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Morfitt & Turnbull

Issue 6   

Mulligan's Medal Moment!
I think it's safe to say that we all got some of the Olympic fever over the summer and I was lucky enough not only to witness one of the events in London but also to meet an Olympic legend of years gone by, the rather suave Roger Black and his silver medal!!!

There are the marquee events such as the 100m final however I found that taking in a sport I had never seen before was going to be considerably more educational – the obvious choice was therefore the beach volleyball and I have to say there was much to be learned...

            I hope you all enjoyed it as much as I did!!!!!

Feedback feedback feedback... Yes we still want your views so test your memory skills for this latest poser:

What was the one thing that initially attracted you to using or recommending M&T?

Please reply back to on this or any other aspect of M&T.


RDR - does that stand for Really Delicious Recipe???
Sadly (for my ridiculously sweet tooth especially) there is no chocolate cake being baked in honour of this article or even a hearty steak and ale pie (or nut roast for the vegetarians amongst us), but there are many ingredients going into the mix that will bring about the financial services industry's Retail Distribution Review that will change the way advice is given from January 2013 - yes that's only 4 months away!
So does this mean that M&T will be changing? Well the terminology will change but in essence we will continue to provide quality advice and service in exactly the same way as we have been doing for the last 40+ years.

Let's look at some of the changes then:
  Advisers will be called either "independent" or "restricted". At M&T we have looked into this thoroughly and have chosen to be restricted – we will still operate on a whole of market basis for all of the areas we advise on, it is simply that we won't advise on all areas (as is the case now!).
  All payments to M&T for investments and pensions will be called "fees" and the term "commission" will no longer exist. It is still possible for payments to be taken from monies invested or to pay via a separate cheque.
  Policies set up for protection purposes, e.g. life assurance, are excluded and will still pay commissions.
  Product and investment fund charges will be detailed explicitly compared to the current bundling of all of this into one annual management charge.
  A new client agreement will need to be signed when any business is transacted by M&T after 1st January 2013.
There is no cause for concern and you are safe in the knowledge that M&T will be more than ready when RDR kicks in. Feel free to contact your Adviser with any questions on this - and look out for more information later in the newsletter about the RDR and how it could affect you now!

In the meantime if you want to bake a chocolate cake and send it in, I would be most grateful...

Adam's Technical...
Money for nothing, i.e. the kids & grandkids!
An increasing trend at present is the way in which children are constantly a drain on parents' pockets… erm I mean how parents are, of course, being noble and providing solid support for their little ones (even when they are still in their 20s and 30s!!!). Adam gives some pointers to consider for such situations…

Due to the changing world we are living in the financial support that the young require is increasing the demands on parents. This money can be needed for a variety of purposes, e.g. a deposit for a first home, to pay for education or simply to build up to provide some peace of mind.
When saving for children or grandchildren, as with most forms of investing, it is better to do so sooner rather than later whether it is regular savings to take advantage of the inevitable ups and downs of the stockmarket or investing a lump sum on day one to potentially benefit from the compounding effect of returns over time.

If you are a parent or grandparent thinking of investing it is important to consider the degree of control and flexibility that is required. It is also important to look at how any such investments are taxed.
In regards to tax, a child is treated in the same way as an adult. A child has the same tax-free personal allowance for income tax purposes and also has a Capital Gains Tax exemption of £10,600 (tax year 2012/13). The only exception to this is when a parent invests for their child and the income generated is over £100 in a tax year. In this scenario it would be taxed based on the parent's rate. Therefore, this is an area of planning where grandparents investing can be at an advantage.
      There are a many ways to invest, e.g. a Junior ISA, an investment placed in trust or simply designating an account for the benefit of a minor. Some of these options relinquish your right to the money immediately whereas others allow you to retain control. There are pros and cons for each of these and it really is about talking through your circumstances and deciding on the most appropriate route.

Investments for others can also be used as an Inheritance Tax planning tool. Up to £3,000 can be given away each tax year and fall outside of your estate immediately and gifts of up to £250 are also allowed to other individuals, which are also immediately IHT exempt.

Lots to think about there so if you would like to discuss it further 'phone Adam on 01565 624370.

Gareth Says... 
Enhanced bond allocations - get them before they go!!!
As we have detailed above there are changes afoot as part of the RDR and here Gareth highlights goes a stage further by highlighting one change that you may want to look at now...

"With the RDR being introduced from January next year, the way that M&T set up Investment Bonds has to change. From next year the extra monetary amount we have added in the past to your investment by rebating commissions will no longer be available. By taking our standard 3% initial payment means the maximum allocation will be 97%, i.e. a significant reduction.
If you have capital that you are looking to invest into this type of arrangement please contact your adviser at M&T within the next couple of months in good time before the end of the year."

Staff Matters - clever clogs!
It's always nice to congratulate achievement and we are no different here at M&T. So it's with great pleasure we can announce that our IT developer/website designer, Alex Safavi, who has been doing work for us since the ripe old age of 16, has now graduated with a 1st in his Master of Arts with Honours Economics degree from Edinburgh University. And continuing on that theme the new M&T website will be relaunched early next month with further information in the next newsletter.
No less impressive is the fact that all of the advisers here at M&T are fully qualified as necessary to ensure we comply with the RDR regulations in that respect.


No. 1 Booths Park, Chelford Road, Knutsford, WA16 8GS
Tel: 01565 624 370   Email: 

Morfitt and Turnbull (Management Services) Limited 
Authorised and Regulated by the Financial Services Authority.
Registered Number 740613 England

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