring there is no repeat.

On Monday reports claimed former Thailand prime minister Thaksin Shinawatra, who failed in a bid for Liverpool in 2004, was interested in buying City with partners from China and the Middle East.

And the club has also been linked with a buy-out from American investors.

Ranson’s reported bid on Monday evening was said to cover the club’s shares, loans of about 24m to major shareholders Wardle and David Makin - who own 29% share of the club - and debts to other creditors.

He is thought to have the backing of other businessmen and prepared to provide a transfer kitty of around 20m for new players.

Ranson, who also played for Birmingham, Newcastle and Reading, made over 200 appearances for City, where he started his career.

The 46-year-old multi-millionaire made his fortune from insurance and from football finance and has also invested in football analysis company Prozone.

He made two bids for Villa before the Midlands club were bought by American billionaire Randy Lerner.

If City were to change hands they would become the fifth Premiership club to be sold in the last year.

Portsmouth, Villa, West Ham and Liverpool have all been taken over by foreign investors since last summer.

Originaly from Source

If you have a complaint about a savings product or investment, who can you call? There are a number of organisations that can help you.

The BBC is not responsible for the content of external internet sites and can not guarantee the quality of service you will receive.

The Association of British Insurers

The Association of British Insurers is the trade association for the UK’s insurance industry, representing around 400 companies.

Association of British Insurers
51 Gresham Street
London
EC2V 7HQ

Tel: 020 7600 3333
Fax: 020 7696 8999

Council of Mortgage Lenders

The CML represents the interests of mortgage lenders in the UK

Council of Mortgage Lenders
3 Savile Row
London
W1S 3PB

Tel: 020 7437 0075

Ethical Investment Research Service

The service researches corporate behaviour and provides information to potential investors.

Ethical Investment Research Service

80-84 Bondway
London
SW8 1SF

Tel: 020 7840 5700
Fax: 020 7735 5323

Factors and Discounters Association

The FDA represents the interests and activities of those companies that provide factoring, invoice discounting, and other forms of asset based finance.

Factors & Discounters Association
Boston House
The Little Green

Richmond

Surrey

TW9 1QE

Tel: 020 8332 9955
Fax: 020 8332 2585

Financial Ombudsman Service

The Financial Ombudsman Service provides consumers with a free, independent service for resolving disputes with financial firms

Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR

Tel: 0845 080 1800
Fax: 020 7964 1001

Financial Services Authority

The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.

The Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS

Tel: 020 7066 1000

Financial Services Compensation Scheme

The FSCS may pay compensation if an authorised firm is unable to pay claims against it.

Financial Services Compensation Scheme
7th Floor
Lloyds Chambers
Portsoken Street
London
E1 8BN

Tel: 020 7892 7300
Fax: 020 7892 7301

General Insurance Standards Council

The council is the watchdog established to set, monitor and enforce standards in all areas of general insurance, including the fair treatment of customers.

General Insurance Standards Council
110 Cannon Street
London
EC4N 6EU

Tel: 020 7648 7800
Fax: 020 7648 7808

Information Commissioner

The commissioner is responsible for enforcing the law regarding data protection and freedom of information

Information Commissioner
Wycliffe House
Water Lane
Wilmslow

Cheshire
SK9 5AF

Tel: 01625 545 745
Fax: 01625 524 510

The Institute of Chartered Accountants

The Institute of Chartered Accountants is the largest professional accountancy body in Europe, with over 125,000 members.

Institute of Chartered Accountants in England & Wales
Chartered Accountants’ Hall
PO Box 433
Moorgate Place
London
EC2P 2BJ

Tel: 0207 920 8100

The Institute of Chartered Accountants of Scotland

The Institute of Chartered Accountants of Scotland represents accountants in this part of the UK.

CA House
21 Haymarket Yards
Edinburgh
EH12 5BH

Tel: 0131 347 0100
Fax: 0131 347 0105

Institute of Financial Planning

The Institute is the professional body that represents those involved financial planning.

Institute of Financial Planning
Whitefriars Centre
Lewins Mead
Bristol
BS1 2NT

Tel. - 0117 945 2470
Fax - 0117 929 2214

Investment Management Association

The Investment Management Association is the UK trade body for the professional investment management industry.

IMA
65 Kingsway
London
WC2B 6TD

Tel: 020 7831 0898
Fax: 020 7831 9975

Office of Fair Trading

The OFT protects consumer rights and ensures that business compete fairly

Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX

Tel: 08457 22 44 99

The Trading Standards Institute

Trading standards provide consumers and businesses with information on their rights.

The Trading Standards Institute
4/5 Hadleigh Business Centre
351 London Road
Hadleigh
Essex
SS7 2BT

Tel: 0870 872 9000

Originaly from Source

The Co-op’s insurance service is to cut 2,000 jobs over the next two years.

The Co-operative Insurance Society, headquartered in Manchester, said 2,500 jobs would be lost in a restructuring designed to modernise the business.

They will go over the next 18 months to two years, but at the same time 500 new customer service positions are to be created, it said.

The CIS said it was responding to substantial changes in the market to ensure its future profitability.

It has not finalised what positions will be axed but it is expected that staff at its Manchester headquarters and salesforces across the country will both be affected.

The CIS has already cut 130 jobs so far this year. The Society declined to say what savings it expected to make from the move.

Established in 1867, it currently sells life assurance, home insurance, pensions, unit trusts and other financial products to more than 5m customers.

Consumer trends

In recent years, it has been affected by increased competion in the financial services sector.

It has also been slow to respond to a growing trend for consumers to buy financial products via the internet or telephone rather than directly from a financial advisor.

We need to take action now to ensure a vibrant, successful and sustainable future for our business Mervyn Pedelty, Co-operative Financial Services

Following a comprehensive review of its business, CIS is to focus on enhancing customer service and improving the efficiency of its salesforce. It will also explore selling products from other providers.

Mervyn Pedelty, chief executive of the CIS, said its overall financial position was strong but changes were needed to better serve its customers.

Growing competition

He said: “CIS is not immune from the intensifying economic and competitive pressures occurring within its core markets and we need to take action now to ensure a vibrant, successful and sustainable future for our business.”

Unions representing CIS staff said they were “deeply disappointed” by the scale of job losses proposed.

In a joint statement, the ACTS, Amicus, Naco, Unifi and Usdaw unions said they would seek to ensure that redundancies were kept to a minimum.

“We register our opposition to compulsory redundancies and aim to minimise job losses and maximise the use of measures such as redeployment, retraining opportunities and, where appropriate, voluntary redundancies,” they said.

CIS is one of the Co-op’s largest operations, employing 9,000 staff. It recorded a long term surplus of 900m in 2003 and 1.97bn in premium income.

Originaly from Source

Cosmetics firm Avon is recruiting 20,000 sales agents, who may help it sell financial services door to door.

As well as the usual lipgloss and perfume, consumers may be offered life and car insurance and credit cards.

The Financial Times reported that Avon was negotiating with potential partners for a marketing push in 2006.

However, an Avon spokeswoman later told BBC News that no negotiations had taken place but that it “may go down that route in future”.

The firm, which made profits of 18.6m last year, plans to add to its 160,000 agents over the next five years.

Female market

Jerry McDonald, president of Avon UK, said that selling financial services to the firm’s large number of female customers could prove profitable.

Women often enjoy lower life insurance and car insurance premiums than men, because they are safer behind the wheel and live longer, yet many financial service providers find it difficult to tap into this market.

However, Mr McDonald added the firm would remain primarily focused on supplying beauty products.

“Our competency is beauty, and that is where our strength will remain,” Mr McDonald said.

Avon’s move could buck a trend that has seen the number of people selling financial services door to door shrink dramatically.

In 1990, 200,000 people sold insurance door to door, today only a few thousand do.

Insurers and other financial services companies have found it cheaper to market by phone, or by direct mail and the internet.

Originaly from Source

Israel’s cabinet has given its blessing to sweeping cuts in both social services and defence in an attempt to stabilise a gaping budget deficit.

The 10bn shekel ($2.2bn; 1.4bn) cutback takes the government’s 2004 budget to 257bn shekels.

The move, agreed on Tuesday morning after a marathon 18-hour meeting, follows a similar belt-tightening exercise for the current financial year.

But the cuts have triggered deep divisions within the cabinet, as a phalanx of powerful ministers - backed by Prime Minister Ariel Sharon - forced Finance Minister Benjamin Netanyahu to scale back much of his plans to slash the defence budget.

The burden is to fall instead on welfare and education.

And the new spending plan still has to pass three votes in the Knesset, or parliament - a process that held up last year’s budget for weeks.

In the meantime, Israel’s economy remains in a parlous state, gripped by a three year recession which has coincided with ballooning security spending in the face of bloody conflict with the Palestinians.

The effect has been to squeeze tax revenues and inflate the budget deficit to as much as 6% this year.

For 2004, the government is basing its projections on 2.5% growth and a 4% deficit - described by credit agencies as a tough target.

Jockeying for position

Originally, Mr Netanyahu had planned to cut defence by as much as 3bn shekels.

Defence spending is seen by Sharon as sacrosanct

But But defence Minister Shaul Mofaz made sure that the prime minister - a former general - was onside to prevent that, and Mr Netanyahu transferred much of the burden to an across-the-board 5% fall in national insurance payouts instead.

Mr Mofaz still voted against the budget’s lower defence spending cutback, along with eight others in the 23-member cabinet.

Among them were the five ministers from the secular Shinui party, demonstrating the split in Israel’s polity caused by the government’s need for minority party support.

Without the votes of the ultra-Orthodox Jewish parties, the Likud party government of Mr Sharon cannot hold a majority.

The Shinui ministers are angry that Mr Netanyahu refused to cut back on subsidies to religious councils and the services they deliver, although they have stepped back from threats to collapse the coalition over the issue.

Vice Premier and Industry, Trade and Labour Minister Ehud Olmert also voted against the budget, having told Mr Netanyahu over the weekend that the plan failed to do anything to encourage growth and employment, both stagnant at best.

And Education Minister Limor Livnat was another rebel. “I could not vote in Parliament for this budget, which in effect means the collapse of our education system,” she told Israeli radio.

Originaly from Source

The head of Lloyd’s of London, the insurance market, has criticised Britain’s financial watchdog, the Financial Services Authority (FSA).

In a speech on Monday, Mr Prettejohn urged the FSA to force brokers to disclose the size of their commissions.

“The FSA should change, and change now” said Mr Prettejohn, who wants it to move from “disclosure on request” to mandatory disclosure.

The call came in a speech on improving the London insurance market.

Call for action

“The FSA should not bide their time and ‘wait and see’. They should seize the moment,” Mr Prettejohn, Lloyd’s chief executive said.

The FSA took over regulation of the general insurance sector in January, but it sidestepped calls to require brokers to disclose the commissions they earn from insurers to their clients.

Last week, the City watchdog gave brokers and insurers guidance on managing conflicts of interest. Brokers must give information on their commissions if, and only if, their customers request it, the FSA said.

US probe

In the US, lack of transparency about brokers’ commissions has led to problems. The world’s biggest insurance broker Marsh & McLennan said last week it would pay $850m to settle charges, raised by New York Attorney General Eliot Spitzer in October, that it sought to rig bids in conjunction with insurers.

The probe centred around so-called contingent commissions, whereby brokers were rewarded according to how much business they brought to an insurer, an arrangement that did not always benefit brokers’ customers.

All of the insurance business written in the Lloyd’s market is placed via brokers.

Originaly from Source

Some insurers and financial advisers are failing to treat their investors fairly, according to the City watchdog.

The Financial Services Authority (FSA) said insufficient advice and “variable quality” after-sales service was being given to with-profit policyholders.

In particular, the FSA was worried that after-sales literature was jargon-heavy and missed out key information.

The FSA warned insurers and financial advisers to up their game or face enforcement action.

Poor after-sales information for these and other policy types makes it harder for consumers to understand the performance of their policies Sarah Wilson, FSA

With-profits are one of the most widely held of investment types.

There are some 32 million with-profits policies currently in force.

With-profit funds invest in the stock market but smooth out investment returns by holding back money made in good years to pay out in bad ones.

Literature letdown

Crucially, the FSA found that many policyholders no longer had access to the adviser who sold them the policy in the first place.

As a result, they have to rely on post-sales literature from the insurer.

Often this literature is not up to scratch, the FSA said.

“Poor after-sales information for these and other policy types makes it harder for consumers to understand the performance of their policies and the product features they have paid for,” Sarah Wilson, director and insurance sector leader at the FSA, said.

“Senior management in both insurers and advisory firms need to re-examine their existing approach and, where necessary, implement changes,” she added.

Originaly from Source

South Africa’s programme to open ownership of the country’s firms to black investors needs to be reviewed, finance minister Trevor Manuel says.

Mr Manuel told the Financial Times that both “good and bad, cynical and genuine” black economic empowerment (BEE) deals had been done.

BEE is meant to correct apartheid-era inequalities by making businesses transfer stakes to black-led groups.

But it has been accused of benefiting a small group of wealthy black investors.

Many of the biggest deals have gone to consortia whose members include people with links to the ruling African National Congress, sparking accusations of favouritism.

‘Insurance’

In his interview with the London newspaper, Mr Manuel acknowledged the criticisms, saying that some businesses had complied with BEE rules more for the sake of compliance rather than in order to genuinely spread control.

He quoted a friend involved in several BEE deals, who - he said - had been told that he was there to act as an “insurance policy”, rather than to be involved at all in running the business.

“There will have to be a review,” Mr Manuel told the paper.

BEE has been a centrepiece of South African economic policy under President Thabo Mbeki.

In 2006, the policy was renamed “broad-based black economic empowerment” and a code of conduct was unveiled.

But Mr Manuel said there were still elements of the policy which needed further examination, such as the rule which allows companies to stay in compliance even if the participating BEE enterprise sells on its stake.

Originaly from Source

The teaching of personal finance in schools may be rolled out nationwide after trials were deemed a success.

For the past three years, 300 secondary schools have been teaching personal finance issues such as managing credit.

A report from Brunel University said the scheme had proved to be an aid to financial awareness.

The Personal Finance Education Group (PFEG) wants lessons in all secondary schools, but said new funding was needed to extend the scheme.

Funding

In total, 150,000 secondary school children have received personal finance education on subjects as diverse as budgeting and starting a small business.

At 18 years of age, young people need to be able to resist seemingly tempting credit card offers Professor Linda Thomas, Brunel University

Up until now the scheme has been funded from contributions from the banking and business community.

However, if personal finance teaching is to roll out nationwide schools face having to pick up the bill for lessons.

Alternatively, the government or corporate UK will have to dig deep to fund lessons.

More than 80% of the teachers surveyed in the evaluation of the scheme agreed that personal finance education amongst pupils had improved.

Eventually it is hoped to expand the teaching of personal finance education into primary schools all with the aim of arming school leavers with sufficient financial knowledge to encouraging saving and the avoidance of debt.

“At 18 years of age, young people need to be able to resist seemingly tempting credit card offers and be able to buy the kinds of financial products - mortgages, insurance, pensions -, and take the kinds of risks, - that suit them,” Professor Linda Thomas, of Brunel University said.

Originaly from Source