The April 2006 cover story - Academia nuts’ - detailed a breakthrough for financial advice as a profession, with the inaugural graduation ceremony for more than 600 advisers, who were the first to be awarded chartered status.
The quest for chartered status was (and still is) not for the faint-hearted - a gruelling 1,360 hours of study, 34 exam hours and five years’ industry experience. Perhaps in 10 years’ time, chartered will be the minimum standard instead of the benchmark.
As of October 2014, the number of chartered advisers had grown to 4,303, with RDR clearly encouraging advisers to push on from the minimum level 4 qualification and not only stand out from the crowd but offer more value to clients. Perhaps the universally accepted benefit of RDR has been the need for better qualified advisers.
Throughout the issue was a smattering of information about the newly proposed National Pensions Savings Scheme (NPSS). Proposed by Lord Turner, the idea constituted the early rumblings of auto-enrolment. This obviously has since been implemented, with many smaller companies still working towards staging dates.
Elsewhere, Norwich Union (now Aviva) was offering free guarantees on with-profits bonds… yes, free guarantees. This was before many insurance companies implemented around a one per cent annual charge for the privilege. On the fifth anniversary, growth promised to match RPI as a minimum for both onshore and offshore investments. As deposit interest was solid due to a BOE base rate of 4.5 per cent, these guarantees were designed to tempt consumers into longer-term vehicles with a safety net, should markets not perform. This would later prove invaluable, especially after the global financial meltdown in 2008.
Even in 2006 with-profits funds were listed as ‘out of favour’ with a ‘tarnished reputation’. However, although not as prevalent, the funds are still available today and favoured by many investors.
Finally, a special supplement outlined all the changes arriving with A-day, which at the time represented the biggest changes to the pensions landscape in generations.
In other news…..
Paul McCartney and Heather Mills announced plans to split after four years of marriage.
The first serious organised crime prevention agency, dubbed the ‘British FBI’, was created in the United Kingdom.
‘Crazy’ by Gnarls Barkley was number one.
A dog-sized rabbit terrorized the north-eastern village of Felton, by ravaging prize vegetable gardens.
